Executive Turnover,Internal Control And Corporate Social Responsibility

Nowadays,problems such as waste of resources and environmental pollution are always present in the development process of enterprises,and corporate social responsibility is not very high.At the same time,with the frequent changes in corporate management,the relationship between these two areas has become a hot topic for academics and the public.This study reviews and summarises the relevant research literature on managerial turnover and corporate social responsibility,analyses the principal-agent theory,stakeholder theory and internal control theory in depth,uses the data of listed A-share companies in Shanghai and Shenzhen in China from 2011 to 2020 as the research sample,and analyses how managerial turnover affects the degree of corporate social responsibility fulfilment and the role of internal control between the two areas.The results show that:(1)a change in management leads to a reduction in the degree of CSR fulfilment;(2)a change in management shakes up the internal environment,which in turn reduces the quality of corporate internal control;and(3)a change in management affects CSR through internal control.In further analysis,this study also reveals that different management positions,reasons for change and ownership type lead to different impacts on CSR and that changes in management affect different dimensions of CSR.The results of this part of the study show that:(1)the negative impact of management change on CSR is more pronounced in the samples of chairman change,normal change and non-government owned companies,while internal control plays a more significant,partly mediating role in these three cases.(2)Change in management has a negative impact on shareholder,supplier,customer and consumer,and environmental responsibility,with the strongest negative impact on shareholder responsibility.Combining theoretical analysis and empirical results,this study makes three recommendations for the firm level: First,emphasise equity incentives and strengthen discipline assessment.Second,improve the quality of internal controls and strengthen management oversight.The third recommendation is to promote accountability and strengthen links with stakeholders.Two recommendations are made at government level: first,to improve and enhance the standards and norms of CSR guidelines and,second,to encourage companies to establish and improve internal control systems.This study complements the theoretical aspects of the study of CEO turnover and CSR,while testing the semi-immediate role of internal control,clarifying the differences in the impact of different CEO turnover scenarios on CSR and providing more focused recommendations.This study explores the ways in which CEO turnover affects CSR performance in a somewhat systematic way and,based on the findings,provides Chinese enterprises with some theoretical background to establish a credible CEO incentive system and appointment and dismissal mechanism,strengthen internal controls and management oversight,improve the management capability of listed enterprises and improve CSR quality.