D. Carlton Rossi

The_Constitution




                                    


私营企业主立宪制度  Private Entrepreneurs Constitutional System

孙大午 Sun Dawu.

所以,我要探索一种制度,这就是大午集团的私企立宪制度。这个制度对于企业接班人,它既不是继承制,也不是培养制,而是一种选拔制度。接班人需要德才兼备,需要从实践中锻炼出来。如何让他们成长起来,一个是通过思想品德教育,一个是锻炼的途径,更重要的是要有一种制度的约束,需要制度的环境和氛围来塑造他们的人格。


I want to explore the Dawu Group's Private Enterprise Constitutional System. This system for business successors is neither of inheritance nor culture, but rather of selection. Successors need both ability and integrity forged from practice. How to let them grow up? One way is through the exercise of ideological and moral education. More importantly, there must be a system of constraints along with an  institutional environment and atmosphere to shape their personality.





                          
                                  


Presentation at the International Conference on Corporate Governance in Asia and China, March 11, 2005


Hongbin Cai (UCLA)

Qiao Liu (HKU)

Geng Xiao (XKU)


Does competition encourage unethical behaviour? The case of corporate profit hiding in China.


Sun Dawu and Ex CEO of Dawu Group

"My group's fixed assets amount to over RMB 100 million, but I could not get any bank loans".


Concern #2

Firms that have been consistently discriminated against behave differently.

(Partial Quote of Text)

2. Successfully created a model that was later called "Dawu model". Never borrow from banks (because you cannot), borrow directly from your fellow villagers. Has borrowed RMB 159.89 million directly from more than 3185 households.

4. Arrested and charged with a crime called "illegal deposit taking" in early 2003; his case immediately drew tremendous amount of media attention, which made him a hero, of course in China's informal sectors.

5 His eldest son succeeded him and became the CEO of Dawu Group; his first priority, as he claimed, is to establish good relationship with local government and try to get loan from the banks, which his father and failed for past 8 years.


http://www.baf.cuhk.edu.hk/research/cig/pdf_ ... age%20Unethical%20Behavior.ppt

http://www.baf.cuhk.edu.hk/research/cig/pdf_download/Does%20Competition%20Encourage%20Unethical%20Behavior.ppt.


A Project Proposal


The Financing Environment of Private Enterprises:

from the Sun Dawu Case, July 31, 2003


Contents:

The defects of current financing system.

The necessity and feasibility for opening financial market.

The relationship between government and private enterprises.

The barriers of current law to the development of private enterprises.


Experts:

Jiang Ping (Prof. Chinese University of Political Science and Law)

Sheng Hong (Prof. Unirule)

Bao Yujun (Vice Chairman, National Association of Industry and Commerce

Chen Ping (Prof. Peking University)

Zhou Zhenxiang (Prof. China Youth College Of Political Science, deceased)

Zhang Shuguang (Prof. Unirule)

Li Shuguang (Prof. Chinese University of Political Science and Law)

Zhu Jiuhu (Lawyer)

Zhang Xingshui (Lawyer)



Impact:


Mr. Sun Dawu 孙大午 got out of prison on probation. The survival environment of private firms attracted more focus.




Closet Liberal or Conservative

Reuters, September 27, 2005

Benjamin Kang Lim


"The leadership is using very moderate methods because domestic contradictions have deepened and cannot be resolved," Wu Guoguang, a professor of political science at the University of Victoria in Canada, said referring to social tensions.


On the contentious issue of media and speech freedoms, too, there have been rare displays of official tolerance. Internet dissidents Liu Di and Du Daobin were released last year after months of detention, and private entrepreneur Sun Dawu, accused of illegally taking deposits, was spared imprisonment in 2003.




A Hero To Many, Freed

World Briefing | Asia: China: Businessman

by Chris Buckley (NYT)

October 31, 2003


A court in northeastern Hebei Province convicted and then freed a rural businessman who has gained a national reputation as a modern Robin Hood. Under a law that many considered to be vague, the businessman, Sun Dawu, 50, was accused of running an illegal bank. To raise money for his agriculture business, Mr. Sun had accepted money from his employees, paying them interest rates above those of state banks. Soon even non-employees were making deposits. The court found him guilty but ordered his immediate release, a decision hailed by advocates of precise definitions for Chinese laws. ''The criminal code still needs clearer explanation,'' one of his lawyers said, ''but this is one step forward.'' Chris Buckley (NYT)

http://www.nytimes.com/2003/10/31/international/asia/31BRIE1.html



The Grandson Great Noon


一个民营企业家的意外被捕揭示了中国金融体制的深层次悖论,也凸现出政治民主改革对建立公民社会和塑造商业环境的意义


2004527日,当大午集团的员工们坐在阶梯教室里看凤凰卫视和中央电视台对集团的相关报道时,看到妻子坐在那里哭,孙大午还是感慨万端,写下两首诗。前言为:阶梯教室看光盘,纪念蒙难一周年。满腔愤怒无呐喊,妻哭无泪诗两篇。其一曰:回首噩梦已经年,亲人仍旧泪涟涟。别说晴天愁阴影,本分农民耕田难!自由劳动生财富,淳风化雨多善男。不是大午花一点,万国遍呈桃花园。


http://www.info.china.alibaba.com/news/detail/v5000060-d5622927.html

http://info.china.alibaba.com 2006-01-01 07:00




大午改制 The Great Noon Changes the System


报记者章轲发自北京


  电话那端的孙大午语调低沉但不失热情。


  噢,你是章轲啊。我每天都在公司上班,除了关心中央近期有关非公经济发展的文件精神外,更关心大午集团改制的事。孙大午对记者说,谢谢你的关心,也欢迎你再次 来徐水坐坐。


  这天是2005810日。看书、上网和滑旱冰


  今年50岁的孙大午曾是河北徐水市大午集团董事长,市养殖协会会长,也是探讨中国民营企业发展和民间金融问题时难以回避的人物。2003527日,他因非法吸收公众存款罪入狱,当年111日走出看守所。


  回到集团后,孙大午把整个集团都交给儿子去管理,自己退到后台。但他每天仍然会到原来的办公室里办公、看书学习。


  我刚看完《杰斐逊集》,对我的启发实在是太大了。孙大午对记者说,书上有关权力的分割和制约对大午集团的改制非常有帮助。家族企业靠血缘、亲缘、地缘相维系,这是一种宗法式的管理,必须向现代的公司治理转型。


http://finance.sina.com.cn/chanjing/b/20050817/08501893527.shtml">The Great Noon Changes the System

2005-8-10 Finance.sina.com.cn



From dirt-poor farmer to entrepreneur, Sun Dawu in many respects is a model of what can be achieved in today's China.


But wealth did not come easily. In fact, Sun was detained for six months in 2003, convicted of running an illegal underground bank and given a suspended prison term and a hefty fine.

Through it all, Sun says he has been guided by the teachings of the ancient philosopher Confucius.

Now, at the age of 51, Sun is back with the food production he founded two decades ago. His business acumen has earned him nearly 3 billion yen during that time.

Sun cites the Confucian saying, "The people must be affluent."

And his investors--the villagers and farmers who sell their produce to his Dawu Group companies and invest their cash in his underground bank--certainly agree.


"http://www.asahi.com/english/Herald-asahi/TKY200603080136.html">Asian Entrepreneur Guided by Confucius is Making a Difference


by Keiko Yoshioka

The Asahi Shimbum

March 08, 2006










China's First "Family Business Constitution"

In 2004, Sun Dawu investigated various management systems for his business. These included joint-share, senior joint-share and family joint-share systems. However, he foresaw conflicts between individual interests and responsibilities.  As a result, he devised the first Family Business Constitution in China which separated the rights of ownership, decision-making and operations.

 

Sun drew upon many outside sources in order to devise a sustainable development of the family business.  He was inspired by lessons to be learned from The Incident at Xuanwu Gate in the early years of the Tang Dynasty.  He also looked at the Central Government System of Three Councils and Six Boards in the Sui Dynasty. His research included both the Constitutional Monarchy in the U.K and the Separation of Powers in the US.

 

As a result, Sun Dawu designed a Family Business Constitution.  This was intended to create a stable system in which "the three powers could co-exist while checking and balancing each other at the same time" according to Professor Yuping Du.  The Constitution is the bedrock of the system.


D. Carlton Rossi





Constitutional System




The family enterprise adopted a unique corporate citizenship culture. In the Dawu enterprise people were encouraged to have a kind and gentle disposition and refined manners, to believe in justice and truth and to act with humanity and reason.  Sun insists that power and money only embody wealth, not the value of life; instead, the value of life exits in effort, knowledge and devotion.  Sun believes that the people who dare to take responsibility are the real bosses.

Family Enterprise in the Asia Pacific: Exploring Transgenerational Entrepreneurship in Family Firms

Kevin Au, Justin B. Craig, K. Ramachandran, Elgar Publishing, Northampton, Massachusettes, 2011, page 62

Case Study Four, The Sun Family (Dawu Group): Passiong the Helm to the Wise, Bing Ren, Bin Yang, Ya Li



Sun Dawu is a peasant turned entrepreneur who criticizes government policies that discriminate against peasants and rural industries.  When his criticism became too harsh the government detained him. This aroused a big wave of appeals and petitions from university students, professors, journalists and public intellectuals challenging the basis of his detainment. Eventually the government had to water down its case and find a face-saving excuse to issue a relatively light punishment on Sun.

China's "Peaceful Rise" in the 21st Century: Domestic and International Conditions








"Sun Dawu hoped that his employees could consume in Dawu City instead of saving their money in banks.  Therefore, people could turn individual wealth into community wealth shared by every member"

W. Glenn Rowe and Laura Guerrero, Cases in Leadership, Third Edition, Ivey Publishing, Western University, London, Ontario: 2013, p.477



"Sun also studied carefully the "Constitutional Monarchy" in the United Kingdom, the "Separation of Powers" in the United States, and the "Central Government System of Three Councils and Six Boards" in the Sun Dynasty in ancient China".

K. Praveen Parboteeah and John B. Cullen, Business Ethics, p. 294





Capitalism with Chinese Characteristics

The key to getting the China story right is to recognize the existence of two Chinas -– an entrepreneurial rural China and a state-controlled urban China.

CAMBRIDGE UNIVERSITY PRESS
Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo, Delhi

Cambridge University Press
32 Avenue of the Americas, New York, NY 10013-2473, USA

Evolution of capitalism in China is a function of a political balance between two Chinas - the entrepreneurial, market-driven rural China vis-à-vis the state-led urban China. In the 1980s, rural China gained the upper hand but in the 1990s, urban China gained the upper hand. Although China made notable progress in the 1990s in terms of FDI liberalization and reforms of SOEs, this book assigns greater weight to the rural developments in determining the overall character and the pace of China's transition to capitalism.


Many economists rely on GDP data to formulate their view of Chinese economy. The tale of the two decades is not reflected in the GDP data but is reflected in the household income data (obtained through surveys). Rural household income grew substantially faster in the liberal 1980s than in the illiberal 1990s. Also social performance deteriorated in the 1990s as well.

© Yasheng Huang 2008


 





Individualisation and Politics in China: The Political Identity and Agency of Private Business People

Authors: Delman, Jørgen; Yin, Xiaoqing

Source:   European Journal of East Asian Studies, Volume 7, Number 1, 2008 , pp. 39-73(35)

Publisher: Brill

Bottom of Form

 

It is argued that informal political agency is part of the political dynamics of the nexus and that it develops through critical tension between private business people and the autocratic party-state. This is illustrated through the case of Sun Dawu, a Hebei businessman turned political activist.

 






Family Enterprise in the Asia Pacific: Exploring Transgenerational Entrepreneurship in Family Firms

Kevin Au, Justin B. Craig, K. Ramachandran, Elgar Publishing, Northampton, Massachusettes, 2011, page 62.

Case Study Four, The Sun Family (Dawu Group): Passiong the Helm to the Wise, Bing Ren, Bin Yang, Ya Lit

The family enterprise adopted a unique corporate citizenship culture. In the Dawu enterprise people were encouraged to have a kind and gentle disposition and refined manners, to believe in justice and truth and to act with humanity and reason.  Sun insists that power and money only embody wealth, not the value of life; instead, the value of life exits in effort, knowledge and devotion.  Sun believes that the people who dare to take responsibility are the real bosses.






Sun Dawu 2014-09-16 17:22

I feel very good about traditional Chinese culture, but this is not only about how the traditional culture is reflected in Confucianism, Buddhism and Taoism, and will never exist only in schools and books, more traditional culture should be reflected in the home, family, clan, and ancestral heritage.  A man without culture is not terrible, terrible is uneducated. Culture can be derived from the schools, from books, but education must come from the family, from the family environment.
 

 孙大午 2014-09-16 17:21 于 北京 通过网站

 我 感觉中华传统文化非常好,但这种传统文化绝不仅仅体现在儒释道,也决不仅仅存在于学校和书本,更多的传统文化应该体现在家庭、家族、宗族、宗祠传承上。一 个人没有文化并不可怕,没有教养才是可怕的。文化可以来源于学校,来源于书本,但教养一定来源于家庭,来源于家族环境。

 Note:  It is highly inadvisable that one visits Chinese blog sites which may at a minimum dismantle firewalls and deactivate anti-virus programs.






Business Ethics

By K. Praveen Parboteeah, John B. Cullen, Routledge: New York, 2013, page 294



The core concept of Sun Dawu’s “Family Business Constitution” was separating the rights of ownership, decision-making and operations thus creating a stable system in which the three powers could co-exist while checking and balancing each other at the same time. The constitution was the foundation of the system and was placed at the top of the “Family Business Constitution” hierarchy.



China's "peaceful Rise" in the 21st Century: Domestic and International Conditions
Edited by Sujian Guo, Ashgate Publishing: Burlington,VT, 2006, page 125.


Hebei Dawu Group: Building the First Family Business Constitution in China





Sun Dawu is a peasant turned entrepreneur who criticizes government policies that discriminate against peasants and rural industries.  When his criticism became too harsh the government detained him.  This aroused a big wave of appeals and petitions from university students, professors, journalists and public intellectuals challenging the basis of his detainment. Eventually the government had to water down its case and find a face-saving excuse to issue a relatively light punishment on Sun.


China’s laws also contain extremely stringent rules on private enterprises. This popular saying vividly illustrates the problem: “[If you want to] find fault with an enterprise and it doesn’t evade taxes, check if it’s operating illegally. If it’s not operating illegally, check its registered capital. If its registration isn’t fake, check if it has illegally resold land. No matter what, there are nearly a hundred accusations that can be used against enterprises in China today!”

Beyond these, other common charges include “illegal deposit taking” levied against Sun Dawu, the owner of Hebei Dawu Farming and Stock Breeding Group, several years ago, and “fraudulent fund raising” directed against the self-made Wenzhou billionaire Wu Ying last year. Because the boundaries for these charges are ambiguous, they can easily be used to crush private company owners.

 

October 15, 2012  China Economic Review  Yang Junfung

www.chinaeconomicreview.com/crowded-out




                                                                                                                                                                                                                        

大午集团的企业指导思想

不以赢利为目的;   

而以发展为目标;   

以共同富裕为归宿。   


Dawujituan corporate guidelines 

Not for profit;

And development as the goal;

Common prosperity as a destination.

                 




                                           
                  
                       
 

Atypical Entrepreneur Sun Dawu

Deng Chunya, September 04, 2009

 

非典型企业家孙大

邓纯雅 | 2009-04-09 10:05

 

In 2004, under the leadership of Sun Dawu, the Dawu Group began the preparatory work for a private constitutional system which came into effect at the end of 2005. Decision-making and enforcement powers were given to a democratically elected president and general manager.  In leading his village to prosperity the media described him as a “fighter for the entrepreneur” and for the introduction of a private management system he is described as a “pioneer”. Sun Dawu seems to have gone beyond the ordinary entrepreneur through a normal road.  Some say he is an alternative entrepreneur, some say that his body has magic, but there is no doubt that his path is not just an option, perhaps it is a necessity.



Chinese version

http://www.chinavalue.net/Finance/Article/2009-4-9/169491.html








A reader has asked me a question.  However, I’ve not been able to quickly respond to this question during the month of October because I could not view my website on any browser due to external restrictions.  A third party script restricted access to my website. Furthermore, the Adobe Flash program was blocked. Finally, several viruses were placed on my site which disallowed all my submissions.

The question reads as follows.

“Why did Mr. Sun Dawu create his unique corporate government system for his family business?”

 

I refer the reader to the following article.

CORPORATE GOVERNANCE

Constitutional Monarchy at a Chinese Agrobusiness

By Zheng Chu

Published: 2009-01-15

 

From Nation, page 11, issue 401, Jan 5, 2009

Translated by Zuo Maohong

Original article: [Chinese]


   

大 中 小

共有0条评论

布日期:2009-01-05

作者:

大午集:“君主立”四年

 

This provoked Sun into thinking how he should select and train the right successor. His wife had the same worry. "Is it possible to design a system that can keep the company developing and our kids safe at the same time, a system that allows them to participate in business if they have the ability and still enjoy a happy life if not?" she asked.

 

That was the original intention of his "constitutional monarchy" system, Sun told the Economic Observer.

 

However, in order to get a direct answer the reader should either email, blog or visit Mr. Sun in person.  I can only provide my impressions.

I believe his primary motive for establishing a corporate governance system is his desire for permanence.  He may see that everything is changing and that it may not be changing for the good.  He wants to set-up a business that will last—and change with the times.  This business will last at least several generations. The goal is one hundred years or approximately three generations.

Why is it necessary for a business to have longevity? Positive moral values should be developed over a long period of time. They are taught by one’s parents and grandparents, teachers, spiritual leaders and fellow co-workers.  They are passed on from one generation to another generation and from one business decade to the next.  It takes many generations to produce morally superior individuals in their private and public life.

 

The model which Sun has designed differs from other ones which are “short term” oriented and pursue different objectives.  The western business model merely looks at the next quarter. The emphasis is on profits rather than people.  The environment takes second place to profits.  The eastern business model prefers five year plans so the term is intermediate.  This business model seems to be capitalism on steroids.  Money is the measure. People are counted, but don’t count. The environment is destroyed.

Sun’s business model is long term and people oriented. The profits are there, but they are of secondary importance. People are first: profits are second. Its term is several generations rather than months or a few years.  It takes this long for the model to instill Confucian values in his family and what might be called his extended family. However, it is not just Confucian values that are supported.  It is traditional Chinese values or Confucian, Daoist and Buddhist values. Traditional poetry is taught at the private school that Sun has built. The environment at Dawu City is improving.  A service industry is developing with the establishment of a water park and hotel.  The air is cleaner. The water is cleaner with high standards set and met by a water business.

There are three projects being contemplated.  They are a large hospital, shopping center and sports stadium.  The outline of the 5000 seat sport stadium can be viewed at the old sports field and thousands of bricks are stacked to form a large rectangle.  It looks like a spring operation.

The corporate government system is designed for a family farm business.  Generally speaking, in the west, it is difficult for farm families to hold the younger generation to a farm business.  The city takes them away. In China, there is a massive migration of peasants to the city. The children lose values, guidance and direction. They lose themselves.  Sun’s model holds the family and farm business together.  The younger generation chooses to live in the countryside with the family. They are rooted on the land. 

It is natural in a family business that family members are relied upon to shoulder the burden and responsibility of the business.  However, Sun realizes that the business may atrophy if management is exclusively his family.  Highly qualified non-family members are encouraged to participate in the management.  This serves as one of the checks and balances of the system.  It brings about an infusion of new ideas to invigorate the decision-making process.  Workers take part in the process through their vote. All are wealthy because they are held together by moral values, held accountable to a binding written constitution and in all probability also hold land and/or are closely connected to the land. 

There are regular elections held for several reasons.  First, it prevents a concentration of power which ensures the system’s longevity.  Second, it gives employees a chance to voice their opinion, shape their own destiny and determine the direction of the company. Third, it makes for happier, richer and more productive employees.

The exact name of the system (in translation) seems to have undergone a change. In the past it was called by some as a Constitutional Monarchy System.  It has also been popularly referred to as a Family Business System.  Finally, it may perhaps now be called a Corporate Government System. 

However, I might prefer the word “governance” to replace “government” since the word government tends to have a political connotation.  This is strictly a corporate system.  According to Wikipedia the term governance with respect to corporate organizations applies to both

  1. Laws and customs (rules) applying to that direction

 2. The manner in which boards or their like direct a corporation




D. Carlton Rossi







                                 


                                 



China Update No. 2/2017 (January 20 – February 2, 2017)

Mercator Institutue for Chinese Studies MERICS


POLITICS, SOCIETY AND MEDIA

Internet censors shut down liberal economic website


China’s censors have cracked down on the website of a famous liberal economic think tank in an apparent attempt to silence critical voices ahead of the National People’s Congress in March and the 19th Party Congress this fall. The website of the independent Unirule Institute of Economics (天则经济研究所) was one of 17 sites that were shut down by the Beijing Internet Information Office on January 21. The social media account of the institute’s founder Mao Yushi (茅于轼), winner of the 2012 Milton Friedman Prize for Advancing Liberty, was taken down as well.

According to official explanations, the websites’ licenses were revoked because they had allegedly published pornographic content and false news. But at least in the case of the independent think tank and its founder this appears to be a formal pretext.

The site was shut down two days after Mao Yushi had criticized the President of the Supreme People’s Court, Zhou Qiang, for rejecting judicial independence as a “flawed Western concept.” Mao had also published a critical commentary on President Xi Jinping’s speech at the World Economic Forum in Davos.

The Unirule Institute is one of the few remaining independent think tanks in China after many of them had been closed over the past two years. The institute was one of only nine Chinese organizations in the University of Pennsylvania’s annual Global Go To Think Tank Index Report. Even China’s official People’s Daily had reported on the ranking.


https://www.merics.org/fileadmin/user_upload/downloads/China-Update/MERICS_China_Update_2_2017_EN.pdf




                      


SHENG Hong: The Name of Unirule is very suitable


When Unirule was created, we were not aware of the classical usage of “Unirule”, just using “Unirule” as a short version of “rules between Heaven and Earth”. It sounded suitable, and was consistent with our passion for institutional economics and concern with institutional change. Afterwards in The Book of Songs, we found the poem “Tian Sheng Zheng Min, You Wu You Ze”, which means “People are created by God, and naturally there would be things and rules”. That is suitable for our understanding of institutions: in human society, institutions would be generated naturally, and they are the spontaneous order.

Later, in The Book of Changes we found the sentence “Qian Yuan Yong Jiu, Nai Jian Tian Ze”, in which we first found the classical usage of “Unirule” as a whole word. As Mr. Nan Huaijin explained, the sentence means that Heaven and Earth generated rules, never demandingreturn, which was precisely our definition of Unirule and very close to our ambition.

After reading more literature, we found that this sentence is a classical one, commented and discussed by ancient scholars of past ages. In Song Dynasty, Yu Yan said, “Unirule is natural law” and “the natural law has no mind”. Yang Jian said “Unirule means God’s activity, and human activity is not Unirule”. That is to say, there exist the ways of Heaven, which are beyond the wisdom of human beings. Only by trials and errors, can human beings understand Unirule and follow the way of Heaven.

Nevertheless, people should not give up exploring “Unirule”, not only because of curiosity of human beings, but also because in that kind of society where the ways of Heaven are followed by people as possible as they can, everyone will feel happier and the whole society will be more prosperous. To comply with the ways of Heaven is the origin of Chinese civilization. Exploring “Unirule” becomes their everlasting task, for only it is beyond the wisdom of human beings. So, Unirule Institute of Economics researches institutions and cultures, which is a modern continuation of this ancient and perpetual cause.

Furthermore, since Unirule is the rules beyond human beings’ wisdom, the reality of human society is always flawed, and the individuals within the political structure are facing limitations. To overcome this problem, we should first acknowledge the infinity of Unirule as well as the limitation of secular government and the specific political figures. Then we should explore an institutional structure to hamper the secular government and the specific political figures and amplify the virtue of each society member. This kind of approach is constitutionalism.

It is generally believed that constitutionalism originated in the West and plays an important role in Christian tradition. If not complying with the “Justice of God”, the secular government has no legitimacy. Similarly, the ways of Heaven and Unirule have given us spiritual resource of constitutionalism. The emperor was regarded as an official, who should be guided and constrained by the ways of Heaven. Therefore, there should be someone who has a deeper understanding of the ways of Heaven than other individuals and groups, which is called “the Heaven shows the signs, and sages transform them into rules.” Understanding the ways of Heaven through inspiration by nature, cultural traditions are formed. The group who bears the tradition, as Mr. Yu Yingshi said, is recognized as representative of the tradition of ways of Heaven since 4 century B.C. by the political groups gradually.




  SHENG Hong: The Name of Unirule is very suitable


Accordingly, the name of Unirule also contains constitutionalism. After the Culture Revolution, the structure of integration of politics and God has collapsed. The government appeared to be more secular, and also the political figures return to be ordinary persons The ideal political structure should be a set of constitutionalist principles. To the whole society, it contains basic principles concluded from successes and failures of thousands of years, including principles of protecting human rights and property rights. In the political area, it is the constraint to the defects of the secular government and political figures, as well as the encouragement for people to promote social justice and prosperity. However, it is not easy to explore the set of constitutional principles, as it looks like to explore the ways of Heaven, for it is necessary to absorb and digest varied kinds of spiritual resources at all times and in all countries.

Of course, the culture elites are also ordinary people, so there should be ways of Heaven to explore the ways of Heaven. Those are rules of freedom of expression and civilized debate. It can’t be denied that heroes appeared in history, which precisely happened as a result of following the rules. Thus, Unirule Institute of Economics could not regard what we say is the ways of Heaven only because our name is Unirule, and should try our best to maintain the rules of freedom of expression and civilized debate, promoting the constitutional consensus with various cultural elites.

Based on this, Unirule will try its best to rebuild social moral value and let the social and political fields benefit from it. We hope that the secular government and political figures should acknowledge that they are also ordinary people, and accept the constitutional principles which are far beyond the interests of individuals and groups. What we would like is that as Xun Zi’s saying, improving politics when in the government, while improving morality when in countryside. We would like to tell society and government what we regard as constitutional principles through our papers, books, and reports; while to tell the public what kinds of moral value we persue through our essays and mcro-blogs.

Take a look at the past twenty-four years, what we have done and will do can be summed up in one word ”Unirule”.



                                
                         

天则经济研究所  Unirule Institute of Economics



Unirule Institute of Economics (Unirule) is an independent, non-for-profit, nongovernmental think tank, which was founded jointly in July 1993 by Dr. Hong Sheng, Professor Yushi Mao, Professor Shuguang Zhang, Dr. Gang Fan and Dr. Shouning Tang, and Beijing Universal Culture Co, Ltd.



In late 1999, the Institute underwent its first organizational restructuring and separated into two divisions. The consulting division was renamed as the Unirule Consulting Firm (UCF) and was fully commercialized from then on, while the organization's academic division remained as the Unirule Institute of Economics (Unirule), a private non-for-profit research institution. The two organizations now keep an "arm´s length market relationship," that keeps separate all operations and financial relationships while under the direction of its respective board of directors.   (Wikipedia)



Guangzhou Unirule Research Center was established in July, 2012 and located in the capital city Guangzhou. It is dedicated to contribute to the solutions of system innovation of Guangdong Province during the “open-up”process and promote the successful open-up experiences shaped in Guangzhou to other parts of China.



The Spiritual Foundation of the Rule of Constitution



To “firmly uphold the authority of the Constitution and the law” was stipulated by the Fourth plenary Session of the 18th Central Committee as a fundamental institutional principle. However, the significance of this stipulation was not fully understood. It at least means that all the civil servants should hold the constitution as the highest code of conduct, instead of the orders from their superiors. Apparently, the mentality of the whole civil services of China in terms of a “constitutional awareness” is not enough.


The lack of constitutional awareness
is systematic for Chinese government officials



Some words and deeds during the plenary session by the government officials have revealed their attitude towards the rule of constitution and shown that they certainly lack the awareness and basic understanding of the constitution. For instance, Mr. LI Shixiang, the Deputy Mayor of Beijing, said: “Beijing will never cancel the limit for house purchases” when it came to the topic. His words were immediately countered by the amendment of the PRC Legislation Law. As an administrative department, Beijing municipal government has no right to reduce the rights of the people, even though it has the right to draft local regulations providing such regulations do not go against the constitution and higher-level laws. Mr. LI does not know that policies only are effective within a certain period of time, where “never” does not apply. Another example concerns Mr. GUO Shuqing, the governor of Shandong Province, who made a public promise that no Shandong citizens would ever join the shopping rush for milk powder in Hong Kong. Mr. GUO was an outstanding economist when he was working as my senior colleague in the graduate school at Chinese Academy of Social Sciences. To my disappointment, Mr. GUO confused the difference and boundary between public goods and private goods, and his power as governor within the area of public goods.



                                 


                                           MAO Yushi  茅于轼


Liberal economics think tank Unirule is locked out of
its office for ‘security reasons’ ahead of forum


South China Morning Post

Jun Mai


May 14, 2017


Founder and former CASS economist Mao Yushi prevented from leaving home for duration of belt and road forum


A two-day academic seminar at China’s largest non-official think tank was called off on Saturday because doors and lifts at its office building were locked and disabled amid upgraded security for Beijing’s two-day belt and road forum that begins on Sunday.

Members of the Unirule Institute of Economics, one of China’s most influential private think tanks, arrived at their office on Saturday to find the front door locked and the button to their floor disabled at the elevator.

With its strong belief in the market economy, the institute regularly challenges the government on its economic policies and has published reports about state owned enterprises as well as anti-trust and land reforms. Its researchers include a handful of prominent economists who were also formerly with CASS.





                    

                                   SHENG Hong


Unirule Chinas crackdown on economists and free speech



February 20, 2017


https://www.youtube.com/watch?v=a5pZvFBaCY8





                           
                                            
                                          MAO Yushi 茅于轼


The Mao legacy and China’s reforms future


Ananth Krishnan

December 30, 2013


The Party under Mr. Xi finds itself caught in the middle, the respected economist Mao Yushi told The Hindu in an interview. “Today,” he said, “the party is facing many contradictions. Mao Zedong’s path, and the CPC’s path, are different. Mao Zedong believed in the need to establish an equal society. Now we have an unequal society. Mao believed in Communism. Today, the party follows Capitalism. So there is a contradiction.”

He sees state-owned Enterprises (SOEs), which still control vast swathes of the economy, as the biggest interest group. “The SOEs sector — railways, energy, communication — is very strong. The price they set, whether the interest rate, or power price, is by themselves. So they earn a big profit, not because of their efficiency but because they monopolise the sector.” Mao Yushi and many other Chinese economists see SOE reform as a key step towards addressing China’s economic imbalances, as the country attempts to move away from a State-investment driven model, promote innovation and address widening inequality.


http://www.thehindu.com/opinion/op-ed/the-mao-legacy-and-chinas-reforms-future/article5515752.ece





                        

                                      MAO Yushi   茅于轼


Unirule: China's crackdown on economists and free speech


In just one day, on Jan. 28, the authorities ordered the shutdown of 17 websites, including the one operated by the Unirule Institute of Economics, or the Tianze Institute(天則研究所),a civilian think tank formed in 1993 by a group of highly respected and prominent economists in the mainland. February 20, 2017

News Sky

Kattie Stallard

Human rights lawyers have been rounded up and put on trial, activists abducted and tortured and critical voices silenced, as the Communist Party moves to stifle potential sources of dissent.

Now one of China's only truly independent think tanks, and one of its most respected, is under threat.

In January the website of the Unirule Institute of Economics was shut down, along with its social media accounts.

The professor was keen to stress that their organisation was not "anti-government" and that this should not be seen as an issue of "left" or "right" politics in China.

He believes this is about freedom of speech, and that fundamental values are now at stake.

[Professor Sheng Hong]: "Article 35 of the Chinese constitution states that all citizens have freedom of expression, including freedom of speech, of publication, of assembly, of association.

"So the severity of this problem goes far beyond an attack on [a single] organisation and any losses it may incur, as this poses a potential danger to the entire people."

"Unirule's idea comes from the the Chinese 'Tianze', which is a word for universal rule," James Dorn, of the Washington DC-based Cato Institute, explained.

"They think that you should have a system in which the government protects people's rights and their property rights, rather than just telling people what to do.


http://news.sky.com/story/unirule-chinas-crackdown-on-economists-and-free-speech-10775003











                                  
                       

                                             Mao Yushi                     


比较社会主义核心价值观和普世价值,一个主要的区别是前者有爱国,后者没有。爱国可能引起国与国之间的冲突。爱民则不会。所以孙中山提倡博爱。中国是大国,更应该把爱民或博爱放在首位,否则别的国家不放心。


Mao Yushi compares the Socialist core values and universal values. One main difference is that the former are patriotic, the latter are not. Patriotism may cause conflict between countries. Love does not. Sun Yatsen advocated universal fraternity. China is a big country, and should be more caring or loving in the first place, or any other country is not assured.

Sept. 19, 2016

 
                        

茅于轼

如果实践是检验真理的标准,几何学就没有用了。证明两个三角形相等,实践一下,把两个三角形重合一下,如果三个顶点都重合,肯定是相等的。当时这句话的确 对解放思想起了很大的作用。人是生活在现实中不是在文件中。但是以后对我国科学的发展起了阻碍作用。实践非常重要,真理是从实践中被发现的。



If practice is the standard for testing truth then geometry is useless. To prove through practice that two triangles are equal then overlap them. If the three vertices are coincident then the triangles are certainly the same. These statements do play a great role in emancipating the mind. Man lives in reality and not in a file. However, with the development of China's science this circumstance was hindered. Practice is very important. The truth is found through practice.              

September 19 2016



  

                                            

 

As I understand it, Professor Mao Yushi has said that "If practice is the standard for testing truth then geometry is useless". However, it seems that the converse may also be said; namely, if geometry is the standard for testing truth then practice is useless. Of course, to test for congruence using geometry, one can use any one of the following:



1.  the side-side-side (SSS) condition


                      

 

2.  the angle-side-angle (ASA) condition


                       




3.  the angle-angle-side (AAS) condition
 

                        


Keep in mind though that the purpose of this short analysis is not to contest another person's opinion regarding how to test the truth, but rather to clarify my own point of view. The relationship of a whole to its constituent parts has been of long term interest to the poet.
By definition, a whole must consist of at least two proper parts. Achille Varzi, in his outline of Mereology, concedes that it is possible to construct a model in which a whole can be broken down into several proper parts all of which overlap one another. However, the full meaning of 'proper part" is not met. The reason is that if a proper part is removed then it is unclear what would be left. However, a proper part should be left. According to Varzi a full formulation of the idea that a whole cannot be decomposed into a single part holds that every "proper part must be 'supplemented' by another, disjoint part, and it is this last qualification that captures the notion of a remainder". 


 
                                                               
 
                                       Far side of the moon



                                                                       
                                         Near side of the moon


It seems that a test of truth through practice may be rather complicated. It should be expected that a test of beauty through practice would be equally so. However, it may be that there are rare individuals for whom a test of beauty can be solved instantly and intuitively. The poet once asked Sun Dawu "Why does the moon always show the same face?" He had expected a long answer regarding Tidal Locking or scientific observations deduced from the Russian probe Lunar 3 on October 7, 1959 which showed the far side has a battered, densely cratered appearance with few maria. Instead, he answered in the following way. "It's more beautiful." Oh Ohm

The question for me though is how does one arrive at the ideal of truth or for that matter the highest truth? The poet requires more than three words. The test for truth is based on both material ideas of reality and virtual ideas of reality which can be arrived at through practice. Can a convention center exist with materials alone or does it equally depend on the practical geometry of square, triangle and ellipse? Can a Confucian temple exist without the practical application of geometrical form such as the rectangle? Blueprints expressing geometric forms must be consulted to build these structures whether the usage is secular or sacred. 


                                                   
 
Police officers take away a supporter of rights lawyer Pu Zhiqiang
near the Beijing Second Intermediate

China rights lawyer Pu Zhiqiang's trial ends amid scuffles
14 December 2015

A large group of aggressive plain clothes policemen - many of them wearing yellow smiley-face badges - pushed, punched and harassed reporters, camera crews and diplomats away from the front of the court.



If one bases the test of truth solely on practice then one may err, for example, if the practice is heuristic. Trial by error may describe the proceedings in a civil rights case in China based on the arguments of the prosecution and the final judgement. However, practice does not make perfect a legal process conducted through right by law rather than Right of Law. In other words, if one refers to Confucius' Analects through Rule by Law then the Way of Heaven is lost.                               
 
In another example, a less than ideal doctor in the moral sense of the Dao still practices at his practice. He learns from his mistakes. However, it is not recommended that a doctor treat himself, but rather that another doctor practices on him. Keep in mind though that every doctor should hold to the Hippocratic Oath. This ideal states "Do no harm".


                                                               

                           Sun Simiao, King of Medicinals 藥王

                               (courtesy of Paul U. Unschuld)


A doctor that gets closer to the ideal such as Sun Simiao helps to define through the Dao the moral responsibilty of medical professionalism. “凡大醫治病,必當安神定志,無欲無求,先發大慈惻隱之心。誓願普救含靈之苦。
Whenever eminent physicians treat an illness, they must quiet the spirit and settle the will, they must be free of wants and desires, and they must first develop a heart full of great compassion and empathy. They must pledge to devote themselves completely to relieving the suffering of all sentient beings. ”

— Sun Simiao, Bei Ji Qian Jin Yao Fang I.2

What is a material idea? It is based on the practice of material reality. For example, a material idea allows one to reduce complex things or ideas into simple things or ideas. In other words, it is a system that can be understood with respect to its isolated parts--even down to the atomic level. The material idea is quantitative.

The virtual idea serves practical purposes of practicality, pragmatism and utilitarianism, though, neither in name or strict definition. It allows one to construct more complex things or ideas. This idea consists of the attributes or characteristics of the material idea. The virtual idea is qualitative.

 

                                          

                       CAE 7000 Series Full-Flight Simulator

In the distant past, pilots learned through practice. They either flew or they crashed. In the present age, pilots learn on a flight simulator through virtual reality. If they virtually crash they neither hurt themselves nor others. If they fly without crashing then they may learn through practice on a real plane. Experienced pilots with thousands of hours of flying time can also renew or upgrade  their licenses through a flight simulator.

The ideal of truth is created from two ideas. One idea is material reality while the other idea is virtual reality. In order to achieve sameness or congruence they unite.


                             
                     
                                              The Sun   

Our Sun was undoubtedly the most important archetype of ancient peoples. In terms of material reality, it was composed of one of the basic elements or fire. It warmed the Earth and allowed for seeds to sprout and crops to grow. With respect to virtual reality the Sun as a circle contained the other shapes. When these two realities or parts were fused then the archetype (whole sameness) or wholesomeness in the moral sense was composed. It may be that the archetype fused the material reign and the virtual realm. 

"The Sun is the most perfectly round natural object known in the universe, say scientists who have conducted precise measurements of its dimensions. Now a team led by the University of Hawaii's Dr Jeffrey Kuhn have made the first precise measurement of the sun's equatorial bulge, or its "oblateness". The results were a big surprise. "We were shocked," says Kuhn. The sun doesn't bulge much at all. It is 1.4m kilometres across, but the difference between its diameter at the equator and between the poles is only 10 kilometres."


                                               
 
                      Thuban (11 Draconis) and 10 Draconis
                   were the polestars five thousand years ago.



The highest material reality of natural order and virtual reality of geometric form are the ancient polestars. In the past, at around the time of Huangdi, the polestars were a binary system which were composed of the stars 11 Draconis and 10 Draconis. They served a practical purpose of natural order since they showed due North for those who were lost or wanted to confirm their position.

Yet, the old polestars also represented a virtual reality with respect to geometric form. John C. Didier observed that the rectangle is not a geometric form found on Earth. It was seen by various civilizations to represent the sacred. As such, the virtual rectangle was  reflected in the shape of altars and temples constructed on Earth.

Professor Didier comments  that the polestars (representing Tàiyī 太一 ("Great Oneness" and Tianyi 天一) were at the top and middle of the North Circumpolar Rectangle. On the left were two stars of the Big Dipper while on the  right were two stars of the Little Dipper. The binary Dipper asterisms revolved around this binary star system.

In actuality, they are a binary system of polestars that revolve around each other in about 51.4 days. It may have appeared to ancients though that the larger polestar revolved around the smaller one as the Sun was believed to have revolved around the Earth in 360 days. Coincidentally, it may have been observed that there would be 7 revolutions of the polestar per Earth year or 51.4 (weeks) X 7 (days) = approximately 360 days. The number of 360 as it pertains to days in a year also corresponded with the number of degrees in a circle.



                                                    
 
El Enclavamiento Pirámides Celestes

D. Carlton Rossi  copyright  2014

Spanish

The Interlocking Celestial Pyramids



                            
                              

Die Himmlischen Fundamente der Pyramiden

D. Carlton Rossi  copyright  2014

German

The Celestial Foundations of the Pyramids




                                                            
 
                                        The Cosmic Egg

 "In the myth of Pangu (Pángǔ  盘古), developed by Taoist monks hundreds of years after Lao Zi, the universe began as an egg. A god named Pangu, born inside the egg, broke it into two halves: the upper half became the sky, while the lower half became the earth. As the god grew taller, the sky and the earth grew thicker and were separated further. Finally, Pangu died and his body parts became different parts of the earth." Wikipedia 
                             
 
                              
                                 
                                     Rooster (Gallus gallus)


                                 

                                        Hen (Gallus gallus)

In a sense, this story corresponds to the practice of the material reality of the natural order of a thing. There is a decomposition of the whole into two parts. This is followed by more differentiation. The earliest chicken was Gallus gallus which was feral. However, 10,000 years ago, in Xushui County, Gallus domesticus emerged. DNA results show that animals found buried beneath a peat bog in China's Xushui County, Hebei (near Kenneth City of Dawu Group and Fushan) are the oldest examples of domesticated chicken by several thousand years according to Professor Michi Hofreiter, a palaeogeneticist at the University of York and the University of Postdam in Germany.
                                                        

                                                        
                          Sun Dawu and Prof. Jiang Ping discuss
                  which came first--the chicken or the egg (yoke)
                          

The virtual reality aspect of geometrical form concerns the egg or ellipse. An ellipse is traced by point moving in plane so that the sum of its distances (from two other points) is constant. The domestic chicken of today in Xushui County is Gallus domesticus. The author recalls a promotional program of the poultry and egg subsidiary of Dawu Group.  It was in front of the Sports Complex (convention center). The center itself has an elliptical frontage. Countless generations of the Sun Family have eaten countless generations of Gallus domesticus and their eggs. It seems that the natural order and geometric form correspond to the will of Pangu.

                    


D. Carlton Rossi

D.卡尔顿 罗西      D. Kǎ'ěrdùn Luōxī

October 15, 2016




References



John C. Didier, Victor Mair , "In and Outside the Square: The Sky and the Power of 
Belief in Ancient China and the World, c. 4500 B.C.—A.D. 200." Sino-Platonic Papers 192 (September 2009) China Review International Vol. 16, No. 4 (2009), pp. 491-493 Published by: University of Hawai'i Press Stable URL: http://www.jstor.org/stable/23734291 

Geraint Jones, Sun is the most perfect sphere ever observed in nature, The Guardian Thursday 16 August 2012 

Antonio Rosmini Serbati, Psychology Vol. III, London: 1988, Keagan, Paul, Trench and Company 


Achille Varzi 
Achille Varzi, "Mereology", The Stanford Encyclopedia of Philosophy (Spring 2016 Edition), Edward N. Zalta (ed.), 

URL = 
 Congruence (geometry) From Wikipedia, the free encyclopedia 

https://en.wikipedia.org/wiki/Congruence_(geometry) Theorems for Congruent Triangles

 http://www.regentsprep.org/regents/math/geometry/GP4/Ltriangles.htm 
    










                                            




China's State-Owned Enterprises:
Nature, Performance and Reform


国有企业的性质、表现与改革


SHENG Hong and ZHAO Nong


This book provides a detailed description of state-owned enterprises (SOEs) in China with respect to both efficiency and income distribution. It demonstrates that state ownership in the form of SOEs does not use resources efficiently, holds a poor record in income distribution, and enjoys unfair advantages while competing with other firms. To illustrate this, the book presents data on how favored policies, monopolistic powers, and subsidies benefit SOEs.


Abstract: Chapter 1-9, Appendix







                                              

                                                                       MAO Yushi
      

Mao Yushi: China’s SOEs Are Termites,
Eating Away the Country’s Wealth



Mao Yushi

May 17, 2016


In China, we give less money to the people, so the consumption is relatively low. We give a lot to the government, so government investment is relatively high. High government investment has resulted in excess capacity.


China is now in an overcapacity situation that cannot be changed. We not only have overcapacity of cement and steel, but also excess electricity. Even though we have electricity, we are still investing in more power plants. We also have an excess of highways. This year I went on a trip to Hanzhong. I only saw 20 cars on the 200 km, two-hour trip. It is very expensive to build roads, tunnels, and bridges.


http://www.theepochtimes.com/n3/2068453-mao-yushi-chinas-soes-are-termites-eating-away-the-countrys-wealth/



                         


Mao Yushi: Environment, or GDP, we have to make the choice


MAO Yushi (currently under house arrest) is a well-known micro-economist who has held positions at Harvard University and the Beijing Institute of Economics. He graduated in 1950 from the faculty of engineering of Jiaotong University in Shanghai and has been chairman of the Unirule Institute of Economics since 1999.


Dialogue: Cities on Low Carbon Road Chinese video: 10 minutes 38 seconds

One thing that really matters is the price of energy. China's energy price is now low compared with energy prices in other countries. So people have no initiative to save energy, but to use energy regardless of the price. Some countries charge higher prices for residential electricity than in Beijing, and the same applies to car gasoline. The majority of other countries charge higher fees, except for Russia. Even in Hong Kong, energy prices are much expensive than on the mainland in Beijing.







                  

                 Professor Shen Hong: Unirule

Between December 21-23, 2018, an extremely important conference was held at Dawu Group. Twenty legal experts and sociologists were invited from all over China. The topic of the conference set by Sun Dawu was as follows: "Where is the source of crime prevention and control?"

One might say that one of the most incisive and erudite presentations was made by SHENG Hong of the Unirule Institute. Sheng ardently defends rule of law and constitutionalism in the context of the Huawei case. He also deals with the situation of Huawei as a private corporation which reports to the government as millions of Chinese private corporations such as Dawu Group which have contributed to economic growth through "Reform and Opening Up" may be forced to do. Professor Sheng sees that the case of CFO Meng Wanzhou of Huawei corporation could eventually be solved by a war of rule of law or a competition between the two judicial systems in China and the US. His speech is presented in full on this site.

D. Carlton Rossi







                                 




Sun Dawu 孙大午 Tries Constitutional Monarchy of Private Enterprise to Solve the Inheritance Question
 


中华工商时报曾独家报道的孙大午首倡的民企“君主立宪制”在大午集团开始正式实施。2月28日,河北大午集团召开第一届董事会选举会议,在第一次全体董事 会上,孙二午和刘平分别全票当选集团董事长和总经理,而孙大午则作为集团第一届监事会总监主导了整个选举。 这意味着在试行三个月后,大午集团朝着孙大午所设计的“君主立宪制”迈出了关键的第一步,所有权和决策权、决策权和经营权分开的制度在大午集团正式确立。 按照孙大午的描述,所谓“君主立宪制”,即企业的所有权、经营权和监督权分开:他和他的妻子拥有企业的产权,后代继承,主要由家族成员组成的监事会对董事 会、理事会进行监督,但是无权决策;由企业内部人员选举产生的董事组成董事会,行使企业的投资等决策权,但是无权干涉经营;由分公司一把手组成的理事会则 执行董事会的决策,行使经营权。企业将由监事会、董事会和理事会共同制定一部企业内部的“宪法”,以确定和保障实施企业的这些规则。 经过选举产生的13名董事和孙大午指定的另2名董事组成15人的董事会。董事中包括孙的两个弟弟———现任董事长孙二午、副董事长孙志华和酒水片负责人、 儿子孙萌。按照规则,董事任期两年,董事长和总经理任期四年,均可连选连任,董事长和总经理还可分别提名配备若干名副手。 记者注意到,这15名董事均由孙大午提名推荐,而且选举采取的是等额选举的办法。对此,孙大午解释,由于这是过渡性的第一届,所以采取折中办法,因此还算 不上严格意义上真刀真枪的选举。“尽管选举有很大的形式主义,但是是一个开端。今后,所有董事都将采取差额选举竞聘上岗。”


孙大午表示,产生“君主立宪制”的想法源于他出事之后对企业传承问题有了更多的思考。他的理想是将大午集团建成百年老店,建成一个“祥和的大午城”。而对 于方太集团茅理翔传给独子茅忠群和正泰集团南存辉稀释股份的做法,他认为都不适合大午集团———他有两个儿子,而且企业一直是独资拥有。这使他思索新的道 路,而“君主立宪制”正是孙大午独创性的想法。 按照孙大午的设计,大午集团的所有权将作为一个整体存在,后代虽然继承其产权但是并不能进行财产分割。家族成员“有能力的就去创业”,通过自己的竞争成为 企业领导人;而“没有能力的就去享福”,每个月从企业领取正常工人1—3倍的生活补贴以保障生活,这样对企业也不会产生伤害。 选举当天,经济学家钟朋荣特意从北京赶到徐水。他在接受记者采访时表示,孙大午的这种“君主立宪制”是解决民企传承的一种新探索,具有开创性。但是他同时 表示,企业“宪法”会不会和《公司法》等法律冲突,孙大午的后代能不能真正认可这种制度,如何确保企业“宪法”今后不会变成“一纸空文”等是其要面临的考 验。 (李爱明)




Sun Dawu  孙大午 Tries Constitutional Monarchy

of Private Enterprise to Solve the Inheritance Question



The Chinese industry and commerce Times once the one's own report grandson great noon originated the people business " the constitutional monarchy system " started in the great noon group officially to implement. On February 28th, river Beijing University noon the group holds the first session of board of directors elects the conference, in the first all board of directors, the grandson two noon and Liu divides equally other full-price ticket election group chairman of the board and general manager, but the grandson great noon led the entire election as the group first session of board of supervisors inspector general.

This means in tries out three months, the great noon group faced the grandson great noon designs " the constitutional monarchy system " steps out the key first step, the property rights and the policy-making power, the policy-making power and the management power separated system in the great noon group official establishment.

According to Sun Dawu description, so-called " constitutional monarchy system ", namely enterprise's property rights, the management power and the supervisory authority separates: He and his wife has the enterprise the property right, the descendant inherits, mainly the board of supervisors which is composed by the family member to the board of directors, the council carries on the surveillance, but has no right the decision; Elects the trustee by the enterprise interior personnel which produces forms the board of directors, exercises enterprise's policy-making power and so on investment, but has no right to interfere the management; The council is composed which by the subsidiary company one handle carries out board of directors's decision, exercises the management power. The enterprise by the board of supervisors, the board of directors and the council together will formulate one enterprise interior " the constitution ", will determine and safeguard implementation enterprise's these rules.

13 trustees and the grandson great noon produces which undergo the election assign another 2 trustees form 15 person of boards of directors. In the trustee includes grandson's two younger brothers - - incumbent trustees eldest grandson two noon, the vice- trustee eldest grandsons remembers Chinese and the liquor water piece person in charge, the descendants sprouts. According to the rule, the trustee tenure in office two years, chairman of the board and general manager the tenure in office four years, all may link elects to be continue as, chairman of the board and general manager also may separately nominate provides certain 副手.

Reporter pays attention, this 15 trustees all nominate the recommendation by the grandson great noon, moreover elects adopts is and so on the volume election means. Regarding this, Sun Dawu explains, because this is the transition first session, therefore adopts the compromise means, therefore also 算不上 in strict significance real swords and spears election. " Although elects has very big formalism, but is one beginning. From now on, all trustees all will adopt the differential election compete hire to post."

Sun Dawu indicates, production " constitutional monarchy system " thinks law origin has an accident after him passes on to enterprise receives question has more ponders. His ideal is completes the great noon group hundred old shops, completes one " the auspicious great noon city ". But flies in circles regarding the side too group cogon grass principle bequeaths the only son the cogon grass loyal group and south the peaceful group saves the splendor dilution stock the procedure, he thinks all does not suit great noon group - - him has two sons, moreover the enterprise continuously is the sole ownership has. This causes him to think deeply about the new path, but " the constitutional monarchy system " is precisely the grandson great noon original idea.

According to Sun Da Wu design, the great noon group's property rights will take one whole existence, the descendant although will inherit its property right but certainly cannot carry on the property division. The family member " has the ability starts an undertaking ", becomes the enterprise leader through own competition; But " does not have the ability to enjoy happiness ", each month receives the normal worker 1 - 3 time of cost-of-living allowances from the enterprise safeguards the life, like this also cannot have the injury to the enterprise.

The election same day, the economist clock friend gloriously specially rushes to Sushui from Beijing. He in accepts reporter when the interview indicates, Sun Dawu this kind " the constitutional monarchy system " is solves one kind of new exploration which the people business biography receives, has the foundation. But he also indicates, the enterprise " the constitution " can with " male judicature " and so on the legal conflict, Sun Da Wu descendant be able truly to approve this kind of system, how will guarantee the enterprise " the constitution " from now on cannot turn the test which " a mere scrap of paper " and so on will be it must face. (Li loves clearly)







              
                                                                    
                                        



孙大午:企业需要确立董事会制度

Sun Dawu: An Enterprise Board System needs to be established

January 24, 2016   (translated excerpts)





The first edition of Robert's Rules was published in February 1876 by then U.S. Army Major Henry Martyn Robert ((1837-1923) with the short title Robert's Rules of Order.


A board decision-making body is not a diplomatic occasion. At voting time, policymakers are not allowed to abstain! That is, a decision-maker must take responsibility. Abstaining also shows an attitude, but it is non-participatory, noncommittal and irresponsible.

US politicians have a "Robert's Rules" which involve a detailed insight into human nature. There are conferences devoted to the Chair of the rules, there are rules made and for the expression of different views, there are rules relating to the debate. All of these are very, important, different voting rules. In fact, I think the family business has to have such a meeting on rules.

For example, in order to avoid disputes and ensure a variety of opinions to be fully expressed, the two sides can not talk directly to each other or to interrupt someone midway, and only speak indirectly to a "dumb Speaker" in accordance with the rules. Otherwise, if the disagreement is between two speakers then bickering will ensue and the result will probably be that nothing can be accomplished.









     Early Leaders of Modern Constitutionalism in China


                             

                                            LIANG Qichao

The first introduction of the concept of modern democracy into China is credited to exiled Chinese writer Liang Qichao. In 1895, he participated in protests in Beijing for increased popular participation during the late Qing Dynasty, the last ruling dynasty of China. It was the first of its kind in modern Chinese history. After escaping to Japan following the government's clampdown on anti-Qing protesters, Liang Qichao translated and commented on the works of Hobbes, Rousseau, Locke, Hume, Bentham and many other western political philosophers. He published his essays in a series of journals that easily found an audience among Chinese intelligentsia hungering for an explanation of why China, once a formidable empire of its own, was now on the verge of being dismembered by foreign powers. In interpreting Western democracy through the prism of his strongly Confucian background, Liang shaped the ideas of democracy that would be used throughout the next century. Liang favored gradual reform to turn China into a democratic constitutional monarchy.



                           

                                              Sun Yat-sen


Liang's great rival among progressive intellectuals was Dr. Sun Yat-sen, a republican revolutionary. Sun felt that democracy would be impossible as long as the Qing monarchy still existed. Democracy was part of his platform, the Three Principles of the People (三民主義) - the principle of the people under 1 nation (nationalism), the principle of the people's rights (democracy), and the principle of the people's livelihood and well-being (civility, decency and respect). Like Liang, Sun agreed that democracy, or at least universal suffrage, could not happen overnight in a country with high illiteracy rates and lack of political consciousness. Sun's Three Stages of Revolution called for a period of "political tutelage" where people would be educated before elections can occur.


https://en.wikipedia.org/wiki/Democracy_in_China









                                                                  



I. Preamble


During their university studies  several students took part in the school's "student research project". Our group project title is "Big Afternoon Agriculture and Animal Husbandry Group Corporate Governance Model". The final results of the paper concerned "the private constitutional monarchy". After more than 10 years of development, the group's "Private Enterprise Constitutional System" emerged to lay a solid foundation which incorporated several changes.


At the activity, the Chairman of the Board of Supervisors explained the origin, content, essence and practice of the private enterprise's constitutional system. He also, elaborated upon the stipulation of the family member's subsidy, staff's benefit, the staff's reward and the retiring of the directors  in the private enterprise's constitutional system. The supervisor was close to the company's operating practice. The explanation aroused  the empathy of the participants who burst into applause.


It can be said that the corporate governance model of Dusong Farming and Livestock Group is the practice of a parliamentary system in an enterprise management system. Here, we will introduce the establishment, operation and performance of the DFLG.


Second, the origin of the "private enterprise constitutional system"


In 2003, because of the "illegal fund-raising case", Sun Dawu and Dafu Group management of more than 10 people were under police control. For a time, noon group was rudderless. Sun Meng who is the son of Sun Dawu was studying at university and preparing to study in Australia. He was temporarily appointed as the Chairman of the Board of Directors in accordance with relevant regulations. As a result, Sun Meng who was the Chairman of the incumbent position had no experience. The operating group of the afternoon suddenly fell into a predicament.


With support of  academia and  the strong appeal of the business community the "Sun Dawu "illegal fund-raising" case came  to nothing. On a sunny day, the punishable imprisonment was limited. The real Sun Afternoon contemplated through meditation  the successor problem.


Through  thinking and exploration of  the British constitutional monarchy evolved the enterprise management decision-making power, the right to operate, the right to monitor, the separation of the three powers and  the overall corporate ownership. It was decided not to interfere with the business decision-making, management, and implementation of workers' democratic participation. In 2004, the private, corporate, governance, constitution model of the afternoon farming and animal husbandry group was established.  Officially began Sun Dawu's "constitutional monarchy" and "labor republican" practice.



Third, the Group's "private constitutional  system"


The Group's top management is the board of directors ,the council  and the board of supervisors. How will the three members produce? What are their responsibilities and powers? What about the running rules? To everyone a brief introduction.


(1) The Board of Directors


1, The Board of Directors is the highest decision-making body. The board of directors shall be composed of one chairman and one or two vice-chairmen, and a number of directors. The board of directors shall be elected by the employee representative conference and the chairman shall be elected by the directors. Each director has a term of 2 years, the chairman has a term of 4 years and can be re-elected. The chairman of the board of directors may nominate the vice chairman of the board of directors, and the nominated vice chairman shall be approved by the joint meeting of the three parties.


2) The Board of Directors shall exercise the following functions and powers: to determine the Group's development strategy and major development policy; to decide the annual production, operation, investment plans and work plans of the Group; to formulate the annual incentive plan for employees, and the annual profit distribution plan; operation, and cooperation; to review the Group's articles of association and the system of changes; to appoint, remove or transfer one or two of the subsidiary.


3. The board meeting shall be convened at least once a month. The meeting of the board of directors shall be convened and presided over by the chairman of the board of directors. If the chairman is unable to perform his duties due to special reasons then a chairman shall be appointed or the the chairman of the board of supervisors will preside so that resolutions and decisions will be sent to the Board of Supervisors. More than two thirds of the directors shall be present at a meeting of the Board of Directors. Each director shall have one vote and shall not abstain. The resolution of the board of directors must be adopted by more than two-thirds of all the directors. The director shall sign the resolution of the board of directors and take the responsibility for the resolution of the board of directors.


(B) the Council


1, The Council is the executive body of the Group and is responsible for the implementation of the resolution of the Board of Directors; the composition of the Council consists of top leaders of the office and subsidiaries. The General Manager is responsible for convening the Board meeting once or twice a month.


2. The general manager shall be elected by the board of directors from among the directors. The term of office shall be four years and re-election is possible. The general manager may nominate the deputy general manager among the members of the board of directors or the members of the board of directors. The nominated deputy general manager shall be approved by the joint meeting of the three associations.


3, The general manager of the board of directors is responsible for the exercise of the following powers: presides over the company's production and operation management, organization and implementation of the board of directors resolutions; organizes the implementation of the annual business plan and investment plans, is responsible for the accounts and tasks assessment; acts on behalf of the Group's external important business; oversees The Articles of Association of the Company and other functions and powers granted by the three associations.


(3) The board of supervisors


1, The board of supervisors consists of the owners of property rights family members, trade union chairman, director of the Ministry of Supervision, Chief Financial Officer and other staff. The Supervisory Board has the greatest supervisory power. The board of supervisors and its chairman shall be responsible for and carry out the system of inheritance.


2, The board of supervisors exercises the following powers: the development of the enterprise's basic operating mechanism - "private enterprise constitutional system"; Organizational director election; check the group's financial and business conditions; access to financial books and other accounting information; if necessary, may require the group chairman to supervise and review the financial information, business reports and profit distribution plans of the group companies submitted by the board of directors and the council; and the supervisory committee of the board of directors and the board of supervisors. The chairman of the board of supervisors or the representatives of the board of supervisors may attend the meetings of the board of directors and the board of supervisors.


3, The board of supervisors organizes every two years a general election (every year in December as the election month), the election of the new board of directors. Temporary offices (electoral offices or committees) may be established during the election period which will operate under the authority of the board of supervisors.


Fourth, the "private enterprise constitutional system" of parliamentary nature


(A) The board of directors of the property


From the previous introduction, we can see that the board of directors is equivalent to "Parliament" as it  is the core power of the Group. But as an individual, the chairman of the board has only the power of "Speaker". The chairman can only convene and presided over the board of directors and can not make any independent decisions. All decisions must made on the basis of one vote per person. More than two thirds of the directors shall be present at a meeting of the Board of Directors. Each director shall have one vote and shall not abstain. The resolution of the board of directors must be adopted by more than two-thirds of all the directors.


The directors enjoy the following rights: Review the Group's business, financial reports, monthly work summary, and keep abreast of the company's business operations and management; they are concerned about the unit and the Group's production, operation and development which affects the general development. In addition, they provide advice and guidance on the production, operation and management of the Group or the Group's member units with the authorization of the Board of Directors or the informed consent of the Board of Directors. The Company may use the vehicles of the Company free of charge including private cars; enjoy the system of retirement and have the right to study and study abroad for qualifications.


In addition, the election of the directors of the Group is a democratic election of all the workers and staff members who had the right to vote. From the beginning of the election of the board of directors to the present, the demand for the right of suffrage is more and more stringent. In the earliest, as long as there are more than 3 years of service, workers have the right to vote, and in the later those with more than 5 years of service have the right to vote. For members of  the cadre team it is required there be 10 years or more of service for the right to vote. The number of workers with the right to vote is now about 500-600 people which in some sense reflects the ancient Roman Senate.

On the other hand, it is interesting to note that the requirements of the DBS Group are very lenient regarding eligibility as a candidate as long as there is more than one year's seniority.  - as long as there is more than one year's seniority to be eligible for election as a candidate.


(B) The attributes of the Cabinet Council

The board of directors is equivalent to the "cabinet" of the group, and the general manager who is equivalent to the prime minister has a relatively large personal authority. It is mainly the board members who implement the resolutions of the board of directors; but, it is the general manager who represents the group regarding external affairs.


(C) The chairman of the board of directors of virtual properties


The chairman of the Group's property rights owners is equivalent to the heads of state-owned units of the parliamentary system and as such does not participate in the group's decision-making and management. As the founder of this system, Sun Dawu has never intervened in the board of directors regarding decision-making and management of the Council. Even after his proposal was rejected by the board of directors more than once his proposals are rarely mentioned. It is only the leadership of the supervisory body, led by the members of the board of supervisors and board of directors and other institutions and their members which monitor the conduct.


Now, the Group has successfully organized the sixth session of the general election of the board. Not only is the orderly participatory enthusiasm very high of the majority of workers, but votes, elections and speeches have been used in board elections. In some sense it resembles democratic, national parliamentary elections. In addition, the convening, procedural and voting rules of the Board of Directors are similar to those of parliamentary countries. Therefore, the author of the afternoon group's "private enterprise constitutional system" regards it as a "parliamentary system."


Fifth, The implementation effect of the "parliamentary system"


In the managment system of the Dawu Group then the only evaluation of a manager or management system is based on performance. Does this mean that implementation effect of the afternoon group  resembles a "parliamentary system"?


The performance of enterprise management is the most basic and most important of two indicators of the company's development speed. The second is the treatment of workers. Here we use data regarding implementation of the "parliamentary system" to illustrate the two aspects.


(A) The rate of enterprise development


The output value of enterprises since the implementation of the constitutional system of private companies increases at an annual rate of 30%. Since 2004 the output value of seven subsidiaries is 100 million yuan with less than 1000 employees. Now, the output value has increased tremendously with 4500 employees.  


The Group has at least 80 million square meters of construction area of ​​fixed assets. Current assets are all net assets without bank loans. Each bank has deposits and the subsidiaries are profitable. Dadong Group has the largest stadium in Baoding which can accommodate 6000 people. It is building the top three hospitals with 3000 beds. It can be said that it will be among the best hospitals in Hebei Province. The new hotel is built to accommodate 2,000 people. The benefits of each subsidiary are very good.

In addition, the company stands at the forefront of the world's agricultural products. The Jinfeng breeder can sell for 5 dollars. The number of chicks hatching daily is 300,000. If there are 300,000 chicks hatched per day then total output is over a billion chicks per year. Most of them are transported by plane to  other countries such as the United States and the Netherlands.


(B) The treatment of workers


Workers wages calculated in December increased not less than 15% and now run at between 10 to 15% increments. The staff turnover rate runs in the 2% to 3% range. Each cadre training course has 300 to 400 people.


The main award to management personnel is based on profits. If profits exceed 20% then the excess is used to reward cadres. If there is no development and profits are lower than in the previous year then the cadres and workers enjoy a universal 8% reward. The reward to cadres cannot exceed five times the wages of workers an at the highest level cannot exceed 10 times.


The majority of workers also enjoy paid travel of between 1 to 7 days.  At a higher level staff can go abroad. This year 80 to 90 people went to Japan. In the future staff may go further. , the future may also go farther. Now, some workers are in Qingdao, Shandong Province and other places. Some companies charter a plane for small treasury expenditures. Housing, medical care, school and , retirement benefits are relatively perfect.


Dawu Group employees also enjoy the benefits of reimbursement of medical expenses. According to the length of service, they enjoy a different reimbursement amount. More than 3 years they are reimbursed up to 3 million, 5 years up to 5 million, 10 years up to 10 million and 20 years up to 20 million on an annual report. Of course, the workers will generally take the health insurance reimbursement and are not reimbursed by the Group.


From the implementation of the constitutional system of private enterprises on a continuous or cumulative basis the chairman of the board can be elected no more than two times, the general manager no more than three times, the directors no more than eight times before they are entitled to retire or retire in principle. The children of directors (cadres) are encouraged to study abroad or go into business. There is available a venture capital fund of between 30 to 100 million yuan.


Generally speaking, it is very difficult for a farming and animal husbandry enterprises to develop rapidly unless through merger and acquisition. However, the potential of the "old peasants" of Xushui County, Hebei Province has been fully actualized through democratic management and bears rich fruit.



Sixth, the reasons for the success of the "New Deal" of Dawu Group


Democratic decision-making maximizes the avoidance of mistakes. The Afternoon Group's implementation of the concept of democracy under the "Group of Parliamentary System" releases the vitality of all employees. The root causes of the development can be succicntly summarized as follows:


(A) Democratic elections to ensure the power of workers to mobilize the enthusiasm and cohesion of workers. To be a member of the board there must be enough votes from the staff. The most powerful weapon for workers to participate in enterprise management is their vote. A decision-making company has the power to choose candidates, but also to ensure the improvement of staff enthusiasm, sense of responsibility and cohesion. A Board of Directors elected by the people has a high degree of cohesion. As Sun Dawu said "if employees can vote by hand then they will not easily choose to vote with their feet". 


(B) Democratic elections guarantee the harmony between the leadership. Elections are a kind of political, rule-based politics. To enter the board of directors there must be a vote of more than 500 voting, veteran employees. They rely on the personal character, ability, performance and prestige of the encumbent. There is no need to be anybody to become chairman. The recognition of the elected directors is by the same virtues, abilities, performance, prestige and so on. Yangmou politics means to win people hard to avoid the next defeat: to lose people means  to not worry about being retaliated against.


(C) Democratic elections guarantee the quality of personnel in decision-making bodies. If one wishes to become a director then one must first go through the primaries. A joint recommendation of 10 people is required. Then, there is a re-election. Finally, there is a real election of the board where one must convince the voters of the subsidiaries. One must win the trust of others in the subsidiaries. Finally, one must win at least 400 votes of more than 500 people who are veteran employees, team leaders and cadres with more than 10 years of service to enter the Board. It may be difficult in democratic elections to select a super talent as the ancient Han Xin or Wu Qi, but it also avoids the mediocrity.


(D) Democratic decision-making can effectively avoid a lot of bold, arbitrary decisions. Any resolution of the Board of Directors shall be a one-person, one-vote of the Directors. Before the voting the parties will be allowed to give full expression of their personal views. This mechanism can roughly guarantee the correctness of decision-making, but also can mobilize people involved in the decision-making to implement the initiative. (A large percentage of board members will hold the number one position.)


(E) The release of the democratic management of the potential of everyone is to mobilize the enthusiasm of everyone. Democratic management is generally bottom-up management. Usually the grass-roots needs to reflect up for implementation. In the implementation of the "parliamentary system", the afternoon group subsidiaries rapidly increased profitability and produced more high quality products. All employees actively contribute to wisdom thereby rapidly releasing the great potential in a cause and effect relationship. At the same time, democratic management involves co-governance of enterprises through sharing the results of the development of management. Dawu Group employees in the enterprise effectively "co-rule" after the real "share" of the group's development results which also ensures the motivation of all Staff.


Summary and Enlightenment


When the Dawu Group implemented the "parliamentary system" in 2004, it was only a relatively good township and town enterprise. The employees were basically the "old peasants" in the nearby villages, and there were few college students. As an enterprise, its external environment changed. As a business, its requirements for decision-making efficiency is also much higher than the general administrative agencies; as a rural-based farming enterprises, their internal relations between the staff is close and complex.

In the widely popular theory of quality in the external environment with regard to the development stage of view it is in any case not suitable for agricultural and livestock groups or the democratic system. However, within such a group of enterprises in the rapid development stage of the grandparents living together with the "old peasants" along with scholar-led entrepreneurs it is not only suitable to establish a democratic system, but also far higher than the same period of China's economic development. The speed and much higher the quality of development of most enterprises prove the strength of democracy. The management reform of the Dawning Group can also be regarded as a glorious practice of democracy--especially the parliamentary system in China.

No matter how successful is the Big Dipper Group; nevertheless, some people can cite counter-examples to prove the harm caused by democracy; especially, when they come into contact with one-sided information. Then the transformaton of the group can bring us what inspiration? If some of the abstract elements of the transformation of the afternoon group can be summed up then one can find similar democratization of the country as an analogy. In a broader context one can get some inspiration.


(A) The most powerful force to take the initiative to promote reform. To ask about who has the largest of influence at the afternoon group it is undoubtably Sun Dawu himself. New Year's Day is also Sun Day afternoon to promote the implementation of the afternoon. One of the most powerful forces takes the initiative to promote the reform of democratic management. The process will no doubt be smooth. The executives and ordinary people may not be able to understand the intention of this system, but with the implementation of this system over a period of time we will get the New Deal co-governance, sharing business opportunities and real gains. The final set up of the system means unbreakable authority.

Sun Dawu--as chairman of the board--never intervened in the Group's decision-making and management. It is only the board of directors and  members of the Council who have the power and responsibilty in this area. Sun Dawu's proposal was rejected by the board of directors more than once. Sun Dawu respected the decision-making power of the board. Sun Day afternoon is now unable to overthrow the system according to his own statement.

A very similar case involved Japan's post-war reforms. After the war the Japanese did not know what democracy was, but under the occupation forces commander MacArthur's strong impetus, Japan opened the reform process, and soon the new system in Japan began on a track of sound development. Whether in the United States or Japan, there are people who do not agree with the views of Marshal MacArthur, but they can not compete, and ultimately these people benefit from MacArthur's actions.

In contrast, those countries that failed in democratization reform, mostly because of the strong force that destroyed the initial system, resulted in a lack of authority and difficulty to implement the system. Imagine Gaddafi, Mubarak and other dignitaries if they could take the initiative to promote their own reforms, and carefully protect the new system of operation. Then their lives would be able to radiate a different luster.

One of the most powerful forces is to take the initiative to promote a civilization and progress of the system. The best care of this system is to regulate all aspects of power to ensure the healthy development of this system at the lowest cost to promote an organizational civilization and progress. This approach  is such a powerful force and the greatest fortune!

                           



The_Constitution

                                       Private Entrepreneur Constitutional System




                                       



In order to clarify matters, it is necessary to generalize the development of the dynamic organization known as the Dawu Group. It began thirty-two years ago under the leadership of Sun Dawu. In 2004, the group established the first Family Business Constitution in China.  It allowed for democratic elections every two years of the Board of Directors thereby expanding the decision-making process. To date, there have been six elections.

In mid-August 2016,  the 私营企业主立宪制度 or Private Entrepreneurs Constitutional System was devised.  It limits the power of the Chief Executive Officer.  Basically speaking, the constitution acts as a check on executive power. If the CEO does not follow the constitution then this officer may be impeached. The Dawu Group has stated that its development from monarchy to parliamentary democracy has followed the British, bicameral legislative model and its ability to change the constitution through amendment has followed the American model. In other words, adapt and adopt.


D. Carlton Rossi







                         




对琼海大午饲料厂进行的这种民选企业经营者的实践中,我们能总结出什么带有普适意义的理论呢?

首先,在我看来,中国的企业家可以归为两大类,一是办商业性质的企业,比如马云办的阿里巴巴,专注于满足社会对远程交易服务的需求,他可以把企业做得很大;二是办具有社会性质的企业,比如我开办的大午集团,另外你曾说过的任正非开办的华为公司。

什么是办带有社会性质企业呢?我们看看企业两个字是怎么写的:企,由人、止两个字构成,业很好理解,是特指事业、家业。一个企业家,当然要满足自己发现的社会需求,并在满足这种需求中完成一次次再生产,并实现创造利润的目的,否则,他办的企业就不可持续发展。

但是,一个不知道在什么时候该停下来构思企业未来,及其在社会中扮演什么角色的企业,他就是个商业企业家,而不会是社会企业家。作为社会企业家,他不仅仅是在创造价值和利润,满足市场需求,他还会把自己的企业当一个社会看待,会以企业的员工为本,让企业的成长跟员工产生的归宿感高度契合,大午集团的员工流失率长期低于3%,就是我们企业得益于当社会来管理的证明。




From the business persons elected to practice at Qionghai large feed plant, we can summarize what theory with universal meaning of it?

First, in my opinion, Chinese entrepreneurs can be grouped into two categories, one run commercial nature of the enterprise, such as Ma Alibaba do, focus on meeting the social demand for remote trading services, he can do the business great; the second is to do with a social nature of the enterprise, for example, I run Dawujituan addition you said Ren Zhengfei, Huawei offered.

What to do with the social nature of the enterprise? We look at how to spell the word Enterprise: Enterprise, by the people, only two words constituted a good understanding of the industry, is specific cause, the family business. An entrepreneur, of course, to meet the social needs of their own discovery and to meet this demand in a time of reproduction is completed, and to achieve the purpose of creating profits, otherwise, he would not do business sustainable development.

However, one does not know when to stop the idea of ​​the company's future, and what role the social enterprise, he is a business entrepreneur, not a social entrepreneur. As a social entrepreneur, he is not only in the creation of value and profit to meet market demand, but also to his own business when a society treat, corporate staff will be oriented so that the growth of enterprises with employees generate height of the feeling of belonging fit, long-term staff turnover Dawujituan less than 3% of our business is to benefit society as proof management. 

Sun Dawu






                           



Corporate Governance

第二,由于中国处于历史的转轨期,不少企业正在走西方企业所走过的老路,像英国那样,也从企业承担无限责任,转而承担有限责任,进而用股份制来设置企业的管理架构,由资本家们共和或共治,由资本家来根据股权的多寡及权重,来选择职业经理人治理企业。



Second, since China is in an historic transition period, many companies are taking the path taken by the Western companies, as the United Kingdom, but also from a business with unlimited liability in favor of limited liability, and then use it to set up joint-stock enterprise management architecture by Republican capitalists  or cohabitation with capitalists according to the amount of equity and the right weight to select professional managers for corporate governance.



                         


The adjustment system is dynamic, but I was not one person, we need each other in order to generate a new game system which results in the system as a game process. Our initial seniority provisions of workers gave the right to vote after three years. Five years later, the right to vote is after 10 years. Do you think that there are more or less workers who vote now than over 12 years ago. In the past, 500 people took part in the elections. Now, after we have increased the length of service standards there are almost 500 people. Seniority is dynamic, we want to maintain the number of more than 500 people.







                             


大午传承守则:大午集团“私有、公治、共享”实践》成书《大午集团私企立宪十年


"Great afternoon Inheritance Code: Taiwujituan" private, public governance, shared "practice" book "Private Dawujituan Constitutional Decade 


Taiwujituan implementation of "private entrepreneurs constitutional" system which is borrowed from the core principle of the system paradigm of British design. In Dawujituan, only senior staff who have over 10 years seniority provisions have the right to vote, and more than one year, a new employee generally has a right to be elected. In this electoral system, there is no doubt that employees with 10 years of service who have felt the work of the enterprise have the right to vote. They finally got an important qualification to select managers, and more, they feel this is an intangible capital. As owners of capital in the business, but also having the right to choose managers and employees, it is obvious that the fate of the enterprise is highly correlated.


 August 23, 2016





                         


大午集团投资海南省琼海市万泉镇的

Taiwujituan investment Wanquan Town, Qionghai City, Hainan Province

                                 




Joint Enterprise as an important step to Universality?


比如,我们集团在海南琼海万泉镇规划投资1.6亿已经建了个词料厂,在2013年就完成了6000万投资,建成了年产10万吨饲料和饲养10万只蛋鸡的第一期工程,且早就实现了企业盈利。这个工厂目前有90余名员工,80%是招聘琼海当地的农民就业,大午集团派出的管理人员只有不到20名,其中,集团副总刘金虎兼任这家企业的总经理,他的副手一位叫刘志华、一位叫王财金。因为刘金虎在集团担负了分管其他企业的重要职责,对集团19家企业中的同类企业得履行经常性的领导责任,于是,他在今年7月份提出要在两位副手中选聘一位常务副总经理,在他离开琼海的时候代行总经理的职责。

按照大午集团对下属企业选择高管实行的制度,琼海的这家企业中,拥有选举权的员工共有20名。在选举之前,拥有选举权的刘金虎选前告诉大家,他不想投票给谁,让19人来投票,只要谁获得简单多数,谁就来当常务副总。在刘金虎选择弃权后,刘志华与王财金也选择弃权。结果剩下17人投票,投票的结果是8:8,企业的办公室主任投了弃权票。这时,王财金说,那我投刘志华一票,而刘志华则说我投王财金一票。在这种投票结果依然不分高下的情形下,当时正在考察企业班子的集团总经理刘平说话了。她作为拥有加权票的集团高管在选择下属企业经理人员时,拥有选举权。她说,既然情况是这样,那我就投一票给刘志华。此时,刘金虎接着说,既然刘总投票给刘志华,那我也给刘志华投一票。最终,自然是刘志华被选聘为琼海饲料厂的常务副总。



For example, our group plans to invest in Qionghai Wanquan town has built a 160 million yuan material plant, completed in 2013, 60 million investment to build an annual output of 100,000 tons of feed and feeding 100,000 laying hens first a project, and it has long been realized earnings. The plant currently has more than 90 employees, 80% of employment recruitment Qionghai local farmers, managers Dawujituan sent fewer than 20 employees, including group vice president Liu Jinhu serve as general manager of this enterprise, his deputy a man named Liu Zhihua, a tempest of Finance. Because Liu Jinhu Group took on important responsibilities in charge of other companies, the Group's 19 companies in similar enterprises have to fulfill regular leadership responsibility, so he proposed to hiring in the hands of a two vice deputy in July general manager, when he left Qionghai acting general manager duties.

According Taiwujituan subordinate enterprises executives choose to implement the system, Qionghai of this enterprise, the employees have the right to vote a total of 20. Before the elections, has the right to vote before the election Liu Jinhu tell you, he did not want to vote for anyone, let 19 people to vote, as long as someone takes a simple majority, as executive vice president who will come. After Liu Jinhu choose to abstain, and Liu Zhihua Wang Finance also choose to abstain. Results The remaining 17 people to vote, vote was 8: 8, Office companies abstained. At this time, Wang Jin Choi said, that I cast a vote Liu Zhihua, Liu Zhihua said that while I voted for the king of Finance vote. In this vote still compete, regardless of the case was being investigated corporate bodies of Group General Manager Liu Ping speak. She has a weighting of votes in the choice of Group executives affiliated business executives, have the right to vote. She said that since this is the case, then I would vote for Liu Zhihua. At this time, Liu Jinhu went on to say that since the vote for Mr. Liu Zhihua, Liu Zhihua that I have to vote. In the end, nature is Liu Zhihua was hiring Qionghai feed mill executive vice president.




Qionghai (simplified Chinese: 琼海; traditional Chinese: 瓊海; pinyin: Qiónghǎi) is one of the seven county-level cities of Hainan province, China--one of which is Wanquan (万泉镇) . It is located in the east of the island at the mouth of the Wanquan River, 86 kilometres (53 mi) from the provincial capital of Haikou.


 


                        


图为亦忱在琼海大午饲料厂考察后,在大午集团副总经理刘金虎(右)和琼海大午饲料厂副总经理王财金(左)的陪同下,在博鳌禅寺的万佛塔上合影留念

Pictured Chen also in the afternoon after Qionghai large feed mill visits, accompanied by Deputy General Manager Liu Jinhu Dawujituan (right) and Deputy General Manager Kenneth Qionghai large feed mill Wang Finance (left), the Temple of Ten Thousand Buddhas in Boao posed for pictures on the tower











                                             



Pierre Elliott Trudeau: La balance céleste de la Justice    

Canadian Canadienne

Pierre Elliott Trudeau: Balance of Justice



孙大午:一个家庭就是一个组织架构,人人平等 [该日志已被收录]
2016-09-13

在企业管理中,有三种组织架构形式:队伍建设、组织建设和制度建设。大午集团的私企立宪制,与众不同之处就在于它的组织建设和制度建设。

很多国内知名大企业,只有队伍建设,没有组织建设,有也是虚的,更谈不上制度建设。也就是说队伍建设是纵向的,组织建设是横向的,制度建设是把组织建设和队伍建设有章法、可遵循的,而不是人说了算的制度。其中,队伍建设属纵向架构,比如部队中,班长听排长,排长听连长……营连排班,逐级垂直管理,要求统一步调和行动,就是带队伍;再比如,企业里搞总裁下设诸多副总、助理,那都是总裁的左右手,如果厂长直接管理销售经理,这也是队伍建设,不是组织建设。可以说,跟着你走的是队伍,跟你商量事情、决策的,属于组织建设。

组织建设属横向架构,比如党支部作为一个组织建在连上,指导员和连长形成互补关系,两者说不上谁大谁小,共同管理连队。组织建设在企业来说就是董事会,将来权力要集中在董事会,如果企业董事会形同虚设就没有组织建设。大午集团各单位的领导小组也属于组织建设。我怀疑有些独资公司,是否设立董事会?按照《公司法》规定,每个独立法人都得设董事会,咱们企业是集团设董事会,各子公司设至少一名执行董事。按规定,上市公司必须要有董事会、理事会和监事会,但公司法也是有问题的,因为理事会和监事会事实上隶属董事会,只要董事长可以随意任免总经理,这样就不存在组织建设了,仍然是队伍架构。这就好如连长可以撤掉排长,但不能撤掉指导员,否则就乱套了。

至于制度层面,更没人去执行。比如按《公司法》来说,不是谁是大股东谁说了算,而是谁是董事长谁说了算,这也是大午集团和新希望合资公司的争议所在,对方认为它占51%就是它说了算,这是非常荒唐,也是违背制度建设的。我们批判家长作风,其实一个家庭就是一个组织架构,人人平等,家庭做不到整齐划一。大午集团现在下设21家公司,这么大的摊子,不同于那些产品系列相对单一的企业,我们是社会状态,要想做大做强,董事会必须加强组织建设,因此之前“董事会票决一把手”的做法还得保持。董事会在此基础上,要在执行层面上细化规范理事会的财产执行范围,哪些可动,哪些不可以动,能不能抵押、贷款、担保,购置资产,都得有明晰的具体规定。





Sun Dawu: A  family is an organizational structure wherein everyone is equal

2016-09-13 10:03

In enterprise management, there are three forms of organizational structure: team building, organizational building and institution building. The difference in Dawu Group's private enterprise constitutional system lies in in its organizational building and system construction.

In many well-known large enterprises there is  only team building, but no organizational building. There is also a virtual reality in place of system construction. That is to say, the team building is vertical, the organization construction is horizontal, the system construction is the organization construction and team building with rules to follow. It is not  the people who have the final say in the system. Among the large enterprises, the team building is a vertical structure, such as troops, the squad leader to listen to platoon leader, platoon leader to listen to commander--even rowing has a vertical management by level which requires a unified pace and action as a team. Under the President are a lot of Vice-Presidents, assistants and the President's right-hand man. If the director directly manages the sales manager which is team building rather than organization building it can be said that as you go with the team to discuss things then decision-making belongs to the organization.

Organizational construction is a horizontal structure; such as, the party branch as an organization built on the company, instructors and company commander to form a complementary relationship. However,  the two can not say whether it is to be a big or small co-management company. Organizational construction in the enterprise is the Board of Directors. The future power is to focus on the Board of Directors. If the Board of Directors is useless then there is no organization building. Dawu Group, as the leading group of units, also belongs to the organization. I suspect that in some sole proprietorships there is a question as to whether or not to setup a board of directors? In accordance with the "Company Law" it is provided that each independent legal person shall have a board of directors. In  our enterprise,  the Group set up the board of directors wherein each subsidiary has at least one executive director. According to regulations, listed companies must have a Board of Directors and Board of Supervisors, but the company law is also problematic because the  Board of Supervisors is de facto subordinate to the board, as long as the Chairman of the Board can be free to appoint and remove the General Manager; so, there is no organization and it is still the team structure. A mess results if the company commander can remove the platoon leader, but can not remove the instructor.

As for the system level, there is no one to implement it. For example, according to the "Company Law" it is not who is the major shareholder who has the final say, but who is the Chairman who has the final say.  This was evident in the New Year's Day dispute of  New Hope Joint Venture where there was a 51% ownership  and a contradiction to system construction. We criticize the patriarchal style.

In fact, a family is an organizational structure where everyone is equal; although, the family can not be uniform. Dawu Group now consists of 21 companies with different services on a big scale. To maintain social status and to  become bigger and stronger, the board must strengthen the organization. Before the "vote of the Board of Directors" the practice has to be maintained. The Board of Directors on this basis, at the executive level, refines the specifications of the Council of the scope of the implementation of the property which can not be moved and where clear and specific provisions must be set for mortgages, guarantees and purchase of assets.

























孙大午, Sun Dawu, 刘会茹,Dawu Group, 私营企业主立宪制度, 大午农牧集团有限公司,河北省,徐水县郎,五庄,2020年11月11日,November 11,2020,1911,辛亥革命,孫德明, 三民主义,Unirule,天则经济研究所,茅于轼,土地扣押,农民,农业集体 伦理资,本主义,D.Carlton Rossi,拆迁,寻衅滋事,709案,709大抓捕,警察,保护伞.

Sun Dawu, Sun Dawu, Liu Huiru, Dawu Group, Private Entrepreneur Constitutional System, Dawu Agriculture and Animal Husbandry Group Co., Ltd.,Langwuzhuang, Xushui County, Hebei Province, November 11, 2020, November 11,2020,1911,Xinhai Revolution,Sun Deming,Three Principles of the People,Unirule, Tianze Economic Research Institute,Mao Yushi,land seizure,farmers,agricultural collective,ethical capitalism,D. Carlton Rossi,demolition and relocation,picking quarrels and provoking troubles,709 case,709 crackdown,police,protective umbrella.