Research On Stakeholder-oriented Internal Control System Of Non-profit Organization In Ningbo

Non-profit organizations which are mainly constituted by social organizations,social service agencies and foundations are the main force of China's socialist modernization.Non-profit organizations have the vital practical significance in improving public service supply,transforming government functions,enhancing social governance,triggering social development vitality and boosting the economic development.Yet,along with the continuous development of private non-profit organizations and improvement of social attention,some new conditions and problems emerge in financial accounting and information disclosure.The occurrence of scandal events like Chinese Red Cross Foundation event also reflects the internal management and control weakening of non-profit organizations.These illustrate the signality of strengthening the internal control of non-profit organizations.Through investigating the condition of non-profit organizations in Ningbo,this paper find that the organizations participate in social activities with obvious utility,imperfect information disclosure as well as weak supervision and administration functions.The analysis suggests the following idea.Only when all stakeholders are guaranteed to obtain adequate right to be informed,right of supervision,participation right,and claim right and other multipartite interests,so that they can be equal in rights and responsibilities.Non-profit organizations can make positive response and form effective management motivation system in light of the ever-changing interest requirements of stakeholders.The unification of the economic,social and ecological benefit of the organization can be realized,which is conducive to the realization of sustainable development goal.On the basis of analyzing the basic demands of the organizations on the internal control,this paper draws lessons from the framework of internal corporate control and internal administrative institution control to integrate principal agent theory,public accountability theory and stakeholder theory.In terms of the internal environment,control activity,information and communication as well as supervision which are closely related to stakeholders,it integrates concrete business activity elements of the organizations and different stakeholders.It relies on the overall architecture of internal control and innovative internal control design to construct the internal control system with joint participation of all stakeholders and consideration of interests of relevant parties.