Internal Control as a Sustainability Tool in Equine Business

Ali Coskun and Emma Suplicki

No 404768, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: The equine industry occupies a unique position in the intersection of agriculture, recreation, tourism, sports management, service delivery, and animal welfare. Equine businesses contribute significantly to rural economies and community development through several activities. Despite their economic and social importance, many equine enterprises, particularly small and mediumsized businesses, continue to operate with informal management practices, limited governance structures, and minimal internal control systems. Consequently, these organizations face a variety of financial, operational, compliance, safety, environmental, and reputational risks that may threaten long-term sustainability and organizational resilience. This conceptual study examines the application of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Framework within small and medium-sized equine businesses. Drawing upon the literature on internal control, risk management, sustainability, and equine business management, the study identifies the major risks facing equine enterprises and develops a COSO-based internal control framework tailored to the industry's unique operational characteristics. The framework demonstrates how the five COSO components can be adapted to strengthen governance, improve decision-making, enhance compliance, safeguard assets, support horse welfare, and improve organizational performance. The paper also presents a practical implementation roadmap designed specifically for equine SMEs, providing guidance for integrating internal controls into routine operations without requiring complex organizational structures or significant additional resources. By embedding internal controls into everyday management processes, equine businesses can improve accountability, strengthen risk management, enhance stakeholder confidence, and better align operational activities with sustainability objectives. The study contributes to the limited literature on governance and internal control in the equine sector by extending the application of the COSO framework to an 3 underexplored industry. It positions internal control not merely as a compliance mechanism but as a strategic management tool that supports financial sustainability, operational effectiveness, horse welfare, stakeholder trust, and long-term organizational

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 20
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404768

DOI: 10.22004/ag.econ.404768

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