Research On The Relationship Between Corporate Social Responsibility And Financial Performance Of Pharmaceutical And Biotech Enterprises In China

With the advance of the wave of globalization, the social visibility of CorporateSocial Responsibility has been increasing. As so far, The International Forum ofCorporate Social Responsibility has been held seven sessions. The enterprise whichissued Corporate Social Responsibility Report on a voluntary have increased year byyear, actively fulfill the social responsibilities have been becoming the latest trends toglobal enterprises. However, in the process of Market economic system, how torestructure from a economic subject which emphasize profit maximization to one thatabound with social responsibility. Emphasis on social responsibility in the investmenthas been an important topic for Chinese enterprises.Pharmaceutical and biotech industry is one of the16categories of the heavilypolluting industries which stipulated by Chinese Ministry of EnvironmentalProtection, it be supposed to assume more social responsibility than other industries interms of environmental protection, product safety, community relations, etc.Simultaneously, as the industry is unique, the product is important, In addition to thegeneral character, there are more particularity in corporate social responsibility topharmaceutical and biotech industry.However, More Business operators account that fulfill their social responsibilityis a cost input, it Impact on the efficiency of enterprises. Income is less than the costor even a non-revenue point of view has been restricting the enterpriseimplementation of social responsibility intensity. This article intends to explore thecorrelation between pharmaceutical enterprises’ social responsibility performance andfinancial performance through empirical research, point out that the business interestsof which dimensions to fulfill their social responsibility to help to significantlyimprove its financial performance, and to provide advice for pharmaceutical industrysocial responsibility construction according to its characteristics. In order to promotepharmaceutical companies better fulfill their social responsibilities.In the paper, firstly start from the metrics departure of corporate socialresponsibility and financial performance, around the fractal dimension perspectiveand the weights of stakeholders of corporate social responsibility, review andsynthesis of empirical research on corporate social responsibility and financialperformance. Then according to the research focus, expounded the theory of corporate social responsibility and stakeholder theory. They include "Pyramid model" ofcorporate social responsibility,"Carroll structure "and stakeholder definition andclassification. After determined the direction of research and theoretical basis,selected seven dimensions of the shareholders, creditors, suppliers, employees,consumers, government and the community to build a pharmaceutical corporate socialresponsibility evaluation system, and evaluation of the various dimensions of socialresponsibility according to the assessment of points and the characteristics of thepharmaceutical companies, then hypothesize, modeling, analysis and testinghypotheses through correlation analysis and multiple regression, draw the conclusions:the responsibility of the shareholder, the creditors, the vendor, the employee, thegovernment and the community are positively correlated with financial performancein pharmaceutical industry. Enterprise commitment to social responsibility ofstakeholders of these dimensions can help improve financial performance, however,consumer responsibility and financial performance is a negative correlation, and thecorrelation was not significant. This is possible by the government more regulation ofdrug prices, drug catalog, the reason needs to further explore in future research.Finally, combine to theoretical analysis and empirical research results, the paperdeparture from the basic principles of “consciousness first, strategy immediatelyfollowing, action to implement”, proposed strengthening the sense of socialresponsibility, the establishment of social responsibility system, the preparation of theSocial Responsibility Report, the joint supervision of the government and media,promote pharmaceutical market, between the market, and outside the market, threeforces drive corporate social responsibility construction, provide direction forpharmaceutical enterprises to better fulfill their social responsibilities, promote thesustained, orderly development of the pharmaceutical and biotech industries.