Impacts Study Of Pharmaceutical Enterprises' Corporate Social Responsibility On Performance

With the development of close connection between enterprise operation activity, economics and social activities, enterprise behavior has been exerting prominent impact on stakeholder. Corporate social responsibility relates to the ability of the business of sustainable development, far more than a moral issue. Unfortunately, social responsibility scarcity of main corporations causes numerous accidents and social problems.Currently there is a view that initiatives of corporations to take social responsibility will increase the operating costs, and reduce corporate profits. Consequently, it impairs corporate performance; while others hold the point that the concept of corporate social responsibility is conducive to promote corporate image towards stakeholders, especially effective to enhance brand awareness among customers. As a result, the market is widened and products will be purchased by more customers. It is also a stimulator to enhance corporate performance, and propel sustainable development.Accordingly, this paper focuses on the following problems:whether corporate social responsibility exerts influence on corporate performance? What kind of impact? What kind of relationship can we observe on the basis of corporate social responsibility and corporate performance empirical analysis? Focusing on the case of pharmaceutical companies, this paper dedicates to present a comprehensive study of this topic through the analysis of the characteristics of pharmaceutical companies social responsibility, and combination with the stakeholder theory.It could enrich research in this field theoretically and instruct enterprises to take social responsibility practically, which is beneficial to the sustainable development of pharmaceutical companies.The outline and main point of this paper are as follows:1. Give definition to corporate social responsibility and social responsibility of pharmaceutical companies and present standardized norm of corporate social responsibility, by drawing on the views of scholars home and abroad 2. It refers to 4 models of corporate social responsibility, theory of stakeholder and the theory of sustainable development to build pavement for further discussion.3. Analysis levels and contents of social responsibility for pharmaceutical companies, and study their relationship with stakeholders, and qualitatively analyzes the mechanism of how pharmaceutical companies social responsibility affects business performance.4. Conduct empirical study that the sense of social responsibility pharmaceutical corporate affects its business performance. Firstly, it builds the econometric models after putting forward stakeholder hypotheses according to the literature and theory reference previously illustrated. It illuminates the selection of variables and method of dada obtainment in details. Finally, it analyzes the effect mechanism by processing acquired data analysis and testifying models.5. Recapitulates the conclusion and presents suggestions.The main conclusions of this paper are as follows:(1) Pharmaceutical company social responsibility is conducive to improve business performance. Pharmaceutical companies, who actively commit to social responsibility, seemingly may result in increasing operational costs and inferior corporate performance. However, empirical results, initiative commitment to social responsibility will enhance corporate performance. From the significance level (Sig.) the case for the 0.000, F value of 48.608, we can see that corporate social responsibility and corporate performance are highly correlated.(2) Pharmaceutical companies who shoulders most stakeholder social responsibility possess more possibility to enhance business performance. Pharmaceutical companies are responsible to the shareholders, creditors, employees, consumers and government and other stakeholders to fulfill their social responsibility to improve business performance. Pharmaceutical companies return greater investment to shareholders, the enterprise market, the stronger the trust, better performance would achieve; business assets responsible for the lower rate, the greater the risk exposure of creditors; companies providing rich rewards for employees will effectively motivate employees and attracting talented staff; with assured quality and safety, cheap drugs, we can effectively expand the market; companies pay taxes to the government actively to support the government's policy, which will foster business performance. The empirical verifies this view, which these stakeholders are at the 0.05 level of significance with a positive correlation between corporate performances.(3) That the ppharmaceutical companies conduct charitable donation to fulfill its community the responsibility is still relatively limited. Based on the empirical analysis, it evinces donor spending exerts no significant effect on firm performance; meanwhile, from the descriptive statistics, the author discerns that the pharmaceutical companies donating the minimum expenditure is zero, donor spending accounts for the main business income of the average of only 0.0004924. This reflects the current donation of medical expenses among the listed companies is still relatively rare, not enough to have a substantial impact on business performance.(4) Pharmaceutical companies improve business performance because the asset is limited. For assets, the paper in the theoretical analysis proposes that the performance of its pharmaceutical business will have a greater risk and therefore be included as control variables. However, empirical analysis of the results suggest that the asset size of the impact on firm performance was not significant (Sig.0.295>0.05). This shows that for the pharmaceutical companies featuring technology and skills, the size of its asset has limited effect on management performance.