Corporate Credit Management

Credit is the fruit of human civilization. It embodies the fundamental legal and social relations, the required ethic concepts and legal sense for the market economy, and reflects the foundation on which the whole society rely for exchange and development. Market economy is credit economy, and striving for credit is the most important creed in international commercial practice. Credit management plays a core role in modern enterprise management, and it is related to the aspects of planning, purchasing, producing, selling, financing, human resource and information management of the enterprises. Credit management has a history of almost one hundred years in the western countries, while China' s current credit management level is far away from fitting in with the need of situation. After entering WTO, it is an urgent task for China' s enterprises to strengthen credit management so that they can meet the sharp competition.Starting from China' s realities, this article discusses how to enhance China' s enterprise credit management based on international relevant comparison and example analysis. After analyzing the reasons of credibility gap, the article proposes that the government should: (1) enact and perfect the laws and rules relevant to credit management, strengthen the management and execution, and provide good circumstances for the enterprise credit management through perfecting the macro-control system; and (2) on this basis, combine China' s enterprise credit management situation with occidental advanced enterprise credit management theory, and carry out comprehensive and systematic credit management. This article also suggests that enterprise credit management should be built by integrating long-term credit culture construction with internal credit system building.The article consists of six chapters. Chapter 1, Introduction, introduces the problems and consequences therefrom about China' s enterprise credit, compares the credit management situations at home and abroad, then raises the topic to discuss.Chapter 2, Market economy must be credit economy, stresses that credit is the basic norm of market relations, pointing out that the fundamentalsolution to overcome current credit predicament is to build the credit management system and to strengthen the credit management.Chapter 3, Reasons of enterprise credibility gap, discusses the problems from the sectors of macroscopic environment and the enterprises themselves, and tries to find the crux of the problems.Chapter 4, To build enterprise and personal (legal person) credit management systems, discusses the situations of China' s building personal and enterprise credit systems, proposes that the government should: (1) set up social credit management systems as soon as possible, (2) strengthen the execution and surveillance of laws, and (3) provide good conditions for enterprise credit management. At the end of this chapter, some suggestions were proposed from a macroscopic angle.Chapter 5, to build enterprise culture based on credit, reviews the developing course of economic ethics movement in the West, emphasizes the importance of ethics construction, recommends the objective management based on credit led by the leadership and the adoption of credit concept by the managers and the staff.Chapter 6, the building of enterprise credit management system, analyzes the functions and scopes of credit management, discusses the modes and functional framework of credit administrative organs in China, proposes the building of credit management chain corresponding commodity trade chain. This chapter also divides enterprise credit management into three phases梑efore, during and after the activities, urges to make credit management more clear and specific. Finally, the article suggests building a set of standardized credit management system within the enterprises, and to make keeping promises a conscientious and rational choice of enterprise management and administration.