Research On The Effect Of Tongrentang’s Lack Of Social Responsibility

In recent years,product quality and safety incidents have been exposed many times,especially in the food and pharmaceutical industries.Its product quality and safety is related to the life and health of consumers.The key to fulfilling social responsibility is to ensure product quality and safety.However,the main purpose of enterprise development is to make profits.The additional costs incurred in fulfilling social responsibility are contrary to this purpose,so the lack of social responsibility may occur.This paper combs the relevant research literature on the motivation and impact effect of the lack of corporate social responsibility,and finds that the occurrence of the lack of social responsibility event will directly reduce the corporate reputation,and then affect the future development and performance of the enterprise,so as to provide a theoretical basis for the case analysis of this paper.The case selects Tongrentang Group,a famous Chinese medicine enterprise in China,as the research object.Combined with the stock market performance and financial report data of the time slice nodes of the company’s "Honey gate" event on the 5th,8th quarter and 30 th month before and after it was exposed,this paper analyzes the impact of the event on enterprise performance.First of all,a short-term market analysis was conducted.On the day the event was exposed,the company’s stock market immediately fell sharply,indicating that the event directly weakened the confidence of the market and shareholders in Tongrentang company.According to the long-term market analysis,in the 24 th month after the event was exposed,compared with the month after the event was exposed,even though the stock market was in an excellent cycle on the whole,the stock price of Tongrentang still showed a downward trend.It can be seen that the confidence of the market,consumers and investors in Tongrentang continued to decline.Although Tongrentang company actively took emergency public relations measures after the event,the effect was limited.The market value did not return to the level before the event until June of the third year.Secondly,according to the financial report data of Tongrentang for many years before and after the event was exposed,EVA analysis,cash flow quality analysis and enterprise growth ability analysis were carried out.It was found that after the "Honey gate" event of Tongrentang,the overall profit,development scale and future sustainable development ability of the enterprise fell back to the level of two years ago.The analysis and research results of this paper show that the lack of corporate social responsibility will seriously damage the reputation of enterprises and frustrate the performance and future sustainable development ability of enterprises.This research conclusion is of great significance to urge enterprises to actively undertake social responsibility,maintain enterprise reputation and image,and ensure the quality and safety of food and drugs in China.