Study On The Effect Of Corporate Social Responsibility And Its Impact On Enterprise Performance

In the highly globalized world economy, all corporations are pursuing profit, but at the same time, no one can no longer ignore the issue of worker safety, product quality, environmental contamination, etc.. It has become an important part for enterprises to fulfill stakeholders’responsibilities. Corporate Social Responsibility in China started late, but the series of events catalyzed by "Sanlu Milk Powder","Poison Capsule","Industrial Gelatin", making corporate social responsibility of much public concern. Government and other regulatory authorities also recognized this phenomenon, and since2006, the relevant departments have published many notice bulletins to promote corporate social responsibility, to support corporations to publish social responsibility report on a regular basis and to encourage competent enterprises to provide report attestation. Under the initiative of government, more and more listed companies choose to release their social responsibility report and provide CSR attestation.This paper studies the relationship between enterprise social responsibility performance, social responsibility report, social responsibility report attestation and corporate performance. The sample is non-ST-listed companies in the Shenzhen Stock Exchange which have published Annual Report in the year of2008-2010. Using multiple linear regression model, we test the relationship between the explanatory variable corporate performance earnings per share EPS, and explanatory variables social responsibility performance, social responsibility report and social responsibility report attestation. The aim of the paper is to explore whether there is a positive correlation between social responsibility performance and corporate performance, and whether social responsibility report would enhance this correlation, and report attestation would further strengthen the positive correlation.The empirical results show that corporate social responsibility performance is positively correlated with corporate performance, if the enterprise publishes social responsibility reports, such a positive correlation will be pronounced, but the result doesn’t support the hypothesis if the company provides social responsibility report attestation, that is, the positive correlation cannot be further strengthened.The main contribution of this paper is that we have explored the effectiveness corporate social responsibility performance to corporate performance under such hot social responsibility climate. Furthermore, we add corporate social responsibility report to test whether the effectiveness could be enhanced, and still corporate social responsibility report attestation added on corporate social responsibility report basis. This paper would provide a theoretical and empirical support to the study of corporate social responsibility, and enhance the confidence of the corporations to publish social responsibility reports. In addition, it raises some enlightening comments and suggestions on the development of government and other regulatory departments on corporate social responsibility and social responsibility reporting attestation, to make China’s capital market more standardized.