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Study on Evaluation of manufacturing enterprise social responsibility of medicine and its influence on Corporate Performance

Author: XingYuJie
Tutor: LuoYong
School: Chongqing Technology and Business University
Course: Accounting
Keywords: Pharmaceutical manufacturing enterprise Corporate social responsibility Stakeholders Corporate performance
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Type: Master's thesis
Year: 2014
Downloads: 3
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Abstract


In recent years，Drug safety accidents occurred frequently, frequently exposured in the media. Drug safety becomes a hot topic of the whole society. Drug safety accidents occur frequently because a lot of pharmaceutical manufacturing enterprises in pursuit of profit maximization for enterprise management goal in our country, ignoring the corporate social responsibilities. On one hand, drug enterprises will undertake the important missions of humans’ life and health. If drug companies simply pursue profit maximization management goal and evade corporate social responsibilities, it will certainly cause serious influence to consumers and society. Enterprises will also be severely hit. Therefore, no matter from the perspective of the development of the enterprise itself, or the development of the social, pharmaceutical manufacturing enterprises to undertake social responsibility has the vital significance. On the other hand, business is still essentially an economic organization, is there anything relation between corporate social responsibility and the enterprise’s financial performance? The question can not be avoided for the study of corporatesoial responsibility.The relationship between corporate social responsibility and performance is the focus of the empirical research in recent years, but the pharmaceutical manufacturing enterprises’ social responsibility and corporate performance empirical research is still rare. This paper is based on situations of the China’s pharmaceutical manufacturing companies. Using a combination of the oretical and empirical approach and qualitative and quantitative an alysis method, the questions are analyzed in the article. The mind of the paper is put forward on the basis of the analys is on the questions which is why to be responsibility for the society, which responsibilities to perform and which relations to rely on between the corporate social responsibility and financial performance. Through the empirical conclusions to provide referential, it will help the enterprise to promote efficiency.First of all, the studies on the domestic and international corporate social responsibility evaluation and the relations of the corporate social responsibility and financial performance of the literature is summarized, and then based on the theory of social responsibility,stakeholder theory and characteristics of pharmaceutical enterprises in our country, it is proved it is the need to perform corporate social responsibility.It is introduced in detail that what is the main social responsibility context for corporate to perform to stakeholder and circumstance. It is analyzed the effectiveness of corporate social responsibility will pass through the various stakeholders on the financial performance of the enterprise and lead to financial performance improvement.So drawing the conclusion that pharmaceutical manufacturing enterprises to fulfill social responsibility has a positive effect on business performance point theoretically.Secondly, with the principle of scientific, comparability, maneuverability and outstanding pharmaceutical manufacturing enterprises particularity, this paper selects the corporate social responsibility’s and corporate performance’s evaluation index. Based on the stakeholder theory, this paper establishes the evaluation index system for the enterprise to undertake various stakeholders’ social responsibilities. Then using total assets return rate as examining index of enterprise performance and selecting enterprise scale and nature as control variables.Finally, this paper uses the method of factor analysis to evaluate the pharmaceutical manufacturing enterprises’ society responsibility index system, then using the method of principal component regression analysis to research the selected102listed companies data in2012. This paper comes to the following conclusions: For the important stakeholders such as shareholders, creditors,consumers, employees and governments, enterprises’ social responsibility and corporate performance presents significant correlativity, then put forward some corresponding suggestions to promote the pharmaceutical manufacturing enterprises to actively undertake social responsibility, as to improve enterprise performance.

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