Natural Capital Restoration and Corporate Philanthropy: Charity or Investment?

Enrico Zorzi (1) , Katia Radja (1) , Patrick Schembri (1)

1 C3ED - Centre d'économie et d'éthique pour l'environnement et le développement

The importance of natural capital restoration is growing in recent academic articles. Many of them deal with the chronological development of corporate philanthropy in opposition to international charity's fund. This paper contributes to the developing stream of research that focuses on the relationship between natural capital restoration and corporate philanthropy in developing countries. Contributions from the social issues in management field have argued that social responsiveness is a fundamentally multidimensional construct that embodies a large and varied range of corporate behaviour in relation to its resources, processes and outputs. In this paper, we do show that corporate philanthropy is not a charities activity, but an activity which is submitted to an economic efficiency constraint. We consider private– private partnerships (PPP), in which the Green Fund selects a project that is then developed and operated by a Corporate. In the first section, we precise the origins of philanthropy economics applied in the field of restoration management projects. In the second section, we use a Markovian Perfect Equilibrium (MPE) model to examine the impacts of corporate philanthropy on the restoration project.

Domaines: Environnement et Société

Enrico Zorzi, Katia Radja, Patrick Schembri. Natural Capital Restoration and Corporate Philanthropy: Charity or Investment?. 2008. ⟨hal-00348408⟩