Impact On The Effectiveness Of Internal Control Of Corporate Social Responsibility

In recent years, the rapid development of China’s economy, followed by Sanlu, Zijin Mining, Guangxi Longjiang water pollution,"Clenbuterol", listed companies’financial fraud and other corporate social responsibility events are caused by the lack of serious consequences. Although the reasons for these events vary, but they have a unique thing in common-the internal control failure. Corporate internal control system and then perfect, if not effectively implemented, will lead to a series of questions. China promulgated the "basic norms of internal control" to provide guidance for the construction of internal control to help companies avoid social responsibility and reduce the risk faced by making social responsibility to improve the situation. This paper argues that the effective operation of internal controls will promote corporate social responsibility.This paper reviews the effectiveness of internal control under different orientation to social responsibility impact hypotheses on the basis of the relevant literature, I found both to develop the internal control system, or to evaluate the effectiveness of internal controls, ultimately to achieve internal control goal, so I think we can with the new2013COSO internal control framework, in order to ensure the validity of the premise, combined with "basic norms of internal control" in internal control highlighted five goals, stakeholder theory analysis using different internal control objectives to achieve the degree of influence of social responsibility, in order to establish an internal control for this study the effectiveness of the evaluation criteria. I selected Yun Ling global database of social responsibility as a social responsibility rating evaluation criteria to428listed companies in the2011-2013three-year data as the study sample, the social responsibility score as the dependent variable, internal control as independent variables, firm size, board size, year, industry, etc., as control variables. The establishment of internal control effectiveness and social responsibility equation model, the sample data were descriptive analysis, correlation analysis and regression analysis. The results prove that the enterprise sector competitive advantage, business efficiency and effectiveness, enterprise systems risk, the report is true and complete, and corporate legal compliance for corporate social responsibility there is a significant positive effect, indicating that effective internal control can promote corporate social responsibility. Finally empirical results, how to improve the effectiveness of internal control, and promote social responsibility to fulfill recommendations.