Research On The Impact Of Economic Policy Uncertainty On The Fulfillment Of Corporate Social Responsibility

The frequent promulgation and adjustment of economic policies and the variable interpretation and implementation of economic policies by local governments make it difficult for economic subjects to reasonably predict the future direction,scope of action and implementation of economic policies.The interweaving of different policy effects further leads to the uncertainty of economic policies.In the uncertain period of economic policy,the change of external institutional environment and the rise of internal management risk have become the main constraints in the enterprise development decision-making.As a positive response to policies and institutions,the active responsibility of social benefits and an important driving force of enterprise development,the fulfillment of corporate social responsibility is restricted by the institutional environment and operational risks.Faced with the further strengthening of the benefit requirements and cost constraints of enterprise decision-making during the period of highly uncertain economic policies,how can enterprises proactively respond and adjust their CSR decisions to effectively avoid the negative impact of uncertain economic policies? The question remains to be answered.This study selects China’s A-share listed companies from 2010 to 2020 as samples to explore the impact of economic policy uncertainty on CSR performance and its channels,and conducts heterogeneity analysis based on regional environment and enterprise resources,and tests its economic consequences from the perspective of operational risk and return volatility.When the uncertainty of economic policy is high,enterprises may reduce CSR fulfillment due to the decrease of direct and indirect expected returns of CSR investment and the increase of financing costs and opportunity costs in order to avoid risks and stabilize returns.Due to the negative effect that is affected by the degree of changes in returns and costs,there are different effect among enterprises with different business environments and redundant resources.It is found that economic policy uncertainty inhibits CSR performance of enterprises through expected revenue and current cost channels,and the negative effect of economic policy uncertainty on CSR performance is stronger for enterprises located in imperfect business environment areas and with scarce redundant resources.Moreover,reducing CSR fulfillment during the period of high uncertainty of economic policies helps enterprises control risks and stabilize profits.This study puts forward the following policy recommendations: First,the government should improve the continuity of policy making and the transparency of policy implementation,continuously improve the business environment,and reduce the negative impact of economic policy uncertainty.Second,enterprises should enhance their ability to analyze and respond to economic policy uncertainties,and promote enterprises to actively assume corporate social responsibilities in times of economic policy uncertainty.This study explores economic policy uncertainty on the influence of corporate social responsibility mechanism.It not only riches and perfects motivation and function conditions of the corporate social responsibility fulfillment,and economic consequences research under uncertain economic policy situation,but also provides the corresponding proposals for the government to promulgate and adjust economic policies and enterprises to actively fulfill the social responsibility.