The Relationship Between Corporate Social Responsibility And Financial Performance

With the continuous development of economy,corporate social responsibility has been paid more and more attention.There are many ways for enterprises to fulfill their social responsibilities.For example,through disaster relief donations,job creation and other ways to participate in social welfare undertakings;Protect employees’ rights and interests through solicitude and solicitude for employees in difficulties and regular training.Actively assuming social responsibility can set up a good image for enterprises.However,it is still worth discussing whether the financial performance brought by enterprises undertaking social responsibility is greater than the cost of investment.Meanwhile,CSR and reputation capital are closely related concepts,and good reputation accumulates to form the reputation capital of a company.So,what is the significance of reputation management for the survival and development of enterprises? What role does reputation capital play in the relationship between corporate social responsibility and financial performance?In order to explore the relationship between corporate social responsibility and financial performance and the significance of accumulating reputation capital for enterprises,based on the above hot topics and stakeholder theory,this paper first introduces the basic concepts of corporate social responsibility,financial performance and reputation capital.The paper also reviews the relationship between CSR,CFP and reputational capital,as well as the mediating mechanism and regulating variables affecting the relationship between CSR and CFP.Then it introduces and puts forward the theoretical framework and model of the mediating effect of reputation capital on the relationship between corporate social responsibility and financial performance.Then,selected from 2015 to 2017,under the household electrical appliance industry data as sample,using social contribution value per share calculation of corporate social responsibility,refer to the "fortune" magazine "China’s most respected enterprises" metric reputation capital,could be divided into short-term financial performance and financial performance long-term financial performance,among them,the short-term financial performance using gray absolute correlation degree to build integrated financial performance coefficient measurement.According to the established model,descriptive analysis,Pearson correlation analysis and regression analysis are carried out.It is found that CSR has a positive correlation with both short-term and long-term financial performance,and its impact on long-term financial performance is greater than that on short-term financial performance.In other words,CSR is positively correlated with financial performance.Corporate social responsibility is positively correlated with reputation capital;Corporate reputation capital positively affects short-term financial performance,but there is no significant relationship between reputation capital and long-term financial performance.Reputation capital plays an intermediary role in the relationship between corporate social responsibility and short-term financial performance.Finally,according to the research conclusion,three Suggestions are put forward: Firstly,attach importance to stakeholders,and correctly handle the relationship with stakeholders;Secondly,strengthen reputation management and accumulate reputation capital;Thirdly,establish a sense of social responsibility,and actively undertake social responsibility.