Executive Turnover,Internal Control And Corporate Social Responsibility

In the increasingly competitive market environment,enterprises in order to win more market in addition to the guarantee of their own quality,the more important is to set up a good corporate image,and actively fulfill corporate social responsibility is an effective way to improve the corporate image.With the development of economic globalization and the improvement of economic integration,the concept of corporate social responsibility gradually expanded from western developed countries to China,and attracted great attention and sympathy from all walks of life.From the traditional idea of maximization of shareholders’ interests to responsible for all shareholders,creditors,employees,customers and society,with the deepening of the concept of corporate social responsibility,the scope of social responsibility continues to extend,and gradually become a trend of corporate governance.And actively fulfill the social responsibility has an undoubted influence on the long-term development of enterprises,and can achieve win-win situation between enterprises and society.Therefore,it is very important to further improve the influencing factors of corporate social responsibility.Another cause of social concern is the frequent turnover of executives in enterprises,any small behavior will bring influence to the enterprise,corporate executives are important strategic and decision makers and implementers,their change behavior can greatly affect the operation and development of enterprises,every time the replacement of executives will cause no small fluctuations in the capital market.The replacement of executives means the reorganization of the management team,the redeployment of the company’s strategy,and whether the replacement of executives will have a negative impact on the development and implementation of corporate social responsibility because of the stability and strategic change of the management team.This issue has gradually attracted the attention of scholars.In recent years,China has a higher demand for internal control of enterprises,in the guidance of enterprise internal control,the concept of corporate social responsibility is defined,internal control and corporate social responsibility both operate independently and interact with each other,Internal control plays an important role in supervising corporate social responsibility,reducing operational risk and promoting effective governance of the company.The change of the executives and the quality of the internal control can influence the fulfillment of the corporate social responsibility to some extent.What is the relationship between them,and whether the improvement of internal control quality can restrain the influence of executive turnover behavior on the corporate social responsibility.The mechanism of its operation needs the support of theory and practice as well as the research content of this article.From the theoretical analysis to empirical test,this paper discusses the influence of executive turnover behavior on corporate social responsibility performance in China,and further analyzes whether the effectiveness of internal control can adjust the relationship between the two.This article select stock markets of Shanghai and Shenzhen A-shares of listed companies from 2011 to 2015 as the research sample,analyze the relationship between the three after theoretical analysis and empirical test,and draws the following conclusions:(1)executives turnover will affect the performance of corporate social responsibility,executives turnover will have a negative impact on corporate social responsibility,and the impact of external succession of executives on social responsibility is more significant than internal succession,distinguish the nature of property right,the negative impact of executive turnover on social responsibility is more significant in non state owned enterprises;(2)the higher the quality of internal control,the higher the performance of corporate social responsibility;(3)effective internal control can restrain the negative effect of executive turnover on corporate social responsibility.The study of this paper is a further complement to the factors affecting corporate social responsibility and corporate governance,based on the above conclusions,put forward the following suggestions:(1)strengthen the internal control of enterprises,to bring the target of corporate social responsibility into the internal control system,and to perform efficient supervision of social responsibility;(2)strict control the behavior of turnover of executives,solve the problem of principal-agent,implement effective supervision on executive behavior,and reduce the impact of frequent turnover to enterprises;(3)deepen the understanding of corporate social responsibility,and actively fulfill the social responsibility can help to consolidate the competitive position and realize the sustainable development of enterprises.