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Masters of Disasters? An Empirical Analysis of How Societies Benefit from Corporate Disaster Aid

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Ballesteros, Luis, Useem, Michael, Wry, Tyler·2017·Academy of Management Journal
DOI 10.5465/amj.2015.0765
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Abstract

Corporations are increasingly influential within societies worldwide, while the relative capacity of national governments to meet large social needs has waned. Consequentially, firms face social pressures to adopt responsibilities that have traditionally fallen to governments, aid agencies, and other types of organizations. There are questions, though, about whether this is beneficial for society. We study this in the context of disaster relief and recovery, in which companies account for a growing share of aid, as compared to traditional providers. Drawing on the dynamic capabilities literature, we argue that firms are more able than other types of organizations to sense areas of need following a disaster, seize response opportunities, and reconfigure resources for fast, effective relief efforts. As such, we predict that, while traditional aid providers remain important for disaster recovery, relief will arrive faster and nations will recover more fully when locally active firms account for a larger share of disaster aid. We test our predictions with a proprietary data set comprising information on every natural disaster and reported aid donation worldwide from 2003 to 2013. Using a novel, quasi-experimental technique known as the “synthetic control method,” our analysis shows that nations benefit greatly from corporate involvement when disaster strikes.

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Authors
Ballesteros, L., Useem, M., & Wry, T.
Affiliations
  • George Washington University (US)
  • University of Pennsylvania (US)
ORCID
Venue
Academy of Management Journal
Publisher
Academy of Management
Published
2017-10
Volume
60
Issue
5
Pages
1682-1708
ISSN
  • 0001-4273 (ISSN-L)
  • 1948-0989
DOI
10.5465/amj.2015.0765
OpenAlex
W2580821850
Cited by
179
References
78
Citations by year
2026: 13 · 2025: 16 · 2024: 37 · 2023: 30 · 2022: 25 · 2021: 16 · 2020: 18 · 2019: 7 · 2018: 14 · 2017: 1 · 2016: 1 · 2014: 1
FWCI
28.00
Type
journal article
Language
en
Open access
Locations
  • Academy of Management Journal (publishedVersion)
  • OpenBU (Boston University) (acceptedVersion)
  • ScholarlyCommons (University of Pennsylvania) (submittedVersion)
  • SSRN Electronic Journal (submittedVersion)
Funders
University of Pennsylvania
Topics
  • Social Sciences › Sociology and Political Science › Disaster Management and Resilience
  • Social Sciences › Sociology and Political Science › Nonprofit Sector and Volunteering
  • Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Corporate Social Responsibility and Sustainability
Keywords
disaster relief, disaster recovery, corporate social responsibility, dynamic capabilities, natural disasters, corporate philanthropy, state capacity, synthetic control method

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