Analysis Of The Motivation And Performance Of Targeted Poverty Alleviation In Enterprises

Since the 18 th National Congress of Communist Party of China,the Party Central Committee with Comrade Xi Jinping at the core,based on the practice of poverty alleviation and development in China,has pioneered the targeted poverty alleviation strategy,and clearly required that the regional overall poverty problem should be solved by 2020,and that entire rural poor people under the current standards should be lifted out of poverty.Under the strong call of the Party and the government,more and more private enterprises began to participate in the national targeted poverty alleviation strategy,becoming an important force in the fight against poverty in China and making outstanding contributions to the construction of China’s overall well-off.However,the research on the targeted poverty alleviation of private enterprises in China is still very limited,especially the typical case studies on targeted poverty alleviation are relatively lacking.Based on this,this paper will take typical private enterprises as cases to explore the motivation of their participation in the targeted poverty alleviation strategy and the impact on their corporate performance,to stimulate more private enterprises to participate in the national poverty alleviation work,to promote the effective connection between targeted poverty alleviation and rural revitalization,and to help achieve China’s second century goal.This paper adopts a case study approach and selects Inner Mongolia Yili Industrial Group Co.,Ltd and Bright Diary&Food Co.,Ltd as typical case companies to study the motivation of targeted poverty alleviation and the changes of enterprise performance during the targeted poverty alleviation period.The study finds that enterprises participate in targeted poverty alleviation strategy mainly due to the following motivations: firstly,national dimension-policy guidance,the government introduced a large number of tax policies and credit policies,and gave a large number of government subsidies to targeted poverty alleviation enterprises,which to a certain extent attracted enterprises to participate in targeted poverty alleviation;secondly,industry dimension-competitive pressure,due to the external pressure of other enterprises in the industry to participate in targeted poverty alleviation,enterprises will actively participate in targeted poverty alleviation work in order to reduce the uncertainty of production and operation;Finally,enterprise dimension-cost pressure,the high advertising and marketing costs of enterprises are also an important motivation for enterprises to participate in targeted poverty alleviation.This paper focuses on market value indicators,financial and non-financial indicators to measure changes in corporate performance.The study finds that companies that actively participate in targeted poverty alleviation will have better long-term and short-term,financial and non-financial performance than other companies in the same industry that are not significant in targeted poverty alleviation,i.e.,Yili shares actively participate in targeted poverty alleviation and its corporate performance develops better overall than Bright Dairy,which does not disclose information on targeted poverty alleviation as required,and therefore advocates companies to actively participate in poverty alleviation.The paper concludes with suggestions on how to guide enterprises to actively participate in poverty alleviation: firstly,the government should strengthen policy guidance,implement preferential policies such as tax incentives and financial subsidies,to attract enterprises to participate in targeted poverty alleviation work with practical benefits;secondly,the public should strengthen monitoring awareness and utilize the social effects of the media.Finally,enterprises themselves should combine their participation in poverty alleviation with their long-term development and actively participate in the work of targeted poverty alleviation.