A Study On The Correlation Between CSR And Financial Performance Of Metal Smelting Corporation

In contemporary society, the economy of China is progressing astonishingly on various arenas. Meanwhile, it brings a host of social problems. In order to pursue economic interests, some corporations violate the social responsibility. From food safety to environmental contamination, the phenomenon of violating the corporate social responsibility happened in the all fields. With the high attention of mass media and the folks, corporate social responsibility gradually plays a key role in business management. It is greatly important for China’s metal smelting corporations to shoulder the social responsibilities as the key sectors of our national economy. As fulfilling the social responsibilities needs a great deal of money, the issue of bearing social responsibilities or not is becoming increasingly disturbing. Some scholars believe that corporations undertake the social responsibility will reduce the financial performance and damage the interest of shareholders. Instead, some maintain it will enhance social responsibilities. Consequently, it is important for this paper to study on the correlation between corporate social responsibility and financial performance.Firstly, in the part of introduce, we describe the background and the purposes of the study, and then illustrate the related theories and research of corporate social responsibility and financial performance, after that, we explain the study method and framework of this paper. Secondly, we introduce the related theories in detail, which is the theoretical foundation of this paper. Thirdly, the status of metal smelting corporations shoulder their social responsibilities are introduced and we believe that metal smelting corporations also have some defects in terms of undertaking social responsibilities. According to theoretical analysis and the fact, by selecting 71 Chinese metal smelting corporations’ data as the sample(excluding any special treatment), we propose 7 hypothesis and set up 3 regression analysis models to empirical analysis. In conclusion, we are convinced that there are some correlation between corporate social responsibility and financial performance. Finally, we pose some suggestion to metal smelting corporations.