An Empirical Study Of Corporate Social Responsibility And Financial Performance

American and European countries as the birthplace of corporate social responsibility has formed a relatively sound theoretical system about the study of "Whether social responsibility should be bear by the enterprises". It has been basically reached a consensus on this study after Dodd and Berle discussion on. They believed that the enterprise should realize the importance to bear on the social responsibility. And they believed that the burden of social responsibility would help improve the company’s reputation, enhance corporate brand image, thereby enhancing the competitiveness of enterprises, and to improve the performance of corporate financial performance. Our country research on corporate social responsibility is later then the developed countries. The academia of developed countries generally agreed that companies should shoulder the social responsibility, but many enterprises of our country still in its understanding stage. With the emergence of environmental pollution, product quality problems, such as lack of a large number of corporate social responsibility events, causing widespread media and public attention to corporate social responsibility, requiring companies to meet growing calls for social responsibility. However, many companies believe that corporate social responsibility will increase the burden on businesses, is not conducive to the competitiveness of enterprises, thus affecting the company’s financial performance. On this issue, this paper takes a sample of the running water company, the use of empirical research methods, analyze the impact of corporate social responsibility on the company’s financial performance.At first,This article gives an overview of the development of the corporate social theory.This basis try to analyze the theoretical basis and necessity of enterprise society, respectively from the perspective of sociology, economics, law and management.Second, according to the enterprise ethics, social contract and the behalf of the stakeholder, I explore the relationship between the corporate social responsibility and financial performance, trying to unfold the real influence enterprise society bring to its finance,and I express the possible mechanism with which corporate social responsibility affect the enterprise’s financial performance. Again, deriving from the perspective of industry, this paper introduces the water bank’s present situation, summarizes the problems existing in the development progression and focus on the performance of the water bank on social responsibility. Finally, I put forward my hypothesis in this paper on the basis of theoretical analysis that corporate social responsibility has a positive influence on the current financial performance and the situation the enterprise bear the social responsibility has a positive influence on financial performance in the future. After taking12companies listed on Shanghai and shenzhen stock market tap water industry in2000-2012financial data as sample, based on the stakeholder theory, I put the responsibility of enterprise to shareholders, employees, customers, creditors and the government as the dependent variable and Rate of return on total assets and net assets as the independent variable; I take enterprise scale as control variables to establish the model, and verify my hypothesis through the descriptive analysis, correlation analysis and multivariate linear regression analysis. The empirical study results show that the more responsibility the water industry enterprise bear for shareholders, employees, consumer the better performance then enterprise has. The responsibility the tap water enterprises to creditors has a negative effect on corporate financial performance; The responsibility Tap water industry enterprises to the government impact corporate financial performance nonsignificant; Firm size has no marked impact on financial performance. Based on the results of the empirical study, I put forward some Suggestions on tap water enterprises in our country:Improve managers the awareness of social responsibility; Improve the water quality standard and update process and infrastructure; Strengthen corporate social responsibility information disclosure.I hope through the study of the influence of the tap water industry enterprises on the enterprise’s financial performance, the enterprise can realize the importance of corporate social responsibility, the positive affection corporate social responsibility on corporate financial performance, so as to promote better fulfil social responsibility, achieve the long-term development of the enterprise.