Relationship Between Corporate Social Responsibility And Financial Performance

With the economic development and social progress,the responsibility of corporate social responsibility has gradually become the focus of research.More and more enterprises are beginning to realize that the corporate social responsibility is inseparable from the benign development of an enterprise.However,the ultimate goal of the enterprise is value maximization,and although the fulfillment of social responsibility is likely to mean a loss of interests to the enterprise,it means an increase of corporate value for the long run.Therefore,at different stages of development,how to balance between short-term and long-term interests for a company has become the key problem during the performance of social responsibility;that is,how does the performance of corporate social responsibility affect its financial performance,and what is the specific path of impact?Based on this,this paper chooses Qingdao Haier,the leading enterprise of home appliance industry in our country,as the object for case study,and adopts the Grounded Theory to code and analyze the relevant data of fulfilling corporate social responsibility in the course of its development,so as to explore the influencing factors of corporate social responsibility and financial performance.The study has found that with the increasing degree of the social responsibility that Qingdao Haier takes,the degree of corporate social responsibility and the responsibility undertaken at different stages is very different,so is the financial impact.The specific manifestations are as follows:(1)During the period of brand strategy,owing to the lack of internal conditions and unclear understanding of social responsibility,the performance of social responsibility at this stage appears in a passive form.The gradual improvement of prestige capital is its impact on financial performance;(2)In the strategic period of globalization,with the continuous development of enterprise capacity,Qingdao Haier began to clarify its own social responsibility,their attitude of social responsibility also changed from passive to active,and they actively fulfilled the social responsibility for all stakeholders.The resulting performance impact is reflected in the simultaneous increase of prestige capital and social capital;(3)In the strategic period of network,Qingdao Haier has carried on the subversive exploration in six aspects: business management strategy,organizational structure,and payment management.And social responsibility as a strategy is involved in the day-to-day operation of the enterprise to form a unique strategy for corporate social responsibility.At this stage,Qingdao Haier has formed its internal and external environmental competitiveness with competitive advantage and the competitiveness of Haier's own internal ability by constantly performing strategic social responsibility,which has also become Qingdao Haier's advantage of competitiveness in strategic social responsibility.Such comprehensive competitiveness has equipped Qingdao Haier with strategic foresight,which may help Qingdao Haier avoid risks,avoid unnecessary economic losses,occupy an active position in the market and guide consumers' inclination.The study has found,through the case study of Qingdao Haier,it has been found that the relationship between corporate social responsibility and financial performance is driven by a combination of prestige capital,social capital and competitive power of strategic social responsibility.Through the study of the relationship between the practice of performing social responsibility and the financial performance of Qingdao Haier,this paper intends to help other enterprises to correctly treat corporate social responsibility and help them to better manage and perform corporate social responsibility,in order to realize win-win of society's responsibility generation and enterprise's financial growth.