Corporate Internal Control,Social Responsibility And Financial Performance

After China’s economy enters into the ‘new normal’, it puts forward new requirements for the sustainable development of economy.But individual companies only pursuit the maximizing economic interests in the production process, they ignore the social responsibility. Research shows that social responsibility performance and integrity will enhance the effectiveness of internal control. CSR has not been effectively implemented, mainly because enterprises have not to develop social responsibility behavior, it needs to improve the internal control to achieve. Meanwhile, the failure of internal controls and to the lack of emphasizing corporate social responsibility are inseparable, socially responsible behavior is an effective guarantee of the internal control system. From the current perspective of existing research, few scholars put effectiveness of internal control and social responsibility together to research the impact of both the company’s financial performance, as an important factor of corporate governance,they have a significant impact on performance on the company. Through discussion of enterprise social responsibility and influencing mechanism of enterprise internal control on enterprises’ financial performance, this paper plans to advocate enterprises to integrate the concept of fulfilling social responsibility into corporate governance.Adopting a combination of normative and empirical research and mediator,this paper based on internal controls, corporate social responsibility and other related theories, the paper adopts empirical research methods and normative analysis to explore the relations of internal controls,Social responsibility and financial performance. The paper adopts Dib China listed companies’ internal control index as measurement index of internal control, in terms of measurement of social responsibility, it selects the evaluation result of the third party rating agency Rankins CSR Ratings on enterprise social responsibility information disclosure.According to the requirements and the actual needs of the analysis in this paper, this paper selects the 2011-2013 of Chinese company listed in the Shanghai Stock Exchange A-share market as the sample data for this study, build the empirical model and conduct tests through stepwise regression.In the end of this paper, the research results are summarized and the following three suggestions are put forward:Corporate social responsibility performance of the strengthened and internal control to the enterprise itself is mutually beneficial and win-win, improve enterprises to fulfill their social responsibility of legal and political environment, give full consideration to the social responsibility of internal control effective implementation may influence, will have a positive impact on corporate performance;In the aspect of accounting, should take the capital pattern, measure financial performance, and at the same time, change the traditional supreme shareholder profit model for stakeholder groups of common prosperity of mode, and use effective value of increase to measure the level of financial performance.