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Build an enterprise immune system

what is internal control? The original meaning is to contain each other, so that no one can cheat. Any organization is composed of people with different interest subjects, and the pursuit of the interests of its members is often inconsistent with the overall requirements of organizational development. The fundamental task of organizational management is to make every member of the organization consciously put the pursuit of their own interests under the premise of ensuring the basic interests of the organization. This main mission of management is difficult to achieve only by some moralized preaching and abstract principle guidance. Therefore, it is necessary to establish a basic system to effectively regulate the behavior of each member of the organization in pursuing their own interests, so as to make it consistent with the growth of organizational interests. This system is called internal control system. In short, internal control ensures that every member of the organization pursues his or her personal interests honestly. Although there are countless definitions of internal control in the theoretical circle, I believe that the existing definitions are too theoretical, not popular, not easy to understand, and do not reveal the essence of internal control. The main purpose of this article is not to strictly study the definition of internal control after all branches are completed and put into operation in 2022, but to let readers understand the essence of internal control in the most clear and concise language. Therefore, we can understand internal control as "the system and method to ensure that every member of the organization seeks personal interests openly". Generally speaking, the internal control of a unit is like the immune system of a person. If a person's immune system function is impaired, it will be very troublesome; If the immune system is paralyzed, there may be only a dead end. Similarly, if a unit lacks a basic internal control system, it will be very difficult to survive, not to mention sustainable development

what kind of fundamental problems should a unit's internal control solve? According to the above analysis, we can draw such a conclusion: it is used to solve the contradiction between natural persons and legal persons. As we all know, units generally exist as legal persons, but legal persons are often composed of many natural persons, who play different roles in legal persons. They may be shareholders or creditors; Perhaps the chairman and general manager; Maybe department head or business manager; Maybe it's a technical backbone or an ordinary employee. Regardless of the different roles of natural persons in the unit, as a natural person concerned in the sense of internal control, there are various direct connections with the unit in terms of interests, and there are generally two very obvious insurmountable limitations: the limitation of life and the limitation of tenure. Any natural person's life in the whole society is limited, and his or her tenure in the unit is always limited. They always hope to maximize their own interests in the limited life or tenure. There is nothing wrong with this motivation to pursue the maximization of their own interests. The problem is that this impulse to pursue interests, if not controlled and guided, is likely to become the main factor that damages or even destroys the long-term interests of the unit. The establishment of internal control system is to try to provide a standardized way to maximize the personal interests of each natural person in his limited life and tenure, and finally achieve the win-win outcome of the interests of natural persons and legal persons. The reason why there are such problems in the development of Chinese enterprises and the sudden death of some private enterprises is directly related to our lack of a basic system to effectively coordinate the interests of natural persons and legal persons. The smooth development of Chinese enterprises often depends on the personal ability of managers, especially the moral level. Once there is a problem in the moral aspect of managers, the development of enterprises will come to an end. Therefore, Chinese enterprises, especially state-owned enterprises, are facing not only market risks and financial risks, but also very serious internal control risks in the development process of LDPE blown film recycling particle 5 (2) 0 weight fraction industry. If you choose an operator with strong ability and high morality, the enterprise may have a good development prospect. Once you encounter an operator who lacks basic moral quality, its extremely high business ability is absolutely likely to become a disaster for society and employees. If the investor is not satisfied, he can only rely on the two ways pointed out by Ernest Dell: either sell shares (this road is often impassable in China), or jump into the river. According to the game theory, even if the operators have high moral standards, if they are surrounded by operators with low moral standards, or even if there are few operators with low moral standards, but they cannot be punished in time by the society, then they are absolutely possible to imitate the profit-making practices of operators with low moral standards in the next round of business practice. In this way, the whole social economy will be in a state of chaos without order in people's traditional impression. At present, there are many problems in the business community in China, and many reform measures have been introduced with little effect, which is consistent with the fact that Chinese enterprises generally lack a basic internal control system, resulting in the fact that fraudsters often benefit. Therefore, establishing and improving the internal control system in our country is by no means a fashionable slogan, nor an abstract principle requirement, but a very pragmatic solution

the importance of internal control for Chinese enterprises is being recognized by the Chinese people. From a macro perspective, the construction of internal control norms has been incorporated into the track of China's legal system construction. Article 27 of the accounting law of the people's Republic of China clearly requires that "all units shall establish and improve their own internal accounting supervision system." In recent years, the Ministry of finance has taken the construction of internal control norms as an important work in the construction of China's accounting legal system. It has successively issued the "basic norms", "monetary funds", "procurement and payment", "sales and collection" and other documents of the "internal accounting control norms", and will gradually establish China's internal accounting control norms system. The Chinese government attaches such importance to the construction of internal control norms, which is probably unique in the world today. Generally speaking, people from all walks of life in China seem to have a very consistent understanding of the need to strengthen the construction of internal control system. To prove this, It is advisable to quote the first paragraph of the General Preface of the proceedings of a quite authoritative national high-level seminar on internal control: "Internal control has always been the institutional basis for the normal operation of all organizations and institutions, including enterprises. It is a control system formulated and implemented by a unit to ensure the quality of accounting information, protect the safety and integrity of assets, and ensure the implementation of relevant laws, regulations and rules. Internal control is the basis of all management work of enterprises and the guarantee for the sustainable and healthy development of enterprises. Management practice

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