Internal Control, Corporate Performance and Social Responsibility: A Study Based on Manufacturing Enterprise Data
DOI:
https://doi.org/10.62051/hnqnbk41Keywords:
internal controls, enterprise performance, corporate social responsibility.Abstract
This paper examines the links between internal control, corporate performance, and corporate social responsibility (CSR) in Chinese manufacturing firms. Based on principal-agent theory and mediation analysis, it considers whether CSR acts as a channel through which internal control affects performance. Using financial data from listed manufacturing enterprises and applying Stata for empirical tests, the results show that stronger internal control improves financial performance and that CSR plays a mediating role in this process. The study suggests that well-designed internal control not only raises efficiency and resource use but also supports firms in meeting their social responsibilities. In practice, companies are encouraged to clarify the roles of principals and agents, strengthen safety and quality management, and pursue industrial upgrading to meet demand for green and sustainable products. At the policy level, governments are advised to refine regulations and provide guidance that motivates firms to combine economic outcomes with social contributions.
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