Research On Financial Governance Based On CSR

The development of the enterprise contributes to the economic development, andimproves the living standard of the Chinese people. However, enterprises bring some socialproblems because of rapid development, such as enterprises trustworthiness, product qualityissues, environment pollution, etc. The idea that enterprises should take socialresponsibilities is paid more and more attention. Premier Wen Jiabao has ever emphasizedthat enterprise should do social responsibility and the entrepreneur should have moral blood.Even though enterprises are economic organizations, they are related to all other kinds oforganizations and people. Corporate social responsibility means to deal with the relationshipamong the stakeholders, such as shareholders and creditors, employees, customers andgovernment. The function of financial governance is to research that how to allocate theproperty right among the stakeholders, the property right allocation is the basic right andfunction. So it is necessary to put social responsibility into the financial governance and dothe research of financial governance based on social responsibility. Based on theconnotation of corporate social responsibility and financial governance, this paper analyzesthe relationship between corporate social responsibility and financial governance: corporatecarry out social responsibility will be in favor of achieving the target of financialgovernance, financial governance is an effective approach for corporate to do socialresponsibility; both of the targets are consistent. So it is necessary to do research of fittingsocial responsibility into the financial governance. Structure of financial governance issingle and governance mechanism is not perfect because financial governance lacks CSR.The single structure reflects that getting the benefit of shareholders is the only target offinancial governance, subject of financial governance is only in the corporate. Governancemechanism has disadvantages because of single form of finance incentive, unreasonabledecision-making mechanism, unperfected oversight mechanism and assessment systemdrought. This paper builds the financial governance system which is based on socialresponsibility, including financial governance structure and financial governancemechanism. Finally, this paper select Yanzhou Coal Mining Co Ltd as the case to analyze,according to the actual situation of enterprise financial governance, puts forward relatedsuggestions for improvement.