Research On The Subsidy Policy Of The Government To Enterprise That Fulfills Its Social Responsibility

In recent years,due to the absence of corporate social responsibility,China's product safety issues have occurred frequently,which has had a great negative effect on China's economic and social development,and has led the government and the public to pay more and more attention to corporate social responsibility behavior.As the early input of corporate social responsibility will affect the imbalance of input and output of enterprises,it will weaken the will of corporate social responsibility.The government has already subsidized some companies that produce low-carbon and green products.However,due to the asymmetric information between enterprises and the government,corporate fraudulent practices and lack of social responsibility have occurred from time to time,and government subsidies are inefficient.Therefore,how the government formulates the financial subsidy policy and what kind of subsidy method can better promote the fulfillment of corporate social responsibility are the realistic problems facing the government.Based on the consumer's preference for corporate social responsibility,this paper considers a two-stage supply chain model in the context of a supplier and a retailer,and assumes that only the supplier bears the related costs due to the implementation of corporate social responsibility and considers different powers.Dominant models(supplier-led and retailer-dominated),respectively,studied the government's non-subsidy,input subsidies,and product subsidies.Due to the problem of information asymmetry between the government and enterprises,enterprises may have moral hazard when applying for government subsidies.Therefore,this article considers the supplier's moral hazard,and compares and analyzes the suppliers' performance of corporate social responsibility,corporate profits,and social welfare under the three models.The results of the study show that,regardless of which kind of rights dominate,the subsidy of the government will promote the fulfillment of the social responsibility of the supplier and the improvement of social welfare compared with no subsidies.If the government subsidizes suppliers,the government's product subsidy policy is better than the input subsidy policy in terms of improving the product of suppliers,promoting the social responsibility of suppliers,and social welfare.The government's reward and punishment mechanism for enterprises is that the higher the government's moral hazard,the lower the government's subsidy(rate)and even disappear.The government's input-subsidy mode has different subsidy mechanisms under different rights-dominant modes,while the government's product subsidy mode has the same subsidy mechanism under different power-led modes.Finally,this paper provides suggestions for the government to adopt the subsidy strategy in order to facilitate the government to make rational use of the subsidy resources,to give greater play to the incentive effect of subsidy policies and to promote the fulfillment of corporate social responsibility in China.