Research On The Influences Of Corporate Social Responsibility On Corporate Financial Performance

Influenced by the global social responsibility movement, several policies and regulations related to corporate social responsibility has been released. In recent years, frequent occurrence of social responsibility events has exposed the deficiency of corporate social responsibility. Proper cognition of corporate social responsibility is helpful for the enterprise to undertake social responsibility actively. From the contract structure perspective, analysis of the relation between corporate social responsibility and financial performance is performed in this thesis, and the influence route of social responsibility on financial performance is explored, which expands the cognition of corporate social responsibility. Therefore, it is significant for promoting the enterprise to undertake social responsibility, in both theory and practical aspects, to study the influences of corporate social responsibility on corporate financial performance. Listed companies in metal and the nonmetallic manufacture profession in Shanghai Stock Exchange are selected as the sample in the thesis. Correlation analysis and regression analysis are performed in the examination of the relation of corporate social responsibility and finance performance. The findings indicate that the influences of responsibility to customers on the book value and the market value in current period are remarkable, but they are not remarkable on the financial performance in later period; the influences of responsibility to creditors on the market value and the book value in later period are remarkable, but they are not remarkable on the financial performance in current period; the influences of responsibility to suppliers on the market value in both current period and later period are remarkable, but they are not remarkable on the book value; only the influence of responsibility to employee on the book value in current period is remarkable; the influences of responsibility to government on each financial performance are not remarkable. According to the findings above, via theoretical analysis, countermeasure suggestion is proposed to promote enterprise undertaking social responsibility actively in the thesis.The research value has been summarized below. The influence route of social responsibility on financial performance is analyzed from the contractual relationship perspective. The explanation to empirical results is carried on from the perspective of contract structure, and suggestions are proposed to promote enterprise undertake social responsibility. However, the design of social responsibility indexes is a little simple, no consideration of non-financial norm, which needs to be completed in further research. In brief, a train of thought of analyzing and evaluating the influences of corporate social responsibility on financial performance is provided in the thesis, and it is beneficial for promoting enterprise undertake social responsibility.