An Empirical Research Of Relation Between Social Responsibility Taken By Family Enterprises And Their Ifnancial Performance

Corporate social responsibility refers to the enterprise should also takesociety interests into account, while creating profit, pursuing the value ofthe enterprise and the benefit of the shareholder maximization, includingthe interests of consumers, suppliers, employees, communities, governmentand environment and other stakeholders. As independent individuals in themarket economy, the enterprises have the right to pursue the profit of thecompany maximization; but at the same time due to the participating in theusing and distribution of social resources, they have the obligation toshoulder social responsibilities. Between the corporate social responsibilityand corporate interests, there are certain conflicts and constraints. In thecurrent circumstances that CPC Central Committee proposed the scientificconcept of development and creating a harmonious society, how to dealwith the relationship between the corporate social responsibility andcorporate interests is particularly has more realistic meaning.The family enterprise is the oldest enterprise form in the world, as a widespread form of business. It is also an important part of the moderneconomy and an important company form. In the30years of China’sreform and opening-up, Chinese family enterprise grew continuously andmade a great contribution to the Chinese development. A lot of Chinesefamily enterprises have become big enterprises which have marketinfluence, some even become leading enterprises. As an importantmember in the society, the family business should take correspondingresponsibilities and obligations. So the study of the family enterprise socialresponsibility is of great realistic meaning.In domestic the study about the social responsibility and the financialperformance is mainly aimed at state-owned enterprises or privateenterprises overall, and haven’t compared the diffidence between familyenterprise and the non-family enterprises’ social responsibility and itsrelationship with financial performance. While the research of the familyenterprise’s social responsibility has become a hot spot, but there are twocompletely different views：the family enterprise does better than thenon-family enterprise in shouldering social responsibility; the family enterprise is an irresponsible behavior. Because there are strong Chinesecharacteristics between the family enterprises in our country and foreigncountries, so it is quite necessary to carry out related research about localfamily enterprise and social responsibility.In order to study the current situation of the family enterpriseshouldering social responsibility, author did an analysis about the socialresponsibility of the family enterprise based on stakeholder theory, and didempirical analysis about the relation between social responsibility taken byfamily enterprises and their financial performance and how this relationshipis different between family and non-family enterprise by using2011annualreport data of308family enterprises and308non-family enterprises.Through this study, we found that shouldering social responsibilitytowards shareholders, suppliers and the government will have a positiveimpact on the financial performance, but shouldering social responsibilitytowards the creditors, customers, and employees will have a negativeimpact on the financial performance, shouldering social responsibilitytowards the community public dose not influence the financial performance significantly. Compared with non-family enterprise, the family enterpriseshouldering social responsibility towards the suppliers, employees and thecommunity public have a stronger effect on the financial performance.Based on the above conclusion and analysis, the author put forward somesuggestions for the government, enterprise and relevant organizations.