A Study On The Impact Of Social Responsibility On The Business Erformance In Manufacturing Listed Companies

When companies seeking to the greatest business performance, they should also consider to take the social responsibility for stakeholders. Enterprise as a necessary part of the whole society, requires not only the pursuit of economic interests, but also need to undertake corresponding obligations. Corporate social responsibility issues concern degree is higher and higher, for example, consumers is very concerned about the quality of the products, after-sales service and so on. When enterprises fulfill the social responsibility activitly, the awareness will be improved. And then it brings more consumers, market share, and operating performance of enterprises improved. Thus, corporate social responsibility is not just performing their official duties, there is also a vital significance for the long-term development of the enterprise. Paper use the data of Chinese manufacturing listed companies as the research object and use the method of empirical analysis to study the effect of corporate social responsibility on business performance.In this paper, on the basis of comprehensive analysis of existing research, it defines the manufacturing industry, corporate social responsibility, business performance and the concept of stakeholders and lay the foundation of related theory. The social contract theory, stakeholder theory, management performance theory and signaling theory are all this paper need. After settling the data, I find out the status of social responsibility and business performance in manufacturing listed companies. And I learn the effect of social responsibility on business performance in manufacturing listed companies by using prior data. Then base on the stakeholder theory, I set measurement indicators of corporate social responsibility and corporate business performance. The corporate social responsibilty can be divided into seven aspects:shareholders, creditors, employees, government, suppliers, customers and the public welfare undertakings. Usually people get business performance with correlation analysis of total return on assets (ROA), tobin Q (TBQ) and return on equity (ROE) three indicators. But finally I choose the return on equity as my measure of business performance and use company size, company public place and enterprise growth as control variables. I use factor analysis method to get another most important variable which is corporate social responsibility. Extracting the public factor firstly, giving corresponding weight secondly, getting the whole index of corporate social responsibility (CSR) finally. Then measure the circumstances of fulfilling the social responsibility of the enterprise. Put forward the corresponding hypothesis and establish the mathematical model. Go on empirical test of the effect of corporate social responsibility on business performance with manufacturing listed companies from2010to2012in China. The result shows that the current corporate social responsibility has a significant positive effect on enterprise’s business performance; Previous companies performing social responsibility has a significant positive effect on enterprise operating performance; corporate social responsibility of two terms ago has no significant positive impact on corporate operating performance. Combining with the empirical result, paper put forward some suggestions which can not only make coporations perform the social responsibility but also improve the operating performance. When I finish it, I hope it can have some significant meanings like improving the consciousnes of performing the social responsibility in China’s manufacturing industry listed companies, promoting enterprise jointly with other stakeholders and harmonious development, finally draw the conclusion of this article.