A Study Of Social Performance Of China's Commercial Banks

In the 1980 s,under the background of ‘capital deregulation' and ‘shareholders primacy',problems such as environmental pollution,tense labor relations,and lack of human rights protection in the production and operation of enterprises have been increasing,prompting citizens to reflect the nature of enterprise and its relationship with other social groups.Therefore,the wave of corporate social responsibility(CSR)has emerged in Europe and the United States.As a special enterprise that operates currency/monetary capital by means of credit,commercial banks have huge externalities arising from capital and currency operations,as well as misplaced time,space,quantity,and methods in the process of financial lending and borrowing,which makes their social responsibilities subject to more extensive attention.Since 2007,the China Banking Regulatory Commission,the People's Bank of China,and the State Environmental Protection Administration have successively issued a series of guidelines and guidance on the social responsibilities of commercial banks.The social responsibilities and social performance of commercial banks have begun to receive attention in China,and commercial banks have also increased investment over green credit,philanthropy and other aspects.In contrast,domestic research on the social performance of commercial banks is still at an exploratory stage with few research results.Qualitative research focus on theories and oversea case studies related to social performance of commercial banks,while quantitative research focuses on the evaluation of stakeholder theories,both of which are deficient in terms of research perspectives and indicators.From the perspective of efficiency theory,this article combines the stakeholder theory and the Carol corporate social responsibility model to define the social performance of commercial banks.It compares social responsibility of commercial banks with general corporate social performance,bank social responsibility,bank financial performance,and economic efficiency theory,as well as analyzing the content and characteristics of commercial bank's social performance.Centered on ‘input?output',this article constructs an evaluation system consisting of three input indicators and seventeen output indicators.The system categorizes bank social performance into risk management,economic contribution,innovation and sustainable development,employment contribution,and social cause,and covers shareholders,customers,employees,government,and social environment,which connects stakeholders' proprietary investment and the corresponding output of commercial banks.By data analysis,this article measures the social performance of 16 China commercial banks during 2011-2016,and uses regression models to explore the factors that affect performance.The result shows that local urban commercial banks are the leaders in social performance,followed by large joint-stock commercial banks,and state-controlled commercial banks generally have poor performance.The performance regarding shareholder is the best among the five types of interest groups,followed by government performance,and the employee performance is the most stable.The main factors affecting social performance of commercial banks are asset size,profitability,innovation ability and talent allocation.The impact of asset allocation is not significant.