Social Responsibility, Internal Governance and Manufacturing Growth

Yuhong Cao


School of Management, Shanghai University, Shanghai, 200444, China, Institute for Manufacturing, University of Cambridge, CB3 0FS Cambridge, UK (United Kingdom)

Jianxin You


School of Economics &Management, Tongji University, Shanghai, China; School of Management, Shanghai University, Shanghai, 200444, China (China)

Yongjiang Shi


Institute for Manufacturing, University of Cambridge, CB30FS Cambridge, UK (United Kingdom)

Wei Hu

736585318@qq.com
Anhui Cadre Institute of Economics Management, Hefei, 230008, China (China)


Abstract

This article presents a structural equation model for exploring the impact of social responsibility, which been divided into responsibility for the internal stakeholder and responsibility for the external stakeholder, as well as internal governance on Chinese manufacturing growth on the basis of data collected from 500 manufacturing enterprises in the East region of China. Our results show that both social responsibility and internal governance have a positive impact on manufacturing growth and promote sustainable development in manufacturing. In addition, social responsibility has a positive impact on internal governance, and the internal governance plays a partial intermediary role in the impact of social responsibility on manufacturing growth. These findings signify that it is important for Chinese Manufacturing to undertake Social Responsibility, and it can provide a beneficial guidance for Chinese Manufacturing Growth and help strengthen the competitive advantage of manufacturing industry.


Keywords:

social responsibility, internal governance, manufacturing growth, structural equation model

ABBOTT W.F., MONSEN J., 1979, On the Measurement of Corporate Social Responsibility: Self- Reported Disclosures as a Method of Measuring Corporate Social Involvement, in: Academy of Management Journal, vol. 22, no 3, p. 501-515.
  Google Scholar

AKIYOSHI H. HANAZAKI M.-H., 2004, Governance structure of Japanese companies, in: Economic and management research, no 1, p. 95-101.
  Google Scholar

ANDERSON J.C., FRANKLE A.W., 1980, Voluntary Social Reporting: An iso-beta Portfolio Analysis, in: The Accounting Review, vol. 55, no 3, p. 467-479.
  Google Scholar

AUPPELE K.E., CARROLL A.B., HATFIELD J.D.,1985, An Empirical Examination of The relationship between Corporate Social Responsibility and Profitability, in: Academy of Management Journal, vol. 28, no 2, p. 446-462.
  Google Scholar

BAGOZZI R.P., YI Y., 1988, On the evaluation of structural equation models, in: Academy of Marketing Science, vol. l16, no 1, p. 74-94.
  Google Scholar

BAYSINGER B., BUTLER H., 1985,Corporate Governance and the Board of Directors: Performance effects of Changes in Board Composition. Journal of Law, in: Economics and Organization, vol. 1, no1, p.101-124.
  Google Scholar

BHAGAT S., BLACK B., 2002,The Non-Correlation Between Board Independence and Long-Term Firm Performance, in: Journal of Corporation Law, no 27, p. 231-273.
  Google Scholar

BLAIR M.M., 1995, Corporate ‘Ownership’, in: The Brookings Review, vol. 13, no1, p. 16-19.
  Google Scholar

BOWEN H.R., 1953, Social Responsibilities of the Businessman, HarPer&Row, New York.
  Google Scholar

BOWMAN E.H., HAIRE M.A,1975, Strategic Posture toward Corporate Social Responsibility, in: California Management Review, vol. 18, no 2, p. 58-68.
  Google Scholar

BRAMNRNER S..WILLIAMS G.,ZINKLN,J., 2007, Religion and Attitudes to Corporate Social Responsibility in a Large Cross-Country Sample, in: Journal of Business Ethics, vol. 71, no 3, p. 229-243.
  Google Scholar

CARROLL A.B., 1979, A Three-Dimensional Conceptual Model of Corporate Performance, in: Academy of Management Review, vol. 4, no 4, p. 497-505.
  Google Scholar

CHANG K., 2004, Put corporate social responsibility movement in our country's labor law track, in: Chinese party and government cadres Forum, no 3, p. 25-28.
  Google Scholar

CHEN Y.S., LIN M.J., CHANG C.H., 2009, The positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets, in: Industrial Marketing Management, vol. 38, no 2, p. 152-158.
  Google Scholar

CHENG H., XIN Y., 2003, The capital structure, enterprise scale and enterprise growth of Chinese science and technology enterprise, in: Journal of world economy, no 12, p.72-75.
  Google Scholar

CHENG X.,WANG H., 2004, Equity balance and corporate value: model and empirical evidence, in: Quantitative economic technology and Economic Research, no 11, p. 102-110.
  Google Scholar

CHENG Z., 2006, Research on the independent innovation strategy of agricultural equipment manufacturing industry, in: Agriculture Machinery Technology Extension, no 8, p. 8-11.
  Google Scholar

CLARKSON M.E.1995,A Stakeholder Framework for Analysing and Evaluating Corporate Social Performance, in: Academy of Management Review, vol. 20, no 1, p. 92-11.
  Google Scholar

DIANE D.K., MCCONNELL J., 2003, International Corporate Governance, in: Journal of Finacial and Quantitative Analysis, vol. 38, no 1, p. 1-36.
  Google Scholar

DING Y. D., 2010, China's manufacturing industry’s upgrade facing the global industry value chain, Science Press, Beijing.
  Google Scholar

DUNNE P., HUGHES A., 1992, Age, Size, Growth and Survival Revisited, in: Small Business Research Centre, University of Cambridge.
  Google Scholar

FREDERICK W.C., 1994, From CSRI to CSRZ: The Maturing of Business-and-Society thought, in: Business and Society, vol. 33, no 2, p. 150-164.
  Google Scholar

GAO L., SONG S., Executive stock ownership and corporate performance – based on the Listing Corporation from 2000-2004, p.134-143.
  Google Scholar

GREENLY G.E., FOXALL G.R., 1997, Multiple Stakeholder Orientation in UK Companies and the Implications for Company Performance, in: Journal of Management Studies, vol. 34, no 2, p. 59-284.
  Google Scholar

GRIFFIN J.J., MAHON J.F., 1997, The Corporate Social Performance and Corporate Financial Performance Debate TwentyGfive Years of Incomparable Research, in: Business&Society, vol. 36, no1, p.5-31.
  Google Scholar

GUNGOR A., GUPTA S.M., 1999, Issues in environmentally conscious manufacturing and product recovery: a survey, in: Journal of computers & industrial engineering , vol. 36, no 4, p. 811-853.
  Google Scholar

HAN S., LI K., 2005, Research on the international transfer of iron and steel industry, in: Journal of Northeastern University (Social Science), no 5, p. 5-10.
  Google Scholar

HIDEAKI M., NITTA K., SAITO N., YUSUKE O., 2004, Enterprise management efficiency and corporate governance, in: NLI Research Institute report, vol. 33, no 3, p.52-98.
  Google Scholar

HOLMSTROM B.R., MILGROM P., 1991, Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership and Job Design, in: Journal of Law, Economics and Organization, no7, p. 24-52.
  Google Scholar

ILGIN M.A.,GUPTA S.M., 2010, Environmentally conscious manufacturing and product recovery (ECMPRO): A review of the state of the art, in: Journal of environmental management, vol. 91, no 3, p.563-591
  Google Scholar

INGRAM R.W., 1978, An Investigation of the Information Content of (Certain) Social Responsibility Disclosures, in: Journal of Accounting Research, no 16, p. 270-285.
  Google Scholar

JIN L., 2006, Empirical Study on the evaluation index system of corporate social responsibility movement – consumer perspective, in: China's industrial economy, no 6, p. 114-120.
  Google Scholar

JONES T.M., Instrumental Stakeholder Theory A Synthesis of Ethics and Economics, in: Academy of Management Review, vol. 20, no 2, p. 404-437.
  Google Scholar

JU F., XIE Z., BAO G., 2005, Realization of corporate social responsibility based on consumer choice, in: China Industrial economy, no 9, p. 91-98.
  Google Scholar

KUROIWA I., OZEKI H., 2010, Intra-regional Trade between China, Japan, and Korea Before and After the Financial Crisis, In: Ide Discussion Paper, no 237.
  Google Scholar

LIN L., 2005, The industry analysis of the equity of the listing Corporation in China, in: Industrial economy research, no 6, p. 43-47.
  Google Scholar

LICHTENBERGER F.R., PUSHNER G.M., 1994, Ownership Structure and corporate performance in Japan, in: Japan and World Economy, no 6, p.239-261.
  Google Scholar

LI Z., 2006, Study on the relationship between corporate social responsibility and corporate value Empirical Evidence from Shanghai stock market listing Corporation, in: China's industrial economy, no 2, p. 77-83.
  Google Scholar

LU G., 2002, Research on innovation of recession industry, in: Economic Issues in China, no 5, p. 45-51.
  Google Scholar

MAIGNAN, FERRELL O.C., 2000, Measuring Corporate Citizenship in Two Countries: The Case of the United States and France, in: Journal of Business Ethics, vol. 23, no 3, p.283-297.
  Google Scholar

MERZ G.R., SAUBER M.H., 1995, Profiles of Managerial Activities in Small Firms, in: Strategic Management Journal, vol. 16, no 7, p.551-564.
  Google Scholar

MOSKOWITZ M.R., 1972, Choosing Socially Responsible Stocks , in: Business & Society Review, p.71-76.
  Google Scholar

NAGAR V., PETRONI K., WOLFENZON D., 2000, Ownership Structure and Firm Performance in Closely-Held Corporations, in: Working Paper of University of Michigan Business School, no 1, p. 50-57.
  Google Scholar

PESARAN M., HASHEM R., 1995 , Estimating Long-Run Relationships from Dynamic Heterogenous Panels, in: Journal of Econometrics, vol. 68, no1, p. 79-113.
  Google Scholar

PRESTON L.E.,1978, Comparing Corporate Social Performance: Germany, France, Canada and the U.S., in: California Management Review, vol. 20, no 4, p. 40-49.
  Google Scholar

QIAN Y., 1995, Corporate governance structure reform and financial structure reform, in: Economic Research Journal, no 1, p. 20-29.
  Google Scholar

DONKELS R., MIETTINEN A., 1997, Measuring growth: Methodological considerations and empirical results, in: Entrepreneurship and SME research, Ashgate, UK.
  Google Scholar

ROBERT R.W., 1992, Determinants of Corporate Social Responsibility Disclosure: an Application of Stakeholder Theory, in: Accounting, Organizations & Society, vol. 17, no 6, p. 595-612.
  Google Scholar

SHAH R., WARD P.T., 2003, Lean manufacturing: context, practice bundles, and performance, in: Journal of operations management, vol. 21, no 2, p. 129-149.
  Google Scholar

SHENG H., 2006, A review of the research on the corporate social responsibility of corporate social responsibility in the 21st Century, in: Foreign economics and management, vol. 28, no 8, p. l-9.
  Google Scholar

SONG Z., ZHANG Z., ZHU J., 2005, Analysis on the influence of the equity incentive of the managers of the Listing Corporation, in: Management review, no 3, p. 3-8.
  Google Scholar

SUN H., 2006, Research on corporate governance structure and company growth ability, Jilin University.
  Google Scholar

SVENDSEN A., BOUTILIER R., ABBOTT R., WHEELER D., 2003, Measuring the Business Value of Stakeholder Relationships, in: Stakeholder Relationships, Social Capital and Business Value Creation. Research Report by Center for Innovation in Management (CIM) of Simon Fraser University, Schulich School of Business and Canadian Institute of Chartered Accountants (CICA).
  Google Scholar

TAKAFUMI S., YASUHIRO, Y.,2000,Corporate governance and shareholder's value, in: Securities Analysts Journal, no 9, p.28-46.
  Google Scholar

TIROLE J., 2001, Corporate Governance, in: Econometrica, vol. 69, no1, p. 1-35.
  Google Scholar

VACHON S., KLASSEN R.D., 2008, Environmental management and manufacturing performance: The role of collaboration in the supply chain, in: International journal of production economics, vol. 111, no 2, p. 299-315.
  Google Scholar

WADDOCK S.A., GRAVES A.B., 1997, The Corporate social Performance-Financial Performance Link, in: Strategic Management Journal, vol. 18, no 4, p. 303-319.
  Google Scholar

WADDOCK S.A.,GRAVES S.B.,1997,Quality of management and quality of Stakeholder relations:Are They Synonymous? in: Business&Society, vol. 36, no 3, p. 250-279.
  Google Scholar

WANG Q., HE S., 2005, Analysis of the main factors affecting the growth of Chinese Listing Corporation, in: Journal of statistics and decision making, no 1, p. 33-36.
  Google Scholar

WARD P.T., DURAY R., 2000, Manufacturing strategy in context: environment, competitive strategy and manufacturing strategy, in: Journal of operations management, vol. 18, no 2, p.123-138.
  Google Scholar

WHEELER D., COLBERT B., FREEMAN R.E. 2003, Focusing on Value: Reconciling Corporate Social Responsibility, Sustainability and a Stakeholder Approach in a network world, in: Journal of General Management, vol. 28, no 3, p. l-28.
  Google Scholar

WILLIAMSON O.E., 1975, Markets and Hierarehies, Fress Press, New York.
  Google Scholar

WOOD D.J., JONES R.E., 1995, Stakeholder Mismatching: A Theoretical problem In Empirical Research on Corporate Social Performance, in: International Journal of organizational Analysis(1993-2002), vol. 3, no3, p. 229-267.
  Google Scholar

WOOD D.J., 1991, Corporate social performance Revisited, in: The Academy of Management Review, vol. 16, no 4, p. 691-717.
  Google Scholar

WOKUTCH R.E, MCKINNEY E.W., 1991, Behavioral and Perceptual Measures of Corprorate Social Performance, in: Post J.E. (ed.), Research in Corporate Social Performance and Policy, no 12, p. 309-330.
  Google Scholar

WU M.L., 2006, Corporate Social Performance, Corporate Financial Performance and Firm Size: A Meta-Analysis, in: Journal of American Academy of Business Cambridge, vol. 8, no 1, p. 163-171.
  Google Scholar

XU L., XIN Y., CHENG G., 2006, The impact of ownership concentration and equity balance and its impact on the company's operating performance, in: Economic research, no 1, p. 90-100.
  Google Scholar

YANG L.., ZHAO C., 2010, Summary of Enterprise Growth Theory-Based on View of Growth Motivation, in: Soft Science, vol. 7, no 24, p. 106-110.
  Google Scholar

YAO Q., 2006, Debt maturity structure, corporate performance and growth, Dongbei Finance and Economics University.
  Google Scholar

YOU J., CHENG S., 2003, Advanced management science, Higher Education Press, Bejing.
  Google Scholar

ZHANG P., 2013, Global value Chains specialization and China’s manufacturing industries’ growth. Liaoning University.
  Google Scholar

ZHANG Q., 2003, The international competitiveness of China's manufacturing industry under the opening conditions, in: Management World, no 8, p. 74-79.
  Google Scholar

ZHOU X., 2004, Industry rise and fall of, in: Journal of humanities, no 7, p. 15.
  Google Scholar

ZHOU Z., 2005, Corporate social responsibility: perspective, form and connotation, in: Theory Journal, no 3, p. 14-24.
  Google Scholar

ZHU H.,WANG T., 2003, Study on the inner mechanism of the growth of modern enterprises, in: Journal of Southern Yangtze University, vol. 2, no 2, p. 63-69.
  Google Scholar

Download


Published
2017-01-02

Cited by

Cao, Y., You, J., Shi, Y., & Hu, W. (2017). Social Responsibility, Internal Governance and Manufacturing Growth. Problemy Ekorozwoju, 12(1), 41–54. Retrieved from https://ph.pollub.pl/index.php/preko/article/view/4996

Authors

Yuhong Cao 

School of Management, Shanghai University, Shanghai, 200444, China, Institute for Manufacturing, University of Cambridge, CB3 0FS Cambridge, UK United Kingdom

Authors

Jianxin You 

School of Economics &Management, Tongji University, Shanghai, China; School of Management, Shanghai University, Shanghai, 200444, China China

Authors

Yongjiang Shi 

Institute for Manufacturing, University of Cambridge, CB30FS Cambridge, UK United Kingdom

Authors

Wei Hu 
736585318@qq.com
Anhui Cadre Institute of Economics Management, Hefei, 230008, China China

Statistics

Abstract views: 14
PDF downloads: 6