Standards for Enterprise Management Control

With economic globalization going further, enterprise risk issues are increasing. Many countries in the world emphasize on enterprise internal control, and a series of regulations and standards are being formulated and implemented by organizations, such as the famous COSO frameworks. In China, enterprise internal control and risk management are also attached great importance and Standards for Enterprise Internal Control has been established. Generally, management control is the process by which managers influence other members of the organization to implement the organization’s strategies (Anthony and Govindarajan 1998). Management control is linked closely with internal control. They are interrelated a lot, but not the same. The emergence and development of the management control is determined by the demand and supply of management control theory and practice. The demand and supply of management control should be matched. All these provide a background of formulating a system of Standards for Enterprise Management Control, especially in China.

China Southern Airlines is an air transport business subordinated to the China Southern Airlines Group, headquartering in Guangzhou. It has 3 branches, 5 holding subsidiaries, 18 domestic business departments and 52 overseas offices, with the total assets of RMB 94.7 billion, and it is listed in New York, Shanghai and Hong Kong. China Southern Airlines has the largest number of the transport aircraft, the most developed route-network and the largest volume of passenger transportation. It has formed a densely covered domestic and Asian airline network with Guangzhou and Beijing as the center hubs at present. The leadership of the company is always stressing that the good condition in the corporate governance and internal control is the most important factor to the steady progress.

Bashan Iron & Steel Co., Ltd. (hereafter Baosteel) is China’s biggest and most modernized iron and steel company. With its comprehensive advantages in integrity, talent, innovation, management and technology, Baosteel is world’s leading company in global steel market. The World Steel Guide has been ranked 3rd because of its comprehensive competitiveness in international steel market, and regarded it as the most promising steel company in future.

As a state-owned enterprise with a hundred years of history in China, Tsingtao Brewery has started to carry out the development strategy of “developing from high point and expanding with low cost” after a series of merger and acquisition since 1996. Thus, it has become a nationwide giant Brewery group with 48 Brewery manufacturing enterprises and 3 malt factories, covering 17 provinces and cities. The production of Tsingtao Brewery is exported to over 70 countries and regions, such as America, Japan, Germany, France, U.K., Italy, Canada, Brazil, Mexico, etc. According to the output ranking in Barth Report (authoritative report in global Brewery industry), Tsingtao Brewery is listed as the sixth largest Brewery manufacturer in the world.

Shanghai Jahwa United Company (referred to as Shanghai Jahwa) is one of the largest local cosmetics companies in China, and was the first company to be listed in domestic daily cosmetics industry. The Company carried out all-round competition with Multi-National Corporations (MNC). It was founded in 1898 and was developed from the original Shanghai Jahwa Co., Ltd. Shanghai Jahwa consists of the original Shanghai Jahwa (Group) Co., Ltd., the Shangshi Daily Chemical Holdings Limited, Shanghai Industrial Investment (Group) Co., Ltd., Fujian Hengan (Group) Co., Ltd., Shanghai Guang Hong (Group) Company and Shanghai Hui Sheng Industrial Co., Ltd.. For more than 100 years, Shanghai Jahwa has always followed the principle of “delicate and dedicated”, which is also Shanghai Jahwa’s commitment forever. Shanghai Jahwa committed to build a Chinese fashion brand and made a great contribution to optimizing and upgrading consumer goods industry at a new starting point and to make Shanghai the fashion capital of the world. In March 2001, Shanghai Jahwa was listed on the Shanghai stock exchange. The company was initially issued 270,000,000 shares, of which Shanghai City SASAC (State-owned Assets Supervision and Administration Commission) directly and indirectly controlled 61.47 %. In December 2011, Shanghai Jahwa completed its overall restructuring; Pingan Group invested RMB 5,109,000,000.00 to acquire all the shares of Shanghai Jahwa. Shanghai Jahwa transformed from a state-owned company into a private company.