Association Of Corporate Social Responsibility And Corporate Performance In Food Industry

In the recent years, the quality and safety problems have occurred frequently in the food industry since these news reported publicly which has received widespread concern by the community about the corporate social responsibility issues. The academic has began to pay more attention to the corporate social responsibility since the1990s, but from the frequent food security issues at home and abroad it can be found that the enterprises haven’t fundamentally recognized the importance to fulfill their own corporate social responsibility. So the study of the relationship between corporate social responsibility and corporate performance by empirical and quantitative view can give the enterprise a guideline. The community has not learned the concept of corporate social responsibility clearly, but how to make the enterprises fulfill their own corporate social responsibility actively is the key problem, that is to say, it is essential for the related department to make up some laws to limit the enterprises’ behavior so as to make them realize the importance of the corporate social responsibility and fulfill their own social responsibility. The enterprises always do everything possible to have their profit and own value maximize, so the article began itself from the feature of enterprises. The article will show the enterprise from a theoretical and empirical perspective that the implementation of corporate social responsibility will have a positive impact on the enterprises’ performance.Because of the food safety incidents, the public issued voices to enterprises, and the government carried out policies to enterprises. However, the enterprises always fulfill their social responsibilities passively, and pay more attention to their performance and pay more attention to relation between the social responsibility and performance. If they are related to each other, the result is positive or negative? From the review of the research literature and theoretical analysis, this article will show:if the enterprises fulfill their social responsibility to shareholders, they will establish good working relationship with investors, and they will acquire long-term investment; if the enterprises fulfill their social responsibility to creditors, they will establish good working relationship with creditors and they will have more financing channels; if the enterprises fulfill their social responsibility to suppliers, they will establish good working relationship with suppliers and they will get a lower repayment discounts and good reputation limits; if the enterprises fulfill their social responsibility to staffs, they will establish good working relationship with staffs and they will get the initiative of employees; if the enterprises fulfill their social responsibility to the government and social welfare, they will establish good working relationship with the government and social welfare, and they will acquire public sustainable services provided. From the viewpoint of financial resources of the enterprises, the enterprises will have to pay much financial cost to maintain these social activities which bring enormous pressure to the capital flow of the enterprises, so the good business performance is material guarantee for the enterprises to fulfill their social responsibility. Therefore, from the theoretical level, corporate social responsibility and corporate performance is bidirectional and is positively related to each other. From the empirical level, and based on the perspective of stakeholders, this article selected31companies for three consecutive years of relevant data in the food industry listed companies on corporate social responsibility to evaluate. In order to clarify the shadow over relations, the article then did the brief regression-analysis. The results empirical also show that in most of the selected enterprises each variable of corporate social responsibility has a positive correlation with the current business performance variables. From the overall point of view, the influence on firm performance each by each measure variable of corporate social responsibility is greater than the degree of influence of the business performance to corporate social responsibility. Whether ROA or ROE has a high relevance with current shareholder payout ratio, the income tax rates and the asset-liability ratio, that is to say, the business performance is closely related to the results that the social responsibility is fulfilled by enterprises to the shareholders, the creditors and the government while other variables are not very significant. Throughout the three years of data analysis, in addition to some significant relationship, most of the high variable regression coefficient is positive, we can indicate that the influence on firm performance by corporate social responsibility is forward and positive. Finally, based on our national conditions, this article puts forward a number of policy recommendations to build up the corporate social responsibility with Chinese characteristics, such as building up corporate social responsibility research data reference platform in a timely manner in line with Chinese national conditions and development level, and improving Chinese legal system on corporate social responsibility, and standardizing management model of enterprises, and strengthening public awareness of social responsibility and so on.