A Study On The Enterprise Social Responsibility’s Influence On Financial Performance Among Chinese Iron And Steel Companies

As an important industry of national economy, Chinese Iron and Steel enterprises play an important role in performing the Corporate Social Responsibility (CSR). But there is still some controversy on whether should the company bear the CSR or not. Some of the opponents hold that it will reduce the company’s financial performance and damage to the interests of the shareholders. Therefore, it is critical to settle the question:Should the company take on the CSR? So the purpose of this essay is that study the relationship between the CSR and financial performance.In the theory part, on the base of reading tremendous of foreign literatures, the author make a comprehensive review and summarize about the stakeholders theory and previous literatures about the relationship between the CSR and the corporate performance, form the concept of the CSR. In the empirical part, this essay builds a set of corporate social responsibility of the financial evaluation system on the base of accessibility of the statistics. This essay recognizes the stakeholders, including Shareholders, creditors, suppliers, employees do, consumers, government, community and the environment. And on this basis, respectively, this essay brings up a measure of social responsibility for each category of stakeholders. This essay analyses the relationship between the current social responsibility and the current financial performance and the relevance between the current CSR and the second phase of financial performance. It turns out that Current social responsibility on the relevance of current financial performance is not obvious, while the second phase of the financial performance has a significant correlation.Finally, some proposals and lack of this paper. The proposals conclude the following: Firstly, we must speed the pace of the study on the indicators of CSR and we must build the data base like KLD from abroad as soon as possible. Secondly, we must promote enterprises to carry out their own social responsibility actively, thus it can promote the enterprises develop well. Thirdly, the government must speed up the pace of forcing information disclosure of social responsibility, and strengthen the public supervision and urge the enterprises to fulfill their social responsibility.