Impact Of Corporate Social Responsibility For Financial Risk

The company social responsibility initiative, is to maintain the performance of stakeholderinterests. For direct stakeholders, the company’s social responsibility through appropriate directbenefit to people passing a positive signal, which can help companies to obtain the trust ofcreditors, investors and potential investors and other stakeholders to enhance the company’semployees, customer confidence corresponding to improve business performance, reduce thefinancial pressure on the financial stability and improve; indirect stakeholders, companies cancreate a good business environment and production environment for investment and financingcompany through social responsibility, helps companies long term stable development, reducethe volatility of finance. Failure to perform or not properly fulfill their social responsibilities,will adversely affect the company’s image, sense of responsibility to stakeholders who wouldbe the company’s risk management capabilities and the ability to generate a lot of businessdoubt affect the normal production and business activities, leading to the company’s financialrisk expansion.As a pillar industry of China’s energy companies constituted, the fulfillment of its socialresponsibility can not be optimistic. Listed companies in the energy industry, the initiative topublish an annual report on corporate social responsibility is not much, but a variety of resourceextraction accidents, oil and gas storage transportation accidents, both caused casualties andproperty losses, but also cause a variety of environmental pollution, environmental damage, butalso cause a variety of adverse effects on the community, seriously affecting the reputation andbrand value of the business, some companies even in a serious financial crisis.Industry Classification Benchmark reference www.cninfo.com.cn on this article, select theShanghai and Shenzhen A-share market listed companies in the energy sector75for the study,screening relevant financial data from2011to2013consolidated annual financial disclosurestatements, combined with relevant Chinese and foreign scholars research, and strive to explorethe relationship between corporate social responsibility and its financial risk levels. The authoron the basis of stakeholders and social responsibility on the theoretical level, to energyproduction and operation processes and characteristics of the project as a starting point, thepresent situation the energy industry, analyze the impact of energy and its corporate socialresponsibility constitute financial risk levels. By the author of the relevant data filtering, sortingand empirical analysis, and ultimately draw energy corporate social responsibility has a positiveeffect on its financial risk level of research findings, combined with China’s economic "newnormal" for the energy industry to fulfill social responsibility, reduce financial risk somesuggestions.