A study on the investment decision making model embedding social responsibility behavior of the enterprise

Abstract

From the simple economic organization to the complicated economic organization, the nature of the enterprise itself has not changed, is still an economic organization of profit purpose and the demands from the society and the market have changed. Enterprise's investment decision is a comprehensive trade-off process of the investment objectives and the cost that to obtain the future compensation at the expense of the existing resources. With the development of global economy, social responsibility has become one of the factors to take into account in corporate investment decision-making; researching the investment decision model contain the social responsibility factor has important significance. This paper establishes the investment decision model based on social responsibility behavior of two states: short-term profit-maximizing and long-term utility-maximizing, gives a clear mathematical expression demonstrated of social appeal and the real social responsibility development, shows that in order to achieve short-term profit-maximizing enterprises will not invest on CSR and gives an investment proportion when for long-term utility-maximizing.