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Effectiveness of internal control with the role of Corporate Social Responsibility and its
impact towards the society

Internal control is defined as the processes, task, behaviors and other aspect of organization that taken

together. It ensure the quality of internal and external reporting, which in turn requires the maintenance of

proper records and processes that generate a flow of timely, relevant and reliable information. Its objective is to

help the entity to have and efficient and effective process in the business where controls are place to ensure the

smoothness of the operation and free from disruption. It also ensure the security of the asset controlled and

owned by the entity. Internal control also prevent, detect and correct fraud and mistakes that will be omitted

by any person working within the entity. By securing a strong internal control, data such as financial records are

reasonably accurate and helps auditors and intended users to understand it. To achieve such effective internal

control, there are persons who are responsible to enact it in the entity to create an appropriate culture. These

are the board of directors or those charge with governance.

Internal controls also reflects a variety of business priorities in each country in modern times. In Japan, which is

highly industrialized and populous, internal auditors emphasize the audits related to environmental

management, hazardous materials and safety products and services. Australian companies, however, responded

to increased competition by adopting a quality perspective in an attempt to provide a value for the customer. As

a result, internal auditors make a significant quality system audit. There is no perfect way to make the internal

control unified at the global level, Some international organizations have centralized control over its foreign

operations to the extent that the key financial decisions, including planning for inflation and foreign exchange

issues, are dictated and controlled by the top of the company. In such situations the internal control is

centralized. As a result, more experienced personnel and/or specialists in the field of foreign exchange planning

can be employede companies are organized on a decentralized basis and employ local auditors for the full-

service branches. Both method have advantage and disadvantage and It is evident that any of these techniques
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can be successful. It all depends on the top management's commitment to its policy. Indeed, a system that

works in one market or for one type of management may not be applicable to other markets and management

teams.

Corporate Social Responsibility (C.S.R) is a company commitment to manage social, environmental and

economic of its operations responsibility in line with public expectation. It is part of every organization approach

in corporate governance which values the business operations, human resources, manufacturing, supply chain,

health and safety. CSR is the company way of establishing good reputation, attract positive attention and

potentially minimize the environmental impact to the society while saving money via efficiency of operation. CSR

is vital role for any organization although it may not be required, the approval of the community directly affect

the business and if the company gathered negative reputation, they may lose customers thus, the business will

fail. Most of the critics consist of the news media and activist group who watch closely every organization

operation and behavior.

As the use of corporate responsibility expands, it is becoming increasingly important to have a socially conscious

image. Consumers, employees and stakeholders prioritize CSR when choosing a brand or company, and they are

holding corporations accountable for effecting social change with their business beliefs, practices and profits

Thus, some of the business organizations able to determine on which type of CSR suits well for them. Some use

Environmental effort which suited to any size of businesses, it is the effort of the company to reduce their waste

contribution on the environment. There is also the Philanthropy approach where organizations, donating

money, products or services to social causes and nonprofits. Some values Ethical labor practices which treats

employees fairly and ethically,  giving importance to the minorities of the community. Lastly, there is the

Volunteering which is achieved by Participating in local causes or volunteering your time (and your

staff's time) in community events says a lot about a company's sincerity. By doing good deeds without
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expecting anything in return, companies can express their concern (and support) for specific issues and

social causes.