A Study On The Impact Of Balanced Equity Structure On Corporate Social Responsibility

With China’s economy moving into the stage of high-quality development,actively undertaking social responsibility is an essential requirement for enterprises to achieve sustainable development.However,CSR activities in China are still spontaneous,and most enterprises are not strong in their willingness to fulfill social responsibility.State-owned enterprises are the leading force in the national economy,and this special nature determines that they should or even must assume more social responsibility.In view of this,taking the new round of SOE reform as an entry point,an in-depth analysis of the changes in social responsibility of SOEs after the introduction of more profit-seeking private capital is important for SOEs to seek optimal equity structure,improve corporate governance and fulfill social responsibility in the future.Based on the theories and literature related to equity structure and CSR,this paper focuses on Yunnan Baiyao case company and analyzes the changes in corporate equity structure,governance structure and business strategy after compiling the motivation and scheme of its equity structure reform,and then investigates the impact of equity structure changes on CSR through factor analysis.The results of the study show that the balanced shareholding structure has promoted the fulfillment of CSR,and the CSR performance has increased rapidly,exceeding the pre-reform level and also leading the industry.The impact is mainly through the following channels:first,the significant increase in dividend payment rate enhances corporate social responsibility contribution to shareholders;second,the continuous increase in public welfare donation expenditure promotes the fulfillment of corporate social responsibility to the government and the public;third,the year-on-year rise in compensation per employee enhances corporate social responsibility contribution to employees;fourth,the growth rate of operating income and the cost of main business rate are steady to good,which is conducive to Fourth,the steady improvement in the growth rate of operating revenue and the cost ratio of main business is conducive to the fulfillment of social responsibility to customers and consumers;fifth,the enhancement of asset liquidity and the improvement of turnover efficiency of accounts payable improve the contribution of social responsibility to suppliers and creditors;sixth,the steady increase in the proportion of R&D personnel is conducive to the further assumption of responsibility for high-quality economic development.Based on the theoretical analysis and case study analysis,in response to the identified social responsibility risk points of Yunnan Baiyao and the current operating situation,policy recommendations to further promote the reform of equity structure and enhance corporate social responsibility are proposed in three aspects:first,further promote equity diversification and consider introducing strategic investors from the same industry;second,further improve the corporate governance mechanism and implement the board of directors’ authority for non-state shareholders;third,further implement the long-term incentive mechanism and expand the scope of employee stock ownership plan.