This study aims to investigate the role of family businesses in contributing to societal well-being through their philanthropic activities, with a particular focus on religious contexts. Grounded in stakeholder theory, the research aims to deepen the academic understanding of the motivations, strategies and outcomes associated with family business philanthropy, particularly in the context of Malaysia.
This qualitative study is based on 37 in-depth interviews conducted across four case studies of family-owned businesses. Data were analyzed to explore how these businesses engage in philanthropy and the impact of their efforts on both the recipients and the businesses themselves.
The findings reveal that family business philanthropy is primarily motivated by religious obligations and a desire to enhance community legitimacy. Family businesses focus on long-term social impacts, fostering community development and economic sustainability among recipients. These philanthropic activities not only contribute to societal well-being but also enhance the legitimacy and competitiveness of the businesses involved.
This study introduces the “Intention-Effort-Outcome” framework, offering a novel conceptual approach to understanding family business philanthropy. By highlighting the interconnections between motivation, effort and outcome, it expands current knowledge on the dynamic role of family businesses in religiously driven philanthropic efforts.
