| Summary: | 碩士 === 國立彰化師範大學 === 會計學系 === 103 === The rapid development of economic activities under globalization has engendered environmental pollution, provoked labor exploitation, and aggravated economic inequality. Because of the frequent food safety scandals occurring in Taiwan recently, people have begun to scrutinize whether firms abide by the laws and attain a balance between corporate and social interests, thus fulfilling public expectations in addition to achieving their profit goals. Thus, this study explored the relationship between political connections and corporate social responsibility. Listed and over-the-counter firms, excluding firms in the financial and insurance industries, from 2005 to 2013 were used as samples. Whether current or former government officers assumed executive management positions (became directors or supervisors of a firm’s board) and whether the firm made campaign finance donations were two factors used to determine political connections. The firms nominated for the Excellence in Corporate Social Responsibility award published by CommonWealth Magazine or the firms awarded the Corporate Social Responsibility Award of Global Views Monthly represented firms demonstrating social responsibility. The empirical results revealed that, when a firm’s executive management involved current or former government officers, the firm was likely to win the award. In other words, firms exhibiting political connections were more likely to demonstrate corporate social responsibility. However, campaign donation amount was not significantly correlated with corporate social responsibility. In addition, firms exhibiting political connections were less likely to undergo negative events (e.g., environmental or safety problems, information disclosure problems, employee and labor relations problems, or other problems counter to the law or regulations).
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