An Analysis of the Link between Corporate Social Responsibility and Corporate Financial Performance

The link between corporate social responsibility and corporate financial performance determined the social responsibility attitudes and behaviors of enterprises. Based on the "social impact hypothesis" and the "available funds hypothesis", the authors constructed the conceptual model of the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP). Then, using the survey data of Zhejiang textile corporate, this paper examined the link between CSR and CFP, as well as the effect of firm's scale and age on the relationship. The results showed that prior corporate financial performance affected subsequent corporate social responsibility significantly. However, prior corporate social responsibility did not promote subsequent corporate financial performance. The similar result existed between contemporaneous corporate social responsibility and corporate financial performance, but not significant.