Research On Control System Of Enterprises Based On Stakeholder Theory

Internal Control of Enterprises is one of the important questions in corporate governance, enterprise management and accounting research, scholars from different nations have pay close attention to this question from long ago. In recent years, with the development of the securities market, the illegal activities of the domestic public company presented the increasingly fierce potential, and the scandal was also more and more under the benefit actuation. Through the investigation we found that there are significant deficiency and material weakness in the internal control system of most of companies. Some companies'internal control system were perfect, but their operation were invalid. A serial of cases shown that internal control was weak such as the bankruptcy of the Enron, financial scandal of the WorldCom company, the financial fraud of the Hubei LanTian and GuangXia industry, as well as the foreign exchange contract debt of Citic Pacific Ltd.This thesis discusses that how to establish the internal control system based on the unity of the internal control, management control and corporate governance. Firstly, the article re-defines the conception of the control system of enterprises from stakeholder theory. With difference from the conception of COSO report "the internal control", the control system of enterprises is embarked from stakeholder theory, based on the unity of the internal control, management control and corporate governance, leaded control boundary to vertical extension and lateral expansion, thus forms a complete control system according the classification of company. Secondly, it analyzes control boundary of company, contains vertical extension and lateral expansion. Vertical extension is elevating the original foundation of internal control to the level of corporate governance structure, namely by the controller exchanged from directors of board or managers to stockholders. Lateral expansion is building up the establishment that re-cognizing the nature of the company. Based on stakeholder theory and collective choice theory, the nature of the company is the result of stakeholders' collective choice. Therefore, the control boundary should expand to stakeholder scope. Not all stakeholders are company controllers, but they are internal stakeholders according to stakeholders'collective choice. Because the internal stakeholders are a dynamic alignment process, the control system of company is not able to invariable. Therefore, researching on control system of enterprises is based on company classification. The company is classified in forms of capital control right, dividing single form of capital control right and multiple form of capital control right. The company with single form of capital control right is a fundamental research with the material capital, the human capital and the social capital separately. The company with multiple form of capital control right is a classified research based on arrangement combination with the material capital, the human capital and the social capital.Finally, based on forms of capital control right of business categories, each set up with suitable control systems businesses. Research on the basis of business goals, build enterprise control system. Business objective is to maximize the wealth of enterprises and stakeholders relationship optimization. This main elements of corporate control system includes:control objectives, business risks, control subject, control objects, control basis and control methods. Among them, the control objective is the value creation activities of the legitimacy and effectiveness, business value-added share of the fair value of rationality and enterprise value creation and value the authenticity and reliability of information sharing; business risks affecting the business goals are not achieved determining factors; in control based on the context of enterprise risk management under the control of the main object of the implementation of control activities.This thesis is designing the control system of enterprises based on stakeholder theory, it is located integrated framework and general principle, but is not some kinds of specific operating modes.