Analysis of the Mechanism by Which Corporate Social Responsibility Affects Corporate Performance in Manufacturing Enterprises under the Regulation of Corporate Governance

Abstract

Against the backdrop of economic globalization and the growing acceptance of sustainable development concepts, China's economy has gradually transformed its development model. However, it still faces numerous challenges, with issues such as product quality and environmental protection becoming increasingly evident. In recent years, many enterprises have undergone transformations due to national policy adjustments, with their development models continuously evolving and internal management repeatedly tested by governance strategy adjustments. For the vast majority of enterprises, whether they can fulfill social responsibilities and ensure healthy, sustainable development remains the key to their long-term growth and profitability. Based on the above background, to further explore corporate social responsibility, this paper takes A-share companies listed in China between 2019 and 2023 as research samples. Based on the relationship between corporate governance and corporate performance, it is found that the degree of corporate social responsibility practices in listed companies is positively correlated with corporate performance. From the perspective of corporate governance, the increase in equity concentration can strengthen the positive correlation between corporate social responsibility and corporate performance. This indicates that a sound corporate governance system significantly promotes corporate operations and social responsibility, with various elements of corporate governance playing a key role in coordinating these two aspects. This paper proposes corresponding suggestions for the development and operation of listed companies regarding improving the social responsibility system, enhancing product competitiveness, and optimizing corporate governance structures.