An Empirical Research On The Relationship Between Corporate Social Responsibility And Enterprise Value

With the development of the economy and the changes of the social structure, enterprises play a more important role. Among the relationship of the enterprise, industry, government and society, enterprise occupies more and more resources and has a increasing influences. In modern China, enterprises play an important role to establish the harmony society. Meanwhile, after the entry of World Trade Organization, Chinese enterprises began to face a more competitive business environment.In order to compete with the foreign enterprises, the local enterprises must improve the quality of their own products and services. This is a big challenge to the local enterprises, but also is a big chance to enhance the economic status. Furthermore, public has more requirements and expectations, the development of media and the technology also asked the enterprises to regulate their own.actions. The development of enterprises brings economic benefits to the society, but it also brings lots of negative impacts. As the increasing influences of the enterprises, people began to pay more attention to the corporate social responsibility. For Chinese enterprises which want to compete with the foreign enterprises, corporate social responsibility is a huge challenge for them, especially in the fields such as protecting the rights of the labors, the environment and the consumers’rights. The raising of these problems demonstrates that it urgent and necessary to research the corporate social responsibility.The origin of the corporate social responsibility is in the United States. Corporate social responsibility emphasize that the enterprises should not only focus on the benefits of shareholders, but also should focus on the benefits of the other stakeholders. The fulfillment of the corporate social responsibility is obligatory responsibility and duty. After several years’ development, the theory of the corporate social responsibility begins to be accepted by the world. Corporate social responsibility asks the enterprises to perform duties and fulfill obligations from the government, shareholders, employees, suppliers, creditors, customers, public and environment. The performing of the corporate social responsibility is related to the existence and development of the enterprises. If during the producing process the enterprises ignored the social responsibility, the enterprises will be dropped out by the market. Only the responsible enterprises which pay attention to the stakeholders can be survive in the market.The enterprises perform the social responsibility, not only a pressure to them, but also a competitive advantage. Corporate perform the social responsibility will inevitably increase the operating costs, but also can enhance the competitiveness of the enterprises and the impossibility of sustainable development. With the influences of the corporate social responsibility movement, consumers begin to list the enterprises which do not perform the corporate social responsibility into the irresponsible enterprises, and criticize their operations and resist their products or services. Therefore, in order to obtain long-term interests and the trust of consumers, the enterprises must perform the corporate social responsibility and make it as a very important competitive business strategy. In fact, by performing a certain degree of the social responsibility, the enterprises will be able to achieve the purpose of enhancing the value of the entire enterprise. The awareness of performing corporate social responsibility can help enterprises to enhance the loyalty of the consumers, maintain the personnel, improve the regulatory environment and reduce the market barriers. However, many Chinese enterprises are not aware of the importance of performing corporate social responsibility. They have a wrong consciousness that performing the corporate social responsibility will reduce their enterprise value. In China, the theory about corporate social responsibility is also very week. Therefore, the empirical analysis. of corporate social responsibility becomes very important. Especially the conclusion positive correlation between the corporate social responsibility and enterprise value, make the enterprises have more reasons to perform the corporate social responsibility. On this basis, this paper is trying to test the relationship between the performing of the corporate social responsibility and enterprise value form an empirical view.In modern China, the idea of building a harmonious society has already been accepted by the public, the development model which only emphasizes the economy growth is no longer adapted to modern society. We need to balance the environment and social sustainable development. In the context, along with the development of corporate social responsibility, the relevant legal system has become more perfect. In 1999, for the first time China Securities Regulatory Commission require the listed companies must illustrate in the production process if there are environment pollution, product quality, intellectual property disputes and safety issues in the legal opinion. By 2002, the former State Economic and Trade Commission and China Securities Regulatory Commission jointly issued the "Corporate Governance Guidelines", the standard requires companies to bear the responsibilities of its stakeholders. The same year, in order to assess the situation of corporate social responsibility preferably, the Ministry of Finance issued "Business Performance Evaluation Standards". In March of 2006, the State Grid Corporation released the first social responsibility report among the central enterprises in China. In January of 2008, the SASAC issued an important document "The Guidelines of the central enterprises’performing of corporate social responsibility". In China, both in the theory and in the empirical fields, the research on social responsibility is still in its infancy. But we have reasons to believe that with the release of relevant documents, the social responsibility research and the performing of the corporate social responsibility in our country would be better.Based on the stakeholder theory which gives a clear definition on corporate social responsibility, it defines the specific content of corporate social responsibility. This paper is trying to explain the corporate social responsibility based on stakeholder theory. And the main topic discusses that the enterprises should perform the responsibility to shareholders as well as the other stakeholders. In detail, we will talk about the corporate social responsibility to eight aspects including the government, shareholders, employees, suppliers, creditors, customers, public and environment.This paper is divided into seven chapters, in which from the second chapter to the seventh chapter is the main content. The first chapter is the introduction. It introduces the background and significance of this paper, then introduces a large number of references and literature on this topic, at last introduces a clear idea of this research and methods as well as the logic framework. The second chapter is the theory of corporate social responsibility. It introduces the development of corporate social responsibility theory both in foreign countries and in China, then descript the methods of the corporate social responsibility. The third chapter introduces the situation and the main problems in petrochemical corporates. The fourth chapter introduces the theory basis of the total article, which is the social impact hypothesis. The main point of the social impact hypothesis is that if the enterprises performing more and more social responsibility, then the enterprise value will go up. The fifth chapter and the sixth chapter are the empirical part. We use the date of A-share listed companies from 2007 to 2009 as research samples to try to find the indexes which can express the corporate social responsibility. Then We choose 9 indexes to form the corporate social responsibility system, and set up a multiple regression model to test the relationship between social responsibility and the enterprise value.The conclusions from the empirical part are that the social responsibility to creditors and public are the most significant indexes. The social responsibility to the government, the shareholders, the consumers, the environment have a positive influence to the enterprise value. However, the social responsibilities to the employees, the suppliers have a negative influence. Finally, the paper also gives some suggestions to the enterprises on how to improve their performing situation.