Research on the Impact of Listed Companies’ Incentive Policies on Corporate Social Responsibility

Abstract

Based on research sample on Chinese A-share listed companies that have made social responsibility disclosures (CSR) during the period 2011-2018, this paper explores the impact of listed companies on the performance of CSR under different types of incentive policies. The research results show following: (1) the implementation of monetary compensation incentives for executives can promotes CSR, which means higher monetary compensation rewards for executives has a positive impact on CSR. (2) The company motivate executives with equity has week influence on CSR. (3) The better the salary incentive policy for ordinary employees, whether it is monetary compensation or equity compensation, the CSR will be better. (4) Further research shows when the expected effect of equity incentives for executive by a listed company is insignificant, it can be supplemented by employee equity incentives, which will help improve the company’s CSR. The research conclusions of this paper have a certain reference value for companies to improve the salary incentive system and the CSR.