Study On The Relationship Between Private Corporate Social Responsibility And Growth

Private enterprises have played an important role in the development of ournational economy and they have created enormous social wealth. Because of thelimits of private entrepreneurs’ qualities, the level of enterprise management fallsbehind. Due to the profit driven, there is a lot of short-sighted behavior in theprocess of production and management and this behavior has become the stumblingblock that hampers private enterprises’ further development. This behavior not onlyendangers the interests of consumers and society, but also causes extremely seriouslosses for private enterprises. The corporate reputation is damaged and the enterprisesalso face the risk of bankruptcy. Corporate social responsibility issues are the concernof the whole society. The average life expectancy of China’s private enterprises is lessthan three years, and the short life of private enterprises hinders the development ofChina’s national economy, and the overall strength and quality level of privateenterprises is also difficult to get upgrade. The focus of this thesis is that whethercorporate social responsibility has an impact on the enterprise growth, if there is, whatkind of relationship exists between them.The important parts of reading literatures according to corporate socialresponsibility and enterprise growth are the evaluation methods of CSR and enterprisegrowth, and the literatures about the relationship between them. These literatures laidthe theoretical foundation for the empirical research.In the theoretical research part, this thesis introduces the meaning of corporategrowth and the external and internal factors that affect corporate growth. Then thisthesis analyzes the mechanism between corporate social responsibility and corporategrowth and proposes the hypothesis.In the empirical research part, basing on a certain degree of control variables,this thesis selects the123private enterprises as the study samples. Based on thestakeholder theory, this thesis builds nine indicators to evaluate corporate socialresponsibility from the dimensions of government, employees, shareholders, creditors,customers and public welfare. Then this thesis uses factor analysis method to reducethe dimensions of the indicators and extracts the corporate social responsibilityevaluation scale. This thesis selects ten indicators to evaluate enterprise growth on the base ofthe financial reporting. It also uses factor analysis method to design enterprise growthevaluation scale. And enterprise growth includes the following aspects: the solvency,expansion and operation ability and profitability of enterprises.After design of the two scales, this thesis verifies the relationship between corporatesocial responsibility and enterprise growth. After the correlation analysis, this thesisfinds that there is a significant positive correlation between corporate socialresponsibility and enterprise growth. The subsequent regression analysis shows thatthe causal relationship between the two: there is mutually reinforcing relationshipbetween them. That is to say: an enterprise, which fulfills corporate socialresponsibility, will get stronger growth; an enterprise, which has stronger growth, willdo better on the fulfillment of corporate social responsibility.