Case Study 1.2 is used as the case study chosen for this paper. This scenario discusses the figure of Jack Ma, the founder of one of China’s largest concerns, Alibaba, and an entrepreneur who began donating large sums to improve the environmental condition of the community (Boone et al., 2022). It is reasonable to call Ma a philanthropist because his goals are socially and environmentally significant, and he spends his time and money to achieve them. It is reasonable to assume that Chinese entrepreneurs may face greater threats and limitations to philanthropy than their counterparts in the United States. The main risks to this area of philanthropy in China include the lack of a regulatory framework for philanthropic activities and mistrust among society toward non-governmental enterprises (Riley, 2021).
The Chinese population and government show less support for private entrepreneurs and create additional restrictions for them, which creates obstacles to free philanthropy. At the same time, China lacks tax incentives for charitable activities performed by for-profit organizations, and ideologically, philanthropy is poorly aligned with the country’s communist economy, which also negatively affects local philanthropic opportunities (NGO, 2018). Thus, local philanthropists may face more obstacles than American philanthropists.
A country like China, experiencing uneven economic prosperity, is characterized by the development of several problems. First and foremost are problems with social inequality, where specific segments of the population experience growth and others do not. In addition, corruption can be a problem: China demonstrates real cases of corruption related to political activity (TE, 2021). At the same time, uneven economic prosperity can lead to political conflict and unrest, as populations that do not experience growth can begin to demand more services from the government, which in turn can lead to rallies and unrest.
References
Boone, L., et al. (2022). Contemporary business (19th ed.). Wiley.
NGO. (2018). China charity law guidebook – Chapter 11: tax benefits & chapter 12: Supervision and administration (Pt. 9). NGO Source. Web.
Riley, N. S. (2021). The woke threat to philanthropy. WSJ. Web.
TE. (2021). China corruption rank. Trading Economics. Web.