Empirical Research On Institutional Environment, Internal Control And Corporate Social Responsibility Performance

In the nineteenth century,along with the continuous progress of science and technology,a variety of new invention appeared and continuously improved the social productive forces,material wealth continued to accumulate like a snowball,the degree of exploitation on the earth’s resources has been deepened in human society.The rapid development of production technology not only bring a steady stream of natural resources and material wealth to European countries who took lead in the industrial revolution,but also brought unprecedented social problems.In the early 1990 s,corporate social responsibility issues began to receive widespread attention and frequent discussion between community.In China,during the surging economic development process,our country now also face a variety of negative effects that the accelerated industrialization process brought,the emerging of various social responsibility incidents also illustrate this point,therefore,the issue of corporate social responsibility has become a big social issues.Compare to domestic scholars who giving more focus on internal characteristics in earlier CSR performance study,this paper select another way to go on study using external institutional environment and internal control system as driving factors.First,after a large number of collection about relevant research information from domestic and foreign scholars,we use literature analysis method study from three aspect respectively: institutional environment and corporate social responsibility,internal control and corporate social responsibility;institutional environment,internal control and corporate social responsibility to combed the existing research.Then,the theory has been detailed to build a solid theoretical basis.Based on theoretical analysis and previous studies,hypotheses has been proposed.This paper use the SPSS.20 statistical software to analysis and process the five year(2010--2014)balanced panel data from listed companies in China.During the study,we use Run-Ling global corporate social responsibility score to measure the level of corporate social responsibility’s fulfillment,use scientific method to predict market index,government environmental index and legal environmental index from Fan Gang index and use them as the measurement of institutional environment,the empirical research analysis how internal control system effect the fulfillment of corporate social responsibility under different external environment.The study revealed: When controlling for other conditions,the better of the effectiveness of internal control,the more it can guarantee corporate’s social responsibility performance;When controlling for other conditions,the higher the degree of market and legal environment,the better effect internal control can give on corporate’s social responsibility performance;In China,except Tibet,the overall level of government environment of various regions is general,and the gap is small,so the effect internal control give on corporate’s social responsibility performance may not influenced by government intervention;Internal features,such as enterprise ownership,firm size,capital structure,financial performance will also have an impact on the performance of corporate social responsibility;Perfect market competition mechanism and a sound institutional environment as key external drivers not only can facilitate Chinese enterprises to fulfill their social responsibilities actively,but also is an important guarantee to constraints corporate behavior.In additional,with the implementation of a sound internal management system,the enterprise value would be maximized,in a result,good social responsibility performance can be naturally ensured;Overall,the current performance of corporate social responsibility in China still need to be improved,the degree of overall market environment still remain at a low level,the degree of legal environment between regions still have a large gap.According to this phenomenon,this paper put forward a series relevant policy and recommendations in the end from institutional environment and internal controls two aspects separately.