The Impact Mechanism Of Corporate Social Responsibility For Firm Performance

Since the 1990s, corporate social responsibility have attracted more and more attention of the academia. Study and practice of foreign scholars showed that enterprises bearing corporate social responsibility can not only improve the welfare of society, but also promote the development of it. However, bearing corporate social responsibility requires enterprises to pay a lot of manpower, material resources and financial resources. It seems that bearing corporate social responsibility is harmful for corporate profits. Therefore, if the government or the public want to urge enterprises to undertake social responsibility, they must be letting the enterprises know bearing social responsibility can bring what kind of benefits to the enterprises. Studying the relationship between the corporate social responsibility and firm performance is a good method.The existent research literature has commonly recognized that the corporate social responsibility (CSR) affects the firm's performance (FP), but little study has been done regarding the mechanism and path of this effect. Based on this research background, this paper attempts to analyze the influential mechanism that CSR possibly has on FP. In the process, a conceptual framework is established involving those factors of CSR, employee turnover, customer satisfaction, and FP, then both regression analysis and structural equation method are utilized in analyzing the proposed nature of influences.The results indicate that not only CSR creates direct positive effect on FP; it also has positive indirect effects on FP through employee turnover, and customer satisfaction. In addition, CSR has a significant positive impact on customer satisfaction, and significant negative effect on employee turnover. CSR positively influences customer satisfaction and FP through Economic responsibility, Legal responsibility and Discretionary Responsibility and negatively influences employee turnover through Discretionary Responsibility.Finally, this study gives revelation and outlook. Hoping this research can improve the enterprises' consciousness of bearing social responsibility, and prompt the condition of enterprises to fulfill social responsibility. Last of all,this research indicates the direction of the corporate social responsibility study.