Empirical Study On The Effect Of Corporate Governance To Corporate Social Responsibility Performance

Corporate governance is organizational mechanisms which ensure operation ofenterprises going on well and efficiently and that is the effective mechanisms thatguarantee corporate social responsibility fulfill efficiently. Great corporate governancemechanism can help companies achieve superior performance and provide solidprotection for fulfilling corporate social responsibility. Currently, scholars, from theperspective of corporate governance, conducted plenty of significant research on thefactors that fulfill the performance of corporate social responsibility, but most of theprevious studies to explore the relationship between corporate social responsibilityperformance and corporate governance is just by the company’s internal governancemechanisms but ignores the external influence governance mechanisms. Externalenvironment can change corporate behavior in certain gains and losses, and thus affectthe motivation and decision-making preferences, while corporate behavior is oftenconstrained by internal and external factors. Therefore, while the influence of internaland external governance mechanisms considered is important for CSR performance.Deeply study on these issues, it not only enriches the existing research also helpsenterprises to better fulfill their social responsibility, to play the economic effects ofsocial responsibility behavior.In this paper, it’s based on stakeholder theory, from the perspective of twodimensions external/internal governance mechanisms, by empirical research methods,we used606annual social responsibility report China’s listed companies published in2013as samples, by building Enterprise Social Responsibility Index, the introductionof the multiple regression model, we analyzed the company’s internal governancestructure, the actual controlling person, the establishment of the Audit Committee, theBoard of Supervisors, scale listed overseas experience, as four explanatory variables,as well as the company’s external governance, Provincial Companies in ChinaOperating Environment Index as fifth explanatory variable. In addition, we used thesize of the company, earnings per share, the industry, and the combined effect of thevarious provinces of China’s annual gross domestic product as control variables, tostudy the influence of corporate governance structure on corporate socialresponsibility performance. The results show that, from the company’s internal governance mechanism, thestate-owned holding characteristic, overseas experience characteristic, has theexistence of a significant positive correlation between corporate social responsibilityperformance; the audit board,the board of supervisors size and CSR performance wasno significant correlation; from the company external governance mechanism, thebusiness environment index there was a significant negative correlation betweencorporate governance and corporate social responsibility performance.This paper attempts to investigate the impact of corporate governance oncorporate social responsibility performance from both internal and externaldimensions of governance mechanisms, from the perspective of academic research, itcan enrich the research results of the corporate external governance mechanisms toCSR performance and also is beneficial for achieving superior performance oncorporate social responsibility.