ENHANCING CORPORATE PHILANTHROPY THROUGH BOARD COMPETENCY AND FINANCIAL HEALTH: ACCELERATING PROGRESS TOWARDS SUSTAINABLE

• Published in: Journal of Lifestyle and SDG'S Review
• Main Author: Ahmad R.A.R.; Sata F.H.A.; Azmi N.A.; Zainon S.; Probohudono A.N.
• Format: Article
• Language: English
• Published: Editora Alumni In 2025
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85214355715&doi=10.47172%2f2965-730X.SDGsReview.v5.n01.pe03147&partnerID=40&md5=1824208201a188e96e68d716aff98c75

Objective: This study aims to examine the effect of board competency and financial health on corporate philanthropic activities in achieving SDGs. Theoretical Framework: The stakeholder theory stands out as providing a solid basis for understanding the context of philanthropic activities aimed at promoting Good Health and Well-Being (SDG 3), Quality Education (SDG4), Reduced Inequalities (SDG 10), and Climate Action (SDG13). Method: The population consists of 1,023 listed firms from 2018 – 2023. After excluding insufficient data on donation, the final sample consists of 391 firm-year observations. Results and Discussion: We found that board competency plays a significant role in the investment in philanthropic activities. Besides that, firms with higher profitability increase their investment in donations, and there is a tendency for firms to mask their solvency through donation activities to attract future investors. Research Implications: This research's practical and theoretical implications are discussed, providing insights into how the results can be applied or influence practices in philanthropy. Our study provides valuable insights for firms and stakeholders on the stability of the firms, which is crucial to determining the total philanthropic investment among firms. Originality/Value: This study is unique in that it examines the firm’s financial health concerning philanthropic charity donations. © 2025, Editora Alumni In. All rights reserved.