The Relationship Between Corporate Social Responsibility And Finianci Performance

A series of events such as Sanlu milk powder scandal, the Foxconn employees serial jumping from a building made us see the importance of corporate social responsibility. However, there are few socially responsible companies in China. Some people argue that if the company that undertook its social responsibility would increase the additional expenditure and reduce the profits, and then, the interests of the shareholders would be reduced, which is inconsistent with the company’s goal that is maximizing its profits. Therefore, the companies are not willing to fulfill their social responsibilities. Whether social responsibilities undertaken by enterprises have effects on financial performance will influences company’s actions of undertaking social responsibilities actively. Nowadays, the public pay more and more attention to the environmental pollution and environmental management. Compared to the other industries, such as the tourism industry, the chemical industry which is a special industry is a heavy pollution industries, it should undertake more environmental responsibilities. In this paper, we combine theory with empirical evidence to analyze the relationship between corporate social responsibility and financial performance of the listed companies of China’s chemical industry, based on the stakeholder theory.This paper first reviews the relevant theory and empirical research of the relationship between the corporate social responsibility and the financial performance, and then, on the basis of the previous research results, I select128chemical industry companies that listed in Shanghai and Shenzhen stock exchange as study samples, and test the relationship between corporate social responsibility and financial performance using SPSS17.0statistical software. The result provided by the paper shows that:(1) In the listed companies of China’s chemical industry, if the company was responsible for creditors, suppliers and the government, its financial performance would be higher;(2)That company was responsible for community and consumers would improve its financial performance, but not significantly.(3) if the company was responsible for employees and environment, its financial performance would be lower;(4) the level of corporate financial performance has an effect on corporate social responsibility. According to the empirical evidence, the number of the companies of China’s chemical industry which fulfill the responsibilities for stakeholders is small, but carrying out the responsibilities for stakeholders is essential to achieve sustainable development.