Guiding enterprises to "strengthen their physical fitness", Shanghai establishes a small and medium-sized enterprise compliance management system procuratorate | Compliance | Enterprises
Compliance management is the foundation for high-quality development of enterprises. The Shanghai Federation of Industry and Commerce and the Shanghai Procuratorate jointly held a mobilization and deployment meeting for the creation of a compliance management system for small and medium-sized enterprises in Shanghai, guiding small and medium-sized enterprises in the city to actively strengthen their physical fitness through compliance construction, improve their ability to operate in accordance with the law, regulate governance, and prevent and control risks.
"There are many cases of bankruptcy of small and medium-sized enterprises and private enterprises due to illegal and criminal activities," said Zhou Wanli, Deputy Director of the Shanghai Enterprise Compliance Prosecution Research Base and Associate Professor of East China Normal University. The investigation found that Shanghai enterprises, including small and medium-sized enterprises, attach great importance to compliance construction.
A recent survey conducted among 159 enterprises in the city showed that 98% of them believe that operating in accordance with the law and regulations is "important," of which 63% believe that compliance is "very important.". 61% of companies believe that business and compliance are equally important, and 30% of companies even believe that compliance is more important than business.
In terms of compliance management, it is difficult for small and medium-sized enterprises to rely solely on their own efforts. Li Jianjun, President of the Science and Technology Chamber of the Municipal Federation of Industry and Commerce and Chairman of Shanghai Ruier Industrial Co., Ltd., admitted that small and medium-sized enterprises often feel inadequate in terms of compliance management due to limited resources and resources, resulting in increased risks faced by enterprises. For science and technology innovation oriented small and medium-sized enterprises, intellectual property issues are more likely to occur.
In May of this year, the Municipal Federation of Industry and Commerce and the Municipal Procuratorate jointly issued the Work Plan for the Creation of the Compliance Management System for Small and Medium sized Enterprises in Shanghai from 2023 to 2024, further guiding small and medium-sized enterprises in Shanghai to strengthen compliance management, establish and improve compliance management systems, carry out production and operation activities in accordance with the law and regulations, and enhance risk prevention and control capabilities.
As one of the pilot projects for the compliance reform of enterprises involved in the case launched by the Supreme People's Procuratorate, the Pudong New Area Procuratorate has focused on selecting key areas such as finance, intellectual property, data security, cross-border trade, and ecological environment protection, as well as enterprise related criminal cases with free trade characteristics, to be included in the reform pilot scope. It has initiated the handling of 26 enterprise compliance cases. Chen Ping, Deputy Prosecutor General of the Pudong New Area Procuratorate, said that guiding and promoting the establishment of a sound compliance management system for small and medium-sized enterprises is not only an objective requirement for promoting the establishment of a modern enterprise system and enhancing the core competitiveness of enterprises, but also an urgent need to ensure and promote the high-quality development of the private economy.
Chen Ping said that she will serve as a good "staff officer" for the rule of law, deepen linkage and cooperation with the District Federation of Industry and Commerce, timely understand the judicial needs of enterprises, comprehensively sort out and analyze the prominent problems and weak links in the compliance management of enterprises with frequent and prone corporate criminal cases, and timely prepare and publicly release industry compliance guidelines and a "negative list" of corporate illegal behavior. At the same time, we will promote the construction of an information platform, timely display and promote relevant work experience and advanced models, strengthen the full process management of creation activities, and better serve to ensure the healthy development of the private economy.
Chen Jigang, Deputy Minister of the United Front Work Department of the Xuhui District Committee and Secretary of the Party Group of the District Federation of Industry and Commerce, believes that to promote the compliant operation of small and medium-sized enterprises, it is necessary to integrate multiple resources, improve mechanism carriers, and form a working force. Eight units, including the Xuhui District Federation of Industry and Commerce and the District Prosecutor's Office, established a third-party supervision and evaluation mechanism management committee for the involved enterprises, and passed the "Management Committee Work Measures" to clarify the responsibilities of all parties and promote the legal and compliant operation of enterprises. The next step will continue to carry out various themed activities such as providing legal services to private enterprises and conducting compliance examinations. We will study and formulate relevant industry compliance indexes, fully leverage the active role of professionals and expert teams, and help compliance work become more scientific and professional.
"The rule of law is the best business environment." Zhou Wanli believes that creating a compliance management system for small and medium-sized enterprises will ultimately benefit them. "It can enhance the positive image of Shanghai's small and medium-sized enterprises' honest, trustworthy, compliant, and responsible operation nationwide and even globally, and win more business opportunities for small and medium-sized enterprises."
