Corporate Social Responsibility,Stakeholder Response And Enterprise Value

Recently, with the rapid economic development, China has made remarkable achievements. At the same time, however, the frequent social responsibility events also attracted widespread attention. Under the supervision and the advocacy of the Government, corporate social responsibility (CSR) has been improved, and the corporate stakeholders gradually raise the awareness of social responsibility, with the amount of socially responsible investment activities and social responsibility consumer movements quietly rising. The theoretical and empirical study on CSR has been carried out in all directions, and obtained benefit results, while at the micro-level, there is still disagreement about the basic issues that whether CSR has economic effectiveness, and whether it is able to improve the enterprise value, which need further clarification on the micro mechanism of the corporate social responsibility to corporate value and the in-depth study on specific mechanisms of action and approach.Therefore, this article takes listed companies as samples, and filters the initial study samples to ensure the unbiasedness of the samples using propensity score matching method. Based on the stakeholder theory and Carroll "pyramid" model of corporate social responsibility, this article is to build a subentry and comprehensive index system, and to measure the level of corporate social responsibility using entropy method and factor analysis method respectively, then to measure and analyze the status quo, characteristics and trends of corporate social responsibility, on the basis of which to analyze the relationship between corporate social responsibility and corporate value. Through questionnaires, we carry out investigation, measurement and analysis about corporate social responsibility investors and consumers’response, and empirically test the intermediary effect of the investors and consumers’response in the relationship of corporate social responsibility and corporate value, then revealing the action mechanism of the impact corporate social responsibility on corporate value. The main contents and conclusions are as follows:1. The metrics and evaluation results on CSR indicate that, at this stage, the awareness of China’s listed companies to fulfill corporate social responsibility is on the rise, but there is structural contradictions between the specific content and hierarchy of CSR and stakeholder responses:either investors or consumers, have shown a relatively strong response and attention on the corporate social responsibility, but companies performance in the consumer’s social responsibility is unsatisfactory; On the contrary, investors and consumers don’t have high expectations and response on corporate voluntary responsibility (philanthropic responsibility), but the company has spent more resources and cost in philanthropic responsibility, which reflects the irrational resource allocation of company corporate social responsibility.2. The fundamental analysis on the relationship of corporate social responsibility and corporate value shows:When using the sub-indicators and composite indicators to measure corporate social responsibility, there exists mutual influence between corporate social responsibility and corporate value. Corporate social responsibility to investors can cause the capital market positive reaction, helps companies making good performance in the capital market, so as to enhance the enterprise market value, which lays the foundation for enhancing the level of social responsibility, making companies more proactive to take social responsibility. Corporate social responsibility to consumer can cause a positive reaction on product markets, helping to improve corporate financial value, and the improvement of business performance provides more and better financial resource to undertake CSR, help enterprises to further improve the degree of corporate social responsibility fulfillment. The analysis also shows:The relationship between them is linear not curvilinear, and it is getting closer; Most of the corporate social responsibility projects have positive impact on enterprise value of the one-year lag companies, while the impact on the two or three years lag companies tends to be weaken, which indicates that the value of corporate social responsibility has timeliness.3. Investors have a good understanding of CSR on the whole, and have different responses to different CSR projects. The impact of investors’stress reaction to the rejection to fulfill CSR is more significant compared to enterprises’fulfillments of their social responsibility. Different types of social responsibility results in different investor response, excluding consideration of their own interests, what investors value most is the CSR to consumer and corporate economic responsibility. The market value of enterprises that get response from investors for shouldering the responsibility was significantly higher than the enterprises which have not got response from investors. Investors response play the intermediary role between corporate social responsibility and corporate value, there exists mediating effect.4. Consumers have some understanding of corporate social responsibility, but they make different degree of response to corporate social responsibility behavior to different stakeholders. The same as the investors, consumers’ response to companies refusing to fulfill corporate social responsibility is huge, and it influents consumers’purchase choice and consumption. In addition, consumers respond differently to different types of social responsibility. Except corporate social responsibilities to consumer itself, what cause strong consumer response are followed by companies social responsibility in the environmental aspects, corporate social responsibility of the government, corporate social responsibility of corporate employees, the public and the business partners. The financial value of enterprises that get response from consumers for shouldering the responsibility is significantly higher than the enterprises which have not got response from consumers. Consumers response play the intermediary role between corporate social responsibility and corporate value, there exists mediating effect.Finally, this paper proposes countermeasures and suggestions including:increasing awareness of corporate responsibility; being proactive in corporate social responsibility information disclosure, strengthening communication with stakeholders to win the stakeholder response; adjusting business strategy management to make rational allocation of corporate social responsibility activities resources.