An Empirical Study On Relationship Between Corporate Social Responsibility And Financial Performance Analysis

With the development of sustainable concept and responsibility consciousness,enterprises have changed the business purpose,from maximizing shareholder value,to re-examining the relations with consumers,suppliers and the government.Fulfilling social responsibility is a foregone conclusion to enterprises,social responsibility has already become one of the most important aspects in business.The research on social responsibility began in the 1970 s,and since then a lot of research has been done,most scholars concentrate on the relationship between corporate social responsibility and financial performance.There is a lot of research on the direct relation between corporate social responsibility and financial performance,but the conclusion has not been made.Corporate social responsibility activities will inevitably produce direct costs,agent costs and related human and management expenses.So corporations may not benefit in the short term.As a result,some companies are not willing to take social responsibility.In a long period,however,when the enterprise reputation capital is generated,it will win the trust and support of all stakeholders,and the financial value of these actions will be generated.This article,on the basis of summarizing the previous research results,will add corporate reputation into corporate social responsibility and financial performance relationship model.Analyzing the indirect relationship between the corporate social responsibility and the corporate financial performance by investigating the mediating role of corporate reputation.Based on the data of 266 companies in 2009-2014,this article depends on correlation analysis,regression analysis and path analysis to test the hypothesis,and the conclusions are: 1)Corporate social responsibility and financial performance are significantly correlated: corporate social responsibility is significantly negatively related to short-term financial performance,and significantly positively related to long-term financial performance.2)Corporate reputation plays a mediating role in corporate social responsibility-financial performance relationship.