Research On The Influence Of Corporation Social Responsibility On Financial Core Competence

In recent years, more attention has been paid on corporate social responsibility (CSR), and many companies integrate CSR into the corporate mission to form a personalized development strategy. However, there still exist many prominent problems, especially the food security and production safety accidents occurred these years, which created severely impact on reputation. As main market entities, corporations play an important role in achieving the goal of comprehensively deepening reform, and CSR will undoubtedly help to increase social welfare and enhance social morality. This thesis aims at exploring the motives of voluntary CSR actions. While financial core competence (FCC) is necessary for sustainable development which has a strong appeal for companies, the enhancement of FCC may stimulate corporations to treat CSR as a strategic action.As with the research method, theoretical analysis is used in the literature review. It integrates other researchers’analysis results about CSR, FCC and the relationship between the two and derives some useful enlightenments from them. In the empirical part, factor analysis method is used to calculate the comprehensive index of FCC. Correlation test and regression equation are also used in the empirical research part, with the aim to reveal the influence of every single factor of CSR exerting to FCC. At last, the factor of information disclosure of social responsibility is also taken into account. The regression result of companies which release social responsibility report separately from the annual report is compared with those who do not release.In conclusion, CSR activity is beneficial to corporation financing and sales promotion. It helps to improve company’s reputation and enhance the entire value. In addition, CSR possesses the characteristics of self-discipline, penetrability and duration so that it stimulates the sustainability of corporation growth. CSR to shareholders, creditors and suppliers have a significantly positive relationship to FCC in all the three years while CSR to consumers, employees and governments positively relate to FCC in one or two years. As a result, these CSR indexes are all beneficial to FCC to some extent. Those companies which release separate social responsibility reports need to undertake some responsibilities in the higher layer of the CSR pyramid.