A Study On The Mechanism Of Corporate Social Responsibility Affecting Financial Performance

The theory of corporate social responsibility emerged in mid twentieth Century, along with the social progress and economic development, corporate social responsibility has received extensive attention, its core idea is the enterprise should bear the social responsibility in the pursuit of profit. The theory of corporate social responsibility, which appeared in twentieth Century seventy’s stakeholder theory has been defined more perfect, the theory has brought great impact on the business development goals to maximize the single traditional economic profits, enterprises should take into account the different dimensions of social responsibility to provide the basis. The practice of corporate social responsibility need to input costs, and reduce the profitability of the business. But in other aspects of social responsibility will affect the company’s financial performance has become the focus of attention of the theoretical circles and the business community. In recent years, the emergence of a large number of corporate social responsibility and financial performance relationship of theoretical research and empirical research. But there is little research to answer what the relationship between corporate social responsibility and financial performance, the social responsibility of the enterprise through what path to influence on financial performance is less and less. Therefore, to explore how to affect the financial performance of corporate social responsibility and has very important theory meaning and realistic meaning to analyze the effect of path.First of all, this paper is based on the stakeholder theory, from the enterprise to the shareholders, employees, consumers, business partners, government, community and environment these six aspects to define for the theory of social responsibility of modern enterprises. Then, this paper takes Inner Mongolia Yongye group as an example, by means of documents, interviews, questionnaires to collect the relevant evidence and information of social responsibility and financial performance, the data were analyzed using the triangulation encoding and dimensions. In the analysis of Yongye group social responsibility on the financial performance of the mechanism of the effect of the process, introduced the reputation capital theory as the intermediate variables, reputation capital from all sectors of society in the evaluation of enterprises, can be like other capital enterprises create benefit. Finally, based on the case analysis, draw the conclusion:the impact of corporate social responsibility reputation capital increase, promote enterprise financial performance enhancing reputation capital. And constructs the driving mechanism model of social responsibility, reputation capital and financial performance relationship.