An Empirical Research On The Relationship Between Market Environment,Corporate Social Responsibility Performance And Firm Growth

After30years rapid development with reform and opening up, China have created a huge wealth and made remarkable achievements.In2010, China’s GDP surpassed Japan to become the world’s second largest economy. More significantly, Chinese replaced the United States as the biggest manufacturing country, with the share of global manufacturing output19.8%since1895. Moreover, in2013, China’s trade sales surpassed the United States with＄4.16trillion to be the world’s largest trading nation. However, we also paid a heavy price. In2013China’s coal production is3.7billion tons and coal consumption is3.61billion tons, more than50%of the world’s coal consumption; China’s crude steel output was779million tons in2013, ranking first in the world, accounting for48.5%of the world’s crude steel production; In2013China’s cement output was2.414billion tons, an increase of226million tons year to year, with growth rate reached9.6%, far higher than the GDP growth of7.7%. China’s cement production accounts for59%of the world’s cement output and55%respectively for year2011and2012. What these alarming statistics showed was the excessive consumption of resources and the enormous destruction of ecological environment.Numerous data and cruel reality are thought-provoking, transformation of the mode of economic growth can no longer stay in the report or verbally, it is important to act out in every enterprise routine and business operation activities. But many enterprises are full of hesitation and doubt considering the correspondent cost and little possible economic benefits in undertaking these responsibilities. The answer to the above doubt has important influence on the correct attitude toward social responsibility, and has influence on a natural and social harmonious development in future development.Different market environment has a different way to resource allocation, which leads to different corporate behavior, different motivation, consciousness and results in undertaking enterprise social responsibility. We can know that from the glimpse of the corporate social responsibility development in western world.The development of enterprises in Western countries is taking the "pollution first, treatment later" road. In the process of enterprise development, environmental pollution, waste of resources, safe production and labor conflicts and other issues are severe. But due to the excessive demand for product with less supply, coupled with weak awareness of corporate social responsibility in people, abundant enterprises paying little attention to fulfill social responsibility also get rapid growth. In modern society, with the improvement of the market economy system and the progress of social civilization, social responsibility become an important part which enterprise have to attach importance to and must earnestly implement, otherwise they will be abandoned by the society. In market economy environment, undertaking social responsibility is an important choice to enhance competitiveness, gain a competitive advantage for enterprises.Before the reform and opening up, our country implemented a planned economic system, and under the system, enterprises become the extension of the government functions. Corporate social responsibility shows as follows." For employees, it is "iron rice bowl"; for society, schools, hospitals and variety of social welfare are provided by enterprises; for the whole economy, it becomes the soft budget constraint. It cannot deny the fact enterprise carries great social responsibility of enterprises, but their production efficiency and operating performance is very low. It is not sure whether taking on too much social responsibility leads to low efficiency in enterprise management, but it can be sure that in planned economy system, the enterprise bear the social responsibility as a political task and instruction plan, rather than to meet the stakeholders’ interests, to improve enterprise’s image and reputation, to build competitive advantage, therefore it has little benefit in driving enterprise growth.Focusing on our topic of this article, this paper contents are arranged as follows.The first chapter is an introduction. This chapter mainly introduces our research background and significance of this paper, points out the research significance and purpose. In addition, this chapter also introduced the research content and method, the main innovation and contribution. The second chapter is a literature review. This chapter firstly introduces the previous literature of corporate social responsibility and enterprise growth, and gives definition for this article. Then, the paper summarizes relationship between corporate social responsibility and corporate financial performance, between corporate social responsibility and corporate competitiveness respectively, in order to give light on the study in this article.The third chapter is about theory analysis and research hypothesis construction. This chapter presents the theoretical relationship between corporate social responsibility and enterprise growth, corporate competitiveness. And it explains the adjustment effect of market competition and government intervention to the relationship between corporate social responsibility and corporate growth.The fourth chapter is about empirical research design. This article selects samples from the Shanghai and Shenzhen A-share listed company data from2010to2012. It chooses multiple dimensions to evaluate enterprise growth and corporate social responsibility, and it selects HHI index as substitution variables of industry competition, and selects China marketization index wrote by Fan gang, Wang Xiaolu (2011) to measure government intervention in this paper, in which they constructed three multivariate linear regression model respectively.The fifth chapter is empirical study results and analysis. Through factor analysis this chapter obtains comprehensive indicators for enterprise growth and corporate social responsibility. And the empirical regression analysis shows that: there is a promoting effect for enterprises growth when enterprise bearing the social responsibility; and under the intense market competition, the enterprises bearing the social responsibility are more advantageous to promote enterprise growth; government intervention will weaken the promotion effect on enterprise growth even the enterprise bearing the social responsibility.The sixth chapter is about conclusions, policy suggestion and future prospects in research. This chapter summarizes the theoretical deduction and empirical research conclusions of the previous section, and put forward suggestion for the government, the society and the enterprise according to the research conclusion. In addition, it also introduces the possible limits and outlook for the future research direction. Main innovation of this article is:(1)This paper opens a new research perspective of market environment to the corporate social responsibility research, and enriches the theory of enterprise society responsibility research in our country.(2) It demonstrates the new development path. The positive answer to the first question helps enterprises to pay more attention to the fulfillment of social responsibility and the transformation of development mode.(3) It explores a new institutional arrangement, which helps encourage enterprise to bear social responsibility actively, and to promote the development of corporate social responsibility practice in our country.There are limits when the paper tries to examine social responsibility from the perspective of new market environment.(1) There is a certain deviation in selection related substitution variables affected by objective data.(2) The selection of composite indicator has certain subjective and one-sided, because those indexes come from financial data although the author selects indexes from multiple levels of corporate social responsibility and enterprise growth.(3) The analysis of market competition and government intervention theories need a lot of economics explanation, so it is limited by the knowledge structure and insufficient analysis of related theories.All in all, based on the specific background of our country, the paper investigates the relationship between corporate social responsibility performance and corporate growth from the perspective of market environment. This article wants to explain and demonstrate two major problems hindering the development of our corporate social responsibility. One major problem is whether the enterprise should undertake the social responsibility and whether it can benefit enterprise growth, in addition to the legal and moral factors; the second major problem is how to guarantee enterprise undertaking social responsibility and transforming development mode positively from the perspective of system design. The purpose of this paper is to encourage enterprises to positively bear the social responsibility, so as to promote the development of corporate social responsibility practice in our country.