Research On Coordinating Mechanisms Of Corporate Governance Being Inlaid With Party Building Of National Enterprise

After the Third Session of the Eleventh Central Committee of the Party in 1998, our country started a deep economic system reform. Up to now, the national economic system has approximately changed from planning economy system into market economy system, and is increasingly heading for adjustment and perfection. In the process the reformation of state-owned enterprises is the center for establishing market economy system, while the aim of reforming the state-owned enterprise is to establish modern enterprise system and the key to establish modern business enterprise lies in valid corporate governance.The environment for state-owned enterprise governance in our country is under socialism political system. This is the most basic and important factor when studying the state-owned enterprise corporate governance. "Economic foundation determines superstructure and superstructure must go on with economic foundation" is the basic principle of Marxist historical materialism. When we merge market economy with socialism, we should on one side make use of high-efficiency of market economy in arranging resources and developing economy, and should on the other hand overcome irregularity of the market economy to establish market economy system under the following principles of socialism such as justice, democracy, freedom and common wealthy etc. The essence of socialist market economy is not bureaucratic economy and commanding economy. It is a market economy of the people and an economic system under which people take charge of economic activities to create wealth and realize common wealthy. The Forth Session of the Sixteenth Central Committee of the party points out a target that is harmonious society with socialism. It means the aim of our country and party is well deal with the complex relationship. So state-owned enterprises is emphasis. We must put political system into consideration when we'lltry to solve the deep problem and construct the effective construction of corporation govern of state-owned enterprises. During the revolution from planned economy to market economy, the Communist Party of China has a important role in country and society. We know from "harmonious society with socialism" that the principle of giving priority to efficiency with due consideration to fairness must be observed during the past time. Now, the new government is changing into lay equal stress on efficiency and fairness. The environment of this economic system determines to think about the special of socialist system as the feature of market economy when constructs the corporation governance in state-owned enterprises. We point out put policy building into state-owned enterprises' construction as follow.The characteristic of corporate governance being inlaid with party building is the embedding of party building elements in traditional corporate governance. In this approach, Party's restrainting effect is added to governance mechanisms. By utilizing party spirit or lofty moral standards of party members and their unique ideological level of taking no account of personal interests and serve people wholeheartedly, the restrainting effect will be long-term.Thus, there is no need to excessively worry about the influence of market short sight in market-oriented American-British pattern; from a certain extend, the corporate governance being inlaid with party building remedies the common defect problem of market system regulation in organizational/dominating-oriented Germany-Japanese pattern so as to efficiently solve tract problem and be the corporate governance more advanced than the above two mentioned patterns.Undoubtedly, corporate governance being inlaid with party building will be the most efficient corporate governance for China's state-owned enterprises/in which decision mechanism, inspection mechanism and incentive mechanism integrate to form its operating system. The vital premise of corporate governance being inlaid with party building is the consistence between the general working goals of party building in enterprises and the general goal of enterprise development .The embedding of party building in decision mechanism is completed by the combination of secretary of the party committee and board chairman; the embedding of party building in inspection mechanism is realized by the direct intervention of party working committee in the work of board of supervisors; The embedding of party...