Company Law And Economics Analysis Of Social Responsibility

Theory of Corporate Social Responsibility came into being with the development of society and the more important role corporate playing in our life.In western countries,Theory of Corporate Social Responsibility has been experienced a long and hard process from not being accepted to being wildly accepted.However,traditional methods failed to uncover the inner push and mechanism for corporate to take social responsibility. Further research by the method of Law and Economics is needed to be carried out.Thoery of Law and Economics holds that essence of corporate system is collacate of low-cost social resource.The appearance and perfection of corporate system goes with a series of innerization of outside transaction, which is soul of corporate system.On this Base,the thoery count other problems such as pollution and rights protection into consideration,which may be a proper collocate of low-cost social resource.However,the economy nature of corporate makes profit the most important.Without other ingredients,taking social responsibility reduces porfit in short run,which makes corporate tend to escape from it.To make corporate take social responsibility,more ingredients are needed to be count in.Law and public voice need to used to have influence on corporate in decision making.Therefore,no matter corporate are abliged or willing to take social responsibility,its goal is profit,which is Corporate's inner push.It will take social responsibility when the profit is higher than when it does not, vice versa.Research shows that vergional returns diminishes,corporate also consider this factor when taking social responsibility.Law and Economics method helps to avoid the shortcomings of traditional method.It conbines Positive Analysis and Normaltive Analysis, fouses Cost Benefit Analysis,InFormal rules and Quantitative Analysis, which cannot be found in traditional method.Meanwhile,Law and Economics method has its limit,such as ingores the influence of un-rational ingredients and other negative effects.Research of Law and Economics helps in making right policy to promote corporate take social responsibility.The policy includes applying of both formal rules and informal rules,both encouragement and punishment.Compared with traditional method,theory of Law and Economics emphasizes informal rules and encouragement.