Case Study On The Integration Of Law And Business In WY Group Co.Limited

In October 2014,the Fourth Plenary Session of the Eighteenth Central Committee of the Communist Party of China(CPC)was held.For the first time,in the form of the Plenary Session,thematic research and deployment were carried out to promote the rule of law in an all-round way.And comprehensively managing enterprises according to law is an important part of overall rule of law.It is more urgent and important to manage enterprises according to law,especially those construction enterprises which involve a wide range of legal norms and operate complicated legal relations.In the late last century,state-owned construction enterprises have a very strong color of planned economy,task allocation is the source of project undertaking,administrative order is the way of project management,no traces of modern rule of law can be found in the whole production chain.At the beginning of this century,with the market economy sweeping across the entire industry,engineering tasks began to be self-searched,production factors must rely on combination,management media are all turned into contracts,and the existing internal management resources of enterprises can not find a matching component.In order to adapt to the new changes in the market,the management modes such as "internal contract" and "affiliated management",which aim to maximize the stimulation of subjective initiative,have been widely used by construction enterprises,bringing about a highly active construction market,but also causing various disorders in the construction industry.Great business risks are difficult to shift with a paper liability;great interest make some contractors break through the bottom line of morality,joint with suppliers to poach from the enterprise,or even abscond with the funds.These two modes of operation are based on the lack of comprehensive and objective analysis of product characteristics,the lack of necessary scientific evaluation of management activities,and the lack of proper institutional norms for the operation of power.They are typical "rule by man" management.The direct consequence is the unequal distribution of power and responsibility,and mismatch of contractual rights and obligations.The background story of this case is WY Group Co.,Ltd.in the face of external shocks of the market economy,improper choice of internal contracting and affiliated management mode of enterprise management,and thus encountered the downward crisis of Waterloo-style and the experience of debt crisis in all directions.In this context,WY Group Limited began to think about what kind of business model is suitable for the enterprise.what kind of management concept,management methods,management process and organizational structure do the enterprise needs? Should the company adopt centralized control or continue to authorized contracting? Should the company adhere to the tradition of "humanization" and "randomization" management,or fully implement the "institutionalization" and "compliance" management system in an all-round way? Eventually,Mr.Cheng Qiang,the new general manager of WY Group Co.,Ltd.and a graduate of law major,answered these questions.He believes that the lack of the concept of the rule of law and norms of the rule of law,leading to the unprincipled transfer of power and unrestrained abuse of rights,which is the root cause of the problem.To this end,under his leadership,WY Group Co.Limited started with the establishment of its own legal affairs department and legal professional team,resolutely using legal means to actively respond to litigation and successfully solving the debt crisis.By legal thinking,then objectively and scientifically analysed the internal and external characteristics of the industry,in-depth excavation of the causes of frequent litigation cases,and find problems in enterprise organization and management activities.What had to be done were to guide enterprises to reengineer centralized organizational model with the concept of legalized authorization of power balance,power and responsibility equivalence,power and responsibility legality and procedure legality.Key powers such as contract right,cost control right and fund allocation right are separated from the project department.At the same time,taking contract as the main line,it should lay out the legal risk control system,reestablish the business management process,revise the business management system,improve the guarantee system and supervision and prevention system of the business management system,comprehensively build the code of conduct for jurisprudence and business,continuously cultivate legal business culture,and realize the integration of law and business.Finally,Mr.Cheng Qiang led the enterprises out of the predicament and moved towards a healthy,sustainable and comprehensive development road.The output value,profit and assets of enterprises have kept high growth for more than ten years,which has become a model for similar enterprises to learn.