Research On Relationship Between Social Responsibility And Financial Performance Of Electric Power Enterprises

Since the 1970s, the relationship between corporate social responsibility and financial performance has been always the focus of foreign scholars. In recent years, with the globalization of economy development, corporate social responsibility has become an important research program by the theory field and policy makers, and whether understanding the social responsibilities would increase the cost of enterprise or not has caused more enterprise’s attention.At first, this paper reviews the domestic and foreign academic circles about the research status of corporate social responsibility and summarizes the methods of measuring corporate social responsibility. From the point of theoretical view, the paper also defines the scope of corporate social responsibility based on stakeholder theory and analyzes the interactive relationships social between the corporate social responsibility and financial performance which means positive social responsibilities will promote the financial performance and good financial performance will promote enterprises to fulfill social responsibilities actively. In the empirical part, we choose the listed companies in China power industry as the research object and quantize the level of enterprises performing corporate social responsibility with financial data. We mainly analyze corporate social responsibility from six aspects of shareholders, creditors, suppliers, customers, employees and the government. Then we do empirical analysis of the relationship between corporate social responsibility and financial performance from the overall and local level. Finally, we draw the conclusion that there is a positive correlation relationship between them which has the important significance in promoting the Chinese enterprises to take on the responsibility and raising awareness of social responsibility.