Model of Sustainable Business for Business-Evidence forTaiwan

Abstract

Abstract-This study presents the model of sustainable business for business that integrates many ideas of scholars with gains of this study. It shows that nowadays enterprises should have social practice and economic practice for their managial idea and goal, and merges both into managerial policy to get the achievement of sustainable business. It describes the interreaction of social performance and financial performance, influence degree got from operating variables. In addition to ordinary least squares model (OLS), this paper uses the research approach of three-stage least squares model (3SLS) for considering endogeneous variables. Then we can construct the unbias, consistency and validity model, and offer companies the bases of business decision. From empirical results, this paper shows that more operating variables are significant influence on social performance and financial performance, and there is the positive and apparent influence for corporate social performance on corporate financial performance. The financial performance has positive influence on social performance too, and shows that the good financial performance contributes to the push of corporate social practice. These offer good foundation for business to construct the model of sustainable business. While getting profit, business can facilitate the progress of social responsibility.