The Impact Of Social Responsibility On Enterprise Development

With the rapid development of China's economy,the need to upgrade the modern corporate system is deepening.At the same time,the social division of labor is becoming more and more complex and companies taking more social responsibility is an good choice to resolve this problem.Corporate social responsibility,as an important method of social governance,has been receiving a lot of attention from academic and industry field.Western countries began to study corporate social responsibility issues earlier than China,and they have achieved a wealth of research results.But because of the different national conditions and different development stages,we can not copy the existing corporate social responsibility theory directly.The specific analysis of Chinese companies' corporate social responsibility is necessary.In this paper,we mainly study the impact of corporate social responsibility on company performance and its operating mechanism.The research results are combined with literature analysis,empirical analysis and case analysis.The research founds are as followed:First,corporate social responsibility can improve company performance and promote enterprise development.As our research results,undertaking the social responsibility relating to stakeholders,such as the protection of shareholders' rights,creditors' rights,employees' rights,suppliers' rights,and customers' and consumers' rights,can significantly improve company performance.Corporate responsibility relating to environmental and sustainable development,public relations,social welfare can significantly improve company performance.The social corporate responsibility undertaken by the company not only improves company performance in the recent period,but also has a significant positive effect on the company's future performance.Second,the operating mechanism that corporate social responsibility can improve company performance and promote enterprise development is that companies are able to maintain a competitive advantage in the competition and remain invincible.The study found that corporate social responsibility can improve company performance with the degree of competition in the industry increasing.Third,it is not that the more responsibilities companies take,the better results you get.According to our research,the relationship between corporate social responsibility and the accounting financial performance that often represented by ROA and g indicators shows an inverted U-shaped relationship.That means there is an optimal value for companies to choose the degree of corporate social responsibility.And as the results,we found the corporate social responsibility and market financial performance that is represented by TobinQ have linear relationship.The main reasons are that investors in the market may think that the more responsibility the company takes,the better the company is.For the reason of accounting financial performance is mainly because of cost theory.The degree of corporate social responsibility taken by companies relates to the cost of them.According to the cost theory,there is a best choice for the company in the cost curve.And the market financial performance is greatly influenced by market effectiveness.Fourth,through the case analysis of four listed companies,it can be found that although the specific work done by enterprises in terms of social responsibility in practice is different,they all have a positive effect on the development of the enterprise in the end.Through the horizontal comparison of the four companies,mature companies have a more complete social responsibility system,and at the same time,the awareness and development of corporate social responsibility in emerging industries are relatively low.In addition,it is found through the case that while enterprises need to assume social responsibility,they also need to find an appropriate balance.This conclusion is consistent with the results of empirical analysis.Research on the impact of corporate social responsibility on company performance and enterprise development is an important part of corporate social responsibility research and also an important topic for public management research.The research results of this paper have practical significance for the relationship between corporate social responsibility and corporate performance to guide enterprises in practice to correctly understand the impact of corporate social responsibility.At the same time,the research results of this paper also enrich the research literature on corporate social responsibility and corporate performance.The results of this paper about the relationship between corporate social responsibility and company performance have realistic meaning for companies to understand the influence of corporate social responsibility.At the same time,our research enrich the research literature on corporate social responsibility and corporate performance.