The Impact Of Family Involvement On Corporate Social Responsibility Performance

Since the reform and opening up,China's private economy has developed rapidly.As an important part of private economy,family enterprises have great influence on economic construction and social development.How to develop healthily and continue the family business is a problem that every family business owner has to face.By fulfilling social responsibility,the family can maintain and increase social emotional wealth,help the family business to accumulate reputation,maintain the relationship with other social groups,and contribute to the sustainable development and intergenerational inheritance of the family business.This makes the discussion on the social responsibility of the family business both academic and practical significance.Scholars have begun to pay attention to this topic and have some research results,but there are still some problems such as inappropriate theoretical application and insufficient situational exploration.Therefore,based on the integration of relevant researches,this paper takes the listed family enterprises in China as samples to conduct research on the following issues :(1)What role does family involvement play in the social responsibility behaviors of enterprises and whether family involvement can promote the performance of social responsibility behaviors of family enterprises?(2)What is the impact of executive compensation in family enterprises on the relationship between family involvement and CSR performance?In order to answer the above questions,this paper first collected and sorted out the literature on family corporate social responsibility,combined with the characteristics of Chinese family enterprises,sorted out the ways of family involvement in enterprises,and summarized the conclusions of existing studies on corporate social responsibility.Further,this paper chooses the social emotional wealth theory as the theoretical basis to discuss and make assumptions about the relationship between family business and corporate social responsibility performance.In accordance with certain standards,this paper selected Chinese listed family enterprises from 2010 to 2017 as samples,and empirically tested the hypothesis proposed by correlation analysis,multiple regression analysis and other methods.The empirical test results show that family involvement has a positive impact on the CSR behavior of enterprises.The higher the proportion of family control rights,the more family members hold posts in the management level,and the more actively family enterprises perform their social responsibilities.Considering the moderating effect of executive compensation,it can be found that providing high-standard compensation incentives for family business executives negatively moderates the positive relationship between family involvement and corporate social responsibility.The main significance of this paper is as follows :(1)In the past,most studies on family businesses have focused on the financial performance and intergenerational transmission of family businesses,while few have focused on the social responsibility of family businesses.(2)Abandon the previous dichotomy,and study the social responsibility behaviors of family enterprises from the perspective of family involvement,and pay more attention to the influence of the heterogeneity of family enterprises on the social responsibility behaviors;(3)Previous studies failed to reach a unified conclusion,and some even reached completely opposite conclusions,which indicated that previous studies may not fully consider the impact of different situations on the research.This paper selected executive compensation as a moderating variable,which can enrich related studies.(4)Through the research on the social responsibility of family enterprises,it can help stakeholders better understand the motivation behind the performance of social responsibility of family enterprises.At the same time,it also helps the family business owners to understand the significance of fulfilling social responsibility,no longer regard social responsibility as an additional burden,and promotes the family business to actively fulfill social responsibility.(5)Research on the influence of executive compensation on the relationship between family involvement and corporate social responsibility can help family enterprises establish a better incentive mechanism,establish and maintain a good relationship with agents,and promote the development of family enterprises.