To Design Management Accounting System Integrated With Corporate Social Responsibility

In recent years, a series of shocking events such as Melamine, suicides at Foxconn factories, Clenbuterol, toxic capsule, Plasticizers, groundwater pollution has occurred frequently. Corporate Social Responsibility (CSR for short) has been pushed to the spotlight again, caught the attention of all parties. In traditional view, the only mission of enterprise is to create wealth for shareholders, however, from the unsafe milk to the toxic capsule, it has been proved that as an integral part of society, corporate production and operation activities is bound to be connected with other components, if they only pursues the maximum value of a single enterprise, it may lead to greater social welfare losses, such interest will be unsustainable.Compared with western countries, due to the highly unified management of economy system in a long time, our country was in a tight control. Corporate objective features were cut down, lacked the sense of responsibility for society. With the improvement of globalization, Chinese companies also begun to construct social responsibility. There were more than600local firms published their corporate social responsibility, which only18in2004. But for the less time we have implemented Marketization, CSR was still a new field. Since there were many companies strived to build CSR, some of them grew more and more prosperous, with Good financial performance and social responsibility performance, some were on the contrary, although dressed in good social responsibility performance, financial performance was terrible. This paper is trying to explain this phenomenon, from the Angle of management accounting system (MAS for short), and explore its role in the relationship between CSR and financial performance.After studied related literatures, we found that as one of the hottest topic in theory research, there were numerous studies about the relationship between CSR and financial performance, but their conclusions were contradictory. When it came to the study of MAS, although some scholars have paid attention to the association between external factors and MAS, it was still rare to insert CSR into MAS. Even there were some literatures regarded how to adjust MAS according to social responsibility target, most of them only focus on portions of it, and were short of systematicness and depth. Therefore, it has wide research space for further exploration in this direction.In order to verify the relationship between CSR and financial performance in practice, we chose CSR100to do a typical analysis. After doing that, we found the relationship was fuzzy. Companies with better CSR performance do not necessarily have higher finance performance than average level. Vast difference between CSR performance and finance performance show the ambiguity and uncertainty relationship of them. Transmission paths and mechanisms of action between CSR and finance performance may more complex than we imagined. Once perform CSR cannot promote the growth of performance and value, it’s difficult to form a continuous motivation and development. Such complex and fuzzy relations attracted us to do more in-depth analysis.To interpret the relationship between CSR performance and financial performance, we introduced the variable of MAS, and believed that when MAS matches the CSR objectives, CSR will promote finance performance, otherwise, it will inhibits finance performance. In the further study, we firstly integrated the traditional MAS and management control system of ISO26000, got the framework of CSR inserted MAS, and used this model to analysis MAS in highest4companies of ROE, finally, we found some certain commonalities.In those commonalities, some worth promotion, others need improvement. Based on the data collected, we refined and summarized them combined with theoretical research, try to design MAS which can promote positive interaction between social responsibility objectives and finance performance. In this system, social responsibility strategy is the key, budget management, cost management and process control is the method, risk management provides the guarantee, and performance evaluation comes to be the result. The first thing to do is to integrate CSR into strategy, plan for the future direction, and then change other portions of MAS, to ensure the implementation of strategy. There were innumerable links between every parts of MAS, those links tied them together closely, make MAS run smoothly as a total system.Specifically, this paper is divided into six parts.Chapter Ⅰ, Introduction. Briefly introduced the background of this article, research purpose, proximate framework and significance, research ideas and methods. At last, proposed the possibility of innovation.Chapter Ⅱ, Review of the Literature. Literatures in this field were combed and analyzed, and divided into two parts of the CSR and financial performance, MAS and CSR.Chapter Ⅲ, Financial performance analysis of CSR100. By The Contrast Analysis of CSR100and A share market and internal analysis of CSR100, to explore what is the relationship between CSR and financial performance.Chapter Ⅳ, MAS analysis of shuangyou enterprise. Mainly introduced the selection of shuangyou enter-prise, the building of CSR inserted MAS framework, and why case enterprises can achieve the dual development of financial performance and CSR performance.Chapter Ⅴ, To design CSR inserted MAS. According to the analysis of Chapter Ⅳ, we summarized the commonality of MAS which can promote positive interaction between social responsibility objectives and finance performance. In this chapter, we mainly designed the CSR inserted MAS combined with theoretical analysis framework, namely, how about the MAS which can promote positive interaction between social responsibility objectives and finance performance.Chapter Ⅵ, The conclusions and future research direction. This section summarized the contents of this paper, and asked the limitations of this study, recommendations for future research direction.This paper might have the creation as follows.First, Transformation of research perspectives. This paper broke through the shackles of previous studies, considered that focus of CSR need to be transferred from weather or should perform it to how to perform it and what is called good performance, which vindicated that CSR is not the reason lead to finance performance declining, increased the driving force of enterprises to perform CSR.Second, Extension of research premise. We explained the relationship between CSR performance and finance performance reasonable by using the factor of MAS.Third, Innovation of research method. Previous studies discuss CSR mostly use pure theoretical deduction or simply empirical demonstration, this study combined quantitative analysis of CSR100and case analysis of shuangyou enterprise, which not only answered the question of what is the relation between CSR performance and finance performance and Why it is, but also point out how about the MAS which can promote positive interaction between social responsibility objectives and finance performance.Forth, Practical significance of Research conclusions. This paper integrated the ISO26000management control framework and the traditional MAS framework creatively, to get CSR inserted MAS, which will not only provide certain value for future theoretical research, but also provide a viable model for practice to reform and perfect its MAS.As the capacity of researchers, limitation of time and inherent defects of case study, there were many deficiencies of this paper. First, we choose CSR100based on the social responsibility scores rated by Rankins CSR Ratings, which greatly depend on CRS information disclosure rather than the fulfillment of CSR, this might be inappropriate. Second, when we choose the cases, only those companies with excellent financial performance were selected, lacked comparison and analysis of poor ones, it may weaken the persuasion of this article.All in all, we do this research from the central issue of CSR inserted MAS, try to design a MAS which can promote positive interaction between social responsibility objectives and finance performance, answering the question of how to perform CSR, the research was practical. Broke the situation that previous studies discuss CSR mostly used pure theoretical deduction or simply empirical demonstration, haven’t form a systematic framework and lack evidentiary support. By gathering and analysis files of the typical shuangyou enterprise, we tried our best to provide more details to support the system. As it was the first attempt in this field, there were many disadvantages inevitably. But if this paper can attracted subsequent scholars to refine and improve, and not only focus on weather or should perform CSR, but also concerns on how to perform it and what is the good performance, do further study with MAS to promote positive interaction of CAR performance and finance performance, it will surely bring about the prosperity of CSR in both research and practice.