Research On The Correlation Between Social Enterprise Social Responsibility And Financial Performance

With the continuous development of society,social enterprises have increasingly become an important mechanism for resolving social problems and promoting social development,as well as a model for enterprise innovation.Due to the peculiarities of such enterprises,they have the features of public welfare,low return on investment,long return on investment,outstanding social and environmental benefits,and low economic returns,the development of such social enterprises is relatively slow.Among the social enterprises in the environment,the social enterprises of solid waste treatment started relatively late compare with social enterprises of water treatment and air pollution control.In recent years,with the continuous development of social economy and the accelerating process of urbanization,solid waste such as municipal solid waste and industrial waste have been continuously increasing.The environmental problems caused by this have also become increasingly serious.The treatment of solid waste has increasingly become an important issue of urban development.Moreover,as a social enterprise,solid waste treatment enterprise has a certain mandatory compulsory social responsibility performance compared with ordinary commercial enterprises.Therefore,it is important for the solid waste treatment enterprises to better fulfill their corporate social responsibility and improve the financial performance of enterprises,which means the research of solid waste treatment social enterprises takes an critical part.First,based on stakeholder theory,social contract theory and corporate citizenship theory,this paper measures the social responsibility of the solid waste treatment social enterprises from the seven dimensions: government,shareholders,creditors,suppliers,employees,public welfare and environment,sorting out and summarizing related documents,and measures the financial performance of corporate from the two aspects : market index and accounting index,and puts forward relevant research hypotheses and assumptions models.Then,through the websites of Wealth Network,Finance and Straight Flush,I get all listed companies of the Main-Board,Small and Medium Enterprise Board and Growth Enterprise Board about solid waste treatment concept stock,and obtained the financial data of the sample companies through the Shenzhen Stock Exchange,Shanghai Stock Exchange and Juchao.Then,I exclude the companies which is listed abnormalities and lack of financial reports and complete financial data.Finally,I obtain 38 solid waste enterprises listed companies and make them the research sample.Then,based on the financial statements data of 38 listed companies from 2012 to 2016,190 samples were obtained with a total of 2090 data.Based on these data,I use multiple regression analysis and analytic hierarchy process to study the relationship between social responsibility and financial performance of social enterprises in solid waste treatment,the final results and conclusions are as follows:(1)Solid waste treatment social enterprises,as a kind of enterprise organization to solve social problems,are the supported objects of government policies.There is a significant positive impact for the rate of return on assets if solid waste treatment social enterprises actively fulfill their responsibilities to shareholders,revealing the main reason why the current solid waste treatment companies ignore non-traditional the responsibility for stakeholders.(2)The corporate responsibility for environmental performance is negatively related to the return on total assets in the current period,while the lagged one period shows a positive correlation.This shows that it will increase the cost of enterprises and bring a burden on the development of enterprises,resulting in a decrease in profits.However,in the long run,it will improve the financial performance of enterprises.This suggests that solid waste treatment of social enterprises should have a long-term perspective on the corporate social responsibility to fulfill,we must attach importance to social responsibility for the environment and promote the sustainable development of solid waste treatment of social enterprises.The negative correlation between The corporate responsibility to public welfare,employees and the rate of return on total assets.Because of the nature profit-seeking,enterprises do not form a good return on financial performance and they are extremely easy to ignore the responsibilities to public welfare and employees.(3)There is a significant positive correlation between the corporate fulfilling their responsibility of creditors and employees,and Tobin's Q,which indicates that enterprises actively fulfill their responsibilities to the creditors and employees and plays an important role in raising the par value of corporate shares,which is conducive to corporate financing and talent introduction.the corporate fulfilling their responsibility of shareholders,suppliers,public welfare and Tobin's Q is positively correlated,indicating that business activities such as public welfare will establish a good corporate image,which will increase the company's stock par value and increase the market value of enterprises.(4)The negative correlation between the corporate fulfilling their responsibility of government and Tobin's Q may be due to the state's attention and support to social enterprises in solid waste disposal as the economic development continues to increase.However,due to the imperfect policies or implementation is not in place,may lead to the more active enterprises to fulfill their responsibilities to the government,but the worse the financial performance.The responsibility of enterprises to fulfill the environment and Tobin's Q is positively related to the current period,while the negative one after the lag period may be due to the technology prioritized giving a good image of technology led to the rise of corporate stock par value,and the effect of research and development is not as expected,resulting in lower market value of enterprises.(5)The financial performance of enterprises has a positive impact on the fulfillment of corporate social responsibility,which indicates that the solid waste treatment enterprises improving their financial performance are conducive to their social responsibility.The government should strengthen the policy support of solid waste treatment enterprises,encouraging and actively guiding its development,and improve the financial performance of enterprises,which is not only beneficial to the development of enterprises but also conducive to social harmony and environmental protection.(6)According to the above empirical results,I believe that the lack of social responsibility of solid waste treatment social enterprises is due to the fact that the development of Chinese solid waste treatment social enterprises is still in its infancy and lags behind developed countries.Because solid waste has sluggish impact on the environment,the solid waste treatment industry has not received sufficient attention for a long time.National pollution control focus on water pollution and air pollution,which leads to the slow development of the solid waste treatment industry in various sub sectors of environment-protection.