The four characteristics of
SASAC published an article talking about the state-owned enterprises, market, industry, welfare and policy, its market performance of leading market competition, the performance of the industry-leading development of the industry, the performance of welfare for the public products provided the main force of the policy the government’s macro-control tool.
a corporate nature and the evolution of corporate social responsibility
(a) the nature of the business
in 1937, Ronald Coase (Ronald Coase) the nature of the business proposed the existence of the enterprise in order to coordinate the allocation of social resources, is a man, organized the allocation of social resources. Analysis of reasons for the existence of the business and transaction costs, economies of scale, division of labor, the role of enterprises and the size of the enterprise boundary to discuss the reason for the existence of the enterprise and its extended scale boundaries.With the development of the global market economy, the nature of the business further development. Today’s enterprise is the mode of economic organization of a variety of goods, the economic entity in accordance with certain laws of organization. For profit to investors, customers, employees, and maximize the interests of the community for the mission to earn money by providing products or services. It is a product of the economic and social development, the development of the social division of labor to grow.
Coase on the nature of the business to give a full exposition and practice to give the full development of corporate responsibility in terms of corporate economic responsibility.the formation and evolution of the
(b) Corporate Social Responsibility
as early as the late 18th century the first industrial revolution, the enterprises in the modern sense, there will be a full development of corporate responsibility at the time only performance at the economic level, corporate social responsibility is yet to come, in practice, enterprises social responsibility to reflect the owner’s personal moral. Corporate social responsibility ideas from Adam Smith, Adam Smith, invisible hand. ” Opinion in classical economic theory, a society through the free market can best determine their needs, if the enterprise as much as possible the efficient use of resources to provide products and services needs of the community and sold to consumers willing to pay the price, the enterprise fulfill their social responsibility. The end of the 18th century, the Western concept of corporate social responsibility began a subtle change, schools, churches, and poor performance for small business owners are regular donors.
after the 19th century, twice the results of the Industrial Revolution brought a leap of the social productive forces, a greater degree of development of enterprises in the number and size. The gradual improvement of enterprise system in the late 19th century, the U.S. government adopted in succession, “antitrust law” and “consumer protection laws to curb bad behavior, the objective put forward new requirements on corporate social responsibility. In 1924, Oliver Shelton Oliver, Sheldon, in his book “of The Philosophy of Management,” the concept of “corporate social responsibility”, which is the earliest description of the corporate social responsibility “, he of corporate social responsibility and operators to meet the industry inside and outside of the responsibility to be linked, and that corporate social responsibility with ethical considerations. In 1970, Milton Friedman Milton Friedman, published in The New York Times entitled “social responsibilities of business to increase profits,” the article pointed out that very little trend, in addition to shareholders than the company executives try to make money should bear social responsibility beyond the more thorough destruction of free society itself was based on “one of the enterprises, is the only social responsibility is within the scope of the rules of the game to increase profits. Socio-economic concept of profit maximization is the second target, the first goal is to ensure their survival. “To achieve this, they must bear the social obligations and the resulting social costs. They must not contaminated, non-discrimination, do not engage in deceptive advertising and other ways to protect social welfare, they must integrate into their communities and charitable organizations, which play an active role in the improvement of social. “
in 1976, the OECD (OECD) developed a “Code of Conduct for Multinational Enterprises, which is so far only signed by the government and commitment to the implementation of multilateral, multinational code of conduct. Although these guidelines are not binding on any country or company, but requires more to protect the interest of stakeholders and the rights of shareholders, to increase transparency and strengthen accountability. The guidelines revised in 2000, greater emphasis on the responsibility of the signatory governments in the promotion and implementation of the guidelines.1980s, corporate social responsibility movement in Europe and developed countries, the gradual rise, which includes environmental, labor and human rights aspects, which led to the concerns of consumers by a single care about product quality, turn to care about product quality environment, occupational health and labor protection. Such as Greenpeace, the environmental protection, social responsibility and human rights NGO, and public opinion continue to call for social responsibility with trade. Forced by increasing pressure and their own development needs of many European and American multinational corporations have developed to make the necessary commitment of social responsibility codes (including social responsibility), or through environmental, occupational health, and social responsibility certification to respond to the needs of different interest groups .
2000, “Global Compact” Forum for the first time high-level meeting proposed the establishment of a globalized market, “Global Compact” as a framework to improve workers’ working conditions, improving the environmental standards. “Global Compact” action plan has been in over 30 countries, including China, on behalf of, the participation of more than 200 well-known large companies. The World Economic Summit held in New York in February 2002, the 36 chief executives urged the company to fulfill its social responsibility theory, corporate social responsibility is a vital part of the core business operations.
International Organization for Standardization (International Standard Organization) since 2001 to proceed with a feasibility study and demonstration of the international standards of social responsibility. Final decision on the development in June 2004 for “social responsibility” in all social organizations, including the Government, the International Organization for Standardization Guide Standard, from 54 countries and 24 international organizations participate in the development, numbered ISO 26000, ISO9000 and ISO14000 system developed after the latest standards. November 1, 2010, the International Organization for Standardization (ISO), International Conference Center in Geneva, Switzerland held the unveiling ceremony of the Social Responsibility Guide standard (ISO 26000), the standard is formally introduced.
Second, the general nature of the special nature of the state-owned enterprises
(a) the nature and responsibilities of the state-owned enterprises
economic and social responsibility is a general business lies at the enterprise level, the state-owned enterprises should and must have the general nature of the business. However, in addition to the economic and social responsibility, the state-owned enterprises beyond the behavior of the economic and social responsibility. In different countries, different institutions under different ownership, in a different period of development, this act of representation and forms of their own characteristics, this behavior can be generally referred to as public behavior, that is, the public welfare, which is state-owned the special nature of the enterprise.In China, the state-owned enterprises, public behavior in addition to the economic and social responsibility, the sense can be called political responsibility. At the moment, China is in the development of important strategic opportunities, but also in the social contradictions of the highlights of unprecedented social change at the same time bring great vitality to China’s development and progress, will inevitably bring about this or that contradictions and problems. The state-owned economy, the state-owned enterprises as the economic foundation of China’s socialist system is the solution to social conflicts, to protect the common prosperity of the people of an important force. The role of the state-owned enterprises in this regard, the public behavior of state-owned enterprises, but also state-owned enterprises to take political responsibility.
(b) the formation and three responsibilities of the state-owned enterprises in China
1. state-owned enterprises – red Chinese enterprises. The creation of the Chinese state-owned enterprises can be traced back to the red base of the Agrarian Revolutionary War, founded a small arsenal and mechanical repairs. Then held most of the enterprises is subject to the needs of war and military, and thus with a strong militarization of color, coupled with the technical level and objective environmental constraints, the red Chinese enterprises handicraft, but also not to mention the overall production capacity and the level of specialization and cooperation. However, they have begun to take the military of the need to make it a mode of state-owned enterprises. From 1927 to 1949, the Chinese red stable development of enterprises and lay a solid ideological foundation and the material basis of the framework of the Chinese state-owned enterprises.
state-owned enterprises to build – Six of the system. China’s state-owned enterprises, not as state-owned enterprises in the West as generated. After the founding of new China, through the confiscation of bureaucrat capital, after the socialist transformation of the national capital, private capital, within three years, the initial establishment of the system of socialist public ownership of enterprises, the seeds of the modern enterprise. Setting up a new China in the development of market economy on the basis of an inherent requirement, but according to the requirements of the planned economy through large-scale coercion. Released by the Administration Council in 1952 on the provisions of the name of the enterprise operated by all levels of government have this to say: where the central five boroughs sector investment business enterprise (including the Administrative Region in the provinces, municipalities hosted), hereinafter referred to as “state-owned enterprise “; where below the provincial level local government investment business enterprises, hereinafter referred to as” state-owned enterprises; government and private capital joint venture, government participate in the management of the enterprise referred to as “public-private partnerships.
3. the development of state-owned enterprises – industrial restructuring. With the completion of the socialist transformation of China’s state-owned enterprise operating system is basically completed. State-owned enterprises shoulder the double task: first, to lay a solid economic foundation for the country, to consolidate and protect the state power; fully realize the industrialization of the new China to establish a relatively complete industrial system. The state-owned enterprises under the dual task of development has taken the idea of non-balanced development.With the beginning of reform and opening up and in-depth, the establishment and development of the Chinese socialist market economy, state-owned enterprises reform process has gone through from the state to state, from state to national investment. Reform in any case, the general nature of the special nature of state-owned enterprises has been in existence and growing, is to enhance the vitality of the state-owned enterprises, influence, drive and competitiveness, to achieve the preservation and appreciation of state assets. Meanwhile, the state-owned enterprises is a barometer of national economic development is an important basis for national economic decision-making. The state-owned enterprises must be highly consistent with the Party Central Committee and resolutely implement the national economic and social policies. According to a major strategic decision made by the CPC Central Committee and State Council quickly follow. Stand out economic and social problems in a timely manner, share those concerns for the party, state and people, and gradually solve the problems in the economic and social.
three of the four characteristics of the state-owned enterprises in China
The process of national economic development and the establishment and development of market economy, from the corporate nature of the state-owned enterprises of China’s duty-bound to assume conferred by the National People’s three responsibilities: economic responsibility, social responsibility and political responsibility. Since then, in the course of construction and reform, the state-owned enterprises has always been to seek development in the bear three responsibilities in the development of better fulfill three responsibilities. on a specific operating system, the three responsibilities reflect the four characteristics of state-owned enterprises, market, industry, welfare and policy, its marketability for the competition in the market-led, industry-specific performance for the development of the industry leader, welfare and performance of the main force to provide for public goods, policy performance of the government’s macro-control tool.
(a) market – market competition leading
market-oriented enterprises in the survival and development of a market economy environment. With the development and perfection of the market economy, market-oriented connotation to a fundamental change in the dual-market-oriented thinking is one of the important thinking of the SOEs, the pairs of its market-based instruments will be the fundamental direction of the market-oriented state-owned enterprises. The main measures of market-oriented is the external market of state-owned enterprises at the same time, the market introduction of a corporate internal to the market chain in the form of internal governance. Joseph E. Stiglitz (Joseph E. Stigliz): countries in transition to establish a standardized corporate governance structure than the change of property rights, non-nationalization and privatization of enterprises in the increase in quantity, the proportion of the expansion is more difficult if a country is in both of which can not be both competition than privatization is more important. According to his logic, outside the enterprise, some of the most important economic system in order to reduce the agent link. For example, the legal mechanisms for the implementation of the rights of the equity and other stakeholders, the liquidity of the stock market, open-ended investment fund, the legal framework for competition policy, the supervision system of accounting and auditing, as well as the management professionalism, etc. and so on. To do so can achieve the purpose of reducing agent link “, thereby reducing the” internal “control of the business and reducing agent (manager class) transition economies against the adverse consequences of agency relationship. Within the enterprise, to the full implementation of market-oriented operation, is about input and output per employee into the enterprise, profit as a link to the external market system as a template in order to achieve the high efficiency of internal operations.
public ownership as the dominant forms of China’s socialist market economic system. The basic economic system of China’s primary stage of upholding public ownership as the mainstay and the common development of the economy and allowing diverse forms of ownership. This requires state-owned enterprise reform and development must ensure that the socialist relations of production do not change, in the realization of the formal requirements of the state-owned capital to the industry based on the reorganization and integration of National Cheng Kung University Enterprises, publicly owned enterprises occupy in the total social capital advantages, not just the public-owned enterprises in the number of dominant. Meanwhile, the state-owned enterprises do strong in the large and excellent, so as to further consolidate the dominant position of public ownership.
(b) industry – development of the industry leading
on the basis of market-oriented, large-scale state-owned enterprises in the restructuring process to a market-oriented operation, capitalized operations, bigger, stronger, and excellent, making the development of the industry leading, leading Chinese companies development, and large multinational corporations to compete in world market competition, the backbone of our country to participate in international competition. To bear to support the dual task of increasing the value of the national economic development and state-owned capital.
market-oriented reforms of state-owned enterprises in the formation of large-scale state-owned enterprises, has gradually developed into the leading industry. 2011, overall production and operation of the central enterprises to maintain steady and rapid growth of major economic indicators record high, the annual total operating revenue of 20.2 trillion yuan, an increase of 20%; the cumulative net profit of 917.3 billion yuan, an increase of 6.4% ; accumulated taxes of 1.7 trillion yuan, an increase of 19.7%. As of the end of 2011, the central enterprises with total assets reached 28 trillion yuan, an increase of 14.9 percent, net assets of 10.7 trillion yuan, an increase of 11.4%. At present, there are 43 central enterprises to achieve the overall listing of the main business, such as FAW Group 4 companies to complete the overall restructuring of work. In establishing norms Board of Directors pilot in 2011, a total of 3 oil central enterprises, two telecom central enterprises, two water transport central enterprises and a military central enterprises to enter the pilot, the pilot enterprises the total to expand to 42, the Board of Directors standardize the operation of the system system of the basic completion of . 38 central enterprises in 2011, into the world’s top 500, its total assets, revenue, gross profit and net profit accounted for 75.12% of all central enterprises, 81.11%, 79.59% and 77.92%. The overall quality and competitiveness of state-owned enterprises is significantly improved, and further increase the contribution of economic and social development. Thus, with the reform of state-owned enterprises, large state-owned enterprises have become the industry leading the development of China’s market economy is an inevitable trend.
(c) welfare – the main force of public goods
China’s state-owned enterprises, not all companies have to become the leading market competition, the development of the industry leader, part of the livelihood of the large state-owned enterprises, their development trend is the main force in the provision of public goods as the market economy is an important guarantee of the government welfare policies. Such as a special legal entity (government, corporate type) need to act in accordance with the special regulation of the government departments. The principal of such enterprises are not profitable, is the financial key support for the object.
(d) policy – the government’s macro-control tool
state-owned enterprises in market competition-led and industry-leading after, another important function is bound to appear: As one of the important tool of the government’s macroeconomic control.
Stiglitz: the market is not the more liberal the better, the needs of the market liberalization, need more regulation. China is a big market, concentrated in a completely open world economy. Alone general fiscal and monetary policies, is very difficult for the Government of the market to implement effective regulation, especially after the financial crisis, free market economy has again been questioned. In this context, the state-owned enterprises are bound to assume this important task. Currently, large state-owned enterprises is almost full control of China’s crude oil, natural gas and ethylene production; provides all the basic telecommunications services, and most of the value-added services; about 43 percent of the country’s generating capacity; vehicle production accounted for 47.5 percent of the country; production high-value-added steel products such as cold rolled sheets, coated board (4304, -10.00, -0.23%) accounted for about 60 percent of the country; production accounted for 70 percent of the country’s hydropower equipment, equipment of thermal power accounted for 75 percent of the country. The central enterprises in important industries and key areas of national security and national economy has a number of key enterprises in the flow of commerce, transportation, agriculture, medicine, building materials, investment and other fields have a number of lines of business. On the current development trend, the state-owned enterprises are fully capable to play this role.
(This article is part of the state-owned asset management magazine.)
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