A Research Of The Relationship Between Behavior Of Private Corporate Social Responsibility And Financial Performance

"Toxic milk" with melamine, Johnson "formaldehyde door ",they caused consumer panic; Shanxi coal mine collapse, the Songhua River pollution incident,sparking strong social reaction; the occupation of the interests of minority shareholders,the migrant workers are owed wages, gender discrimination in employment, all of these problems occurred frequently in recent years. Absences of corporate social responsibility are all sound the alarm, urging scholars to address the domestic issues of corporate social responsibility. Our research on corporate social responsibility occurred in the 90s of last century, the background was the intense discussion between the social responsibility research and the traditional standards of profit maximization in foreign academics. In the process, domestic scholars try to combine the characteristics of the domestic social environment. Now most scholars have reached consensus on the meaning of corporate social responsibility, identified that other stakeholders are also important, and enterprises should fulfill their social responsibilities. However, the nature of the enterprise is to profit, they are more concerned that if they take a social responsibility, what effect will happen on their own, only increase the burden on businesses, or to promote the improvement of corporate financial performance.From this perspective, when they face the embarrassment, corporate social responsibility requirements or to maintain enterprise performance, the domestic enterprises (including private enterprises) is difficult to make a choice. I believe that the fundamental reason is that most companies did not realize the importance of corporate social responsibility. They merely seem corporate social responsibility as an obligation rather than strategic investment; do not believe that improving the relationship between business and the government, the public relations or other stakeholders will have a positive effect on corporate performance. Private enterprises in China, as an emerging economic group, they have a short history, and grow with a fast rate. In the pursuit of profits, they are prone to ignore corporate social responsibility and to take short-term behavior. Of course, ignoring the conditions of the business, asking them to fulfill their social responsibility to all stakeholders, that is not sensible. This blind attitude will only increase the burden on enterprises for no reason, the result is neither able to achieve the expectations of stakeholders, nor conducive to business survival and development, resulting in lack of corporate social responsibility phenomenon is getting worse. Therefore, this paper introduces level view of private corporate social responsibility, from the perspective of private enterprises "to consider that what attitude or strategy should be adopted in this stage, and how to adapt to different stages and the actual situation, planning acts of corporate social responsibility scientifically, making the profit-driven nature of private capital line with social expectations.Meanwhile, the author introduces the view of value investment in corporate behaviors and the market exchange mechanism, enterprises as the main body, corporate social responsibility behavior is a supply; it is the result of stakeholders’ demand for the corporate social responsibility act. Stakeholders held different resources, what are normal businesses activities of enterprises needed, and invested capitals to businesses in various ways. All of them complete the selection and exchange of values in the cycle of the production process. This article is based on the above points to study the correlation between private corporate social responsibility behaviors and financial performances.This article is divided into six parts, each part are summarized as follows:Chapter 1:Introduction. Firstly, describe the research background, motive and meaning. Secondly, discuss the content and logical structure of this paper. Finally, present the research methods to be adopted and the expected contribution.Chapter 2:The basic theories and the literature review. First, analysis of several similar concepts, defines the core concepts-corporate social responsibility behavior. And then, review the different concept of corporate social responsibility perspective, to extract the value investment point. Secondly, the author summarizes the existing research results in the theory of stakeholders, including the contents of stakeholders, different classification methods. Finally, review the domestic literature on the social responsibility of private enterprises, and put forward this concept of private enterprises social responsibility.Chapter 3:Theoretical analysis. The author based on stakeholder theory and the concept of value investing, according to the different types of invested capital, divide stakeholders into different capital markets, including capital markets, labor markets, commodity markets, public services market and the natural environment. In the single theoretical analysis of capital market, the market exchange mechanism is introduced to interpret the mechanism between acts of private corporate social responsibility and financial performance.Chapter 4:Model designing. According to previous research, the paper makes one hypothesis, selects the related variables, introduces the methods how to research and build the model.Chapter 5:Empirical analysis. Firstly, the author uses descriptive analysis method and correlation analysis method to understand the overview of the sample data. Secondly, use multiple linear regression models to test the sample data, the author found that there is a certain correlation between behavior of private corporate social responsibility and financial performance indicators, while correlation between the current studies is more significant than the correlation between the lag. In addition, the lag regression results show that current social responsibility behavior of private enterprise have a more permanent lagged effect on value of Tobin Q.Chapter6:Summary of the research. This part summarized the contributions and shortages of this paper, and put forward the policy suggestions and the future research direction.The main contributions of this paper are as follows:Firstly, this paper select private enterprises as the research object, base on the level concept of private corporate social responsibility, propose that they should plan their social responsibility behaviors according to different stages and the actual situation.Secondly, the introduction of market exchange mechanism will simplify the different transaction appearances between the private business and stakeholders, to show the value of the exchange mechanism. Finally, in the empirical research process, the author builds evaluation system to describe corporate social responsibility behaviors, which emphasized the stakeholders of commercial capital, and consider the role of qualitative indicators.