Research On Relationship Of Corporate Financial Performance, Reputation Mechanism And Corporate Social Responsibility

Since the last mid-90, Countries have developed guidelines for social responsibility, China have also developed a series movements of social responsibility, which promoted the disclosure of corporate social responsibility in positive role. This paper based on the reputation mechanism, researches the relationship between company's financial performance and corporate social responsibilities. This research has theoretical and practical impact on corporate social responsibility in China.The paper consists of three main parts, which conclude theoretical analysis, empirical research and the applications. The research starts from an overview of two theoretical frameworks for CSR-CFP relationships, which are CSR idea and the stakeholder theory; then based on the reputation mechanism, the research surveys the empirical evidences on CSR-CFP relationship over the past 4 years; finally the research ends in the applications and practices of CSR in China.The reminder of this paper is organized as followsChapter 1 briefly introduced the issues, implications, contents and methodologies, as well as the contributions of the paper.Chapter 2 introduced theory of reputation mechanism, social responsibility and the relationship between the corporate financial performances and corporate social responsibilities. This paper starts from the reputation mechanism theory to analyze the relationship between the corporate financial performances and corporate social responsibilities to introduce the evolution of corporate social responsibility and take the Institutional Economics into the social responsibility theory to discuss the relationship of the corporate financial performance and corporate social responsibility.Chapter 3 analyzed two cases to discuss how the interaction of corporate reputation, corporate financial performance and corporate social responsibility works.Chapter 4 designed the empirical research on the relationship of corporate reputation, corporate financial performance and corporate social responsibility.Chapter 5 examined the CSR-CFP relationship in China. Based on a set of CSR measures, the paper describes the situation of CSR in China and finds out that CSR is positively related with CFP based on reputation mechanism and there is a reciprocal causation between these two variables.Chapter 6 concluded the research and points out the limitations of the research.