An Empirical Research On Relationship Between Corporate Social Responsibility And Financial Performance

Under the background of economic globalization, China’s economy has achieved rapid growth; domestic enterprises have also made unprecedented achievements. But also develop increasingly numbers of social problems, such as product quality, environmental pollution and lack of business integrity. Social responsibility has attracted more and more attention. Research conclusions can be summarized into three categories: Most researchers believe that corporate fulfill their social responsibility actively can promote financial performance; Another view was that corporate social responsibility will inevitably increase the cost of business thus reduce corporate financial performance; A small part of researchers believe that there is no obvious relationship between them. This paper takes the petrochemical industry which has public nature as the research objects. The purpose is to emphasize the importance of fulfill their social responsibilities for nonprofit enterprise of petrochemical industry.This article contains a total of six parts. The first part is the introduction of background the significance and purpose of current research, research content and methods. The second part is related to the theoretical study of corporate social responsibility and corporate performance relationships, including social responsibility theory and stakeholder theory. First, summary the concept of corporate social responsibility theory and list five methods commonly used in the evaluation of social responsibility. On the basis of definition of stakeholder theory, social responsibility is divided into direct and indirect stakeholders in two categories from the perspective of corporate stakeholders’ corporate. Finally, the paper list the corporate social responsibility of petrochemical industry based on the stakeholders. Lay a solid theoretical foundation for the study of empirical. The third part is the design of empirical research methods about the impact of corporate social responsibility on financial performance. This part includes seven study hypotheses, variables of corporate social responsibility and financial performance, design of model and datasource. Take 2011-2013 data of 181 listed companies in the petrochemical industry as the object, select 16 corporate social responsibility variables and a control variable. Select 11 indicators from four aspects as the dependent variable. Build a multiple regression model. The fourth part is the core part. The empirical of influence relationship between fulfill corporate social responsibility and financial performance. By descriptive statistics and regression analysis draw the relevant conclusions. Conclusions are: enterprises fulfill their social responsibility to direct and indirect stakeholders have a positive impact on financial performance; corporate financial performance can promote corporate social responsibility of the next period; the role firm size has a certain influence on corporate financial performance. The fifth part is proposed suggestions for China’s petrochemical industry companies of fulfilling their social responsibility to improve the business performance. The paper makes suggestions from three angles of business, government and the public. For the business aspects put forward concrete proposals to improve corporate financial performance from two aspects, as a whole and from the perspective of stakeholder viewpoint. Part VI is conclusions and outlook.