Summary of economics considerations of senior economists: corporate systems
Corporate systems
1. Enterprise system
The enterprise system is the sum of the enterprise property system, the form of business organization and the management system. At the heart of the enterprise system is the property rights system, the form of enterprise organization and the management system of operations are based on the property rights system, which respectively comprise different levels of the enterprise system. The enterprise system is a dynamic dimension that continues to evolve and innovate as the commodity economy develops。
From the history of enterprise development, there are three types of representative enterprise systems:
(1) owner system. The material carrier of this enterprise system is a small-scale enterprise organization, commonly referred to as a sole enterprise. In owner-owned enterprises, the financier is both the sole owner and the operator of the property. The entrepreneur may operate according to his/her will and receive the full proceeds of his/her business alone. This type of enterprise is generally small and flexible. It is these advantages that perpetuate the ancient enterprise system of ownership. However, there are also shortcomings in the ownership system, such as limited sources of capital and restrictions on enterprise development; the fact that enterprises are primarily subject to unlimited liability for the full debt of the enterprise, with high operating risks; and the fact that the existence and dissolution of the enterprise depend entirely on the owner and the short duration of its existence. As a result, ownership is difficult to adapt to the requirements of socialized commodity economic development and the growing size of enterprises。
(2) partnership. It is an enterprise system in which two or more people invest together and share surplus, joint supervision and management. The partnership's capital is co-financed by its partners, which expands its sources of funding; partners share unlimited responsibility for the enterprise, which allows for diversification of investment risks; and partners manage the enterprise together, which helps to improve decision-making capacity. However, partners are also prone to differences in business decisions and there may be a moral risk of slacking among partners. As a result, partnerships are generally limited to smaller partnerships, mostly with small-scale enterprises。
(3) corporate system. The main forms of modern corporate enterprises are limited liability companies and limited companies. Corporateism is characterized by a wide range of sources of capital that make it possible for large-scale production; limited liability for the company by the financiers and a relatively low investment risk; independent corporate property rights, which guarantee the independence, continuity and integrity of the enterprise's decision-making; and the separation of ownership from business rights, which lays the foundation for scientific management。
2. Modern enterprise systems
(1) modern enterprise system and basic features
A modern enterprise system — a system that adapts to the requirements of modern social production and market economy systems, with a set of rules on the structure of property rights, governance structures, decision-making structures, accountability structures, etc. — is the one that dominates the modern market economy and has the most development potential, as well as one that has chinese characteristics。
The general features of the modern enterprise system were summarized at the 14th plenum iii as 16 words “clear property rights, clear lines of authority, separate government enterprises, management science”. The 15th plenum of the party in september 1999 re-emphasized the need to establish and improve modern business systems and reiterated the general requirement of “sixteen words” as the basic feature of modern business systems。
“lucid property rights” - there are two main meanings: (1) specific departments and institutions represent the state in exercising the right to possession, use, disposal and proceeds of certain state-owned assets. (2) the boundaries of state assets need to be “clear”, i. E., “checking the foundations”. First of all, the boundaries of state-owned assets in physical form, such as machinery and equipment, factories, etc., must be clarified; the second is to establish the value and boundaries of rights of state-owned assets, including the value of physical assets and financial assets, the form of rights of state-owned assets (equity or claims, distribution of rights to possession, use, disposal and proceeds, etc.), the total assets less the amount of net assets after debt, etc。
“explicit responsibility” refers to the reasonable distinction and determination of the respective rights and responsibilities of business owners, operators and workers. The position and role of owners, operators and workers in the enterprise are different, and therefore their rights and responsibilities are different. The right means that the owner has the right to benefit from the assets, to make significant decisions and to choose the manager according to the amount of his contribution, and that, in case of insolvency, the enterprise has a corresponding limited liability for its debts. Responsibility refers to responsibility vis-à-vis those rights. Strictly speaking, liability also includes what is commonly referred to as risk taking。
“segregation of business” is the separation of government administrative functions, macro and industry management functions, and business functions. (1) the separation of business enterprises requires the government to return the business to the enterprise after the separation of the business functions that were previously the same as those of the government, and the “decentralization” and “enlargement of business autonomy” that have taken place since the reform is intended to address this problem. (2) the separation also requires enterprises to hand over to the government and society the social functions they have assumed, such as housing, medical care, old age, community services, etc。
“management science” is a broad concept. In a broader sense, it includes the meaning of rationalization of business organization; in a narrower sense, “management science” requires the scientificization of all aspects of enterprise management, such as quality management, production management, supply management, marketing management, research and development management, and personnel management. Management is committed to mobilizing human motivation, creativity and, at its core, incentive and restraint mechanisms. For “management science”, learning, creating and introducing advanced management practices, including at the international level, of course。
(2) content of a modern enterprise system
First, the assets of an enterprise have a clear physical and value boundary, with a defined governmental body acting as owner on behalf of the state and effectively assuming the corresponding financial responsibility。
Second, enterprises usually operate under a corporate system, i. E. Limited liability companies and limited company companies, which, as required by the companies act, forms an interdependent and mutually reinforcing corporate governance structure consisting of shareholders ' congresses, boards of directors, supervisory boards and senior managers and functions effectively。
Thirdly, enterprises have a production business as their primary function, with a clear profit objective, managers and general employees at all levels receive income according to their performance and labour contribution, and the allocation of housing, old-age, medical and other welfare services is the responsibility of the market, society or government agencies。
Fourth, enterprises have a sound organizational structure, with effective internal management systems and mechanisms for production, distribution, finance, research and development, quality control, labour and personnel。
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