The Relativity Between Corporate Social Responsibility Of Manupacturing Industry And Governmental Subsidy

Manufacturing is the basement of economic development of a country, it’s not only thesupplier of the necessary materials and tools for the other industries, but also the impetus ofthe development of high-tech. Since the financial crisis of2008, the development of themanufacturing suffered from the unprecedented challenges. When the companies faced thedifficulties of management, the government granted great subsidies to them. However, wefound that there are big differences of the amount of the subsidy between the companies.Along with the understanding of corporate social responsibility becoming deeper and deeper,people expect the companies to undertake great social responsibility. Usually, the companieswhich undertake great social responsibility will receive praises from the society. This, ofcourse, has a great affection on the amount of government grants. Meanwhile there arerelativities between company social responsibilities and social target of the government. Sowe guess that the company social responsibilities do have some influence on the amount ofgovernment subsidies. Aiming at these problems, this paper will quantify the manufacturingcorporate social responsibilities base on the theories of corporate social responsibilities. Andthen, we will research the influence of the corporate social responsibilities on governmentsubsidies based on the method of regression analysis and structure equation.The first chapter is an introduction; it elaborates the research background, the purposeand significance, the main research contents, the research method and the framework, and theinnovations, shortcomings of the paper. The second chapter is the analysis of basic theories; itdefinite the dimension of the corporate social responsibility based on the theory of “corporatecitizenship” and the prior researches relevant to it. And then, the paper definite the conceptof government subsidies. The third chapter definite the corporate social responsibilityindicators and non-responsibility indicators. The chapter IV and V is the core part of the paper.The chapter IV is the analysis of the relativity between the corporate social responsibilitiesand the government subsidies, the effects on the business performance of the subsidies of themanufacturing companies, using the methods of regression analysis and structure equations.Empirical analysis results show that: the corporate social responsibility of manufacturingenterprises does have significant effects on their ability to obtain government subsidies; the government subsidies don’t improve the business performance of the enterprises. The chapterV is the analysis of the relativity between the corporate social responsibilities and thegovernment subsidies, the effects on the business performance of the subsidies of thecompanies which has different forms of ownership. The empirical analysis results show that:the government. The subsidies strongly improve the performance of management of thestate-owned enterprises, however, for private enterprises, it only lead to the ret-seekingactivities and shirking behaviors. The sixth chapter is a briefly summary. A researchconclusion is drawn from the results of theoretical and empirical study, and some rationalpolicy implications are put forward from the perspective of feedback system of application ofgovernment subsidies and good examination system of enterprise social responsibility.The results of the paper show that: along with the understanding becoming deeper anddeeper, the public emphasize the corporate social responsibility more and more, the corporatesocial responsibility indicators has been the important influencing factors of the governmentsubsidies. But things go different when the enterprises have different forms of ownership.Usually, the government attaches importance to the social responsibility when they grant thesubsidies to private-owned enterprises, but they ignore it when it comes to state-ownedenterprises. So it is strongly advised that the government should pay more attention to thecorporate social responsibility when they grant the subsidies to state-owned enterprises. As tothe single indicator of the enterprise social responsibilities, the ones can improve thegovernment performance and assessments will receive great value by the government. Itdoesn’t help the enterprises to undertake the social responsibilities consciously. So thegovernment should build a good examination system of enterprise social responsibility.Besides, the subsidies do not improve the performance of the management, so it is proposedthat the government should build a good feedback system of the application of governmentsubsidies.