Research On Relationship Between Commercial Banks’ Corporate Social Responsibility And Corporate Financial Performance In China

With the further development of economic globalization and corporate socialresponsibility movement, more and more attention is taken to issues of corporate socialresponsibility all over the world. In recent years, there is a lot of phenomenon lack ofcorporate social responsibility in China such as food safety, labor protection andenvironmental pollution. These events frequently seen in newspapers have seriously affectedthe healthy development of the people’s life and property safety, and have been bad toeconomy and society. Commercial banks is the core and hub of the modern economic system.It has the operating characteristics of its high debt, important socio-economic status, greatsocial influence. That makes a higher demand for commercial banks to fulfill their socialresponsibility.Based on the analysis of domestic and foreign literature about corporate socialresponsibility research, the paper clarifies the meaning and content of commercial banks’corporate social responsibilities on the basis of stakeholder theory. It summarizescharacteristics and current situation of China’s commercial banks to fulfill their CSR. Thispaper constructs social responsibility evaluation index system of commercial bank business toevaluate the performance of CSR objectively, scientificiy and reasonably. The index systemcontains7first class indexes,24second indexes and37third indexes. It is worth pointing outthat the social responsibility management is added to the index system, because enterpriseorganization and funding is important to CSR. AHP and the method of expert scoring are usedto calculate the weight of every index. Based on evaluation index system, this paper makes anempirical analysis on commercial bank corporate social responsibility and financialperformance, and selects the growth rate of return on net assets as financial performanceindicators. It makes correlation analysis and regression analysis through103sample data of16banks of China from2005to2012, finally obtained the idea that the commercial bank corporate social responsibility and financial performance is positively related, which providesthe basis for commercial banks to fulfill their social responsibilities. According to theempirical research conclusion, this paper puts forward recommendations about improvementof China’s commercial banks to fulfill the social responsibility.