Research On The Effect Of Social Capital On Corporate Social Responsibility

CSR is an important topic.How can companies better fulfill their social responsibilities?More scholars have worked on this topic,investigating the impact of macro factors such as economy,culture,and institutions,as well as micro factors such as the scale of enterprise,property rights,on the performance of corporate social responsibilities.Few studies have investigated the effect of informal institutions on corporate social responsibility.This article discusses how companies fulfill their social responsibilities from the perspective of social capital.Based on the "CSR triangle" theoretical model,this article attempts to explore the impact of social capital on CSR performance from three aspects of corporate essential responsibility,social responsibility and environmental responsibility.In detail,based on cross-provincial view,this paper empirically examines the impact of social capital on enterprise’s innovation,labor allocation and environmental performance.The study finds that in the provinces with higher level of social capital,the local companies recruit more employees.In the meantime,enterprises with higher social capital generate more patents and have better environmental performance.The paper adopts the Ⅳ,PSM and DID methods to solve the potential endogeneity problem.The paper examines the underlying mechanisms and the impact of social capital on operating performance.The primary contribution of this article is the social capital index measured in this article.So far,the scholars have not found a unified index to measure social capital.Based on past research and the nature of social capital,the social capital is measured from the perspectives of social trust,social organization,information sharing and social norms.Second,the research explores the mechanics and effect of social capital on the technological innovation of Chinese enterprises,which complements the research of finance and innovation.Third,this article is the first study to investigate the impact of social capital on employment.The benefit of social capital on corporate employment decision makes people further understand the employment problem at the micro level.Finally,the study of the environmental behavior of enterprises is novel in finance,and there are few researches in this area relatively.This paper is the first study to introduce social capital to the research of enterprise environmental governance,which enriches and extends the research in this field.In general,this paper discusses the influence of social capital on an important economic subject,enterprises at the micro level,and provides the empirical evidence from China to present the important role of social capital in the economy.