The Impact Of Corporate Social Responsibility On Financial Performance

The concept of corporate social responsibility has developed for a long time in foreign countries,and now it has reached a mature stage.Foreign enterprises always pay attention to the impact on society and environment in their business behaviors,and have established a mature evaluation system of social responsibility.However,the concept of social responsibility appeared later in China,but with the progress and development of the times,the concept of sustainable development has more and more far-reaching influence on economic and social development.Enterprises have gradually realized that they can not only focus on their own interests,but also take into account the social,environmental and various aspects of responsibility,so as to achieve multi-faceted coordinated development.Textile products are closely related to our daily life.As one of the pillar industries of China's national economy,textile industry has contributed to the steady development of China's economy.At the same time,due to the high pollution and high consumption characteristics of the textile industry,textile enterprises should pay more attention to the coordination of enterprise and social development,assume more social responsibility.This paper adopts the writing method of combining theoretical analysis and empirical research.First of all,through reading a large number of domestic and foreign literature on social responsibility,stakeholders and financial performance of the relevant theories summarized.Then,it summarizes the research status of domestic and foreign scholars on the relationship between corporate social responsibility and financial performance.Combining the theory of social responsibility and stakeholder with the characteristics of China's textile industry,this paper defines the stakeholders of China's textile enterprises.It also shows the current status of textile enterprises' social responsibility performance.Thirdly,this paper selects the total assets return rate as the dependent variable,the ratio index of each stakeholder as the independent variable,and the enterprise scale as the control variable.Perform descriptive statistics,correlation analysis and panel regression analysis on the data of 23 listed companies in the textile industry from 2012 to 2018.The empirical study concludes that the fulfillment of social responsibilities by textile companies has a positive effect on their financial performance.Among them,textile enterprises fulfilling the social responsibility of the investors,government,suppliers and consumers has a significant positive impact on financial performance;Fulfilling the social responsibility of the employees and environment has a negative but not significant impact on financial performance;Fulfilling the social responsibility of the social groups has a significant negative impact on financial performance.Last,according to the results of the empirical study,the paper puts forward some suggestions for improving the level of corporate social responsibility of textile enterprises from government,the public and enterprises perspective.