Research On The Relation Between Corporate Social Responsibility And Corporate Value Of Heavy Pollution

Many entrepreneurs believe that companies cannot use their own financialresources to improve social or environmental performance without compromisingshareholder value. If the enterprises insist on corporate social responsibility, it willinevitably lead to higher costs, and thus enterprise will has a competitive disadvantageand its profitability declined. Others believe that the improvement of social orenvironmental performance can enhance the company’s input-output efficiency orgenerate new market opportunities. This thesis mainly focuses on the relation ofCorporate Social Responsibility and Corporate Value relevance of heavy pollutingindustries.This thesis mainly referring to the domestic and international corporate socialresponsibility evaluation criteria, based on stakeholder theory, establish a set ofheavily polluting industries CSR evaluation system, enrich the theory of corporatesocial responsibility, to make up our corporate social responsibility evaluation indexsystem deficiencies and lay the foundation for future research. And then the value ofcorporate social responsibility and corporate correlation between the studyconclusions for the enterprise through social responsibility initiative provide atheoretical basis.This research support the hypothesis presented in this thesis. Corporate socialresponsibility and corporate value is positively related. By regression analysis, lesscorporate responsibility causing lower enterprise value is significant at the5%significance level. Better corporate responsibility causing higher enterprise value isnot significant at the5%significance level. This result is because, on the one hand,the corporate social responsibility evaluation system is not perfect， and on the otherhand, the adverse financial impact is tangible caused by poor condition of corporatesocial responsibility, whereas the better fulfillment of social responsibility, mainlylead to the intangible benefits, such as strong management skills, technologicalinnovation and brand reputation, which can receive the proceeds very slowly.