Research On The Relationship Between Food Listed Company Culture, Social Responsibility And Financial Performance

In recent years, food safety incidents happened frequently, which initiated publicattention to food safety problems, and triggered a social anxiety about socialresponsibility in food processing industry as also. The Chinese government haspromulgated a series of laws and regulations and reorganized regulators to prevent thefood safety problem. However, the number of China’s food safety events still upwardtrend. The reform is not significant. Obviously, in addition to external mandatoryregulatory issues, there are also internal motivations inducing food safety issues, such asthe cultural construction of food enterprises and the pursuit of financial performance.Therefore, in this paper, we will study systematically about the relationship betweencorporate culture, corporate social responsibility and financial performance.Firstly, this article reviewed the previous research results. We generalizedthe relevant theoretical basis. And we generalized the relationship between corporateculture and corporate social responsibility, corporate culture and financial performance,corporate social responsibility and financial performance. From this，we defined theresearch space and we defined the theoretical basis and research methods can be usedfor reference.Secondly, using grounded theory, this article constructed the structure and functionmechanism model of food enterprise culture. Based on this, we can measure corporateculture.Thirdly, this paper selects64food and beverage listing corporation as samplecompanies, which brewing company. And the sample interval is from2009to2012. Theresults show that corporate culture has a significant positive relation with the corporatesocial responsibility. It means that improving the building of enterprise culture willpromote enterprises to shoulder more social responsibilities. Corporate socialresponsibility haves a significant inverse relationship with the total financialperformance. But we also concluded that there are different effects between corporatesocial responsibility and different financial performance indicators. There is a negativerelationship between corporate social responsibility and P/E ratio, and there is a positiverelationship between corporate social responsibility and ROA. In addition, the directimpact of corporate culture on financial performance is not significant. Corporateculture effects financial performance through corporate social responsibility. So thecorporate social responsibility has completely intermediary affects. Lastly，according to the research results and domestic situation，this paper presentsthree proposals. First, we should strengthen the building of corporate culture of foodenterprises. Second, we should improve the information disclosure system of corporatesocial responsibility. Third, the enterprise should have a correct understanding of therelationship between social responsibility and financial performance. Fourth，to improvethe mechanisms for market reaction to corporate social responsibility. In this way, sucha situation can be formed that ethical motivation and economic motivation affect inenterprises, with system dynamics and the market mechanism affects outside theenterprises.