Restraint And Incentive Mechanism Of Corporate Social Responsibility Of Private Enterprises

Thanks to China's reforming and opening up, private enterprises have been flourishing during the last three decades, and the Corporate Social Responsibility(CSR) of them has become the focus of the society. As private enterprises are important subjects of Economic Law and their undertaking CSR has great impact, not only for themselves, but also for the whole society, so Economic Law, which in essence is the promoter of steady and harmonious social economy, must regulate their behavior about CSR. Therefore, private enterprises must take up their social responsibility to reduce the gap between the rich and the poor and promote common prosperity, which is good for the whole society. While the study of CSR in China starts late and the laws, regulations and mechanism related to CSR have many defects, which make the condition even worse. Therefore, private enterprises'poor performances about CSR result in lots of criticism and distrust of the public. If ignoring the problem, it will be harmful in the long run, for both the development of private enterprises and the construction of harmonious society.The thesis tries to clarify the concept of CSR through the summary of CSR of private enterprises, the analysis of the present situation of Chinese private enterprises'undertaking CSR and the perfection of its restraint and incentive mechanism, analyze the situation and existing problems, find out an effective solution eventually. The first part points out the concept of a private enterprise is an enterprise invested and run by individuals or non-public ownership legal persons. It could be a sole proprietorship enterprise, a partnership enterprise or a company. And CSR of private enterprises means their responsibility for the country, government, society, the other party to the contract, employees, and the environment as a whole, which is legal and moral. And CSR of private enterprises is different from which of state-owned enterprises or of ordinary companies. Since it's so special that private enterprises'undertaking social responsibility has significant impact on the public welfare, which is economically, politically and legally important.The second part analyzes the legal basis of CSR of private enterprises in China and finds out the related articles and c'auses of our laws and regulations are loose, some of which have fallen behind the times and need amending. Then analyzing the statistics and some cases related to the CSR of private enterprises in China and finding such problems:labor contract issues, overtime working issues, social security issues and other violations of employees'lawful rights; poor quality, unfair competition, destruction of the ecological environment and a lack of the awareness to make more commitments to the public. These problems remind us that the mechanism has many defects and needs to be improved.The third part points out that the poor performances of the CSR of private enterprises result from inner and outer reasons, the former are as follows:private enterprises don't have a good comprehension of CSR; private enterprises'administration mechanism needs to be perfected; private enterprises'strength is not strong enough yet. While the latter includes the deficiencies of our laws, policies, regulations and their enforcing process, the lack of public supervision and evaluation standard system of CSR.After a comparative analysis of CSR system in the United States, Japan and Germany, we come to a conclusion that we must build up a sound system of laws and regulations; supervise the CSR of private enterprises and enforce the law strictly; strengthen the influence of non-government organizations, especially of federation of industry and commerce; set up an incentive mechanism of the CSR of private enterprises.The thesis makes a comparison between the CSR of state-owned enterprises, ordinary companies and the CSR of private enterprises, which is beneficial to clarify the concept of CSR of private enterprises and build up a good legal restraint mechanism under the social standard principle of Economic Law. Besides, attaching importance to both rigid legal mechanism and flexible moral mechanism, emphasizing the effect of federation of industry and commerce's Guangcai Program also have significant meaning to the CSR of private enterprises in China. All the above is the innovation of the thesis.