Research On Corporate Behavior Externality And Corporate Social Responsibility

Earlier in2006, the government has put forward the goal of building aharmonious society. Social harmony is harmony of various social relations which thecorporate and social public relations are included as well.Currently, however, thereare still some conflicts and frictions between corporate and social public. It is shownthat the corporate behavior produced so many external problems which were notresponsible for the society that has caused the conflicts between enterprises andsociety. As the data shows, almost all the state-owned corporate and the privatecorporate production and operation way causes external problems which in a lack ofassuming the social responsibility. Apparently, it’s emergent to solve the corporatebehavior external problems. This paper tries to find some way to help in building abetter relationship between corporate and society so as to aid people to find aneffective way to avoid becoming the victims of the enterprise irresponsible behavior.This paper tries to discuss the corporate behavior external problems.This article tries to discuss some core issues in this field, including what kind of externalproblems are there in a corporate? Why do they exist? As for enterprise, resolvingexternality problem is a process to assuming social responsibility. As for that, thisthesis follows the writing thought firstly posing the issue and then analyzing it andlastly solving it. First of all, the paper explains the basic theories of corporate,corporate behavior externality and corporate social responsibility. Enterprise is aprofit-making economic entity. Beneficial or detrimental effects to the Stakeholderbrought by the production and operation of enterprises constitute the enterprise behaviorexternalities. No matter the externality is positive or negative, as long as the enterprisehas behavior externalities, so the resource allocation will not achieve its optimalconfiguration and public welfare will also fail to achieve maximum.Enterprise behavior externality, especially negative externality (externalityproblem) brings a lot of adverse effects to stakeholders. Therefore, the enterpriseshould assume its responding responsibilities. It is thus clear that it’s a good way toshow the enterprise responsibility by solving the enterprise external problems properly.Here comes the question that how to solve the enterprise external issues? From thispaper, the solution of the problems needs to rely on the government’s regulation,social organization monitoring, social public support and entrepreneurs action. Onlythrough the united efforts of government, social organization, the social public andenterprises can finally achieve the goal of internalizing the enterprise externalproblems. What roles do these benefit entities play in solving problems of enterprisebehavior external issues? This paper makes a detailed discussion on this problemwhich is a key part of the paper. The paper mainly cites Pigovian Tax、 Coase Theoremand Man Seer· Olson collective action theory, etc as the theory support to strengthenthe authority and practicality.