An Empirical Study Of The Impact Of China’s Commercial Banks’ Social Responsibility On Financial Performance

With the national economy and people’s livelihood hit hard in2008financial crisis, socialresponsibility of commercial banks has received unprecedented attention. Positive commitmentof social responsibility will help commercial banks improve core competitiveness and promotethe growth to achieve sustainable development. At this stage, deeply study of the impact ofChina`s commercial banks`social responsibility on financial performance may help commercialbanks to optimize the strategic objectives and maximize the economic and social benefits, so thatat last promote China’s banking industry actively fulfill their social responsibilities.This article firstly reviewed the domestic and foreign related study about the relationshipbetween corporate social responsibility and financial performance, providing reference andguidance for later study. Based on the stakeholder theory, we discuss the necessity and theinternal and external mechanism of commercial banks social responsibility and proposed thetransmission mechanism of commercial banks social responsibility on financial performance.Then from stakeholder`s angle we analyze the current situation of China`s commercial banksocial responsibility to argue that the level of social responsibility commitment of variousstakeholders has gradually improved, but there are still insufficient in depth and breadth. At thenext part, we empirical test the impact of China`s commercial banks`social responsibility onfinancial performance. The results show that good social responsibility will have a significantpositive impact on the same year`s financial performance, such as profitability, profitability andgrowth.