Building Sustainable Corporate Governance Model MAI Boliang, Executive Director& President China International Marine Containers(Group) Ltd.
Distinguished Guests, Ladies and Gentlemen,
With the latest development of economic globalization, Asia is enjoying its share of economic growth, and China has now emerging as the new engine of global economic growth. Meanwhile, Chinese companies are playing a more and more important role in regional economic cooperation and economic development.
I'm very honored to be invited to this important forum as a representative of Chinese companies and discussing together with other distinguished business leaders on "corporate governance and competitiveness" under the theme of"Asia Searching for Win-Win, New Role of Asia".
It has been proven by history that sound corporate governance is a prerequisite to healthy and sustainable development of companies. Sound corporate governance is not only a critical factor for developing business competitiveness, but also a driving force behind national and regional economic growth. Nowadays, corporate governance has become the focus of business, academic and media.
After over 20 years of opening up and reform, especially after China's accession to the WTO, more and more Chinese companies are participating in international economic cooperation and competing in the global market. Many of these Chinese companies have rapidly grown to be international companies with sound corporate governance in place and gained competitive edge in the global stage. However, many state-owned companies are still facing severe challenges from multinational companies and corporate governance is still an important agenda to be deliberated.
CIMC was started up as an international marine containers manufacture at the beginning of the China's opening up and reform. International vision and philosophy were deep rooted in CIMC due to our continued service and interaction with clients from all over the world. After about 23 years of business development, we have come to a conclusion"accountability and responsibility" shall be common principles for any type of companies. All business strategies shall be applied to reach the goal of strong and sustainable development of the company. At this juncture, I would like share with our distinguished guests today some of our thoughts on the sustainable corporate governance.
Structured Approach towards Corporate Governance
The ultimate goal of putting corporate governance in place is to ensure the sustainable development of the company. The characteristics of a sound corporate governance is the"clear distinction among equity, clear responsibility and common interest" and the principles for corporate governance shall be"trust and win-win". Sound corporate governance ensures accurate decision-making, effective monitoring, flexible management, and fair profit distribution, thus eventually ensures the sustainable development of the company.
Enhancing the core competitiveness is the key in solving the interests' conflicts among stockholders, board of directors and executives. The interests of the public, stockholders, executives are coordinated through concerted manner. Under the guidance of clear management margin, different stakeholders taking different roles and exercising different rights, carrying out different responsibilities and sharing profits proportionately, thus creating a healthy harmonious system arrangement.
Professional Management Team
Professional management team is required to implement the business strategies. Such a team shall be an independent and self managerial team. Sound corporate governance and system arrangement create a viable career development platform for management team which in return ensures the sustainable development of the company.
Common vision and goal are the prerequisite for building a harmonious management team. Unity is the characteristic of such a team. Professional management team ensures a consistent and stable business development philosophy and effective implementation of business strategies. Professional management team shall also assist in creating companies' flexibility in tackling with challenges and taking opportunities.
Corporate Governance with"Accountability& Responsibility" as Core Value
"Accountability& responsibility" shall be the core value for any ambitious company seeking for sustainable development. The core values shall be the guidance in developing business strategies and all management behavior. Otherwise, even the perfect corporate governance structure will fail.
The core value of"accountability and responsibility" requires the company to be focused on sustainable development. The company shall not only create value for its customers and stockholders, but also create values for the public and social community. Open and transparent communication and structured approach shall be the basis for such a sound corporate governance system.
When we look back at the development history of western companies, we can see corporate governance is correlated to the development stage, corporate culture, business characteristics and business environments of specific companies. As a public listed company, under the guidance of the above principles, CIMC shall strive to build a sustainable corporate governance system so as to promote the modernization of global transportation equipments industry. It is also our hope that many more Chinese companies will develop sound corporate governance structure and enhance their competitiveness.
Ladies and Gentlemen, Dear Friends,
The developments of Chinese companies will correlate closely with the rise of China and prosper of Asia. More and more opportunities for future cooperation are emerging against the backdrop of economic globalization in the world. I call on my fellow Chinese companies to reach out to overseas friends and partners and participate actively in the global economic cooperation.
Thank you.