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Influence of Family Involvement on Corporate Social Responsibility

Author: ZhangWenRan
Tutor: ChenLing
School: Zhejiang University
Course: Entrepreneurial Management
Keywords: family business family involvement family-centered non-economicgoals corporate social responsibility
CLC: F276.5
Type: Master's thesis
Year: 2012
Downloads: 65
Quote: 0
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Abstract


As one kind of ancient organizations, family businesses have been existing in various countries and regions, meantime, they make a great contribution to the economic. In China, family businesses also play an important role in the society’s development, while there are also many problems during the development of family businesses. It is not difficult to find that much irresponsible phenomenon is related to family businesses, such as wage arrears, environment pollution, food security and so on. All of these reports leave a bad impression to the public that family businesses are irresponsible for the society.An increasing number of scholars have turned their attention to studying the impact that family involvement might influence on the performance of corporate social responsibility. However, they still do not reach an agreement. Some scholars think the family business performs better than non-family business in social responsibility field, while there are still other arguments which point out that family businesses will sacrifice non-family stakeholders’interest in order to protect their family’s benefits. Basing on this controversy and considering Chinese situation, we decide to research how family involvement will impact on corporate social responsibility. At present only a small amount of empirical evidence comes from developed countries of western market, but developing countries have rare research in this field. It is more suitable for developing countries which are in the process of economic transition to study this subject, because it is more likely to identify how enterprise difference impact on social responsibility performance.Through reading a great deal of relevant literature, this thesis has made a summary of family businesses’non-financial goals which are divided into two parts that are family-centered non-financial goals and firm-centered non-financial goals. Then this paper built a research model which includes family involvement, family-centered non-financial goals and firm-centered non-financial goals. According to previous research, we define family involvement as ownership, management and succession intention, as for the performance measure of corporate social responsibility, charitable contribution, staff training, research and development(R&D) of products and pollution control. The research data comes from the "Survey of the Ninth Private Enterprise", we made use of the research result to verify our hypothesis.Through data analysis, conclusions come out. In China, family involvement has an obvious influence on corporate social responsibility. Ownership and management have negative influence on corporate social responsibility; succession intention has positive influence on corporate social responsibility. Family-centered non-economic goals do have mediating.

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CLC: > Economic > Economic planning and management > Enterprise economy > A variety of enterprise and economic > The private sector
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