An Empirical Research On The Corporate Social Responsibility And Corporate Performance

General speaking, corporate social responsibility refers to the economic benefits for our shareholders.In addition, the company must also pay close attention to the interests of all social interests, such as the consumers, the workers, the creditors, the local communities, and the environment.Fulfilling social responsibilities, from the conceptual level, is to claim the "people-oriented" rather than "money-oriented". In the strategic level, fulfill the social responsibility is for both the company’s internal development needs and satisfying the community expectation. Fulfilling the social responsibility, from the operational level, takes the perspective of both an institutional arrangement, but also a business practice.If the companies consciously fulfill their social responsibilities, the most direct effect is to improve the company’s image in the public mind, to enhance the company’s brand value, to create more opportunities for the sustained and healthy development of the companies.However, in real life, some companies have appeared frequently in the problem of the lack of social responsibility, which has caused widespread concern in society. It has become a very important area of academic research.Because the corporate social responsibility is a newly developing research topic, the relevant researches are still immature. Besides, the Empirical research is limited by the data availability and methodological condition. The scholars are debating on the measurement of the corporate social responsibility.As a result, the empirical research has little to support the theoretical results.In result, this dissertation put forward in three hypotheses.Firstly, The more attention enterprises pay onto their social responsibility, the much better performance they will make.Secondly, the corporate social responsibility will have an effect on the revenue in the future. Thirdly, if the corporate financial performance is better, the company would have more instinct to fulfill its social responsibility.This dissertation is trying to make an empirical model to support the hypotheses by the data in the real market.To make the data more available and more accurate, this dissertation measures the evaluation from the various stakeholders by the financial indicators. As to how to measure corporate social responsibility.Based on the stakeholder theory and the foundation of Carroll model, after some research work against Corporate Social Responsibility, this thesis aims to construct a evaluation index systemThe index, which represents the financial performance, are mostly financial indicators, such as TobinQ, Return on equity, Return on total assets, Sales and Net profit margin. These indicators reveal the performance of the company, which also affect the price of the company in the stock market. However, the price in the market can be manipulated, which cannot reflect the true value of the company. In result, this research prefers TobinQ to measure the corporate financial performance.This research collects the public companies in China, which is initially listed before2008. After excluding incomplete data and ST or PT, the samples are315manufacturing companies,62utilities,39real estate companies,47commercial enterprises and77comprehensive companies, which in total are540companies during2009to2011. Based on the researches on this topic, this dissertation combines quantity and quality research methods, and applies EXCEL and Stata to progress the data. By various ways the research is trying to confirm the hypotheses and arriving at the result.After t the hypotheses are confirmed, this research concludes some results:First, by actively fulfilling its social responsibility, the company can gain a good financial performance.The data from2010to2011support the hypothesis1, and confirms the positive relationship between these two factors.Second, the active contribution to the social responsibility can improve the future revenue of the company. The influence from the fulfillment of corporate social responsibility has the hysteresis quality, which is the same as the hypothesis2.Third, the early corporate performance plays a role in promoting the implementation of social responsibility in the current period. According to the analysis of early company performance and current social responsibility, the research finds that the early good company performance can provide a economic guarantee to better fulfill corporate social responsibility. consistent with Hypothesis3.Fourth, the corporate social responsibility to fulfill maintained at a low level in China, the overall performance is unsatisfactory, which needs to be improved.The author believes that, to improve the overall fulfilling level of social responsibility, to constantly enhance the company’s competitiveness, to raise the interests of the various stakeholders, to promote the pace of building a moderately prosperous society, five following manners can be taken:first, Strengthen the supervision from the government and third-party;Second, strengthen the supervision of the work of the government and third parties. Third, the government should strengthen the publicity and guidance to enhance the company’s social responsibility awareness. Fourth, accelerate the corporate social responsibility evaluation index system to enhance supervision of the industry. Fifth, build the company’s fulfilling its social responsibility information disclosure system to achieve standardization.