The Research Of Corporate Governance Integrated With Corporate Social Responsibility

Since entering the new century, the financial scandal of Enron and WorldCom made the corporate governance a wild concern problem. And the global financial storm since2007let the "greed" and "irresponsible" of the company (especially in the financial industry) became an object condemned by all sectors of the society. At the same time, the economic and society environment to promote corporate social responsibility is growing. In such a background, how to continuously improve the corporate governance has become a very urgent problem. In practice, more and more enterprises attempting to add the content of social responsbility into the management of the company, but it seems very passive and fragmented, and some companies even resort to deceit. In theory, although there are more and more scholars begin to pay attention to the question of put the corporate social responsibility into the theory and practice of corporate governance, however in contrast to the traditional areas of study, research in this area is still lagging behind. The need of practice and the insufficient of theory research, make the integration of the social responsibility and corporate governance has become an urgent and important research topic.The research in the integration of social responsibility and corporate governance in this article focusing on attempts to answer two basic theoretical issues:one is why should the integrate the corporate social responsibility into corporate governance, another is how to realize this kind of integration. Before the resolve of these two questions, we need to provide a unified theoretical foundation. From the view point of literatue, the theory of corporate social responsibility and corporate governance have formed their own independent and complete theoretical system, adding the content of corporate society responsibility into the existing corporate governance theory and practice system could not realize the perfection of corporate governance optimization. Only providing the solid fusion foundation could change the defect of passive response and exogenous imposition. In seeking of the unified theoretical foundation, the goal of value creation may become a viable option. Value creation is the ultimate goal of the company, and it could cover the corporate governance and corporate social responsibility theory systems, and it also the common target of all sorts of system arrangement and operation practice in the company. Therefore, the value creation is the unified theoretical foundation in this article. Although this paper points out that value creation is the research perspective of the analysis of the fusion of enterprise society responsibility of corporate governance, the conception of value is very broad and vague. So in this paper, we focus on the analysis of the concept of the value and the connotation of the target of value creation, and we build a complete and comprehensive aim of value creation which could leading the research of corporate social responsibility and corporate governance.In the perspective of value creation, corporate social responsibility is not only limited in the traditional sense of the value distribution stage, such as charity donation, employee benefits, welfare support, but is an important role in the promotion of value creation which deeper into the enterprise value creation stage. This paper analysis the effection of social responsibility in the value creation from theoretical analysis and model construction. In the perspective of value creation, corporate governance is not only the institutional arrangement focus on the principal agent problem, but a kind of institutional arrangement obey and serve the aim of value creating. In the perspective of value creation, the research area of corporate governance is greatly broaden, and this is the revisited of the corporate social responsibility and corporate governance in this article.On the common foundation of value creation, and through the revisited of these basic conception, we can find the strict internal logical relation between the corporate social responsibility and corporate governance. And this is the theoretical basis for the integration of corporate social responsibility and corporate governance. This paper analysis the theoretical basis from four aspects:firstly, it has the common theoretical source; secondly, it has the common theortical core; thirdly, it has the internal logical connection; fourthly, the inside and outside environment change of the company. These four factors make the integration of corporate social responsibility and corporate governance a inevitable trend. The corporate governance should not reject or hypocritical pandering the corporate social responsibility, but should really put the corporate social responsibility into corporate governance theory and practice system.On the foundation of proving the inevitability of the integration, we should provide a theoretical framewor and practice instruction for the company. We point out that the specific form of integration is embed the corporate social responsibility into corporate governance structure. This article analysis the embedding mechanism from the aspects of embedded foundation, embedded main body, embedded object, embedded standard, embedded form, embedded power and embeddedness barrier. Lastly, in this paper, based on the enterprise value creation process, namely the value creation of supply of factor, internal value creation process, the external value realization process, this paper analysis corporate governance mechanisms how to serve the aim of value creating, and how to embed the corporate social responsibility into institutional arrangement during the prosess of value creation. Through this embeddedness framework, we can provide a practice instruction for company in how to integrate the corporate social responsibility and corporate governance.To sum up, on the analysis of the concept of value, value creation target, and value creation process, this article revisited the corporate social responsibility and corporate governance from the value creation perspective, and analysis the internal logical relation of corporate social responsibility and corporate governance, and prove the inevitable trend of integration. Lastly, through the specific way of embeddedness, we build a complete practical mechanism for the corporate governance which embeded the corporate social responsibility.