Research On Influence Of Insurance Company's Corporate Social Responsibility Performance On Corporate Financial Performance And Stability

Since the concept of corporate social responsibility was put forward in 1924,the discussion of it in the academic community has never stopped.With the rapid development of China's enterprises,the community began to focus on corporate social responsibility,requiring companies take up social responsibility while obtaining economic benefits.The insurance industry is closely related to national economy and people's livelihood.The insurance industry in our country has achieved great development in recent years.The total assets of the industry have been second only to the United States.However,the development of China's insurance companies' social responsibilities is unbalanced,only the top ranked companies focus on the development of corporate social responsibility.The main reason is that there is no unified conclusion at present that companies' social responsibility can bring economic benefits to enterprises,so most insurance companies are only willing to take the minimum social responsibility.In addition,as the size of the insurance industry continues to expand,the importance of the financial stability of insurance companies is gradually highlighted.There has been no precedent for the bankruptcy of insurance companies in china,but from a worldwide perspective,there are not a few examples of bankruptcy of insurance companies.Consider that,this paper will take into consideration the financial stability of insurance companies.Based on the above considerations,this article selected 13 representative life insurance companies and 14 property and casualty insurance companies from 2012 to 2016,mainly explore the effect of insurance company's social responsibility performance on corporate financial performance and its stability.At present,there is no authoritative third-party organization in China to provide corporate social responsibility scores,so this paper will evaluate the social responsibility of insurance companies based on the stakeholder theory,using principal component analysis extract principal components of various stakeholder indexes and getting corporate social responsibility performance scores.Then,using the analytic hierarchy process to obtain corporate financial performance scores.Finally,the financial stability of the enterprise is measured by the probability of bankruptcy.After that,using regression analysis to study the influence of the former on the latter two.Regression analysis results show that the better corporate social responsibility performance the company has better financial performance and corporate social responsibility will also enhance corporate financial stability.From the conclusion,we can see that companies with good corporate social responsibility can establish a good social image and enhance customer trust,so it can enhance the business competitiveness of enterprises and enable companies to obtain better financial performance and financial stability.The conclusion of this paper help to increase the importance of the insurance company's corporate social responsibility and it will make corporate managers gradually realize that it is not contrary to the goal of assuming corporate social responsibility and realizing the improvement of economic interests.It will also promote the transformation of insurance companies from passive commitment to social responsibility to initiative and make our insurance industry achieve better and faster development.