The Study On The Security Market Of P. R. China-based On CSR

Since1978, China’s security market has developed greatly which has played animportant role in promoting China’s economic development. With the shift ofeconomic growth pattern and the adjustment of economic structure, the traditionalrelationship between the market supply and demand has shown a lot of drawbacks. Itwas no longer meeting the needs of economic growth.Meanwhile, the implementation of the corporate social responsibility (CSR) andsocially responsible investment (SRI) on abroad was constantly developing. As theeconomy developing, more and more enterprise has realized that the pursuit of themaximize interests could not be able to promote its further development. The publicexpectations for the companies are not just only for the employment creation and thewealth creation. In this case, companies need to undertake more social responsibilitiesand to create more value by external stakeholders and to improve the externalenvironment. Investors are also gradually aware of today’s lifestyle is created by thepast investment, and today’s investment will also create tomorrow’s lifestyle.Therefore, in order to promote the enterprises to fulfill their social responsibilities,investors abandoned the past investment criteria which was only concentrated on asingle reference to financial indicators and shifted to those companies fulfilled thesocial responsibility of the enterprise as a standard screening.In this paper, through the analysis of the traditional supply and demand ofChina’s security market, we found the existing supply and demand deficiencies anddrawbacks which is based on social responsibility. By drawing on the experience offoreign CSR and SRI, we are trying to build a new relationship between the demandand supply of the capital market which is based on the CSR to solve the problems. Wealso give the suggestions for the financial institutions and the government in the lastchapter of this paper.In this security market which is based on the social responsibility, companieswill not only fulfill their economic responsibilities, but will actively fulfill their socialresponsibility. It creates a good foundation for the expansion of socially responsibleinvestment approaches. Furthermore, a wide range of socially responsible investment will great enthusiasm to promote the enterprises to fulfill their corporate socialresponsibility. Thus, it will become a virtuous circle, good for the security market andlay a solid foundation for sustainable development.