Constructing The System Of Insurance Corporate Social Performance Evaluation

With the deepening in constructing a socialist harmonious society, the problem of corporate social responsibility is increasingly caused for concern. The new "Company Law" issued in January 1,2006 clearly provided that companies must take social responsibility. It indicated that the movement of corporate social responsibility in our country would be in full swing.It has become a generally recognized concept that insurance companies should not only pursuit the economic interests and safeguard the interests of shareholders, but also be emphasis on social and ecological benefits, and to discharge their social responsibility to stakeholders. However, how to measure and evaluate the performance of insurance companies fulfilling their social responsibilities has not been clearly answered. Existing domestic corporate social performance evaluation systems are difficult fully applicable to the insurance industry. Therefore, it is very necessary to construct an insurance corporate social performance evaluation system.This article aims to establish a well-designed and realistic system of insurance corporate social performance evaluation, so as to provide theoretical guidance for corporate social responsibility management, and contribute to the establishment of insurance corporate social responsibility standards.Firstly, by reviewing the evolution process of the concept of corporate social responsibility, the paper illustrates the relationship between social performance and corporate social responsibility. Secondly, according to the latest theoretical achievements, the paper defines the connotation of insurance corporate social responsibility and insurance corporate social performance. Thirdly, based on the Balanced Scorecard and the stakeholder theory, the paper builds an insurance corporate social performance evaluation system. Finally, by a comparison with the existing evaluation systems and an application example, we verify the rationality and applicability of evaluation system designed in this paper. In this process, it is found that the supervision mechanisms of insurance corporate social responsibility have some defect. Then the paper makes three recommendations accordingly. Above all, this paper is divided into six parts.The first part is the introduction part of this article. It sets out the background and significance of this paper, and reviews the domestic and abroad research achievements on corporate social responsibility and corporate social performance, which provide a theoretical groundwork for the later chapters. In the whole process, the research on corporate social responsibility shows a trend of change from theoretical disputes to practical application. It was an important symbol of this trend that the corporate social performance evaluation model emerged. Currently, corporate social performance evaluation model can be divided into four groups: the Carroll's four-dimensional model, the stakeholder model, the model about corporate social issues and sustainable development-based evaluation model. These models have important reference value for researching on the insurance corporate social performance evaluation. At present, there are few theoretical study achievements of insurance corporate social performance evaluation, so it is very necessary to study this.The second part illustrates the relationship between social performance and corporate social responsibility, describes the connotation and denotation of insurance corporate social responsibility, and then defines the implication of insurance corporate social performance. The insurance corporate social responsibility refers to the insurance companies must follow the law and business ethics, and attach importance to the company's stakeholders and the non-commercial contribution to the society in the process of pursuing their own economic benefits and the interests of shareholders, so as to make into reality of the coordinated development between social, economy and environment. The insurance corporate social performance can be defined as the insurance companies' performances in the area of fulfilling their social responsibilities to the stakeholders, including three aspects, namely, policies, management and results.The third part focuses on the design ideas of insurance corporate social performance evaluation system. The Balanced Scorecard is a new strategic management tool. Making use of the BSC, it can be established a top-down performance appraisal system, so that the corporate social responsibility strategy can truly run through the dynamic process of business management. Therefore, the design ideas of the Balanced Scorecard can be used as the guiding ideology of building the insurance corporate social performance evaluation system. Based on the definition, the social performance evaluation system should include three layers:policy, management and results. According to the stakeholder theory, the index system can be divided into eight dimensions, including shareholders, the insured, employees, customers, competitors, government, society and environment. To sum up, this paper will guide as the Balanced Scorecard and base on the theoretical framework of stakeholders in terms of policy, management and results to build the insurance corporate social performance evaluation system.The fourth part builds an insurance corporate social performance evaluation system. Firstly, the evaluation on the policy level includes both the evaluation of the core values and the approaches adopted to satisfy each stakeholder. A qualitative approach is used to divide the performance into four types and the delineation of each grade is also given. Secondly, the evaluation on the management level is to study the management activities on corporate social responsibility, namely, whether the management system and control system exist. The evaluation on management process and control system is divided into four aspects:planning, organizing, directing and controlling. Thirdly, the evaluation of results includes two aspects. On the one hand, through a series of indicators, analyzing the insurance company's performance on social responsibility. In this process, the AHP is introduced to identify the importance of every indicator. On the other hand, gathering stakeholders'feedback to evaluate the company's social performance. The survey method and the fuzzy evaluation are combined to evaluate the level of overall performance.The fifth part indicates the application value of the performance evaluation system. At first, reviewing the domestic existing social performance evaluation systems and found that the existing systems can not be fully applicable to the insurance industry. Then, pointing out that the most prominent feature of this paper is fully taking the characteristics of insurance corporate social responsibility into account, which enhances the applicability of the indicator system. Finally, verifying the rationality and affectivity of the evaluation system designed in this paper by an application example.The last part puts forward proposals for establishing the proposed monitoring mechanism of insurance companies fulfilling the corporate social responsibility. In the process of verifying the evaluation system, it is found that at present China's insurance companies has not yet initiatively disclosed the information of corporate social responsibility, thus to some extent influencing on the performance evaluation. Therefore, it is necessary to set up the mechanisms of social responsibility information disclosure and auditing. At the same time, the insurance company shall establish clear governance and ensure the effective implementation of social responsibility. In addition, other stakeholders should also give the necessary supervision.To overview the whole text, the article's main contribution and features are:Firstly, this thesis involves a number of cutting-edge research topics, such as corporate social performance evaluation, corporate social responsibility governance and social responsibility information disclosure and auditing.Secondly, this article references a great many latest theoretical achievements, for example the corporate social performance model, Balanced Scorecard, stakeholder theory, corporate social responsibility strategies, AHP and fuzzy matching.Thirdly, this social performance evaluation system takes fully account of the characteristics of insurance corporate social responsibility and overcomes the shortcomings of the existing systems, so it has strong applicability.Of course, there are many shortcomings and some problems to be further studied. Because information disclosure is incomplete, this paper does not make an empirical analysis. In addition, the weight of each index is not calculated. These are the places where it needs to be improved.