Research On The Influence Of Internal Control On The Implementation Of Corporate Social Responsibility In The Perspective Of Agency Cost

In recent years,due to the weak sense of corporates' social responsibility in their rapid development,a series of social responsibility issues such as product quality,resource waste and environmental pollution have occurred frequently.How to effectively enhance and strengthen the sense of corporate social responsibility,quickly promote the construction of social responsibility and further improve the performance of social responsibility to promote the corporates'sustainable development is still an important subject for many scholars and relevant government departments in China.Scholars have found that improving internal control and ensuring the effectiveness of internal control design and implementation are important prerequisites to improve the effectiveness of corporate social responsibility performance.High-quality internal control can actively improve corporate social responsibility behaviors and make them develop towards rationalization and standardization.As an important part of the corporate governance mechanism,internal control aims to ensure the achievement of its business management goals and promote the sustainable development of corporates by reducing agency costs and alleviating agency conflicts between shareholders and corporate management.Therefore,from the perspective of management agency costs,this paper combines internal control,agency costs and corporate social responsibility to develop a comprehensive analysis framework for studying the intermediary effect of agency costs in the process of improving internal control and enhancing corporate social responsibility performance and exploring the specific implementation path of internal control mechanism production for the fulfillment of corporate social responsibility.On the basis of summarizing the existing literature and theoretical analysis,this paper incorporates internal control,agency costs,and corporate social responsibility into a comprehensive analysis framework to deeply analyze the relationship among them.A-share listed companies in china from 2012 to 2018 were selected as research samples,and agency costs were used as mediation variables to create a mediation effect model,to explore the influence of internal control on agency costs and corporate social responsibility performance and to analyze the mediating role of agency costs in the influence of internal control on corporate social responsibility fulfillment.In addition,it also conducts group examination based on different natures of property rights to examine the changes in the relationship between the effects of internal control on agency costs and corporate social responsibility performance,and the changes in the intermediary effects of agency costs between them.The research results of this paper show that:(1)Internal control promotes the implementation of corporate social responsibility,that is,the better the internal control,the higher the level of corporate social responsibility performance.(2)There is a negative correlation between internal control and agency costs,that is,internal control can reduce agency costs by mitigating agency conflicts between shareholders and managers.(3)Agency costs,as intermediary variables,play a part of the intermediary role between internal control and corporate social responsibility,that is,internal control can promote the fulfillment of corporate social responsibility by reducing agency costs.(4)After group examination based on the nature of property rights,the research found that,compared with state-owned listed companies,the effect of internal control easing the agency conflict between shareholders and managers,reducing agency costs,and promoting the corporates to fulfil the social responsibility is more significant in non-state-owned listed companies.Agency costs have a mediation effect between internal control and corporate social responsibility regardless of the nature of property rights.And the mediation effect of agency costs is more significant in non-state-owned listed companies.Based on the above research conclusions,This paper puts forward targeted suggestions from three aspects:government,business and society.First,the government and other relevant departments must continue to improve and implement the relevant internal control legal system and corporate social responsibility evaluation system.Second,corporates should,according to their actual situation,develop a standard internal control system that is in line with the actual situation to deepen the reform of corporate governance structure,optimize corporate information environment,mitigate agency conflicts and actively assume corporate social responsibility.Third,establish social responsibility sense of the whole people,strengthen internal and external supervision of corporates,and create a good social responsibility atmosphere.In the end,a social responsibility pattern guided by government,consciously undertaken by corporates and supervised by the media will be established to continuously accelerate the construction and development of corporate social responsibility.