An Empirical Research On Relationship Between Corporate Social Responsibility And Corporate Financial Performance

In the modern world, Corporate fulfills social responsibility and this has become the promotion to drive time trend of harmonious development of corporate and society, environment. At the same time, government, society and corporate have paid high attention to and support corporate social responsibility (CSR) and it become an important driving force in building a harmonious world. With the further development of economic globalization, CSR is increasingly concerned by international and domestic society. Some multinational corporations made Productive regulation of social responsibility, put out social responsibility report . Then new requirement, initiatives and criteria related to CSR came into existence. In the intonation, the United Nations officially launched the "Global Compact" Project in 2000. International Standard-making Organization starts to make ISO 26000 of social responsibility in 2004.In the 90s of 20th century; the concept of CSR in western country has begun to affect our country. Although CSR is in its initial stage in our country, our awareness of CSR has increased .Furthermore, a lot of companies fulfill CSR and take the initiative to publish the report of CSR and sustainable development reports. It has provided practical significance to study the relationship between CSR and corporate financial performance (CFP) in our country.Firstly, this Paper recalls the academics at home and abroad in recent years for the research of the relationship between CSR and CFP. This laid the literature basis for study. Secondly, it described the theoretical basis. The mainly support theories of this Paper are social responsibility theory, property rights theory and stakeholder theory. Then it analyzed the CSR impacts CFP and at the same time CFP impacts CSP, thus it built theoretical foundation for studying the relationship between CSR and CFP.At last, empirical research has been done on the relationship between the CSR and CFP. Based on the accessibility of research data, it has constructed evaluating indictors about CSR and CFP. The investigation based on the data from a sample of 121companies from 2006 to 2008 in manufacturing of A shares in Shanghai Stock Market. Through correlation analysis and regression analysis, empirical results shows that CSR has significantly positive relationship with CFP of the year, and the two has interacted and promoted between each other. The relationship between current CSR and current CFP is more significant than between the CSR and late CFP. What's more, the longer interval between CSR and CFP, the weaker the relationship is.