Study On The Corporate Financing Policies Based On Corporate Social Responsibility

Modern enterprise is a comprehensive contract network, so it should concern not only the interests of shareholders, also should balance the interests of stakeholders, including employees, creditors, suppliers, communities and the environment. Therefore, the corporate governance and financial policies can not only proceed from the interests of shareholders. Enterprises should develop the economy, but also take into account the social benefits so that realize economic, social and environmental sustainability.Social responsibility movement influence domestic accounting theory greatly, but research of financial management under the perspective of social responsibility is just beginning. Fake milk, jump gate, river pollution these similar incidents suggest that corporate financial management activities should take corporate social responsibility into accountant. The study of corporate financial policies under social responsibility has theoretical and practical significance.It takes a huge change on financial management. First is the financial goal in the top of the financial theory, followed is the corporate financial policy. Corporate financial policy changes reflected in two aspects, one is change to choose a sound financial policy, like a stable asset structure, financial structure, debt levels. The second is a transform from economic responsibility to corporate social responsibility.This paper includes seven chapters that the concrete contents are as follows.Chapter one is the introduction. It includes background, significance, the main framework of this paper, and summaries a literature review about social responsibility theory. Also this paper also lists the innovation and the lack of study. Chapter two provides the theoretical foundation of why should corporate assume the social responsibility. This section introduces several key theories like the sustainable development theory, social contract theory, economic theory and stakeholder theory which are widely used in the full text. Chapter three discusses the relationship of the corporate social responsibility and corporate financial policies. First it defines the concept of corporate financial policy, and then reviews the literature of domestic and foreign scholars on corporate financial policy in the perspective of the corporate social responsibility.Chapter four is the research on corporate investment policies. First, it analyzes the resources, markets and system impacts of corporate social responsibility. Corporate Investment in this paper has been divided into external social responsible investment and internal corporate social responsible investment. The Three strategies of External corporate social responsible investment and the object of internal corporate social responsible investment, such as investment in human resources investment, environmental investment are the focal points.Chapter five is the research on corporate financing policies.This part focuses on the impact of corporate social responsibility to financing in stock markets and debt financing. Preference for equity financing leads to over-financing in capital markets which harms the interests of minority shareholders. Government publish relevant policies refinancing, corporate finance act to restrict the refinancing in the stock markets. Equator Principles is the international standard in Debt Financing, green credit policy is the regulation to corporate social responsibility in our country.Chapter six is the researches on corporate distribution policies. There are two distribution models. One adheres to the interests of shareholders, mainly implemented in the U.S. and the UK.the other insists on the enterprise stakeholder sharing the business value which is accepted in Germany and Japan. Corporate internal distribution highlight on the equity and efficiency issues, external issues is mainly analyze the enterprise donations.Chapter seven is the conclusion of this paper.Though corporate social responsibility restraints corporate investment policies, financing policies and allocation policies, it promotes their sustainability. Companies should consider building sustainable corporate financial policies to promote enterprise economic, social and environment’s sustainability development. The innovation of this paper: first, traditional researches focus only on return of investment or financing costs, in fact study of corporate investment, financing and distribution in the perspective o social responsibility is the international research trends. Second, the scope of the study is more comprehensive. This paper integrates the investment, financing and distribution into the corporate financial policies that is conducive to the decision-makers to grasp the trend of corporate financial policy.The paper exist many deficiencies and need further improvement. The corporate social responsibility is a comprehensive academic conception, so the definition of social responsibility is not positively authoritative. The lack of theoretical knowledge results extensive reference of the research of domestic and foreign scholars.