| dc.description.abstract | Corporate Social Responsibility has paid much attention to the issue of enterprise’s social responsibility over recent years. The industrial sector generated volunteer regulation and proposal to design sustainable development map through the aspects of economy, environment and society. As the supplier of funds for enterprise, financing business must avoid assets loss caused by conditional and social risks, which may affect sustainable operation, after loaning the funds. Therefore, the risk management becomes an issue that can’t be ignored. From the standpoint of credit granting, the equator principle is the best recommendation to avoid the environmental and social risks.
This study discusses from the meaning of Corporate Social Responsibility, exploring the developing background, trend and regulations of such risk management, thereby analyzing the role the equator rule plays and the importance it is, in the field of credit granting. Through the analysis of current conditions of banks in Europe, U.S.A., and Japan and international projects, to examine local situations and the difference between traditional approaches and risk filtering with respect to the specific auditing for financing. The research outcome tells local banking runners are unlikely to perceive the risk management and understand the equator rule very well. Their short-term cost may increase after the adopting the equator principle, other negative effects include the confined scale, more strict regulation and monitor, more complex business procedure etc; however, the long-run effect will be positive. Ultimately, it recommends local banking runners to pay more attention to risk management, and to use equator rule as soon as possible, so as to link to the global community, promote their global competitiveness, ultimately to fully fulfill their social responsibility.
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