Correlation Research On Corporate Social Responsibility And Value Added

With the continuous development of economic globalization and accelerating theinternationalization of enterprise management, enterprise fulfilling the socialresponsibility is the current trend and is the objective requirement for the enterpriseseeking sustainable development and creating much more add value. The relevancebetween CSR and financial performance has become a hot issue in the academic circleof business management research at home and abroad over the past20years. Therelationship between CSR and corporate financial performance was very complicatedfrom the theoretical or methodological point of view. The clarification of therelationship between them is invaluable for the business managers, shareholders orstakeholders, Because it is not only of importance for the study of the dynamicsmechanisms of CSR, but of important practical significance for various stakeholders ofenterprises, and meanwhile, it enables business managers to make more proactivefulfillment of CSR. At the same time, by setting financial performance index as theexplained variable from the perspective of stakeholders, value added is a very importanttool to evaluate corporate financial performance from this perspective. Some studyresults confirmed that the index of value added has an ability to explain the market risks,which is more powerful than the indexes of profit and indexes of market. So,studyingthe relationship between CSR and financial performance is of important theoretical andpractical significanceMost scholars from home and abroad study the relationship between CSR andfinancial performance from the perspective of shareholders, by setting the profit indexor market return index as the explained variable. Some scholars think that the presentindicators have a narrrow view,and are easy to manipulate,what’s more,they aredifficult to reflect the company’s long-term performance, So it is an important issue tobuild financial performance indicators from the perspective of stakeholders to study therelationship between them. Taking added value as financial performance indicator,designing a set of feasible and comparable quantitative indicators the dissertationsystematically researches correlation between corporate social responsibility and addedvalue based on the organic combination of theoretical analysis and empirical analysis,concrete research content and main innovation points are as follows:1. Bould theory foundation of relations on corporate social responsibility and added value. Mainly aiming at several mainstream theories: the basic theory of corporatesocial responsibility (stakeholder theory and resource dependency theory) and thebasic theory of added value (contract theory and human capital theory), the paperfurtherly elaborates theoretical basis of their relationship.Bould framework ofenterprise target basing on relational contract theory。2.Mechanism between corporate social responsibility and added value isanalyzed.Based on the contract theory, t various stakeholders are divided into threecategories, namely the relational contract (employees and shareholders), transactionalcontract (creditors, suppliers and consumers), and special contract (government andcommunity), and the framework based on all stakeholders to added value isestablished,it can be found: enterprise performing a certain degree of socialresponsibility for all stakeholders not only can improve enterprise image and enterprisevisibility and reputation, at the same time, will get greater harvest than the cost, willalso improve the production efficiency of enterprises, thus will boost add value. I Hopethis research can provide theory support.of performing CSR for managers.3. Construct the index system of corporate social responsibility. The dissertation willorganically combine "index system of social responsibility accounting method" and themain idea of the "KLD index method" to construct the index system of corporate socialresponsibility. At the same time, according to building the index system of socialresponsibility, using panel data of listed companies to statistically study,it is found:(1)the utility class perform the social responsibility acquiring highest score, industrialclass scored lowest;(2) state-owned enterprises performing social responsibility isbetter than non-state-owned enterprises.4.This paper verifies the relationship between corporate social responsibility andadded value in China. This chapter designs a set of practical and feasible measureindicators of CSR in our country with the aid of stakeholders theory,From theperspective of stakeholders, value added is a very important tool to evaluate corporatefinancial performance from this perspective.basing on the financial statements of listedcompanies as the research object, puts forward the research questions and testhypotheses, establishes testing model, defines related testing variables, and withstatistical description of samples, correlation analysis and the empirical researchmethods using fixed effect panel data model, to test the revelance between the CSR andadd value. Different conclusions are drawn:(1) Improving the previous add value has apositive impact on performance of the current social responsibility.(2) whether current or in the long term, the better enterprises perform social responsibility, the higher addedvalue will be.On the one hand, from the perspectives of stakeholders to choose somesuitable indicators to measure corporate social responsibility, it is concluded that thebetter corporate social responsibility perform, added value will be higher, and theconclusion supports the hypothesis of "social impact". On the other hand, previous goodadd value can fulfill social responsibility for the enterprise to provide the resourcesneeded, so that they can actively promote the enterprises to fulfill social responsibility,this conclusion support "funding" hypothesis".