Is Socially Responsible To Help Companies Get Bank Loans? Th

Along with China’s rapid economic growth, the Chinese society is facing many problems, such as environmental pollution, labor disputes and food security. One of the reasons for this phenomenon is that Chinese enterprises lack the sense of social responsibility. Only when you understand the motivation of their behavior, do you know how to encourage them to take more social responsibility actively. This paper attempts to test whether taking more CSR can improve the possibility of access to bank loans for companies through conveying positive signals to the banks. Through establishing a comprehensive evaluation system of corporate social responsibility, we focus on testing whether bearing corporate social responsibility can help enterprises to obtain bank loans, and find there is no significant promotion effect. This also indicates that commercial banks do not take into account the performance of CSR in the credit approval. In order to understand the motives of CSR, we examined the relationship between CSR and corporate performance, and find that the long term to do CSR can improve business performance. We suggest that commercial banks should consider whether the enterprises bear corporate social responsibility or not when lending to the enterprises. To do so not only can give full play to the role of commercial banks in the servicing the real economy and optimizing the allocation of resources, but also can encourage enterprises to take more social responsibility to promote economic development and social harmony.