Research On Relationship Between Commercial Banks' Corporate Social Responsibility And Corporate Financial Performance

With Corporate Social Responsibility (CSR) Campaign booming around the world, and related problems increasing in China, CSR has already become a concern of China's government, business, and academe. As the heart and vital point of modern economy, its characteristics require commercial banks to undertake more social responsibilities.Based on stakeholder theory framework and the realities of China's commercial banks, this paper establishes a corporate social performance (CSP) evaluation indicator system of commercial banks to evaluate their corporate social responsibility performance quantitatively. Then this paper studies the relationship between banks'corporate social responsibility and corporate financial performance, and provided theoretical basis and practical guide for them to assume CSR better. This paper consists of mainly four parts. Firstly, this research reviews the studies of CSR-CFP relationship both internationally and domestically, which give suggestions and guide to later study. Secondly, the paper defines connotation and content of CSR from stakeholders'perspective, makes theoretical analysis of CSR from economics and management, and introduces the development of theory of CSR, especially the blend of stakeholder theory and CSR. The paper also analyzes the importance of commercial banks to undertake corporate social responsibility. Thirdly, this paper analyzes the CSR of China's commercial banks from perspective of six stakeholders-shareholders, employees, customers, governments, communities, and environment. The paper establishes commercial banks'CSP evaluation indicator system and uses AHP to determine the weights of this system. Finally, this paper uses the evaluation system to assess sample banks'CSR, makes correlation analysis and logistic analysis of relationship between CSR and CFP, and then gives suggestions according to the analysis results.