The present research aims to explore the empirical relation between corporate social responsibility (CSR) and corporate financial performance (CFP) in China using a sample of 608 firms in 2015. Using data from 2014 to 2016 for these same companies, this study also examines if prior CSR was associated with subsequent CFP and if prior CFP was associated with subsequent CSR. Data from RKS, a Chinese ranking agency, was used to measure CSR. The financial performance measures used were return on assets (ROA) and earning per share (EPS), based on data from the CSMAR database of audited financial statements of companies traded on the Shenzhen and Shanghai stock exchanges.

Sequential regression analysis was used to test the relationship between total CSR rating scores from RKS database and ROA and EPS in the same year, 2015, with control variable of firm size. The results showed that there was a significant relationship between CSR and CFP. Whether a relationship exists between prior social responsibility in 2014 and subsequent financial performance in 2016, and also between prior financial performance in 2014 and subsequent CSR performance in 2016, have also been tested by linear sequential regression analysis. These results found that prior CSR was associated with subsequent ROA and EPS, and also that better prior ROA were associated with greater subsequent CSR. There was no relationship between prior EPS and subsequent CSR. Additionally, Pearson correlation was used to examine the correlation between two Chinese CSR agencies, RKS and CASS; the results showed that there is a moderate correlation (r = 39.6) between them. The final chapter of this dissertation presents a theoretical discussion of consciousness-based, authentic vision and values as the foundations of responsible management which can lead to both CSR and CFP.