ABSTRACT

It is important to clarify the influence of corporate social responsibility（CSR）on business performance，in order to guide the enterprises to fulfill the CSR and to promote the further development of economy and society. Current studies mainly focused on complete rational assumption and did not reach a consensus. However，behavioral economics suggested that human beings are not complete rational and have social preference，which may lead to different behavior characteristics，including the reciprocity between government and enterprises，corporate social irresponsibility，hypocrisy and the instrumental CSR. Why did the enterprises present different behavior characteristics in social responsibility practices？What impact did different CSR behaviors bring to business performance？Furthermore，how to solve the problems of corporate social irresponsibility，hypocrisy and the instrumental CSR？Answering these questions is helpful for revealing the black box between the CSR and business performance，deepening people’s understanding of the CSR，and providing a theoretical basis for guiding enterprises to fulfill their social responsibilities.

This book is mainly studied in the following aspects：Firstly，based on the reciprocal preference assumption，the book explores theoretically the reciprocal mechanism between government and enterprise；Secondly，The book investigates the decision-making basis and effect of corporate social irresponsibility and hypocrisy behavior；Thirdly，The book reveals the effect，motivation and transmission path of CSR on business performance，and examines whether there is a phenomenon of instrumental CSR；Lastly，The book further explores the effect of political connection on corporate social irresponsibility，hypocrisy and instrumental CSR behavior. The mainly work and conclusions are embodied in the following aspects：

1.The influence of CSR on business performance from the perspective of reciprocal preference（Chapter 3）. This book has incorporated the reciprocal preference into analytical framework and conducted the game models of enterprise-government under the situation of complete rational and reciprocal preference，to analyse the reciprocal mechanism between enterprise and government. The findings imply that there is a reciprocal mechanism when the enterprise undertake more CSR and the government is willing to reduce profit distribution ratio or improve the investment environment as return.

2.The influence of corporate social irresponsibility behavior on business performance（Chapter 4）. Based on the fairness preference assumption，The paper conducted two game models of enterprise-government with/without corporate social irresponsibility behavior，and explored the decision-making basis and effect of corporate social Irresponsibility behavior. What’s more，The paper analyzed the impact of political connection on corporate social irresponsibility behavior. It is demonstrated that enterprise would implement the corporate social irresponsibility behavior in certain situation，which can improve enterprise’s utility and damage government’s utility. Political Connect can reduce the level of corporate social irresponsibility behavior and improve government’s utility when the change of environment is small.

3.The influence of hypocrisy behavior on business performance（Chapter 5）. Based on fairness preference assumption，This book conducted two game models of enterprise-government with/without hypocrisy behavior，and explored the decision-making basis and effect of hypocrisy behavior. Then，we analyzed the influence of political connection on hypocrisy behavior. This book indicated that enterprise would implement the hypocrisy behavior in certain situation，which can improve enterprise’s utility and reduce government’s utility. Political connection would increase the level of hypocrisy behavior and the loss of government’s utility.

4.The influence path of CSR on business performance（Chapter 6）. This research discussed the influence，motivation and transmission path of CSR using the data of China’s A shares listed companies，and explored the effect of political connection on instrumental CSR. It is demonstrated that the stated-owned listed companies and non stated-owned listed companies are based on the “instrumental motivation” to fulfill CSR，which can significantly improve their business performance. There is partial accounting path in stated-owned listed companies，and there are partial accounting and rate path in non stated-owned listed companies. Furthermore，political connection can effectively inhibit Stated-owned listed companies’ accounting path，but strengthen non stated-owned listed companies’ accounting and rate path.

The main innovations in this book are：（1）Compared with the existing research with complete rational assumption，this book incorporates the reciprocal Preference into analytical framework to improve the realistic explanatory power of model，and discusses the reciprocal mechanism between enterprise and government to provide a theoretical basis for implementing the cooperative initiative with win-win cooperation. （2）This book explores the decision-making basis and effect of corporate social irresponsibility and hypocrisy behavior through conducting the game models of enterprise-government. It helps us to better understand the corporate social irresponsibility and hypocrisy behavior，break through the limitation of regarding the decision-making process as a black box and provide the theoretical basis for discussing the specific improvement schemes in further study. What’s more，this book discusses the motivation and transmission path of CSR to reveal the black box between CSR and business performance，and deepen the understanding of CSR. （3）This book explores the influence of political connection on corporate social irresponsibility behavior，hypocrisy behavior and instrumental CSR to makes up for the lack of in-depth discussion on improvement strategy and implementation effect，and provide advises for government to regulate and guide the enterprise to fulfill CSR through political connection.