Study The Relationship Between Corporate Social Responsibility And Financial Performance

In recent years, the management of the enterprise promotes China’s economicrapidly development but at the same time also bring a series of problems, such asenvironmental degradation, excessive consumption of resources, accident of theproduction safety frequently emergence, these problems has caused the attention ofmany experts, scholars and government departments, they all pay attention tocorporate social responsibility problems in the process of economic development. Atpresent, domestic scholars do more and more researching about the socialresponsibility of the enterprise whether can improve financial performance, however,due to the current empirical studies mostly uses the data of the all industry, whetherthe conclusion is suitable for a particular industry is still unknown. By domestic andforeign literature reviewing found that corporate social responsibility have a laggingeffect on financial performance, but the research about this is few. Therefore, thisarticle studies the severe pollution of the chemical industry; in view of the specificindustry discuss the relationship between corporate social responsibility and financialperformance. Then put forward hypothesis, design variable to explore if corporatesocial responsibility have a lag effect on financial performance, thus it can enrich theresearch about this problem.In the light of the above analysis, this paper reviews the meaning and process ofcorporate social responsibility at home and abroad by using the normative researchmethod and summarizes the study of the relationship between them comprehensivelyat home and abroad. The paper introduces the basic theory of corporate socialresponsibility and financial performance, including sustainable development theory,stakeholder theory, welfare economics theory, social contract theory and the theory oftriple bottom line. Based on the stakeholder theory, and then reference other fourtheories to study the relationship of the two. In the empirical part, this paper firstlyintroduces the measuring method of corporate social responsibility and financial performance, based on the stakeholder and proposed the hypothesis of this paper,through access to the three years data of Shanghai A-share chemical industry from2010to2012, as well as designing variables of corporate social responsibility andfinancial performance, building three models, using SPSS software to empiricalresearch, include descriptive statistics, correlation analysis and multiple regressionanalysis.Empirical analysis shows that the chemical companies performing the socialresponsibility of shareholders, creditors have a positively effect on financialperformance; Chemical companies performing the social responsibility of employees,suppliers and the community’s have a positively effect on financial performance, butnot significantly; Chemical companies performing the social responsibility of thecustomer and government have a negatively effect on the financial performance;Chemical companies fulfilling social responsibility has a hysteretic effect on financialperformance.