An Empirical Research On The Relativity Between The Corporate Social Responsibility And The Corporate Financial Responsibility

The theory of corporate social responsibility, CSR for short, which can trace back to 1950s and has been about more than 50 years, has been amended and perfected ceaselessly and has an important impact on practice. Nowadays, with the development of the international economy and progress of the human being, some corparation, which is the primary carrier of economy, takes some actions, such as tax dodging, exploitation on employee, fraudulent practices, destroying environment and lack of commonweal consciousness. Those aggravate the anxieties of society and make CSR become focus of society, and also become an important problem of corporation itself, the most important one of which is the relativity between the CSR and the CFR (corporate financial responsibility).This thesis gives the concept of the CSR firstly. About the concept of the CSR, different scholars have different viewpoints and its academic elements are also different. According to the Stakeholder Theory, we think there are two parts about CSR, and one is the corporate social responsibility about Primary Stakeholders and another one is about Secondary Stakeholders. And then, the thesis illustrates the dialectic relation between the CSR and the CFR, in the method of academic analysis. Generally speaking, there should be active mutual effect between the CSR and the CFR.And the CSR is higher, and the CFR is much better, vice versa. By the cost-benefit analysis and balance analysis, the CSR is benefit to the CFR from a long term.In order to search the exact relation between the CSR and the CFR, we establish variable of evaluation of the CSR and select the Listed Companies belonging to 180 Indices of Shanghai Securities Exchange from 2002 to 2005, and we take the method of descriptive analysis, regress of pooled cross section and panel data and the regress of hysteresis. The result of research is that the CSR has an active and obvious effect on the CFR, vice versa, and the CSR has an obvious hysteresis effect on the CFR, but the CFR doesn't. In order to find the reason, the thesis give a research on the relation between the elements of CSR and CFR,and we find the GOVCR,INVCR has an active and obvious effect on the CFR,but the CHACR doesn't, and the EMPCR has a negative effect on the CFR.From the conclusion of this thesis, we find the CSR has an active and obvious effect on the CFR, so the corporation should take on the social responsibility actively, in the meanwhile, and the corporation better in the CFR more possibly take on social responsibility. Indeed, that there is short effect about our CSR maybe because one hand, our corporation lack of foresight, and another hand our society hasn't established a prompting mechanism about the CSR, which loses the positivity of corporation to taking on the social responsibility. Basing on the conclusion and analysis above, I give some suggestions to government, corporation and interrelated organization.