A Research About The Impact Of The Companies' Corporate Social Responsibility Practice To Financial Performance

With the development of economy and society, corporate social responsibility for the theory and practice problem obtain more and more attention, and the influence of enterprises fulfilling social responsibility to the pursuing of profit is more concerned.Through theoretical and empirical studies, this article will answer two important problems that our corporate social responsibility studies cannot avoid, namely, corporate social responsibility and the influence of corporate social responsibility to financial performance. If the company fulfilling our social responsibility can improve the company's financial performance, this conclusion will promote the company actively to social responsibility, and greatly improve the condition of our company fulfilling our social responsibility.In the part of theory, first this paper defines the meaning of social responsibility, secondly does a comprehensive summary according to former research on the corporate social responsibility and the relationship between corporate social responsibility and financial performance, and finally in base of the theory and practice of social responsibility analyzes the impact of fulfilling social responsibility to financial performance from the perspective of all stakeholders. Based on the《china corporate social responsibility reporting guidelines》and《guidelines on corporate social responsibility》,in the empirical part, my paper identifies the company's stakeholders, and establishes the quantitative indexes to measure their social responsibility of each class of the stakeholders and the company's financial performance indicators. Finally take a sample of listed companies (57 petroleum, chemical industry, in China in 2007-2009), according to dates from listed companies disclosed in the annual report, using the established system of corporate social responsibility and financial performance index, perform the descriptive statistics analysis of corporate social responsibility, and the influence of corporate performance by regression analysis. This regression results show that corporate social responsibility and financial performance are positively correlated, that is, there is significantly positive influence of corporate social responsibility on the financial performance, no matter from the view of single stakeholders or all stakeholders we choose.The innovation point of this paper is the measurement of financial performance.I n the point of stakeholders, we believe that compared with the enterprise value maxim ization and maximizing shareholder wealth, the former target consider the interests of creditors. Shareholders and creditors both provide financial resources for enterprises, cr editors is also the investors and undertake the risk that enterprise can not repay the d ebt, the development of restrictive clauses can be said involved in business decision making to some extent. Attention the benefit to all investors (shareholders and creditor s) is main requirement of the financial management, "earnings before interest" is a co mprehensive indicators that reflect the benefit of shareholders and creditors. This articl e intends to use "earnings before interest", to measure the company's financial perfo rmance, and use the "earnings before interest/total assets" ratio as the indicator to measure the financial performance, partly because the indicators of social responsibility is ratio, chose the ratio of earnings before interest to total assets as indicators of financia 1 performance to increase the comparability between the two; on the other hand, the influe nce of assets to the "earnings before interest" can be considered.