An Empirical Study On The Relationship Between Corporate Social Responsibility And Company's Financial Performance

With the development of economy and society, while enjoying the material wealth, more and more people pay attention to the negative effects caught by economic development. As the core strength of the economic development, enterprises create wealth and economic profit, but they are also deemed to undertake corresponding social responsibility in economic and social development. Corporate social responsibility came into being from the beginning of the 20th century, and gradually spread widely under the background of economic globalization. Foreign corporate social responsibility development is relatively mature, and some far-sighted enterprises have made the corporate social responsibility as a long-term investment, enhancing the corporate social responsibility to the strategic height to form their own unique differentiation and competitive advantage. But the enterprises social responsibility in our country is in the initial stage, and many enterprises think that performing corporate society responsibility will increase the cost burden, thus reducing enterprises profit. Study on the corporate social responsibility in china is also quite backward, mainly referring to the basic research achievements in foreign corporate society responsibility, and basically in qualitative stage.This paper decomposes the corporate social responsibility that the enterprises should undertake based on the stakeholder theory from eight aspects, such as shareholders and creditors, suppliers, customers and employees, government, community, ecological environment; we study the relationship between corporate social responsibility and the financial performance.Meanwhile,we classifies the financial performance into accounting index and market indexes to make the relationship between the corporate social responsibility and financial performance clearer. We make a research on the relationship between the corporate social responsibility and financial performance on the food, petrochemical, medicine industry that have been listed in the Shanghai and Shenzhen stock market through empirical method, using SPSS and AMOS software. Besides, we make a comparison on the relationship between the corporate social responsibility and financial performance of the three industries. The conclusion is just as follows:both the current and the post corporate social responsibility is positively relationship with the financial performance; the same is the relationship of the corporate social responsibility with the financial performance of accounting index; while the relationship with the financial performance of market index is not clear; finally we make a comparation between food industry, pharmaceutical industry, and petrochemical industry.In this paper, we the basically confirm that corporate social responsibility is positively relationship with the financial performance, but there exists differences within different industries. On the basis of empirical study, we put forward suggestions from three aspects of enterprises, government and society to promote the development of corporate social responsibility, realizing the win-win situation between enterprises and society.