The Study About Relationship Between Social Responsibility Cost And Enterprises Effectiveness Of Small And Medium Size Enterprises In China

According to more than 4000 questionnaire survey to operators of Chinese enterprise from "CEO"' in 2007, almost 70% enterprise operators agreed that "implementing social responsibility of enterprises will increase the cost of enterprises, and then reduce the benefits of enterprises". But some studies show that the social responsibility behavior of enterprises are optional, which actually just the leader social responsibility value embodying on ordinary management behaviors, not exactly generates obvious enterprise cost. Will implementing social responsibility increase cost?This paper analyzes the various simple management methods adopted by our enterprises, especially the small and medium size enterprises driven by benefits, as well as the damage made to enterprises and society due to simple management methods, raises the needs for enterprises to implement social responsibility, concludes the enterprise social responsibility's requirements to enterprises as well as the corresponding increased business cost and influence to enterprise benefit, raises that enterprises should improve product added-value through self-innovation and setting up brands of enterprises by CSR, and then the enterprises can not only implement social responsibility, but also further upgrade competitiveness and realize the harmonious and sustainable development between enterprises and society.This paper adopts Cost-Quantity-Effectiveness analyzing tools and cost effectiveness analysis analyzing methods to make analysis and comparison to the economic benefits of small and medium size enterprises before and after implementing social responsibility through logic consequence way, and raises that social cost of enterprises show negative relationship with economic benefits of enterprises during static state in narrow sense, so it requires that enterprises must take initiative to innovate by themselves, use CSR to setup brands, and finally realize the improvement of economic benefits during dynamic range.