Research On Internai Control Based On Corporate Social Responsibility

Food and safety come as the first. Food safety is of great importance to the people health and lifesecurity, and has a bearing on economic development and social harmony. The general trend of food safetyis relatively stable on the whole, but still has some dangerous factors: its foundation is weak, and thesituation is till serious. We must realize the importance and urgency of food safety address both symptomsand root causes to thoroughly improve the status and enable people enjoy themselves in food and health.As top100China Food Industry, top500Chinese enterprises and national key leading enterpriseof agricultural industrialization Sanlu Group, declared that the soul of its corporate culture is to improve thenutrition and health of the public. Sanlu Group promotional materials also showed that Sanlu Group lookedat fulfilling social responsibility as duty over the years. We will not give complete denial for their socialresponsibility and the honors they made. However, we must note that corporate social responsibility shouldbe achieved by providing quality products. Providing quality products is the precondition of its socialresponsibility performance.The reality is that the Sanlu Group in order to chase interests to maximize neglects corporatesocial responsibility and lets internal control failure, which had led to melamine incident that shocked thenation. It had not only lose their accumulated wealth of nearly half a century in less than six months, butalso brought irreparable injury to the eaters, and shocked the entire Chinese dairy market. The NationalDairy Quality inspection results worried the people, including Mengniu, Bright, and several well-knowndomestic dairy companies are tested the quality problems.Faced with the hope "a glass of milk every day, strong a nation", China’s per capita growth rateof demand for dairy products is significantly higher than the average level of1%of the world, but thedomestic dairy industry frequently occurs scandals, from the initial "big-head baby milk","prematuremilk" to the "melamine milk". The domestic milk trust crisis intensified. In this context, foreign milkpowder naturally become the first choice for some consumers, and has established a strong marketposition. According to the report released by the General Administration of Customs, foreign milk powderhas monopolized the domestic first-tier cities market, Mead Johnson, Nestle, Wyeth and other foreign brands occupy more than80%share of the domestic high-end infant formula market. The same time, thedomestic milk business survival situation is not optimistic, China has nearly2,000dairy companies,30%ofthe200larger enterprises are loss, and most of the rest of1800smaller businesses even stop. Where is thefuture of the Chinese dairy products? Whether is the future of the Chinese dairy companies?This text expounds the concepts of internal control and corporate social responsibility and theconnections that exist between them from Sanlu milk powder incident, selective analyses Sanlu Group’sinternal control defects from five elements focus, discovers the necessity and urgency for our countryenterprises to build the internal control system based on social responsibility and made a series of specificmeasures to optimize the internal control system. Chinese enterprises, especially the people’s livelihoodcompanies should pay more attention to the implementation of social responsibility, in strictly accordancewith the quality of the production of relevant laws and regulations formulated by the state to carry outproduction and business activities, and effectively improve the product quality and service level, and striveto provide the public with a better, safer, healthier product and more intimate, more comprehensive anddetailed services, and actively take the initiative to accept supervision from all sectors of society. Theenterprises should win back consumer trust in China as soon as possible based on the spirit of responsibleto society.