The Research On The Effect Of Corporate Social Responsibility On Corporate Performance In China

Besides benefit maximization, corporate social responsibility also needs paying attention to when operating a corporation. The research on corporate social responsibility in China started later than in the west. However, it also attracted many scholars and the public's widespread attention. Particularly, there are many researches on the relationship between corporate social responsibility and corporate performance. This paper uses empirical method to study the effect of corporate social responsibility on corporate performance in China from the perspective of interest-related parties.The paper chooses the data of 2006-2008 for empirical study. The empirical study has two parts. The first part studied the effect of corporate social responsibility for different interest-related parties on corporate performance which is measured by three factors. In this part, divide the sample companies into two groups called state-owned group and non-state-owned group basing on the largest shareholder's ownership property in 2008. Then use empirical study on the two groups respectively. The results showed that the effect of corporate social responsibility for different interest-related parties on corporate performance is more significant and there are a lot of positive correlations in the state-owned group. It means good performance of corporate social responsibility promotes corporate performance. But the results of the non-state-owned group are less significant than the state-owned group, and there are a lot of negative correlations. In the second part, gave weighted score to all samples. The results showed that the average score of the state-owned group is higher than the non-state-owned group during 2006-2008. This indicates the state-owned companies undertake more social responsibilities. In this part, don't divide the sample companies and study the overall situation in China. The result shows that corporate social responsibility has positive effect on corporate performance in the current period. But when it comes to the effect of corporate social responsibility in the previous periods on corporate performance in the current period, there are positive effect and negative effect.