Internal Control and Social Responsibility

Abstract

This paper aims to expound the connection between internal control and CSR, the purpose of which being to make organisations aware that a rigorous control can actively contribute to an increase in social responsibility regarding all three relevant dimensions associated to it: economic, social and environmental. As a functionality of management , control includes an analytical dimension as well as a field of verification , respectively a “mastering” of contexts, mainly internal, but also external to the organisation.

Our endeavour bears in mind a synthesis and antithesis of the ideas present in the field of expertise associated with control and social responsibility, of regulations provided by various institutions (for example, GRI—Global Reporting Initiative).

From the multitude of indicators presented by GRI, the chapter focuses on the generation of indicators relevant to analysed subject, given that there are no indicators specific to the control function. Thus, the authors, are bound to consider the selection of those indicators which can contribute, through the mediation of internal managerial control, that of risk management and the internal control environment, to the effective increase of social responsibility and the subsequent reports provided by corporations, all these leading to achieving the desired business leadership goals so as to genuinely consider not only the interests of the shareholders but the interests of all stakeholders, and even beyond that the interests of society as a whole. An important part is dedicated to the analysis of indicators and sub-indicators constructive to have or may relate to internal control management, coupled with a qualitative examination of the actual elements of reporting on CSR. On this basis, the authors will be issued comments and observations, suggestions and proposals for better emphasizing rigor in fact and in internal reporting. In conclusion, the authors have focused their research towards the analysis of possibilities and the achievement of internal control in the field of corporate social responsibility, taking into consideration that there are currently numerous research papers examining CSR from a global perspective, but not the identification of a connection between control and CSR.