The Study on Corporate Social Responsibility and Corporate Profit-The Case of Semiconductor Industry in Taiwan

Investors and creditors through profit evaluation in order to keep up their decision-making; profit evaluation that can be used by business to understand the relationship between investment and production. This study mainly explores the relationship of different input variables and output variables, also provides useful profit evaluation for stakeholders. Further, we also look into the relationship between CSR and corporate profits. Based on Taiwan Economic Journal (TEJ) data, we collected 128 samples from 2014 annual financial information of semiconductor industrial companies. We used the canonical correlation analysis to show the structures and directions between variables and made the multiple regression models. In addition, we tacked excellence in corporate social responsibility data as of Common Wealth Magazine. Time period for data was from 2007 to 2014, acquiring CSR Awards was used in order to distinguish CSR and NON-CSR. Subsequently, operating DEA was used to study the relationship between CSR and profit. By the use of past literature review, we undertook 7 dependent variables and 5 independent variables. Due to canonical correlation analysis, dependent variables were reduced from 7 to 3. Finally, we used 2 dependent variables to create regression model. Using CSR prize to DEA analysis, it was found that CSR firms in all company comparison; it was not particularly focused on profit rank. If we took company of CSR award to compare, we discovered that out of 9 CSR companies have three companies relatively inefficient. We cited that inefficient CSR firms can focus on expanding employees and fixed assets.