Relevance About Corporate Social Responsibility And Corporate Value On The Life Cycle Theory

With the development of times, the concept of corporate citizenship has been increasingly accepted, which indicates reflection on the sustainable development of enterprises and eagerness to achieve the sustainable development of ecology, economy and society amongst human society. The corporate organism was assigned to pursue profit maximization from the date of birth. Afterwards, the economy as well as the society promoted the contemplation on business goals and corporate social responsibility. Since the CSR concept was proposed, the meaning of social responsibility among academia has been debated and the amount of academic researches about CSR is increasing, which shows the academia even the society pay more attention to it.In recent years domestic economy and manufacturing have developed rapidly. Meantime, our country has gradually become a manufacturing powerhouse. However, under the circumstance of the rapid economic development and the amount explosion of firms, social problems have increasingly become prominent. Environmental pollution, frequent revelations of quality issue in food industry, labor contradiction of construction industry, production safety of coal industry and other lack of common CSR evoke the attention of the whole public. As an important pillar of our national economy, the performance of CSR among manufacture is not satisfactory. Therefore, for the manufacturing industry to develop in a harmonious way and actively assume social responsibility are granted deeper expectation.However, undertaking social responsibility will consume human resources, finance, and other materials. Enterprises at different stages of the life cycle will show a different understanding of social responsibility and performing ability due to different resources in control. Then assuming social responsibility whether will reduce shareholders’ equity and corporate value or not, as well as compensation of corporate social responsibility in different life cycle periods gradually attract the attention of scholars at home and abroad.Based on the life cycle theory and learning from the researches of scholars about corporate social responsibility, this thesis focuses on studying the relationship between manufacturing enterprises fulfilling social responsibility and corporate value in embryonic period, the growth period, the mature period and recession period from a dynamic point of view, and then further studies a specific dimension of corporate social responsibility-compensation of responsibility for staff. Financial and non-financial indicators for measuring social responsibility are designed in the thesis. To comply with the condition of our country’s manufacturing industry, the non-financial indicators of corporate social responsibility overall performance is made basing on additional modifications of the scholars’. The financial indicator refers to other scholars’studies.The normative and empirical research methods are adopted in this paper.In the theoretical part, mainly from the perspective of accounting and management it introduces the relevant theory and other theories. Based on social responsibility it further explores correlation between fulfilling corporate social responsibility and the corporate value. In the empirical study, it researches the relationship between fulfilling social responsibility and corporate value among manufacturing listed companies of A-share in Shanghai and Shenzhen securities market during embryonic period, the growth period, the mature period and recession period in econometric methods.In general, this paper is divided into seven parts. The first part serves as introduction. It explains background of research, significance and research methods. The second part reviews the references by introducing summary of social responsibility norms, reviewing the life cycle of research, social responsibility, studies of social responsibility and corporate value, which lastly inspires perspective of studying relationship between social responsibility and corporate value in the life cycle theory. Section three presents relevant theories, which provides general framework for hypothetical theoretical analysis and empirical design. Based on the third part, section four specifically discusses different contents of corporate social responsibility and the relationship between corporate social responsibility and the value of the company under the life-cycle perspective. Then it puts forward hypotheses. The fifth part is empirical study design. The sixth part empirically analyzes data collected and tests hypotheses. Finally, last part describes the empirical conclusions and recommendations.Following conclusions are made after empirical research:(1) when in start-up and recession period, manufacturing enterprises fulfilling social responsibilities is negatively correlated with corporate value; while fulfilling the responsibility for employees is positively correlated;(2)when in growth period and maturity period, manufacturing enterprises fulfilling social responsibilities and the responsibility for employees are positively correlated with corporate value.The paper attempts to innovate through conducting a study between social responsibility and corporate value from the perspective of the dynamic development. Moreover, the measurement of corporate social responsibility has been improved. Conclusions are made that in start-up, growth, maturity and recession period assuming responsibilities for the employees will help improve the corporate value so as to complement related literature. However, theoretical analysis for hypotheses is not sufficient and because of social responsibility information disclosure, there are some problems with obtaining data. Besides, measurement may not be appropriate enough due to varied contents of corporate social responsibility.According to the findings, content of corporate social responsibility varies. Manufacturing companies should properly make CSR strategies based on needs and resources owned in different life cycles. What’s more, manufacturing companies should concern and fulfill responsibilities for employees in four cycles. Meanwhile, the government should issue corresponding policies to regulate disclosure of social responsibility information and encourage manufacturing enterprises to actively fulfill and disclose social responsibility. Lastly, academia and government should work together to promote the establishment of social responsibility of accounting to improve accounting theory and accounting practice.