SGCC Published Its First White Paper on Law-based Corporate Development

On February 21, 2017, White Paper on SGCC Law-based Corporate Development (2016) was published in Beijing. It's the first white paper providing suggestions for law-based corporate development for SGCC and central enterprises. SGCC Chairman Shu Yinbiao made important instructions. SGCC EVP Wang Min attended the launching ceremony and delivered a speech. Officials from the Ministry of Justice, the State-owned Assets Supervision and Administration Commission of the State Council, the Legislative Affairs Office of the State Council and the National Energy Administration attended the Ceremony and made important remarks.

Mr. Shu Yinbiao pointed out that the rule of law is the basis for the long-term prosperity of the corporation. As a backbone state-owned enterprise with huge influences on national economic growth and energy security, SGCC is an important power in promoting the development of the rule of law of the country. Therefore, it should be a role model in implementing the strategy of the rule of law. Comprehensively promoting an enterprise with "3F5I" under the rule of law is the inevitable path for SGCC in its pursuit for sustainable development ("3F5I" is  the short form of Full compliance of law, full coverage of risk, full control of process, and governace in accordance with law, decision in accordance with law, operation in accordance with law, supervision in accordance with law, protection in accordance with law.

The publication of the White Paper is an important step for SGCC to implement the strategy of the rule of law and improve its own capacity in promoting the rule of law practices. The White Paper is a scientific summary of the experience in building an enterprise under the rule of law and is a guidebook for law education and "3F5I" corporate development. It fully shows that SGCC has been committed to carrying out its political, economic and social responsibility and playing the leading role in promoting the rule of law among central SOEs.

The 50 pages long White Paper with 13,000 characters systematically introduced the concept of corporate development under the rule of law, major steps that have been taken and the achievements that have been made. The White Paper is composed of five parts: Message from the Chairman; the Origin of the Corporate under the Rule of Law; the Development of the Corporate under the Rule of Law; the Achievments of the Corporate under the Rule of Law, and Message to the Future, which provide a comprehensive explanation to the strategy of the promotion of law-based corporate development.

The proposal of "3F5I" provides a creative answer to the question of what kind of corporation under the rule of law should be built. To be more specifically, According to the general requirement of "Full compliance of law, full coverage of risk, full control of process", SGCC organically integrated the requirements of laws and regulations with corporate internal policies to build a long-term mechanism to promote "Governace in accordance with law, decision in accordance with law, operation in accordance with law, supervision in accordance with law, protection in accordance with law". In this way, SGCC is able to organically combine the basic spirit of the rule of law and the principles of corporate management to provide theoretical and practical guidance to traditional state owned enterprises in their transition to modern enterprises. The coordination of observing laws and regulations of the Party and the country and solving bottlenecks in corporate development offers a practical method to achieve law-based corporate management.

After the Fourth Plenary Session of the 18th CPC Central Committee, the CPC Committee of SGCC issued the No.1 Document in 2015 titled Suggestions on Promoting the Development of  Corporate under the Rule of Law in an All-round Way, compiled and implemented the the 13th Five-Year Legal Plan and t the 7th Five-Year Law Education Plan, released and carried out the first Guideline for the Development of Corporate under the Rule of Law and held a contest on knowledge of law-based corporate development with the participation of 770,000 staff.

Besides, SGCC also revised its Articles of Association to include the leadership of CPC as an important part of the corporate governance structure. A universally-applied institutional system featuring top-bottom implementation of the rule of law in corporate governance has been established. The decision-making process and democratic management system of SGCC have been continuously improving. Moreover, SGCC also strengthened its regulation and control over personnel, finance and facilities to ensure that the Corporation operates according to laws and regulations. SGCC is subjected to the supervision of the government and is actively improving its internal regulation and control mechanism so as to build a platform for coordinated supervision. To achieve the end, an operation supervision and control center has been established to realize regular monitoring and control of major business operations, core resources and key procedures.

The White Paper is a systematic summary of SGCCs theories, strategies, organization, plans and actions on the development of the corporate under the rule of law. It, for the first time, in terms of the development of an SOE under the rule of law, answers the question of why and how to promote, what to achieve and what kind of values to share. Therefore, it is set to start a new round of managerial reforms in Chinese enterprises featuring the rule of law, which can help more Chinese enterprises to accelerate law-based corporate development, realize sustainable development and make contributions to the great rejuvenation of the Chinese nation.

The person in charge of Dept. of Legal Affairs of SGCC introduced the content of the White Paper. People in charge of related departments, subsidiaries and branches attended the release.

Source: Department of Legal Affairs, State Grid News

 

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