Influence Of Corporate Social Responsibility To Corporate Governances

There are many kinds of corporate governances in the world. For example Anglo-Saxon model, Rhine model and Japanese model. Then what made each district develop such a different system? Generally speaking, it is thought that this situation came about because of business expenses or marketing costs. According to this theory, if the cost is low, corporate governances became outsider models, and reversely, if the cost is high, corporate governances became insider models .Some people believe a company is a bunch of contracts between individual parties, because each party wants to reduce business cost, and they often believe stockholders have absolute property rights, so stockholders own companies. But in fact, although marketing cost is reduced, companies became bigger and bigger. Furthermore, this theory can not explain why financial institutions such as banks are not so active in U.S.A, and reversely, why Japanese and German banks are themselves, so active. In addition, it cannot explain either why Japanese companies own each other's stocks, why in Germany, main stockholders are families, and big banks have strong power and can control big companies, and again why in U.S.A, most stockholders are individuals. This theory can not answer these questions. I therefore think that the cause behind the difference between various corporate governance models stems from culture and social situations. Then how can culture and social situations affect corporate governances create differences? I personally do not think that culture and social situations affect corporate governances directly, but rather that at first, such cultural elements and social situations affect the formation of social expectations to companies. For example, the public requires companies to be careful with environmental pollution in society which have big pollution issues. In societies which strongly pursue democratic values rather than profit, the public demand towards companies may be their contributing to the realization of democracy. Then how will companies react to such social expectations? As Milton Friedman says, the only corporate social responsibility is the pursuit of profit. According to this thought, if companies'only aim is to increase profit, they will behave more selfishly. However, in reality, businessmen, as members of society, cannot help thinking about social profit according to their conscience. In addition, companies which only think about profit , easily get into problems and in so doing ,loose the esteem of the public. So companies must contribute to society according to social expectations, if they want to develop in the long term. Corporate social responsibility is indirectly affected by the fact that social expectations are influenced by culture and social situations .Therefore; each company must develop its own system according to its C.S.R. This is the cause behind the difference between various corporate social responsibilities in each country.The most fundamental corporate social responsibility is economic one , which means profit and social property ,and the existence of corporation is eternal , these character force corporation to focus on profits as well as long-term development . In order to reach this target ,both inside and outside of the corporation need an adjustment for corresponding social responsibilities according to social expectation should be taken ,this is the corporate governance . Therefore ,better existence in society and long-term development lead to corporate governance . Social expectation stems from social culture and situations which influents corporate social responsibility , furthermore , the style of corporate governance . This process can explain why corporate governance are various in different areas .This is the main context in chapter one .According to the idea above , American , German and Japanese corporate governances are compared in chapter two , three and four . In order to test the hypothesis–social culture and situations can influence social expectation , corporate social responsibility , corporate governance . We talk about , initially , some different countries , corporate governances, then , various characters of social responsibilities and expectations , at last , social culture and situation . By analysis , finally , we find they really have something in common . So we can believe that every corporate governance is affected by social responsibility and expectation . They come up under their own social culture and situation . We can also believe that corporate governance according to social responsibility is vital to the law that corporate governance is based on national condition. Base on the analysis above , the purpose of the article is to deal with the question"how to set up Chinese corporate governance ."In this part , we talk about the law draft of Chinese corporate governance from the aspect of that social responsibility can affect corporate governance . But the truth is that china's market-oriental economy is still at elementary stage , many problems spring up in market reformation . It can predict that there exists a big discrepancy between corporate behaviors or social responsibilities and public expectation . That's why we must consider corresponding corporate social responsibility , furthermore corporate governance base on social expectation , especially , the macroscopic social expectation , which means the increase of the whole social profits . Nowadays , China's total purpose is to build an harmonious society ,we should see it as China's macroscopic social expectation , base on the purpose and the relationship of social responsibilities , we can talk about the Chinese corporate governance :⑴What contributions can be made by corporation so as to build an harmonious society .⑵Which corporate governance model is close to our society most by comparison between China and other countries .⑶What kind of corporate governance is more helpful to handle China's social issues now. According to the analysis corporate governance under current corporate law should be further improved . The writer thinks it is important that Chinese corporate governance designs to tackle how to increase investment under the new law . Taking social responsibilities means the corporation's long-term development and the increase of the whole social profits ,from this point , importance should be attached to other stakeholders beside investors .The writer also thinks we should focus more on employee's benefits protection in china . The current corporate law allows employee to take part in board of supervisors and board of directors . However , in reality, it makes no difference to the old one , it doesn't improve employee's benefit protection .According to the national condition , the design of the corporate governance should puts more emphasis on employee's participation on management and supervision . Generally speaking , employee's participation governance model is the outline of the article , meanwhile , China's national condition and common problems in international corporate governances also be discussed , in the end , we carry out the corporate governance in law .In chapter one , the causes of different corporate governances are introduced . The social expectations are divided into microcosmic one and macroscopic one , so as to their corresponding corporate social responsibilities , then , we talk about the relationship between social responsibility and corporate governance .Chapter two , three and four base on chapter one , then , American ,German Japanese corporate governance models are compared . By American one , we can easily see individualism in American culture , social situation , social expectation , social responsibility and corporate governance .In the part of German one , we can smell collectivism and sense of community . As to Japanese , we can tell something in common with German one , however . there are two things different to the Germany model , one is the relationship between employers and employees , another is it's corporate governance in law disagree with reality , this is Japanese own style . The mentioned discrepancy is related to that , Germany believe in Christian , while Confucianism is Japanese faith .At this part , factors which need to be considered in corporate governance law draft are presented by comparison .In the last part of the article , we begin with social responsibility , present the analysis with the purpose of laying down the Chinese corporate governance modification scheme . In chapter five , we talk about a series obstacles existing on the way of building the harmonious society . In chapter six , we search for the answer to the question that is Chinese culture inclined to collectivism or individualism. In chapter seven , we discuss how corporations make their contributions to society . In chapter eight ,China's current business consciousness and social expectation are mentioned then ,we defined what social responsibilities should corporation shoulder according to social culture and situations .At last , in chapter nine , base on the achievements above , we present design of the corporate governance law.In this article , we consider the corporate governance from an unprecedented aspect-social responsibility . However we just discuss it preliminarily , the writer hopes that more and more researchers can take part in this job ,in the meantime , the research can benefit China's economy and social development .