The Research On The Impact Of Executive Incentive On Corporate Social Responsibility

With the continuous development of the global economy and the continuous improvement of corporate governance,the importance of corporate social responsibility has become increasingly prominent.On the one hand,the enterprise management is no longer limited to the pursuit of maximum interests,corporate reputation and the company's sustainable development has become an important strategic plan.On the other hand,the public as well as the supervision of public opinion has also put pressure on enterprises to pay more attention to product quality,environmental protection,employee benefits and other issues closely related to social responsibility.Therefore,how to promote the fulfillment of corporate social responsibility has been paid close attention by the government,enterprises and consumers.The executive incentive can promote the long-term development of executive decision to focus on business and corporate social responsibility,which is an important aspect of the enterprise long-term development strategy.Executive incentive through positive impact on executive decision-making behavior of corporate social responsibility plays a promoting role.This paper selects A-share companies which released corporate social responsibility report from 2011 to 2014,and obtained the CSR rating as the research sample.The paper is divided into the following parts.First,through the empirical analysis method to study the executive incentive can influence the corporate social responsibility level;Secondly,introducing large shareholders,creditors,independent directors and other internal governance system to find out how the relationship between the incentive and corporate social responsibility change under the influence;Finally,the introduction of market competition,to explore how the industry competition influence the relationship between executive incentive and corporate social responsibility.The results show that:(1)Executive incentive can improve the performance of corporate social responsibility,and the incentive effect is more significant compared with the equity incentive.Executive incentive is an effective way to promote corporate social responsibility.(2)Other internal governance system will affect the relationship between executive incentive and corporate social responsibility.Shareholders supervision would improve the rational degree of equity incentive and corporate social responsibility,while salary incentive is not affected by shareholders supervision on the influence of the corporate social responsibility;creditors and supervision of independent directors can affect the performance of corporate social responsibility replacing the role of executive incentive,creditors the independent director supervision reduce the relational degree of executive incentive and corporate social responsibility.(3)Competition as an external environment system can promote corporate social responsibility,fiercer competition between the enterprises can be seen as a good way to supervise the companies as an alternative incentive function of executive incentives.