This article focuses on geographic communities as fields in which human-made and natural events occasionally disrupt the lives of organizations. We develop an institutional perspective to unpack how and why major events within communities affect organizations in the context of corporate philanthropy. To test this framework, we examine how different types of mega-events (the Olympics, the Super Bowl, political conventions) and natural disasters (such as floods and hurricanes) affected the philanthropic spending of locally headquartered Fortune 1000 firms between 1980 and 2006. Results show that philanthropic spending fluctuated dramatically as mega-events generally led to a punctuated increase in otherwise relatively stable patterns of giving by local corporations. The impact of natural disasters depended on the severity of damage: while major disasters had a negative effect, smaller-scale disasters had a positive impact. Firms’ philanthropic history and communities’ intercorporate network cohesion moderated some of these effects. This study extends the institutional and community literatures by illuminating the geographic distribution of punctuating events as a central mechanism for community influences on organizations, shedding new light on the temporal dynamics of both endogenous and exogenous punctuating events and providing a more nuanced understanding of corporate-community relations.
AlexanderD.1993Natural Disasters. New York: Chapman and Hall.
2.
AnandN.WatsonM. R.2004 “Tournament rituals in the evolution of fields: The case of the Grammy Awards.” Academy of Management Journal, 47: 59–80.
3.
AuerJ.LampkinL. M.2006 “Open and operating?An assessment of Louisiana nonprofit health and human services after Hurricanes Katrina and Rita.” Washington, DC: Urban Institute.
4.
BabiakK.WolfeR.2006 “More than just a game? Corporate social responsibility and Super Bowl XL.” Sport Marketing Quarterly, 15: 214–222.
5.
BarleyS. R.TolbertP. S.1997 “Institutionalization and structuration: Studying the links between action and institution.” Organization Studies, 18: 93–117.
6.
BertelsS.PelozaJ.2008 “Running to stand still: Managing CSR reputation in an era of rising expectations.” Corporate Reputation Review, 11 (1): 56–72.
7.
BoliJ.ThomasG. M.1997 “World culture in the world polity: A century of international nongovernmental organization.” American Sociological Review, 62: 171–190.
8.
BorisE. T.SteuerleC. E.2006 “Scope and dimensions of the nonprofit sector.” In PowellW. W.SteinbergR. (eds.), The Nonprofit Sector: A Research Handbook:66–88. New Haven, CT: Yale University Press.
9.
BurbankM. J.AndranovichG. D.HeyingC. H.2001Olympic Dreams: The Impact of Mega-Events on Local Politics. Boulder, CO: Lynne Rienner.
10.
BurtR. S.1983 “Corporate philanthropy as a cooptive relation.” Social Forces, 62: 419–449.
11.
CavicchioC.TurokJ.2008The 2008 Corporate Contributions Report. New York: Conference Board.
12.
Centre for Research on the Epidemiology of Disasters2010EM-DAT: The International Disaster Database. http://www.emdat.be/.
13.
CoadyM.2008Giving in Numbers: 2008Edition. New York: Committee Encouraging Corporate Philanthropy.
14.
ColemanJ. S.1993 “The rational reconstruction of society.” American Sociological Review, 58: 1–15.
15.
CookE. R.SeagerR.CaneM. A.StahleD. W.2007 “North American drought: Reconstructions, causes, and consequences.” Earth-Science Reviews, 81: 93–134.
16.
CramptonW.PattenD.2008 “Social responsiveness, profitability and catastrophic events: Evidence on the corporate philanthropic response to 9/11.” Journal of Business Ethics, 81: 863–873.
17.
DavisG. F.GreveH. R.1997 “Corporate elite networks and governance changes in the 1980s.” American Journal of Sociology, 103: 1–37.
18.
DiGaetanoA.1989 “Urban political regime formation: A study in contrast.” Journal of Urban Affairs, 11: 261–281.
19.
DiGaetanoA.KlemanskiJ. S.1999Power and City Governance: Comparative Perspectives on Urban Development. Minneapolis, MN: University of Minnesota Press.
20.
DiMaggioP. J.PowellW. W.1983 “The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields.” American Sociological Review, 48: 147–160.
21.
DomhoffG. W.1998Who Rules America? Power and Politics in the Year 2000, 3rd ed.Mountain View, CA: Mayfield Publishing.
22.
DrazinR.GlynnM. A.KazanjianR.2003 “Dynamics of structural change.” In PooleM. S.Van de VenA. (eds.), International Handbook of Organizing Teamwork and Cooperative Working: 161–189. New York: Wiley & Sons.
23.
DurkheimE.1965 The Elementary Forms of Religious Life. (First published in 1915.) New York: Free Press.
24.
EldredgeN.GouldS.1972 “Punctuated equilibria: An alternative to phyletic gradualism.” In SchopfT. J. (ed.), Models in Paleobiology: 82–115. San Francisco: Freeman, Cooper & Co.
25.
EriksonK.1976Everything in Its Path: Destruction of Buffalo Creek. New York: Simon and Schuster.
26.
FligsteinN.1990The Transformation of Corporate Control. Cambridge, MA: Harvard University Press.
27.
FreemanJ. H.AudiaP. G.2006 “Community ecology and the sociology of organizations.” Annual Review of Sociology, 32: 145–169.
28.
FriedlandR.PalmerD.1984 “Park Place and Main Street: Business and the urban power structure.” Annual Review of Sociology, 10: 393–416.
29.
GalaskiewiczJ.1985Social Organization of an Urban Grants Economy: A Study of Business Philanthropy and Nonprofit Organizations. Orlando, FL: Academic Press.
30.
GalaskiewiczJ.1991 “Making corporate actors accountable: Institution-building in Minneapolis–St. Paul.” In PowellW. W.DiMaggioP. J. (eds.), The New Institutionalism in Organizational Analysis: 293–310. Chicago: University of Chicago Press.
31.
GalaskiewiczJ.1997 “An urban grants economy revisited: Corporate charitable contributions in the Twin Cities, 1979–81, 1987–89.” Administrative Science Quarterly, 42: 445–471.
32.
GalaskiewiczJ.BielefeldW.DowellM.2006 “Networks and organizational growth: A study of community based nonprofits.” Administrative Science Quarterly, 51: 337–380.
GiddensA.1984The Constitution of Society: Outline of a Theory of Structuration. Cambridge: Polity Press.
35.
GiddensA.1990The Consequences of Modernity. Stanford, CA: Stanford University Press.
36.
GierynT. F.2000 “A space for place in sociology.” Annual Review of Sociology, 26: 463–496.
37.
GlynnM. A.2008 “Configuring the field of play: How the mega-event of the Olympics impacts civic community in host cities.” Journal of Management Studies, 45: 1117–1146.
38.
GodfreyP. C.2005 “The relationship between corporate philanthropy and shareholder wealth: A risk management perspective.” Academy of Management Review, 30: 777–798.
39.
GouldS. J.1980The Panda’s Thumb: More Reflections in Natural History. New York: Norton.
40.
GreenstoneM.HornbeckR.MorettiE.2008 “Identifying agglomeration spillovers: Evidence from million dollar plants.” Cambridge, MA: National Bureau of Economic Research.
41.
GreenwoodR.DiazA. M.LiS. X.LorenteJ. C.2010 “The multiplicity of institutional logics and the heterogeneity of organizational responses.” Organization Science, 21: 521–539.
42.
GreenwoodR.SuddabyR.2006 “Institutional entrepreneurship in mature fields: The Big Five accounting firms.” Academy of Management Journal, 49: 27–48.
43.
GuthrieD.2003Survey on Corporate-Community Relations. New York: Social Sciences Research Council.
44.
GuthrieD.ArumR.RoksaJ.DamaskeS.2008 “Giving to local schools: Corporate philanthropy and the receding welfare state.” Social Science Research, 37: 856–873.
45.
HannanM. T.FreemanJ. H.1984 “Structural inertia and organizational change.” American Sociological Review, 49: 149–164.
46.
HeckmanJ. J.1979 “Sample selection bias as a specification error.” Econometrica, 47: 153–161.
47.
HillerH. H.2000 “Mega-events, urban boosterism and growth strategies: An analysis of the objectives and legitimations of the Cape Town 2004Olympic bid.” International Journal of Urban and Regional Research, 24: 439–458.
48.
HirschP. M.1997 “Sociology without social structure: Neo-institutional theory meets brave new world.” American Journal of Sociology, 102: 1702–1723.
49.
HoffmanA.1999 “Institutional evolution and change: Environmentalism and the U.S. chemical industry.” Academy of Management Review, 42: 351–371.
50.
KaniastyK.NorrisF. H.2004 “Social support in the aftermath of disasters, catastrophes, and acts of terrorism: Altruistic, overwhelmed, uncertain, antagonistic, and patriotic communities.” In UrsanoR. J.NorwoodA. E.FullertonC. S. (eds.), Bioterrorism: Psychological and Public Health Interventions: 200–229. Cambridge: Cambridge University Press.
51.
KanterR.1997World Class: Thriving Local in the Global Economy. New York: Touchstone Books.
52.
KonoC.PalmerD.FriedlandR.ZafonteM.1998 “Lost in space: The geography of corporate interlocking directorates.” American Journal of Sociology, 103: 863–911.
53.
KottA.2005 “The philanthropic power of sport.” Foundation News and Commentary, 46: 20–25.
54.
KrackhardtD.SternR. N.1988 “Informal networks and organizational crises: An experimental simulation.” Social Psychology Quarterly, 51: 123–140.
55.
LampelJ.MeyerA. D.2008 “Guest editors’ introduction: Field-configuring events as structuring mechanisms: How conferences, ceremonies, and trade shows constitute new technologies, industries, and markets.” Journal of Management Studies, 45: 1025–1035.
56.
LaumannE. O.GalaskiewiczJ.MarsdenP. V.1978 “Community structure as interorganizational linkages.” Annual Review of Sociology, 4: 455–484.
57.
LevB.PetrovitsC.RadhakrishnanS.2010 “Is doing good good for you? How corporate charitable contributions enhance revenue growth.” Strategic Management Journal, 31: 182–200.
58.
LoganJ.MolotochH.1987Urban Fortunes. Berkeley: University of California Press.
59.
LorangeP.Scott MortonM. S.GhoshalS.1986Strategic Control Systems. St. Paul, MN: West Publishing.
60.
LounsburyM.2007 “A tale of two cities: Competing logics and practice variation in the professionalizing of mutual funds.” Academy of Management Journal, 50: 289–307.
61.
LuoJ.MeierS.Oberholzer-GeeF.2012 “No news is good news: CSR strategy and newspaper coverage of negative firm events.” Harvard Business School Working Paper 12–091.
62.
MargolisJ. D.WalshJ. P.2003 “Misery loves companies: Rethinking social initiatives by business.” Administrative Science Quarterly, 48: 268–305.
63.
MarquisC.2003 “The pressure of the past: Network imprinting in intercorporate communities.” Administrative Science Quarterly, 48: 655–689.
64.
MarquisC.BattilanaJ.2009 “Acting globally but thinking locally? The enduring influence of local communities on organizations.” Research in Organizational Behavior, 29: 283–302.
65.
MarquisC.DavisG. F.GlynnM. A.2013 “Golfing alone? Corporations, elites and nonprofit growth in 100 American communities.” Organization Science (forthcoming).
66.
MarquisC.GlynnM. A.DavisG. F.2007 “Community isomorphism and corporate social action.” Academy of Management Review, 32: 925–945.
67.
MarquisC.LounsburyM.GreenwoodR., eds. 2011Research in the Sociology of Organizations, vol. 33: Communities and Organizations. Bingley, UK: Emerald Group Publishing.
68.
MarquisC.LeeM.2013 “Who is governing whom? Executives, governance and the structure of generosity in large US firms.” Strategic Management Journal (forthcoming).
MeyerA.1982 “Adapting to environmental jolts.” Administrative Science Quarterly, 27: 515–537.
71.
MisenerL.MasonD. S.2009 “Fostering community development through sporting events strategies: An examination of urban regime perceptions.” Journal of Sport Management, 23: 720–794.
72.
MiskelJ.2006Disaster Response and Homeland Security. Westport, CT: Praeger Security International.
73.
MizruchiM. S.1996 “What do interlocks do? An analysis, critique, and assessment of research on interlocking directorates.” Annual Review of Sociology, 22: 271–298.
74.
MolotchH.LoganJ.1984 “Tensions in the growth machine: Overcoming resistance to value-free development.” Social Problems, 31: 483–499.
75.
MolotchH.FreudenburgW.PaulsenK. E.2000 “History repeats itself, but how? City character, urban tradition, and the accomplishment of place.” American Sociological Review, 65: 791–823.
76.
MullerA.KräusslR.2011 “Doing good deeds in times of need: A strategic perspective on corporate disaster donations.” Strategic Management Journal, 32: 911–929.
77.
MullerA.WhitemanG.2009 “Exploring the geography of corporate philanthropic disaster response: A study of Fortune Global 500 firms.” Journal of Business Ethics, 84: 589–603.
78.
NadlerD. A.TushmanM. L.1995 “Types of organizational change: From incremental improvement to discontinuous transformation.” In NadlerD. A.ShawR. B.WaltonA. E. (eds.), Discontinuous Change: Leading Organizational Transformation: 15–34. San Francisco: Jossey-Bass.
79.
National Climatic Data Center2010 “Billion Dollar U.S. Weather Disasters, 1980–2009.”http://www.ncdc.noaa.gov.
80.
NewmanP.2007 “Back the bid: The 2012 summer games and the governance of London.” Journal of Urban Affairs, 29: 255–267.
81.
PalmerD.FriedlandR.SinghJ.1986 “The ties that bind: Organizational and class base of stability in a corporate interlock network.” American Sociological Review, 51: 781–796.
82.
PalmerD.BarberB. M.2001 “Challengers, elites, and owning families: A social class theory of corporate acquisitions in the 1960s.” Administrative Science Quarterly, 46: 87–120.
83.
PelozaJ.2006 “Using corporate social responsibility as insurance for financial performance.” California Management Review, 48 (2): 52–72.
84.
PorterM. E.KramerM. R.2002 “The competitive advantage of corporate philanthropy.” Harvard Business Review, 80 (12): 56–69.
85.
PrideR. A.1995 “How activists frame social problems: Critical events versus performance trends for schools.” Political Communication, 12: 5–26.
86.
RocheM.2000Mega-Events and Modernity: Olympics and Expos in the Growth of Global Culture. London: Routledge.
RomanelliE.TushmanM.1994 “Organizational transformation as punctuated equilibrium: An empirical test.” Academy of Management Journal, 37: 1141–1166.
89.
RoseA. K.SpiegelM. M.2011 “The Olympic effect.” Economic Journal, 121: 652–677.
90.
RubinI. S.RubinH. J.1987 “Economic development incentives: The poor (cities) pay more.” Urban Affairs Review, 23: 37–62.
91.
SalamonL. M.1987 “Partners in public service: The scope and theory of government-nonprofit relations.” In PowellW. W. (ed.), The Nonprofit Sector: A Research Handbook: 99–117. New Haven, CT: Yale University Press.
92.
SaxenianA. L.1994Regional Advantage: Culture and Competition in Silicon Valley and Route 128. Cambridge, MA: Harvard University Press.
93.
SchwartzD.1997Contesting the Super Bowl. New York: Routledge.
94.
ScottW. R.2001Institutions and Organizations, 2d ed. Thousand Oaks, CA: Sage.
95.
ScottW. R.2005 “Institutional theory: Contributing to a theoretical research program” In SmithK. G.HittM. A. (eds.), Great Minds in Management: 450–484. New York: Oxford University Press.
96.
SewellW. H.1992 “A theory of structure: Duality, agency, and transformation.” American Journal of Sociology, 98: 1–29.
97.
SewellW. H.2005Logics of History: Social Theory and Social Transformation. Chicago: University of Chicago Press.
98.
SorgeA.2005The Global and the Local: Understanding the Dialectics of Business Systems. Oxford: Oxford University Press.
99.
SorkinM.1992Variations on a Theme Park: The New American City and the End of Public Space. New York: Hill and Wang.
100.
StinchcombeA. L.1965 “Social structure and organizations.” In MarchJ. G.(ed.), Handbook of Organizations: 142–193. Chicago: Rand McNally.
101.
StockJ. H.WatsonM. W.2008 “Heteroskedasticity-robust standard errors for fixed effects panel data regression.” Econometrica, 76: 155–174.
102.
TilcsikA.2011 “Pride and prejudice: Employment discrimination against openly gay men in the United States.” American Journal of Sociology, 117: 586–626.
103.
TönniesF.1887Community and Civil Society. Cambridge: Cambridge University Press.
104.
TrunoE.1995 “Barcelona: City of sport.” In De MoragasM.BotellaM. (eds.), The Keys to Success: The Social, Sporting, Economic and Communications Impact of Barcelona ’92: 43–56. Barcelona: Centre d’Estudis Olimpics i de l’Esport, Universitat Autonoma de Barcelona.
