An Empirical Study On The Correlation Between Corporate Social Responsibility And Financial Performance Based On The Life Cycle Theory

With the development of enterprises and environmental problems caused by a series of social problems becoming increasingly prominent, corporate social responsibility has got the people's attention gradually. If corporate social responsibility can be the pursuit of profits, it would have a negative impact on business. Whether enterprises can find a balance between the two is the focus of the enterprise. Recalling the results of previous studies, the relationship between social responsibility and financial performance has caused very inconsistent conclusions, the reason is that different scholars have different views on the concept of social responsibility and scope of understanding, because social responsibility performance evaluation systems are different and researchers also use a wide range of financial indicators.This article collects important documents theory of corporate social responsibility, corporate life cycle theory, the relationship between Social responsibility and financial performance and correlation of Life Cycle and Social Responsibility. Summarized on the basis of Documents, I decide to change from a development perspective in all stages of life according to the characteristics of enterprises in different stages of the life cycle of corporate social responsibility, respectively, and Financial Performance.According to research purposes, first, do theoretical analysis of the study and put up with reasonable hypotheses and research models, then through the 2008 sample of listed manufacturing companies in Shanghai and Shenzhen to complete the empirical data. Among them, the use of empirical test has been applied to China's market environment, Dickinson combination of cash flow method on the five life stages of sample enterprises (Start-up, growth, maturity, decline, Out) to divide. Multiple linear regression analysis are used to the analyze relationship of corporate social responsibility with financial performance in the different life stages.The empirical results show that, enterprises in the initial stage, almost no social responsibility to bring positive financial performance, instead, the negative effects; in the growth stage, social responsibility have positive impact on the financial performance, compared with other stakeholders, corporate social responsibility to employees maximize financial performance; In the mature stage, social responsibility is also a positive impact on the financial performance, at this point, businesses are most concerned about the interests of consumers to fulfill their social responsibility to maximize financial performance; In the recession, social responsibility and financial performance not too closely related, financial performance is not significantly affected by the social responsibility.Based on the findings, the paper recommends that companies must choose what kind of social responsibility to commit, according to the stage their own characteristics, nature of the business, society and the urgent need for the capacity of enterprises, actively fulfill certain social responsibilities, but can not become a heavy burden on enterprises. Corporate social responsibility should be regarded as rational planning long-term corporate strategy that can effectively ensure the balance of financial performance and social responsibility.