Research On The Impact Of Fosun Pharma’s Environmental Responsibility On Corporate Financial Performance

In the global economic integration trend,our economic development has made remarkable achievements in the world,but at the same time,it has also brought us serious environmental problems.In today’s growing philosophy of sustainable development,people are getting more and more concerned about environmental protection.Many people in society require companies to take environmental protection as a top priority,both to achieve economic benefits and to assume environmental responsibility.However,in actual life,because many companies only focus on maximizing profits,ignore the responsibility for environmental protection,and regard it as an economic burden,the current environmental protection implementation of the company is not ideal,and the company’s environmental damage incidents are frequent,the damage done to the ecosystems on which mankind feeds is enormous.To examine the effect of business environmental responsibility on financial performance in light of the current environmental issues of weak corporate environmental responsibility implementation from an environmental responsibility perspective.Firstly,through theoretical analysis.According to sustainable development theory,organizational identification principle,prestige concept and previous research experience,the analysis of the effect of CSR on firms’ financial performance is presented,and it is concluded that effect of active corporate environmental performance on financial performance is more beneficial than detrimental.Then,taking Fosun Pharma as a case,the grey correlation analysis method was used to analyze the correlation between its environmental protection input,environmental subsidies and environmental disclosure methods during the period from 2010 to 2021 with eight financial indicators representing the firm’s profitability,its debt servicing capacity,its operational capacity and its ability to grow,and the correlation degree between the indicators was > 0.6,which can be considered to be strongly correlated.Fosun Pharma’s concrete financial indicators are then compared with the trend of environmental investment and environmental grants over the years in order to conduct an analysis,it is concluded that Fosun Pharma’s environmental responsibility fulfillment:(1)the lack of strategic setting of environmental protection investment amount will limit the financial performance of the enterprise,(2)the large fluctuation of the environmental subsidy policy will diminish the financial standing of the firm,(3)the inadequate disclosure of environmental data will adversely affect the financial performance of the enterprise.The research further verifies the theoretical conclusion that corporate environmental responsibility will culminate in an enhanced financial position for the firm,rather than reduce corporate financial performance.Finally,corresponding policy options and suggestions for improvement are put forward to address the above issues.By analysing the impact of Fosun Pharma’s fulfillment of environmental responsibility,we hope to improve the motivation of the company to fulfill its environmental responsibility and take the initiative,solve the problem of poor performance of corporate environmental responsibilities,improve corporate financial performance,and in turn a durable win-win situation and ecological civilization construction.