Correlation of Internal Control Effectiveness and Corporate Social Responsibility
Journal: Advanced Management Science (AMS)
Author: Yunhong Li, Ling Xia*, Lei Mi
This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
In this paper, we took Chinese listed food processing and manufacturing companies as research samples to discuss the correlation between internal control effectiveness and corporate social responsibility. According to COSO internal frame and “Guidelines for Enterprise Internal Control Application”, this paper established the evaluation index system of enterprise internal control, based on which the correlation model between internal control effectiveness and corporate social responsibility was constructed by multiple regression method in order to make the empirical test. The results show that for the chosen listed food manufacturing companies in 2012, there is a significant correlation between control environment, control activities, information and communication, supervision and corporate social responsibility. Meanwhile, risk assessment and corporate social responsibility is not significantly correlated with corporate social responsibility.