Research On Directors’ Liability Insurance And Corporate Social Responsibility

Corporate social responsibility means that the enterprises, while creating profits and safeguard the interests of shareholders at the same time, take into account the maintenance of community harmony, the protection of the natural environment and other stakeholders’rights and other related issues.Corporate social responsibility has become the most important problem of the core of the enterprise from the beginning of the issue of the level of moral emotion, and has been recognized by more and more modern entrepreneurs.lt is not only conducive to the realization of sustainable development of enterprises, but also to win the goodwill of consumers, reduce financing costs and enhance corporate brand an important means. With the change of time and the development of enterprise development background, research on the question of corporate social responsibility,has change from"Why" to "How", paying close attention to relations between corporate social responsibility and corporate performance as well as the research of executive stock ownership and executive change may affect important factors on corporate social responsibility decision-making.With the development of capital market and the strengthening of supervision system,directors and managers need the product to protect themselves. It has aroused widespread concern of domestic and international scholars from the beginning.The main direction of academic research is the demand motivation of listed companies to directors liability insurance and the economic consequences after purchasing. This paper explores whether the executive director’s liability insurance on the management behavior will influence the social responsibility? Whether the relationship between them will be different because of the different nature of the enterprise? Therefore, given to the special situation of our country and the capital market environment the discussion between them is very important.The article is based on listed companies ’ financial data about director liability insurance from 2011 to 2014 in domestic stock market.and corporate social responsibility report rating data from Rankins CSR Ratings,(RKS), combined with the ’long-term interest theory,stakeholder theory and corporate citizenship theory, the corporate social responsibility of directors liability insurance from the perspective of an in-depth discussion.The empirical results show that the purchase of directors’ liability insurance in China’s listed companies has a significant role in promoting corporate social responsibility.However , this positive correlation is not significant in the state-owned enterprises,but very significant in the non-state-owned enterprises. Our research helps us to have a better understanding about the effect of directors’ and officers’ insurance and the influence of ownership,enriches the study of the impact factors of CSR and is significant for the CSR.