The Relationship Between Corporate Social Responsibility And Corporate Financial Performance

In recent years,Chinese rapid economic development improved the material life,butalso brought serious environmental pollution, the public began to focus on the corporatesocial responsibility(CSR) issues. In academia, scholars are increasingly concerned aboutthe research of corporate social responsibility,especially the relationship between corporatesocial responsibility and corporate financial performance. Until now, research on therelationship between the two is still in infancy, and has not yet formed a unified conclusion.Based on this, the article does an empirical research on the relationship between corporatesocial responsibility and corporate financial performance.First of all,I summarize the conclusion about the relationship between CSR andfinancial performance of current literatures home and abord. Secondly,I introduce the basictheory---social responsibility theory, stakeholder theory and corporate social contracttheory, and analyze how would corporate social responsibility might affect corporatefinancial performance in theory.In the empirical research part, the paper mainly study the relationship between CSRand corporate financial performance through three aspects--shareholders,creditors andgovernment,which is based on the stakeholder theory.I also decompose the company’sfinancial performance into accounting indicators and market indicators,so that therelationship between CSR and financial performance will be more explicit.As to empiricalmethods, I conduct a study of all the manufacturing companies listed in Shanghai andShenzhen stock market from2010to2012to certify the relationship of CSR and financialperformance by using structure equation model.The test results show that:the corporatesocial responsibility on shareholders and government is positively related to accountingperformance,negatively correlated to market performance;the corporate socialresponsibility on creditors is negatively correlated to both accounting and marketperformance,but the latter one is not significant;the corporate social responsibility on shareholders,government and creditors contribute differently to corporate financialperformance;corporate impact on one certain stakeholder to fulfill their socialresponsibilities affect the social responsibilities on other stakeholders.