Exploring the Nexus Between Culture, Values, Institutions, Happiness and Philanthropy: A Global Evidence

Abstract

The main aim of this study was to investigate the impact of culture, values, institutions, and happiness on the world’s philanthropy. Culture is measured by Hofstede index (i.e. individualism-collectivism, masculinity-femininity, long and short-run orientation, uncertainty avoidance, power distance, and indulgence-restraint). The measurement of value is WVS (World Value Survey) and it consists of the emotion of happiness, active/ inactive membership of a church or religious organization, important in life; religion, confidence on charitable/ humanitarian organization and active/ inactive membership of charitable/ humanitarian organization. Institutions are measured by WGI (World Governance Indicators) and it consists of corruption, regulatory quality, accountability and voice, rule of law, political stability and government effectiveness, the sub-variables of happiness (index) are social support, freedom to take decisions and generosity and world’s philanthropy is measured by CAF (Charitable Aid Foundation) world giving index. We have gathered panel data (from the period 2010 to 2014) of CAF index, happiness index and WGI of 62 countries and cross-sectional data of CAF index, Hofstede index, WGI, happiness index and WVS of 24 countries. The result (of panel data) shows that there is a significant relation of WGI, social support and freedom of choice with CAF index whereas there is an insignificant connection between generosity and CAF index. The findings (of cross-sectional data of all factors combined) shows that there is a relation of the Hofstede index and happiness index with the CAF index while there is no linkage of WGI and WVS with the CAF index. The study suggests that charitable organizations should personify their value in order to build trust among the public. Countries should improve their governance because this will lead to equality and by doing this countries will also manage their resources efficiently and effectively.