Dynamic Competition Of Charitable Behavior And Enterprise Value

Under the continuous changes of the economic environment,the external environment of enterprises is changing from relatively static to dynamic,which promotes the development of dynamic competition among enterprises.This kind of competition pattern that appears in the form of constant“attack-response” will make the sustainability of the competitive advantage of the company continue to decline,which makes the company have to explore more new channels to create new advantages while increasing its current advantages.They found that competition in the fields of traditional products,production factors,and prices could no longer meet the needs of rapid development and market competition.At the same time,with the continuous change of social responsibility and values of the public and government agencies,the stakeholders of the company began to turn their attention to the fulfillment of corporate social responsibility.Enterprises also realized that while undertaking social responsibility,which is also a channel to enhance the enterprise image and market expansion and to succeed in dynamic competition.On May 18,2017,the financial industry released the “2017China Private Listed Companies' Rich Report”,which included the implementation of social responsibility for the first time in the evaluation system of listed companies,those companies that rank top in the Chuangfu Report because of their excellent performance in social responsibility,their business conditions are good,and the stock price is rising.The value of the company has been affirmed by the market.In the process of practice,charitable donations have developed rapidly as an important form of social responsibility.The donation field has been continuously expanded,and the resources and models of donation have become increasingly abundant,which has gradually become an inevitable choice for enterprises to gain competitive advantage.At the same time,the relationship between charitable donations and corporate value has also attracted the attention of many domestic and foreign scholars.However,most of the existing researches focus on the results of corporate social responsibility,that is,the impact of corporate social responsibility on corporate value.Rarely there are studies that focus on how to do charitable behaviors to achieve strategic results.That is,what kind of charity behavior can arouse the public's goodwill? Are all charitable acts positively contributing to corporate value? Are the philanthropy effects of companies with different good intentions the same? These issues are still worthy of further investigation.Moreover,the current philanthropy of Chinese enterprises is still not mature,and it is in its infancy.It will be more practical to study the relationship between the specific charitable behaviors of typical representative enterprises in China and the strategic effects.Therefore,this paper analyzes the dynamic competition and effects of the charity behaviors of the two companies in 2017 by mainly using the event research method and Ali and Jingdong as the case study objects.At the same time,using the statistical method of coding,starting from the three dimensions of "leading","long-term and national" and "planning",the strategic characteristics of the charitable behavior of the case enterprises are studied,and analysed the cause with the results of the event research method.The study found that charity has become one of the most important non-market activities of Ali and JD.Ali and JD have “competition” in the field of philanthropy,and the philanthropy of the two companies is “leading-responding” dynamic competition;the dynamic competition of charity affects the value of the enterprise.The strategic effect of charitable behavior is influenced by the strategic characteristics of charitable behavior.The charitable behavior with long-term,national and planning characteristics is more conducive to the increase of corporate value.The research shows that purely charitable acts aimed at combating competitors cannot effectively enhance corporate value.Winning charity “competition” should pay more attention to the way of conducting charitable acts,and it is essential to carry out strategic management of charitable acts.