Analysis of influence of the ideas of corporate sustainability on modern practice of internal control of corporations

Abstract

Purpose: to clarify the standard model of the internal control proposed by the Committee of Sponsoring Organizations of the Treadway Commission, taking into account the expansion of the corporation's objectives from economic to socio-environmental. Discussion: today the idea of corporate sustainability has a large-scale public support. A departure from the neoclassical views on the mission of corporations, the recognition of the need to set and achieve social and environmental goals leads to the restructuring of corporate governance, including internal control. Standard internal control models do not reflect the specifics of the goals stemming from the idea of corporate sustainability. Business practice dictates the need to clarify them. Results: the authors gave empirical evidence of the introduction of the idea of corporate sustainability in the practice of internal control of Russian corporations. Based on the synthesis of internal control and risk management models of the Committee of Sponsoring Organizations of the Treadway Commission, the authors proposed an improved model of internal control of corporate sustainability.