Research On The Relationship Between Corporate Social Responsibility And Financial Performance

In recent decades, frequent negative events of Social Responsibility occurrences have transferred social public attention on corporate social ethics, which have also triggered off concerns of corporate social responsibilities from all walks of life. To curb these negative events of social responsibility, the Chinese government has launched a series of laws and regulations to promote the fulfillment of corporate social responsibility and to guide enterprises to establish standard system of social responsibility, But it’s results still are poor. Obviously, underlying the environmental events, in addition to the inadequate government guidance and external regulations, the cognition of the enterprise itself to the social responsibility as well as the enthusiastic pursuit of financial performance, which is belong to the internal problems of the enterprises that cannot be ignored. For this reason, this paper has conducted a systematic study on the mutual bidirectional relationship between corporate social responsibility and financial performance of the listed companies in our country, based on the Chinese CSR development index.First of all, this article reviews the related research results at home and abroad. On basis of corporate social responsibility theory and the method applied, as well as the relationship between corporate social responsibility and financial performance, this paper generalizes the researches status and results, the theoretical foundation of the provisions of this article can be determined in terms of the scope of the research space and the research methods of this article selected.Secondly, in order to further study the relationship between social responsibility and financial performance, this paper do regression analysis by the unbalanced panel data, in order to keep the results stability the study conduct robustness tests based on balance the panel data. Among the adopted the unbalanced panel data, which collected from 119 listed companies in 2010-2013; the balance panel data contains 64 listed companies in 2010-2013 as research samples, which contain 38 state-owned enterprises and 26 private enterprises.The unbalanced panel data research results show that the enterprise market responsibility and environmental responsibility play an promoting role in financial performance; Corporate responsibility management and legal responsibility have no obvious effect on promoting financial performance, Because the corporate social responsibility specific in each dimension has different effect on financial performance, resulting in no existing of positive or negative correlation in overall social corporate responsibility and financial performance. At the same time,the study conduct robustness tests based on balance the panel data, the research results further verify the results of the unbalanced panel data research, but the results show a different conclusion which is the market responsibility has a negative influence on financial performance. In addition, the study also has found the results of performance on the basis of accounting measurement plays an promoting role in the fulfillment of corporate social responsibility, and the results of the performance on the basis of market measuring has no direct role in promoting the implementation of a corporate social responsibility.Finally, based on the research conclusions, this thesis has put forward four policy suggestions in combination with the reality: first, to improve the construction of the corporate social responsibility system; second to build a fair and reasonable unified social responsibility index evaluation system; third, to correctly recognize the relationship between the corporate social responsibility and financial performance; fourth, to establish perfect corporate social responsibility supervision mechanism.