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Political Achievement Demands,Political Connections And Corporate Social Responsibility

Posted on:2016-06-04Degree:MasterType:Thesis
Country:ChinaCandidate:C C ZhuFull Text:PDF
GTID:2296330467980160Subject:Accounting
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Due to the lack of effective market mechanism and institutional constraints toinduce companies to fulfill their social responsibilities,the performance of corporatesocial responsibility is disappointing. Studies have generally considered the institutionalenvironment affecting the implementation of corporate social responsibility, but themechanism is still unclear, which makes different conclusions. Meanwhile, in thecontext of government’s intervention in the economy, we believe that governmentofficials improved by financial incentives or promotion incentivesare incentive to forcecompanies to fulfill social responsibilities, which is originally affiliated withgovernment responsibilities. Under this background, based on China’s A-share listedcompanies from2011to2013in Shanghai as samples, we try to examine the differenceof corporate social responsibility performance within diffident political performancedemands, then further investigate the function of executives’ political connection inaffecting their relationship. On this basis, from business investment opportunities andbusiness value perspective, we also examine corporate social responsibilities’economicconsequences, aiming todeeply understanding both economic incentive and institutionalmotivation in the decision-making offulfilling corporate social responsibility.Under the unique background of China, we discuss How Government’s politicaldemands, and political connection affectingthe performance of social responsibility, itsmain contribution is about:1.From Government or officials perspective,we discussGovernment’s achievement demands, such an external environment, on its affection toenterprise’s undertaking social responsibility, which not only expandsthe existingperspective of social responsibility research, but also provides an explanationon thephenomenon that diffident companies has a diffidentresponsibility behavior from aninstitutional perspective.2. From social responsibility perspective,we can directly findthe economic consequences of Government achievement demands,and provide theevidence of Government’s "grabbing hand" in the area of corporate social responsibility,and it is also a reflection of existing useful complement to the relationship betweenGovernment and company.3.Examinethe function of executives’ political connection inaffecting the relationshipbetween government and corporate social responsibility, thuscontributing to better understand the role of political connection.4.in contrast to previous literature that most studies focus on the relationship between corporate socialresponsibility and financial performance, my research further focus on businessinvestment opportunities and value as a foothold, which enriches the existing studies ofthe economic consequences of corporate social responsibility, thus contributing to abetter understanding of the strategic incentive of corporate social responsibility.The result shows that:1.the more intense Government’s performance demand is,the more performance of corporate social responsibility have. Corporate socialresponsibility is the result of rent-seeking between government and company, and it hasessentially evolved into a "conspiracy".2. regardless of the State-owned enterprises andthe non-State-owned enterprises, the Government’s interest demands do not existsignificant differences.3.Executives’political connections of none-State-ownedenterprises enhance the government’s impact on corporate social responsibility,thussupportingintervenient view of political connection.4. Executives’political connectionsof State-owned enterprises weakenthe government’s impact on corporate socialresponsibility,thuseven resisting the potential effects of government intervention.5. theperformance of corporate social responsibility have a contribution to increaseenterprises’value, and it will increase investment opportunities, so as to enrich andexpand the economic consequences of corporate social responsibility and the theory ofstrategic corporate social responsibility research.Implications of this paper are: firstly, from the perspective of enterprise we shouldintegrate the management and instrumental philosophy of corporate social responsibilityinto business strategic decision, to establish, maintain, or even strengthen the bonds oflocal government and corporate. Thus, enterprises should not only recognize theadvertising of corporate social responsibilities, the improvement of good reputation,butalso recognizethe role of corporate social responsibility in stakeholder management andthe great strategic value of optimizing the external institutional environment. Secondly,from the perspective of corporate governance, complying with the principle ofappropriate balance, decrease each shareholder’s stake. It stems from an accidentresultof my research, in State enterprise, the more intensethe equity concentrateddegrees are, the more performance of social responsibility is; instead, in non-Stateenterprise, the more equity dispersed, the more performance of social responsibility is.Therefore, state-owned enterprisesshould be appropriate to reduce the rate ofState-owned shares, putforward to the reform of mixed ownership; and thenon-State-owned enterprisesalso needs to reduce its substantial shareholder, to avoid the occupation of minority shareholders or other interested parties. Third, from nationalgovernance point of view, we should deepen China’s market-oriented reforms, to makecorporate social responsibility actions return to its nature charity-altruism. On one hand,regions with higher achievement demands are in low process of marketization; on theother hand, political connection has become the ways of government intervention,especially fornon-State-owned enterprises, affecting fair competition and triggering anew type of "Governments". Only putting forward the market-oriented reforms can weoptimize operating environment, inspiring a new round of rapid economic growth.
Keywords/Search Tags:political achievement demands, political connections, corporate socialresponsibility, rent-seeking theory
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