Research On The Impact Of Environmental Responsibility On Financial Performance

The 19 th National Congress of the Party clearly pointed out the need to build a beautiful China and to resolutely fight the battle of ecological environmental protection,various industries are also making unremitting efforts to build a green and harmonious ecological environment system.The construction of ecological civilization has put forward higher environmental protection requirements for enterprises,which must find a balance between maximizing economic benefits and ecological protection.In this context,companies will be very concerned about whether actively taking up environmental responsibility can enhance their own economic performance? Using this as an entry point,this thesis aims to investigate the impact of environmental responsibility on financial performance.Using a combination of theoretical analysis and case studies,the thesis takes Fuyao Glass as the research object to explore in depth the impact of environmental responsibility on financial performance.Firstly,the impact of corporate fulfillment of environmental responsibility on financial performance is sorted out by combining stakeholder theory,reputational capital theory and resource-based theory.Secondly,the current situation of Fuyao Glass in fulfilling its environmental responsibility is analyzed in depth from three aspects: green operation,green innovation and clean production.Once again,the impact paths of Fuyao Glass’ fulfillment of environmental responsibility on financial performance are constructed from four levels:environmental information disclosure,green reputation,government subsidies and green innovation,and its impact effects are analyzed,and the short-term and long-term impacts of the fulfillment of environmental responsibility on financial performance are presented by means of data analysis,and the study concludes that although in the short term,Fuyao Glass’ fulfillment of environmental responsibility will leads to capital outflow,which will has a negative impact on financial performance.However,in the long run,Fuyao Glass’ initiatives to fulfill its environmental responsibility will favorable to improve environmental information disclosure level,increase government subsidies,enhance its green reputation and stimulate green innovation,which will have a positive impact on the company’s operating capacity,development capacity,solvency and profitability,and ultimately contribute to financial performance.Finally,suggestions are made to improve the level of environmental responsibility of auto parts enterprises from the perspectives of both enterprises and governments: enterprises should establish green concepts,pay attention to environmental information disclosure and strengthen green technology innovation.Relevant government departments should strengthen the supervision of relevant laws and regulations,improve the supervision mechanism of environmental governance and improve the incentive mechanism of environmental responsibility.It is hoped that with the joint efforts of enterprises and the government,a good situation of win-win situation of economic construction and ecological society can be realized.