Research On The Relationship Between Corporate Social Responsibility And Different Means Of Financing

The development of enterprises relies on financial support.Enterprises in China mainly depend on external financing,such as debt financing,equity financing,trade credit and endogenous financing,such as retained earnings and undistributed profits to raise funds.The development of science and technology,the transformation of the market,and the introduction and implementation of a series of policies promote the realization of industrial transformation and upgrading,and bring unprecedented opportunities and challenges to the development of China's pharmaceutical manufacturing enterprises.Due to the particularity of the pharmaceutical industry,related companies are closely connected with law,ethics and the environment in R & D,production and sales.Pharmaceutical companies actively fulfill their social responsibilities and make timely and proactive disclosures,which can often reduce financing costs and ease financing pressures.Driven by the official issuance of documents such as the "Guidelines for Social Responsibility of Listed Companies" and "Guidelines for Environmental Information Disclosure of Listed Companies" and the attention of all sectors of society,more and more companies are actively fulfilling their social responsibilities and actively releasing CSR reports to publicize the performance of their social responsibilities.This paper adopts literature review and case analysis to analyze the relationship between the level of Social responsibility and different financing methods,expecting to provide some references for pharmaceutical enterprises to deal with difficult and expensive financing from the perspective of social responsibility.First,this paper reviewed the relevant concepts,theoretical basis,and domestic and foreign literature of social responsibility and financing.Then we selected Fosun Pharmaceutical,which located at the top of RKS score list,as a specific case.After briefly introducing the company profile and the development status of the pharmaceutical industry,the scale ofFosun Pharmaceutical's social responsibility,debt financing,trade credit and endogenous financing were measured.With the help of formulas such as the Spearman rank correlation coefficient and Pearson product-moment correlation coefficient,we further analyzed the correlation between social responsibility level and different financing methods of Fosun Pharmaceutical.Through the case research of Fosun Pharmaceutical,this paper found that when endogenous financing cannot meet corporate capital needs,the higher the level of social responsibility one held,the more the use of debt financing,while the less the use of trade credit.In addition,the relationship between the level of social responsibility and government subsidies received was further analyzed,it was found that companies with higher level of social responsibility received more government subsidies.