Research On The Donation Behavior And Effect Of Suning Commerce Group Based On Reputation Mechanism

Corporate donation is an act of supporting social welfare by funds or other ways,and it is also an important way for enterprises to fulfill their social responsibilities.In the West,corporate donations can be traced back to the 17 th century.After several centuries of exploration and development,the Western corporate donation system has been relatively complete.In contrast,the donation of Chinese enterprises started late,and it was still blank before the 1980 s.Until the reform of state-owned enterprises,enterprises became aware of the donation.However,due to the limitation of the institutional environment,they failed to form a system.Until 2008,the total amount of corporate donations in China reached nearly 40 billion reaching the peak of history,and corporate social responsibility has truly been reflected.For this reason,2008 was marked as the first year of Chinese corporate social responsibility.According to the data on corporate donations in China,the amount of donations from private enterprises occupies half of the country's and has become the first pillar.However,private enterprises are the existence of private ownership of property rights.Their business goal is to pursue profits,while donations require enterprises to give resources to the outside world without compensation.Therefore,this paper selects typical representatives of private enterprises and analyzes that whether corporate donation can realize value-added and how corporate donations generate value effects through reputation mechanism.This paper firstly discusses the performance of Suning Commerce Group's donation over these years,and concludes that the typical characteristics of its donation are channel concentration,diversified forms,and the pursuit of reputational capital.Secondly,because the “cooperative development” donation chosen by Suning Commerce Group is the main reason for its high-efficiency donation,this paper analyzes the mechanism of this kind of donation path.By using the KMRW reputation model in economics,the efficiency of donation of different donor operating entities is compared,and the cooperation performance between Suning Commerce Group and China Foundation for Poverty Alleviation is combined to prove the advantages of the “cooperative development”donation and the importance of selecting high quality donor-partners.After that,through the analysis of market reaction,financial effect and non-financial effects after the donation,it was found that Suning Commerce Group's corporate donation not only brought financial performance and market value to itself,but also accumulated long-term donations.Reputational capital also brings other added value to the company.According to the study,the effectiveness of Suning Commerce Group's donation is that it has already raised donation to the company's strategic level through continuous practice and innovation.Suning Commerce Group can flexibly combine its actual allocation of charitable funds,and reasonably use the reputation mechanism to select high-quality partners for itself.Through the “cooperative development” donation,it accumulates reputation capital for enterprises,creates a chain effect,creates follow-up value,and is worthy for other domestic enterprises to study.Therefore,it is hoped that through the successful experience of the case enterprises,other enterprises will be encouraged to actively donate and fulfill their social responsibilities,which will jointly drive the prosperity and development of China's philanthropy.