Study On The Effect Of Financial Performance On Corporate Social Responsibility

Since China became a member of WTO, the market environment faced by Chinese enterprises has changed dramatically, from the domestic market to international markets, is along with the globalization of competition, which requires companies to pay more attentions on the international rules. Chinese enterprises encountered the "anti-dumping" dilemma,there may be some national political factors, mainly due to the low degree of corporate social responsibility. Therefore, Chinese enterprises participate in international competition, must attach great importance to the fulfillment of corporate social responsibility.Theorists study a lot on whether enterprises should perform social responsibilities and the relationship between corporate social responsibility and financial result, the results generally show that social responsibility is good choice for enterprises. Government, social organizations and enterprises'attentions on social responsibility are strengthened, but overall, is still not enough.This paper argues that the enterprise as an "economic man", the goal is to maximize long-term interests. Economic consequences are more efficient on enhancing the degree of corporate social responsibility than the morality. While fulfilling the social responsibility has a positive impact on financial performance, limited by resources, enterprise generally choose who have greater impact on financial performance from stakeholder groups closely related to enterprise, companies will take the initiative to fulfill their social responsibilities, and better financial performance , the higher the degree of social responsibility to fulfill. For these groups, government and industry associations can provide guidance and supervision. For the stakeholder groups that have less impact on corporate financial performance, enterprise have less motivation to safeguard their interests, even the financial result is good, the degree of corporate social responsibility to fulfill does not necessarily high. Considering this result, government and industry associations should put in more efforts to take effective measures to guarantee the interests of these stakeholders.