Research On The Interactive Relationship Between Corporate Social Responsibility And The Effectiveness Of Internal Control

After the reform and opening up,China's economy has made rapid development,in which enterprises are credited.However,the negative effects caused by enterprises in driving economic development are endless,which exacerbates the contradiction and conflict between enterprises and various stakeholders,which originates from the result that enterprises only pay attention to economic interests and neglect social responsibility,and the root of the problem lies in the failure of internal control of enterprises.As an important part of corporate governance,internal control is a system guarantee to coordinate and balance the interests of various stakeholders,and effective internal control lays the foundation for enterprises to actively fulfill their social responsibilities.At the same time,"Enterprise Internal Control Application Guide No.4th-Social responsibility" clearly pointed out that corporate social responsibility as an integral part of the internal control environment,enterprises actively fulfill social responsibility to help the internal control environment is sound and perfect,conducive to the realization of internal control objectives,improve the effectiveness of internal control.This paper focuses on the interactive relationship between corporate social responsibility and internal control effectiveness of listed companies in China's financial industry,with the aim of providing theoretical guidance for strengthening corporate social responsibility consciousness,advocating enterprises to actively fulfill social responsibility,perfecting the internal control construction of enterprises,and improving the effectiveness of internal control,so as to realize the benign long-term development of the whole industry.This paper first reviews the literature on corporate social responsibility and the effectiveness of internal control,on the basis of which,based on stakeholder theory,principal-agent theory and social contract theory,the relationship between corporate social responsibility and internal control effectiveness is analyzed and the research hypothesis is put forward.In this paper,Hexun listed corporate social responsibility report professional evaluation of listed companies corporate social responsibility score to measure corporate social responsibility,the use of Diebo Chinese listed companies internal control index to measure the effectiveness of internal control,with 2010-2017 China's financial listed companies as a research sample,empirical research is carried out by constructing a simultaneous-equation model.The empirical results show that:(1)The effectiveness of internal control in enterprises is significantly affecting corporate social responsibility with a positive direction.(2)Corporate social responsibility is significantly positive affecting the effectiveness of internal control with a positive direction.(3)There is a positive interaction between corporate social responsibility and the effectiveness of internal control.The research results complement the research on the relationship between social responsibility and the effectiveness of internal control in the financial industry,and provide theoretical support for actively guiding the financial industry to fulfill its social responsibility and improve the construction of internal control.