A Research On The Relationship Between Corporate Social Responsibility,Internal Control And Corporate Litigation Risk

With the rapid development of the economy,the focus of all sectors of society on enterprises is no longer limited to financial performance,and corporate social responsibility performance has greatly affected the reputation of enterprises.At the same time,the governments pay more and more attention to the performance of corporate social responsibility and have continuously issued relevant policies to urge enterprises to fulfill their social responsibility.Due to the complex economic environment,the company will inevitably encounter disputes and frictions during the process of operation.How to reduce conflicts with stakeholders has become an urgent issue.The improvement of corporate social responsibility fulfillment will help to form a good corporate culture,promote legal and compliant production,improve the efficiency of information communication,reduce conflicts with stakeholders,and effectively manage risks from the source.Litigation risk arises from the conflict between the company and its stakeholders,safeguarding the legitimate rights and interests of stakeholders is an important goal of corporate social responsibility performance.Can the enterprise effectively reduce conflicts by increasing the level of social responsibility performance,and reduce the company’s litigation risk? What is the specific operating mechanism? What is the role of internal control closely related to legal compliance?Taking the listed companies in Shanghai and Shenzhen from 2014 to 2018 as example,this paper will start from these problems based on stakeholder theory,risk management theory,corporate culture theory,new institutional economics theory and information asymmetry theory.This paper studies the relationship among corporate social responsibility performance level,internal control and corporate litigation risk.The paper will study the operational mechanism of internal control in the impact of social responsibility performance level on corporate litigation risk.The data of Hexun.com,CSMAR and Dibo are selected.Based on the relevant theory,hypotheses are proposed and control variables are selected.Multivariate regression analysis is used to verify the hypothesis and the robustness test is carried out to test the results.The results show that:(1)Enterprises can effectively reduce the litigation risks faced by actively fulfilling their social responsibilities;(2)The improvement of corporate social responsibility performance level is conducive to improving internal control;(3)Internal control plays a partially intermediary role in the impact of corporate social responsibility performance on corporate litigation risk.