A Study On The Relationship Between The Corporate Social Responsibility And Corporate Financial Performance

Corporate Social Responsibility originated firstly in the Western country, after driven by the globalization, it gradually formed a popular trend which causing a widespread concern by the international community. Our country is starting to pay attention to this issue of corporate social responsibility under the influence of this trend. In order to implement the scientific development view, build a harmonious society, and promote the social sustainable development, there are series of guideline on corporate responsibility have released with a aim to guide the enterprises to fulfill their social responsibility actively. As far as the current situation, the enterprises in China are lack of a strong sense of social responsibility, as a result, it is common for us to see the events that absence of social responsibility. It is believed that the reason is the economic interests; the companies are worry about the economic damage if they bear the social responsibility. In this way, what is the relationship between corporate social responsibility and enterprises’financial performance? This paper is trying to analyze the relationship between them by series of empirical study and amounts of data, so as to eliminate the enterprise’s concerns, and finally achieve the goal that encourage the enterprises to fulfill their social responsibility proactively.Firstly, this paper reviewed the relevant literature about corporate social responsibility and enterprises’financial performance, and summarized the current researches. Secondly, sort out the theory of social responsibility and give out a brief introduction of the stakeholder theory, and take an explanation on the combination of the both sides. Then, the author tries to measure the corporate social responsibility in stakeholder’s position, which is divided into seven aspects including shareholders, creditors, customers, suppliers, employee, government and environment. Measuring the enterprises’financial performance by market and accounting indicators, at the same, the survey use enterprise scale and corporate property as control variable to construct the index system of the empirical research. Finally, the paper select the listed company of our country’s paper industry as the research object, cite the panel data of2006-2011as the study sample, use the multiple linear regression analysis method to study the mutual influence on corporate social responsibility and enterprises’financial performance.After the empirical study, it found that:(1) the more that the corporate fulfill their social responsibility to the stakeholders, the better of the enterprises’financial performance;(2) the good financial performance of the corporate consistent with the responsibility of the shareholders and creditors, while it’s go against with the situations that the customers, suppliers, employees, government and the environment to fulfill the social responsibility. In summary, the study of this thesis shows that the corporate social responsibility play an active role on the financial performance. At present, Chinese enterprises are still lack of a strong sense of social responsibility awareness. In order to strengthen the awareness and promote them to fulfill social responsibility, this paper will propose some suggestions from the self-discipline of corporate, promotion of government and the supervision of social community perspectives.