The Research On The Relationship Between Corporate Social Responsibility And Business Performance

Since the early 20th century, with the development of the society and increasing of the level of the consumers'awareness, the corporate social responsibility has been paid more and more attention in face of negative externalities as environment pollution, unqualified products and potential safety hazard in the process caused by the enterprises. Taking on social responsibility has been considered as a long-term investment and a competitive means in foreign corporate. However, in the condition of the imperfect market economy system, many corporate hold an opinion that taking on social responsibility will increase corporate'burden and decrease their profits.Nowadays, domestic scholars are starting to do researches on corporate social responsibility, most of which are qualitative analyses. After constructing indicator system used for valuing corporate social responsibility from financial angle, this paper discusses the relationship between corporate social responsibility and business performance and tries to find out: How to appraise corporate social responsibility from financial angle? How the corporate social responsibility impacts the corporate business performance and in turn how to impacts the former? How to regulate corporate social responsibility behavior?At first, this paper reviews and appraises the rationale and representative definition of corporate social responsibility and the research on the relationship between corporate social responsibility and business performance. The paper also analyzes the connotation of corporate social responsibility and the relationship between the corporate social responsibility and business performance theoretically. Based on the social interest theory, stakeholders theory, social contract theory, transaction costs theory and modern property theory, the paper interprets the rationality and necessity of corporate social responsibility and puts forward its content using stakeholder approach.Secondly, the paper constructs index system of corporate social responsibility from financial angle. In consideration of imperfect information disclosure of corporate social responsibility in listed company's annuals, the paper mainly analyzes corporate social responsibility from five aspects of government, employees, shareholders, creditors and contribution to public utility, and reduces the dimensionality of the evaluation index system through factor analysis method.Thirdly, empirical research has been done on the relationship between the...