Sustainability of Entrepreneurship: An Empirical Study on the Impact Path of Corporate Social Responsibility Based on Internal Control

Xiao Guan, Chunli Yao and Weimin Zhang ()
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Xiao Guan: School of Economics and Management, Beijing Forestry University, Beijing 100083, China
Chunli Yao: Audit Department, Beijing Normal University, Beijing 100875, China
Weimin Zhang: School of Economics and Management, Beijing Forestry University, Beijing 100083, China

Sustainability, 2023, vol. 15, issue 16, 1-17

Abstract: Effective internal control of enterprises can increase their social responsibility by improving financial performance, forming a sustainable cycle of enterprise development. This article uses relevant data from Chinese listed companies to explore the relationship between internal control, financial performance, and corporate social responsibility, as well as the differences in the impact of internal control on corporate social responsibility under the heterogeneity of property rights. We found that the three have a good promoting effect on each other; at the same time, financial performance plays a part in the media effect in corporate internal control and corporate social responsibility, and this effect is stronger in non-state-owned holding enterprises than in state-owned holding enterprises. This article suggests the following: (1) establish an internal control system for socially responsible enterprises and internalize corporate responsibility awareness; (2) strengthen the internal control and independent third-party supervision systems and form a joint internal and external supervision pattern; and (3) improve the top-level design of social responsibility and combine incentive and punishment measures. This study provides constructive suggestions for the sustainable development of Chinese listed companies and future research directions.

Keywords: internal control of enterprises; financial performance; CSR (corporate social responsibility) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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