Research On The Relationship Between Social Responsibility And Financial Performance Of Domestic Commercial Banks

Commercial Bank is a kind of corporation which is operating money and risk. It plays the role of credit intermediary, payment intermediary, credit creation and economic regulation in economy system. The operation of Commercial Bank plays an irreplaceable role in the economy system, and its stable operation concerning the development, security and stability of our society. In recent years, Commercial Banks in China have made various attempts and exploration on the issue of social responsibility, and had made some achievements.This paper reviewed the development of corporate social responsibility theory first, focusing on introducing the most accepted theory which named stakeholder theory. Then this paper reviewed the previous study about the corporate social responsibility issue. This paper is based on the content of stakeholder theory, combining the situation of domestic Commercial Banks, to explore Commercial Bank’s social responsibility for shareholder, creditors, financial consumers, employees, governments, communities and environment. Finally, this paper made an empirical test of the impact of Chinese Commercial Banks fulfilling social responsibility to its financial performance, basing on the data from 2004-2014 of 16 domestic Commercial Banks. The empirical result showed that Commercial Banks fulfilling their social responsibility having a positive impact to their financial performance. When choosing different indictors as financial performance, the influence direction to various stakeholders is different.