Research on the Relationship between Corporate Social Responsibility and Financial Performance

In recent years, China's economy has experienced a rapid development stage. At the same time, the rapid development of enterprises has also brought some problems to society, such as consumer rights are not protected, environmental pollution, food safety, employees' rights are damaged. Because it is difficult to see the effect of fulfilling social responsibility in the short term, many enterprises are confined to the goal of maximizing their profits, believing that fulfilling social responsibility will reduce the profits of enterprises. With the enhancement of public awareness of social responsibility, the expectations of society for enterprises are increasing, and fulfilling corporate social responsibility is no longer a selective behavior of enterprises. Faced with the double pressures from the social and market competition, how to achieve a reasonable balance between CSR and CFP and achieve the double maximization of corporate and social interests is an urgent problem to be solved. Domestic and foreign scholars have done a lot of theoretical and empirical research on the relationship between CSR and CFP. Most scholars' research shows that CSR and CFP are positively correlated. In addition, there are negative, irrelevant and uncertain relationships. Thus, the conclusions of the study on the relationship between CSR and CFP are quite different, and the study of the relationship between them has great theoretical and practical significance. In this paper, 75 listed companies in Shanghai and Shenzhen Stock Exchange are selected as research samples based on relevant data from 2016 to 2018. From the perspective of stakeholders, the relationship between corporate social responsibility and financial performance is empirically studied by correlation analysis and regression analysis. The results show that there is a correlation between financial performance and stakeholders. Specifically, shareholders, creditors, consumers and the government's social responsibility has a positive effect on corporate performance, and the responsibility to employees has a negative impact on financial performance. Finally, the article puts forward policy recommendations to the responsibility performance of the listed companies.