While corporate philanthropy is a core component of strategic Corporate Social Responsibility (CSR), its capacity to enhance corporate productivity and drive sustainable development remains contested. Utilizing a panel dataset of Chinese A-share listed firms from 2018 to 2022, this study investigated the impact of corporate philanthropy on total factor productivity (TFP). Panel regression analysis revealed a significant inverted U-shaped relationship between charitable donations and TFP, establishing the existence of an optimal threshold for CSR resource allocation. Beyond this critical point, excessive donations trigger a resource-crowding effect that suppresses productivity growth. To unpack the underlying mechanism, we applied a two-stage network Data Envelopment Analysis (DEA) model, decomposing the CSR process into an initial resource-allocation stage and a subsequent value-conversion stage. The evaluation demonstrated that second-stage efficiency is significantly lower than first-stage efficiency, identifying downstream value conversion as the primary bottleneck in CSR value creation. Furthermore, moderation analysis indicated that while second-stage efficiency is negatively associated with subsequent TFP, first-stage efficiency positively moderates this relationship. Additionally, operating in a pollution-intensive industry negatively moderates the impact of both stage-specific efficiencies on TFP. These findings advance the theoretical understanding of strategic CSR processes and provide actionable insights for firms seeking to optimize the balance between philanthropic investment, operational efficiency, and sustainable development.
Citation: Minghui Kang, Xubin Liu, Jinghua Tan, Tao Wang. Optimization mechanisms of corporate philanthropy for sustainable development: A two-stage network DEA approach[J]. Journal of Industrial and Management Optimization, 2026, 22(11): 5909-5943. doi: 10.3934/jimo.2026199
While corporate philanthropy is a core component of strategic Corporate Social Responsibility (CSR), its capacity to enhance corporate productivity and drive sustainable development remains contested. Utilizing a panel dataset of Chinese A-share listed firms from 2018 to 2022, this study investigated the impact of corporate philanthropy on total factor productivity (TFP). Panel regression analysis revealed a significant inverted U-shaped relationship between charitable donations and TFP, establishing the existence of an optimal threshold for CSR resource allocation. Beyond this critical point, excessive donations trigger a resource-crowding effect that suppresses productivity growth. To unpack the underlying mechanism, we applied a two-stage network Data Envelopment Analysis (DEA) model, decomposing the CSR process into an initial resource-allocation stage and a subsequent value-conversion stage. The evaluation demonstrated that second-stage efficiency is significantly lower than first-stage efficiency, identifying downstream value conversion as the primary bottleneck in CSR value creation. Furthermore, moderation analysis indicated that while second-stage efficiency is negatively associated with subsequent TFP, first-stage efficiency positively moderates this relationship. Additionally, operating in a pollution-intensive industry negatively moderates the impact of both stage-specific efficiencies on TFP. These findings advance the theoretical understanding of strategic CSR processes and provide actionable insights for firms seeking to optimize the balance between philanthropic investment, operational efficiency, and sustainable development.
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Minghui Kang, Xubin Liu, Jinghua Tan, Tao Wang. Optimization mechanisms of corporate philanthropy for sustainable development: A two-stage network DEA approach[J]. Journal of Industrial and Management Optimization, 2026, 22(11): 5909-5943. doi: 10.3934/jimo.2026199
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