Impact Of Corporate Social Responsibility On Financial Performance

In recent years some frequent and influential social problems such as the Sanlumilk, tainted hub at home and abroad, make more people aware of the enterprise as aprofit-making organization, but those social events caused by its moral problems are notto be ignored. According to the scholars’ research, if a company seeking long-termsustainable development, to fulfill corporate social responsibility(CSR) is necessary.But the purpose of the enterprise is profit, so when the enterprise managersdeciding the direction of development and conduct of operations, the financial results ofthe enterprise must be taken into account. Therefore, to promote the construction ofsocial responsibility system in enterprises, and the enterprise fulfill their CSR, we mustgive clear evidence, that can prove the impact of CSR on financial performance of theenterprise, and prevent the cost of CSR to become an obstacle to fulfillment of socialresponsibility. The research of the influence of CSR on financial performance has notformed a consensus, mainly for research method and use the data exists difference.Therefore the purpose of this paper is to through the combination of qualitative andquantitative research, in order to get a persuasive conclusion, thus promote CSR system.This article is to combine theoretical research and empirical study to researchenterprises to perform CSR on its financial performance. At first, this paper makes thetheoretical analysis on the basis of existing, authoritative literature and the relatedtheoretical research. In this part, this article firstly make analysis and introduction theconcept of CSR, the subject of CSR and the realistic foundation and theoretical basis ofthe influence of CSR to financial performance. Because this article is based on researchon CSR in the perspective of stakeholders, after introducing the related theory of socialresponsibility, this article is to define CSR of the stakeholders, then the influence ofCSR of different stakeholders on financial performance is analysed.After the theoretical analysis, this paper bases on sufficient research data to makeempirical study to verify the theoretical analysis. In order to ensure the accuracy of theresults, after excluding the part of the lack of reference data, this paper select all thelisted companies from2009to2011in Shanghai and Shenzhen stock exchange as theresearch sample, and then this paper select the variables, design the appropriate model,use SPSS18.0software to the descriptive statistics, correlation analysis, regressionanalysis further after achieving meaningful results, and collinearity test for verifying theassumptions and model. Finally, the conclusions of the research by all the theoretical analysis and empirical test are drew, policy suggestions for enterprises to fulfill CSR aremade, the deficiencies of this article and the outlook for future research are described.The conclusions of this study are as follows:(1) On the whole, enterprises fulfill CSR can increase business income. In thispaper, CSR in accordance with the stakeholder theory is divided into eight aspects, inthe empirical correlation analysis, all of the explanatory variables showed significantcorrelation. In regression analysis, there are seven variables is positive effect onfinancial performance, of which most are significant regression, the result illustrate thewhole CSR responsibility will increase business income.(2) Standing in the perspectives of different stakeholders, the effects of enterprisesfulfilling CSR of different stakeholders on the financial performance aren’t same. CSRfor stockholder, creditors, customers, environment to the growth of the enterprise’sfinancial performance has a significant role by the empirical results, it verify thetheoretical analysis. While the CSR to employees, the government and the social publicwelfare performance can improve to some extent on the financial performance, but theregression analysis of empirical significance is poor, not very good analysis to verify thetheory. As for the fulfillment of the supplier’s social responsibility on financialperformance of the enterprise, the theoretical analysis and empirical study draw aopposite result.Based on the above conclusions, this paper believes that enterprises both from theethical and economic aspects, ought to fulfill their CSR on the whole, but in theperformance of the specific process, the different CSR of different stakeholders can betaken different method of performance and attitude. And this research has somedeficiency, so this paper believes that the research on this topic in future still existplenty of development space, and the future trend of research are:(1) Breakthrough atpresent including the scope of the theory of stakeholder theory in a new perspective onCSR;(2) Set up in addition to the financial index evaluation system for the CSR of,meet China’s national conditions, and the measure of CSR is more accurate;(3) As faras possible to collect more widely has the reference value of the data, make the researchresult errors are smaller, the conclusions are more reliable.