Research On The Private Enterprises Strategic Philanthropy Based On Competitive Advantage

With the deepening of globalization, corporate social responsibility has become a hot issue of common concern around the world. As an important part of corporate social responsibility, philanthropy has become an important way to fulfill social responsibilities and realize the sustainable development for enterprises. Private enterprises have become the main force of Chinese charitable donation with high enthusiasm, and will develop faster and faster in the future.Most private companies want to improve the external image and reputation through charitable donations, and win social recognition to improve business performance. But compared with some multinationals, it is difficult to improve increasingly fierce market competition environment, and private enterprises can’t gain sustainable competitive advantage through charitable donations. Strategic philanthropy can effectively achieve win-win economic and social benefits, and can help companies continuously improve in all aspects of competitive advantage. The defect of current philanthropy management system and the lack of philanthropy culture are the two major external obstacles during the development of charity programs for private enterprises. It is difficult for traditional corporate philanthropic to achieve strategic transformation.In this paper, we first study the status of private enterprises charitable donation. After analyzing the necessity and feasibility of strategic philanthropy, this paper describes the relationship between strategic philanthropy and competitive advantage, and discusses the mechanism of enhancing competitive advantage. Then explore the factors that influencing the strategic philanthropy. Based on the theoretical analysis to establish the strategic evaluation system through expert questionnaires and AHP, the results show that the highest evaluation is the enhancement on advantages, followed by the resources and cultural advantages. Finally, we evaluate philanthropic activities of company G and find that G needs to improve philanthropic project. This conclusion can effectively help private enterprises to recognize their own positioning, make the implementation of strategic philanthropic project more reasonable, and only by this way can help private enterprises walk out of the plight of philanthropy development.