A Study On The Relationship Among Corporate Social Responsibility,Innovation And Corporate Financial Performance

In recent years,the rapid economic growth has brought great material wealth,at the same time,social and environmental problems have become increasingly prominent.The behaviors that enterprises don’t fulfill the social responsibility such as product safety with hidden dangers,employee rights and interests without protection,waste of resources,and environmental pollution detonated social hot spots with causing a serious negative impact.More and more enterprises began to realize that their own development needs to link with society and environment organically.A single pursuit of maximum economic interests can’t meet the requirements of sustainable development of the enterprise.More and more enterprises began to seek maximum integrated value about economics,society and environment as the business objectives.Enterprises can promote its economic,social and environmental values into an organic unity and make sustainable development through the implementation of the responsibility of the stakeholders.With the increasing constraints of resources and environment,enterprises must have to improve the efficiency of resource utilization and create new profit growth point and then form a differentiated competitive advantage with innovation driven.Therefore,corporate social responsibility and innovation investment can be seen as an important means to improve financial performance.But the resources of enterprises are limited,how to use limited resources to play a dual role of ’responsibility leverage’ and ’innovation leverage’ to improve the financial performance of enterprises is the issue discussed in this article.First,this paper will analyze the connotation of corporate social responsibility based on the perspective of corporate social responsibility theory and stakeholder theory,and review literatures of the relevant researches about the relationship between corporate social responsibility,innovation and financial performance.Then,it’s an innovation that this paper will divides corporate social responsibility into the corporate social responsibility based on internal stakeholders and external stakeholders two dimensions,compared with a single dimension to discuss the relationship with innovation and financial performance in the previous studies,and further propose the hypothesis of the relationship between the three.Finally,this paper will choose 629 manufacturing listed companies that disclose R&D information and participate in the social responsibility scoring of the third-party rating agencies simultaneously as the study samples to verify and compare the relationship between internal and external stakeholders’ corporate social responsibility,innovation investment and current and later financial performance separately considering the possible lagging effect of both corporate social responsibility and innovation investment through the method of gradual multiple regression.The results of this paper show that:(1)The corporate social responsibility for the internal stakeholders,and innovation investment can improve the current and the lagging one period’ and the lagging two periods’ financial performance and the interaction of the two effects the financial performance positively too.(2)The corporate social responsibility for the external stakeholders has a negative effect on the current financial performance.If the innovation investment is made at this time,the negative impact of the corporate social responsibility for external stakeholders on the current financial performance will be weakened.Corporate social responsibility for external stakeholders only has a significant positive impact on the financial performance of the lagging two periods,and at this time,the interaction of the Corporate social responsibility for external stakeholders and the innovation investment effects the lagging two periods’ financial performance positively.