Study On The Corporate Social Responsibility And The Corporate Performance

With the advancing of industrial integration and economic globalization, high efficiencyand sustainable enterprise development views have been widely accepted within the industry.Rapid development of globalization results in the fierce competition within industries. Theinternal and external living environment is worsening, which sharpens the relations betweenoriginal enterprise fragile social responsibility cost and enterprise income. To pursue theeconomic interest unboundedly, most firms violently ignore the Corporate SocialResponsibility (CSR) and plenty of unmoral issues appear in their business process, such asproduct quality and ecological environment problems. These behaviors bring a negativeexternality for enterprise development and boost of social welfare. Melamine incident is oneof the typical cases. It is no doubt that enterprise run a business for profit maximization, butthe trouble for enterprise sustainable development is how do rebalance the relationshipbetween their performance and social responsibility in their business process.Due to the deficiency of theory guide and support in the past decades, researches in therelations between CSR and enterprise performance is still a blank field, which means thatthere is no theoretical framework for clarifying the relations between CSR and theperformance, as well as the insufficiency of the comprehensive and effective measurements.At the same time, researches in the relations between CSR and performance either lack ofmethods rigidity and validity, or lack of reliability or too general. Since1980s, thestakeholder theory has got its momentum. It has been a server challenge for the traditionalpoint of maximizing shareholder value, which has been the central argument in moderneconomics and management. Stakeholder theory brings three points for the research in therelationship between CSR and performance. Firstly, clearing the definition of CSR; secondly,finding the sound approach for measuring CSR; thirdly, laying down the theoreticalframework for research in the relationship between CSR and performance.So how can the study on CSR explore the relationship between CSR and enterpriseperformance based on the stakeholder theory, that is whether there is one kind of relationshipexistence between CSR and performance and what is the relationship. What’s the relationscan we get from the empirical study of CSR and enterprise performance? Meanwhile, what’sthe empirical evidence can the study on relations between CSR and performance offer for thestudies on CSR? These issues will be explored and addressed in this study. The research methods in this research mainly involve literature study, empirical study andquantitative research methods. The highlight of this study is as follows:1. The study gives a proper evaluation for the research status in China, and thenestablishes a Structural Equation Model (SEM) to explore the relationship between CSR andperformance, which is a brand new perspective for the theoretical research in this field.2. After establishing the evaluation model for the relationship between CSR andperformance, this study makes an analysis of the estimation results based on the appropriatesample. The evaluation results will serve as a practical guide for CSR decision.