The Impact Of Corporate Governance On Corporate Social Responsibility Performance

Since 1920s the modern corporate social responsibility has been a hot issue, concerned by scholars. When the economic crisis broke in the United States, people began to question and reflect on the powerful economic forces and its violation to human rights, which promote the birth of the theory of corporate social responsibility. In China, the frequent occurrence of mine incidents, Sanlu milk powder incident, the vaccine incident in Shanxi, Foxconn Nine jump event within six months, once again let the topic of corporate social responsibility into the cusp of public opinion, and then encourage people to think about enterprises Social responsibility deeper.Nowadays in the view of the operational level, our country has not yet formed a specific methodology system which fully integrated with our country’s actual situation. On the other hand, in the theoretical level, China also still in the digestion stage. From existing researches, we will find the majority of researches are regulate research, and the minority are empirical research. This paper, beginning whit corporate governance and combining with stakeholder theory of corporate governance, will discuss whether corporate social responsibility will affect the situation. In the light of previous research results, This paper firstly analyzes theoretically, then proposes the assumptions, finally carries out empirical test.To corporate social responsibility, corporate governance is an important tool. Corporate social responsibility can be implemented well only by sound corporate governance. Corporate governance structure is a very important factor in corporate behavior. Corporate governance can be divided into external governance mechanisms and internal governance mechanisms. This paper will discuss how corporate governance reflect corporate social responsibility performance.Based on the above ideas, this paper is divided into five parts: ChapterⅠ, introduction. This chapter first describes the research background, significance and a clear research purpose, and then propose the framework of logical ideas and articles, and the last possible contribution of this research.ChapterⅡ, Theory. This chapter begins with domestic and foreign research results on the internal corporate governance mechanisms and corporate social responsibility.then stakeholder theory as a link.combined with review of literature, elaborate the relationship between.corporate governance and corporate social responsibility.ChapterⅢ, Theoretical analysis, first define stakeholders, and analyze corporate’s responsibility to stakeholders, and then how internal governance mechanisms effect on corporate social responsibility performance.ChapterⅣ, the empirical research design between corporate governance and corporate social responsibility performance. First define the methods of calculating the contribution of various stakeholders and their weights. Then propose the hypotheses, and establish multiple linear regression model.ChapterⅤ, empirical testing results and analysis. corporate social responsibility performance was significantly affected by corporate governance in a whole. corporate social responsibility performance was significantly negatively related to executive pay and the nature of the largest shareholder equity, and positively related to equity and balance degree.ChapterⅥ, the conclusions and policy recommendations. In order to protect the independence of independent directors from source, reforming the selection of independent directors is needed. In addition, establishing reputation incentives of independent directors is necessary. It is proposed to build equity structure of checks and balances to improve the efficiency of corporate governance.Contribution of this study is expected in the following three aspects:Firstly, the research method and research of corporate social responsibility make up for the lack of research; Secondly, provide empirical evidence and guidance; Thirdly, innovate the indicators.Limitations of this study is mainly reflected in the following three aspects: Firstly, the contents of corporate social responsibility involves a wide range, But this paper is only to be limited to shareholders, creditors, employees, customers, suppliers, government and community stakeholders. Secondly, corporate governance is divided into internal and external governance mechanisms, but this paper only considered the case of internal governance. Thirdly, only select the plastics industry as a research sample of listed companies, which may affect the applicability of the results.