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Elements of the impact based on a systems engineering model of corporate governance

Author: ZhangQingXia From: www.yourpaper.net Posted: 2009-10-07 08:37:29 Read:
[Abstract] from the perspective of system engineering, the social complex multi-element system, modern corporate enterprise operating system, it is a complex socio-political and economic system, corporate governance is not only to take into account the elements between the members of the company internal to improve the effectiveness of the company's overall balance of rights, obligations, responsibilities, and you want the company as an element on the socio-economic environment of the country as a whole stylistic relationship with the company's external considerations. An important impact on the corporate governance model and system energy exchange.
[Keywords] systems engineering; social system; governance mode
From the theory of systems engineering, corporate governance is not only to take into account the rights, obligations and responsibilities between the company members of the internal elements of balance in order to improve the overall effectiveness of the company [1], but also the company as an element in the entire country socio-economic subjects outside the company's relationship with environmental considerations. Also aims to improve the company's overall effectiveness, the former, as a system of corporate governance is to construct the system architecture; latter is the socio-economic environment as a larger system, the company is one of the subsystem, other subsystems as the entire socio-economic environment system bound to the company as one of the subsystems generate substantial influence to further the concept of corporate governance and the governance structure built on the concept real impact. The author believes that the model of corporate governance as one of the subsystems of the entire socio-economic environment must be concerned about both the interaction and coordination - our company on borrowing from the concept of corporate governance, the governance model and structure design endless satisfactory, in the final analysis is often overlooked that.

Corporate governance interdependent social macro-political and economic environment
The history and reality of the nation's corporate governance practices, macro-economic and political environment is closely related to the corporate governance structure which is often associated with the company. Is generally believed that the contemporary world social environment there are three main political and economic model: First, the United States as the representative of the market-oriented capitalism, its core is the free market competition, the pursuit of economic efficiency rather than focusing on the distribution of wealth. The country plays a supporting role in the economy, mainly for the free market to provide public services. Based enterprises in the national economy plays a decisive role. Corporate governance is to clearly define the roles of company managers and owners of capital, corporate finance external financial markets, the purpose of existence of the company to make a profit for investors or shareholders, its employees assume responsibility less. Second, the development of Japan as the representative of the tendency of capitalism to promote economic development, the state-centered. Various parts of Japan's national institutions representing the interests of different social interest groups, but the pursuit of economic development is the consistent goal of the whole country, and the goal of becoming a powerful force for coordination of national institutions in Japan, and cohesion of the relationship between state and society, making Japan in the name of "national company". This feature allows Japan's economic Large Business Group (chaebol) financing mainly through the associated bank; company has a strong social, internal and external stakeholders to bear a strong sense of social responsibility. Third, Germany as the representative of the social market capitalism, and its core is the community as a whole, the pursuit of the goal is to balance the interests of society and market efficiency, emphasized the power of compromise between capital, labor and the state in order to jointly manage the economy. "Co-decision rules" makes both employers and employees to enjoy roughly equal to the rights of joint decision-making on the micro-level of corporate governance; country's main task is to provide benefits for its citizens, and the general non-interference in economic affairs. The Bank is the main means of financing, the backbone of the major banks in both industrial development, and the entire economic development planning; financial capital and industrial capital plays an important role in the development of the national economy closely integrated.
Control over countries reflects the macro-political economic model of the social environment, the reality of our system mode alienated in the American model, and the closer to the Japanese or German model, especially the Japanese model. As the same at the Confucian cultural background in China and Japan, the dominant system behind the deep cultural genes with greater consistency. Therefore, I believe that China in establishing a model of corporate governance, it should be more reference to Germany, Japan and mode.
On the whole, the contemporary social environment in Western countries from a feudal economy to a capitalist market economy is a bottom-up long-term evolution of induced institutional change its prominent feature; different China from the traditional the transformation of the planned economy to the socialist market economy, mainly led by the Government of a transformation process from top to bottom, the system changes significantly with the mandatory characteristics. The introduction of the Companies Act 1993 directly from the transformation of state-owned enterprises into stock companies, is the most prominent typical. Under this social environment, the "Company Law" was given the basic tasks and the basic spirit is set for the reform of state-owned enterprises legal ways and morphology, and to promote the establishment of modern enterprise system. Based on the purpose of this legislation, the path dependence of the Companies Act also restricts the improvement and development of the corporate governance structure, such as: the Companies Act in the shareholders' meeting, the terms of reference of the Board overlapping; lack of procedures to ensure the supervisory authority of the Board of Supervisors; powers of managers statutory body, causing the top of the managers above the Board of Directors; chairman of the board is also the CEO of the powers of the Board, the company's management powers set in a statutory representative, making the company the balance of power become illusory, and so on. Inextricably linked with the Companies Act, the Securities Act of 1998, "the introduction of the same order after the reform of the corporatization of state-owned enterprises financing channels, making investors to protect the fundamental goal of the loss of much of the" Securities Act ", and its prominent performance in two aspects of the approval of the implementation of the system instead of the guidelines system, information disclosure system is not perfect. In addition, other supporting legal system, such as bankruptcy law, accounting, law, financial regulation also exists with the characteristics of the mandatory institutional change has. Aware of the adverse consequences of these companies the legal system of China's corporate system efficiency, corporate governance model backward, in 2005, at the same time the old "Company Law", "Securities Act" substantially revised.
It should be noted that the supply of the legal system as a social environment, without exception, is carried out by the state / government from top to bottom, from the face of it, that Chinese and foreign seems no difference; induced institutional change of each specific legislative bill by various social interest groups to participate in one of the various sectors of society than to be fully reflected in the willingness of the industry; under the mandatory institutional change mode, every bill introduced mainly provided by the government and its relevant departments, social interest groups, in particular, is able to represent the interests of all sectors of industry groups, participation is very limited - This is an essential difference. Therefore, our corporate governance philosophy and mode of social environment is reflected in the socialist market economic system, to a large extent depend on the national government, the main understanding of the market economy as well as the coordination of the civil power.

Second, the social responsibility in the corporate governance process
Enterprises and natural persons of the classical period, operating activities simply for the sake of their own interests, the pursuit of the maximization of self-interest, in addition to damage to the legitimate interests of others and subject to civil liability, without social commitment other responsibilities. Standing systems engineering point of view, since the 20th century, the as classical enterprise of socio-economic life of cells, has developed into a set of "economic - political - social trinity of modern enterprise run system. In a certain sense, the individual in modern society can not be divorced from the organization of production and feed, from this perspective, the modern enterprise actually get to control the power of citizens to survive, which reflects the political nature of the modern business organization. At the same time, the companies have only classical enterprise as a socio-economic activities of small cells, accompany and promote the industrial revolution and the development of science and technology, to the early 1900s has gradually evolved into a ubiquitous society organizations [2]. Industrial enterprises to meet the individual's social status and social functions of demand, not only to soothe employees, mainly in order to ensure their normal operation; modern industrial enterprises to be able to normal operation, we must first ensure that each of its employees work (regardless of their rank in the enterprise) must be masters of attitude towards his work, and to see themselves as part of the enterprise, the enterprise of the citizens rather than the business rule object. For businesses, it also requires that each employee can play to his potential and creativity requires sincere cooperation between the employees and take full advantage of the greatest asset of the enterprise human resources. This can only achieve through positive interaction to both enterprises and employees as a corporate citizen as a social organization.
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