Research On The Relationship Between Corporate Social Responsibility Performance And Financial Performance Of High- Polluted Enterprises

Since the concept of“corporate social responsibility”(CSR)has been brought up by Shelton, a United Kingdom Scholar, from an academic point of view for the first time in 1924, the debate on whether a corporate should undertake its social responsibility or not has never stopped. The“CSR movement”of China started later, and at present, great deals of coporates still neglect their social responsibility in their development process. In order to pursuit high profits, enterprises waste resources, pollute the environment, operate illegally, damage the interests of consumers and the public and so on. Trace it to its cause, in addition to our lack of a proper legal system to regulate the CSR performance, the corporate can not find their own motivation is also a very important aspect. Therefore, this paper attempts to identify the interactive relationship between CSR and financial performance through empirical research, for the sake of exploring whether the CSR and financial performance can influence and promote each other.The measurement of the CSR has always been a big problem in the study. Under the guidance of the stakeholder theory, this paper sets up an evaluation index system of CSR, and then uses the index system to measure the CSR of listed chemical companies. After that, chooses the listed chemical companies’financial data from 2006 to 2008 as samples to find out the interactive relationship between their social responsibility performance and their financial performance. The construction of CSR evaluation index system and the research of the two-way causality relationship between CSR performance and financial performance are the two main innovations of this paper. The descriptive statistical results show that the CSR scores are low in China, and there exists greater differentiation between enterprises, that is,the CSR performance is not optimistic. However, we also should note that the CSR scores show an increasing trend , which means the companies’social performance in China are better year by year. The correlation and regression analysis show that there exists a significant positive correlation between the current social responsibility performance and the current financial performance, and these two interact as both cause and effect and can promote each other. As a result, the conclusion can be learned from this paper that enterprises undertake their social responsibility does not just mean pay and loss, it can also establish a good corporate image, enhance its reputation, which can win for the enterprise a stable consumer group and supply providers, which are valuable intangible assets and can provide a support for its sustainable development, and ultimately bring the improvement of its financial performance. To the contrary, good financial performance can also provide more resources for coporates to bear their social responsibility. Thus forming a virtuous circle, and promote the constant development of enterprises. In short, undertaking their social responsibility is the only way for the enterprises to achieve sustainable development.