Analysis On Existing Problems And Causes In Execution Of Social Responsibilities By Sichuan Zipingpu Development Co., Ltd.

In economic society, corporations are obliged, regardless the nature of their ownership, to assume social responsibilities, which always draw attentions from all circles. However, neither such social responsibilities have been clearly defined at the legal level, nor evaluation criteria on fulfillment of such responsibilities have been established. Nowadays, Chinese corporations, which are supposed to go after profit maximization, are facing challenges in how to balance between corporate performance and social responsibilities. Increasing economic globalization has brought about fierce competition for the corporations and deteriorated their living environment both at home and abroad. Under such circumstances, the corporations’ pursuit of benefits clashes increasingly with the costs paid for assuming the social responsibilities, which used to be based on moral awareness and abiding by the legal bottom line. Over recent years, the state owned corporations have been spotlighted in this aspect. For profit maximization, some of them ignore or even dodge their social responsibilities in immoral manner, such as providing defective products or polluting the environment, resulting in negative externality to their own development and social welfare as well. This can partly be attributed to the regulator’s overvaluing of economic return and the existing flawed performance evaluation system. Although theoretical studies on the relationship between the corporate social responsibilities and performance have been developing and deepening over years, but these two factors’ subsequent impact and interrelationship still remain unclear, not to mention a standard and widely accepted evaluation system. Most of the studies are still under exploration, either over general or over simple. With emerging and development of the stakeholder theory in recent years, the definition of corporate social responsibilities have become distinct and clear, providing a theoretical guidance and entry point for theorists in studying the interrelationship between the corporate social responsibilities and performance. Based on the stakeholder theory, the author has studied and analyzed the existing problems harassing Sichuan Zipingpu Development Company Limited(hereinafter briefed as ZPPC) and causes thereof, in which the company’s fulfillment of its social responsibilities is considered provision of public goods. With qualitative and quantitative evaluation, a relation model governing the stakeholders and the company’s business development has been established. Furthermore, by incorporating the service quality of provision of public goods into performance evaluation system, the author attempts to combine the corporate social responsibilities organically with business development, and offer recommendations in compelling the state owned corporations to fulfill their social responsibilities with self-consciousness along with improving their performance. For the purpose of this article, literature research method, qualitative research method and quantitative research method are adopted. Innovation points of this article are as follows:(1) to analyze the relationship among stakeholders of the state-owned corporate by valuing ZPPC’s social responsibilities;(2) present recommendations in legal system and institutional building regarding execution of the state-owned corporate’s social responsibilities based on the findings, i.e., the existing management and performance evaluation system is the primary cause for inadequate performance of such responsibilities;(3) a quick and effective solution is to use a performance evaluation system to oversee the state-owned corporate in performing its social responsibilities.