Research On The Factors Influencing Private Enterprises To Take On Social Responsibility From The Perspective Of Institutional Environment

Since the reform and opening up,the rapid development of China's private economy has made it a key force to promote economic development.“the Belt and Road” has accelerated the development of China's economy,especially that of private enterprises.As a power to boost China's economic development,their behaviors have attracted increasingly more concentration,but the institutional environment of private enterprises is complex and the relationship with stakeholders is difficult.Compared with state-owned enterprises that are born with corporate social responsibility obligations,private enterprises without natural attributes must have some internal mechanisms for social responsibility,so that their fulfillment motives are worth studying.It has been more than 30 years since China's academic circles have carried out research on CSR,which has gradually become an important research topic.With the development of the economy,the enhancement of market vitality,the improvement of the legal system and residents' moral literacy,all parties in society are paying more attention on the fulfillment of CSR,whether for economic purposes or from a sense of social mission,corporate society responsibility awareness is constantly strengthening.Enterprises are affected by the institutional environment when they are in contact with stakeholders.When the government adopts interventions such as administrative intervention and local protectionism to influence the enterprises,the financing behavior,business scope and management mode of them will be affected.Enterprises are in a complex and ever-changing environment.The degree of marketization,market sensitivity and the diversity of the competitive environment can not be underestimated for the steady growth of the company.It also determines the depth of influence of social responsibility of companies when it is integrated with the external network of the manager.The level of legalized management in the region is of great significance for the maintenance of the rights and interests of stakeholders and the containment of corporate misconduct.In addition to external environmental factors,the external network of managers and the quality of internal control also play a certain role in influencing CSR behavior.How will the interaction of these internal and external factors affect the fulfillment of social responsibility of private enterprises?Therefore,based on the stakeholder theory and resource dependence theory,this paper constructs the acting path between institutional environment and CSR,and then deeply explores the regulatory role of political association and internal control,thus further verifying the mechanism of corporate social responsibility.This paper adopts the “HeXun.com” corporate social responsibility index as a key indicator,and the variables such as marketization process,degree of government intervention and level of legalized management are from the report written by Fan Gang et al.(2011;2016)on the marketization of various regions in China.Furthermore,the internal control index is from Dibo database and the political association of the chairpersons were collected manually.After controlling some critical characterized variables of enterprises,a fixed-effect regression model was established to analyze the model qualitatively and quantitatively.This paper empirically tests the performance of private enterprise's social responsibility based on internal and external factors such as institutional environment,internal control and political connection.It finds that appropriate government intervention will promote the fulfillment of private enterprises social responsibility,and the resources it brings to the enterprises enhance the level of CSR.At the same time,the marketization process reduces the motivation and ability of enterprises to fulfill their social responsibilities to a certain extent.When private enterprises have political connections,the paper finds that the negative effects of marketization on corporate social responsibility are weaker than that of non-political private enterprises.when the level of legislated management is higher,private enterprises with political connections are more likely to actively assume social responsibilities;In addition,the positive effect of government intervention on CSR of non-political private enterprises is weaker than that of private enterprises with political connections,and internal control strengthens the positive effect of government intervention on CSR performance.Based on the empirical results and analysis,this paper proposes four aspects of suggestions including: attaching importance to the influence of the institutional environment and raising the awareness of social responsibility;improving the innovation abilities and the internal control system construction;taking government supervision as the main body and playing the role of non-governmental organizations;internal and external entities should acquire classified policies and differentiated governance when requiring enterprises to fulfill the social responsibilities.