Introduction - Analyzing China Unicom's Governance Framework and Challenges
Corporate governance is a technique by which an organization is directed and managed by several processes, rules, and practices that help the company to set its strategic aim. This study aims to describe the issues of corporate governance in China Unicom. The study will first describe the corporate governance in China Unicom, second principal corporate governance issues in China Unicom, third roles of different stakeholders in the corporate governance issue in China Unicom, analysis of the corporate governance issue in China Unicom, fifth appropriate recommendations for this company.
Grab The Best Academic Assistance In Just One Click
Structure of the corporate governance in China Unicom
For the success, long run, and sustainability of the company it is necessary to govern and direct in the right way. The China Unicom company has established several departments and given them different authorities to manage the risks and make decisions that could benefit the company. In this structure, the board is the highest decision-making body and the Audit Committee is the supervision body.
Figure 1: China Unicom Corporate Governance
The other departments are the Internal Control and Risk Management Committee; this is the highest coordination and deliberation body at the company management level. It is divided into two sub-committees- (a) the committee tied in a related professional is the cross-departmental body of risk management in professional fields, and (b) the Internal control and risk management office is the daily working department. The department's professional function is to control management and execution departments. The Internal audit department is the department of integrated risk management and internal control, supervision, and evaluation department. There are 3 more divisions in The committees in related professions such as (a) the Financial risk committee to look after financial risk management, (b) the Investment decision committee to look after the management of investment decisions (c) The working steering group of Internet and cyber security to look after the management of Internet and cyber security. The board is responsible for managing the standards of corporate governance and making decisions on business strategies, investments, budgets, and so on. There are nine directors on the board which includes four non-independent executive directors and five executive directors (Chinaunicom, 2021). The company also has six hundred and twenty-three workers who report to the Internal audit department and the Internal audit department gives reports to the Audit Committee. The Internal audit department oversees all kinds of risk assessment, and risk prevention and makes every employee aware of the risk prevention.
Corporate governance issue in China Unicom
Corporate Governance could be considered as the structure which intends to distribute rights and duties among all the members of the company. As stated by TONG, and Yin (2019), the important members of the decision-making are managers, board members, shareholders, as well as stakeholders. It would state the rules and regulations for the organization in a comprehensive manner. Besides, the dimensions of corporate governance are also vital for dealing intrinsically with the suppliers and investors who would be assured of getting their investments in a proper way. Thus, China Unicom stands on the same guidelines as it regulates under Chapter 622 in the Laws of Hong Kong which is aligned with the Companies Ordinance (Chinaunicom, 2021). Additionally, it is also associated with the Securities and Futures Ordinance of the land which would elaborate on the corporate governance of the organisation.
The organization has abided by the rules mentioned in the Stock Exchange in compliance with the Listing of Securities. In fact, the prevalent articles are also related to these procedures and norms to much extent. Corporate governance of the organization revolves around the guidelines stipulated in these main documents (Lu, and Zhu, 2020). Further, the company works in relevance with the best practices of international as well as regional level procedures. In fact, the company did not step back in publishing statements that are concerned with risk management along with controls of both external and internal spheres. It is very vital for the Board members to maintain their responsibilities and rights as per the norms of corporate governance. The adoption of the Internal Control-Integrated Framework is rendered by the Committee of Sponsoring Organisations of the Treadway Commission (the "COSO"). There are some of the important fundamental elements of the internal control systems are risk evaluation, control environment, activities related to information and monitoring, along controls.
Roles of different stakeholders in the corporate governance issue in China Unicom
The different stakeholders in the company "China Unicom" have mentioned that there should be effective delegating of the work. The stakeholders are trying to manage the risks by evaluating the new strategies and positioning of the company. Different stakeholders have their own opinions on how China Unicom should be run. Some believe that it is important to delegate work effectively in order to manage risks properly. Others think that stakeholders should focus on evaluating new strategies and positioning the company. However, all agree that China Unicom must become more efficient if it wants to survive and compete in today's market.
Figure 2: Financial data of China Unicom
The different stakeholders in the company "China Unicom" have mentioned that there should be an effective delegation of work in order to manage risks and improve company performance. By evaluating new strategies and positioning, the stakeholders can provide input on how best to proceed with delegating work tasks. There are many factors to consider when looking at company performance, and effective delegation of work is just one way to help improve overall efficiency. Other ways to improve company performance may include process improvements, system changes, or training employees on new methods. Whatever the case may be, it is important for all stakeholders to be aware of the different options available and to provide their input on how best to improve company performance.
Different stakeholders in the company "China Unicom" have mentioned that there should be an effective delegation of work. As mentioned by Mbona, and Yusheng (2019), the stakeholders are trying to manage risks by evaluating new strategies and positioning the company. The company's shareholders believe that an important part of the company's turnaround lies in its ability to delegate authority and responsibility effectively. The board of directors is also supportive of this view and has been working hard to ensure that the company's management team is up to the task.
China Unicom's employees are another important stakeholder group, and they too have a vested interest in seeing the company succeed. Many of them have been with the company for many years, and they understand the challenges it faces (Mbona, and Yusheng, 2019). As such, they are willing to work hard to support any initiatives that will help China Unicom return to profitability. Finally, China Unicom's lenders also have a say in how the company is run, as they provide vital financing. They too want to see the company turn things around and are therefore supportive of efforts to improve efficiency and accountability.
Different stakeholders in the company "China Unicom" have mentioned that there should be an effective delegation of work in order to manage risks and evaluate new strategies. The company's shareholders, employees, and customers are all important stakeholders who can contribute to its success or failure. Delegating work effectively means that tasks are assigned to individuals or teams based on their skills and abilities Fang et al. (2020). This ensures that work is completed efficiently and effectively and that risks are minimized. China Unicom's stakeholders have therefore urged the company to delegate work effectively in order to achieve its goals.
Analysis of the corporate governance issue in China Unicom
Corporate governance is a structure that is designed to distribute rights and duties among the members of a company. As mentioned by Dat et al. (2020), the main decision-makers in a company are managers, board members, shareholders, and stakeholders. Corporate governance sets out the rules and regulations for the organization in a comprehensive manner.
The corporate governance issue in China Unicom is an important one that needs to be resolved in order to ensure the long-term success of the company. Corporate governance is a system that helps to distribute rights and responsibilities among different members of an organization. It includes managers, board members, shareholders, and other stakeholders (Chinaunicom, (2021). This system defines the rules and regulations for the company in a clear manner. China Unicom is one of the leading telecom operators in China. The company has been facing some corporate governance issues in recent years. Some shareholders have accused the management of not following proper procedures and giving them unfair treatment. There have also been allegations of corruption and nepotism within the company.
Figure 4: Principles of Corporate Governance
The Chinese government has been working on improving corporate governance in state-owned enterprises like China Unicom. As stated by Jiang, and Kim (2020), they have implemented new policies and regulations to make sure that all shareholders are treated fairly and equally. The government has also set up a special committee to investigate any complaints about corporate governance issues. China Unicom is taking steps to improve its corporate governance practices. The company has set up a special committee to review all shareholder proposals and make sure that they are given due consideration (TONG, and Yin (2019). China Unicom is also working closely with the Chinese government to improve its compliance with new policies and regulations. China Unicom is one of the largest telecommunications service providers in China. The company has been in operation for over two decades and has a customer base of over 300 million (Jiang, and Kim 2020). Recently, there have been corporate governance issues within the company that have come to light. These issues have caused many shareholders to lose confidence in the company and its management.
Figure 5: Number of Employees in China Unicom
The primary issue at hand is that the board of directors is not independent of the Chinese government. Many of the members of the board are either current or retired officials from the Communist Party of China. This creates a conflict of interest as these individuals are more concerned with furthering the interests of the party rather than those of the shareholders (Kwan, 2020). As a result, decisions made by the board are often not in the best interests of investors. Another corporate governance issue facing China Unicom is related to its share structure. As postulated by Jianjun (2020), The Chinese government owns a majority stake in the company, which gives it significant control over decision-making. This results in a lack of transparency and accountability, as well as decreased shareholder rights. Additionally, because the government is able to appoint board members, it can effectively control what goes on at China Unicom. There are a few key points that should be considered when analyzing the corporate governance issue in China Unicom. First, it is important to understand the interests of all the stakeholders involved. Second, the rules and regulations governing the company should be clear and comprehensive (Jianjun, 2020). Third, there needs to be a mechanism in place to ensure that all stakeholders have a voice in the decision-making process.
Corporate governance is a critical issue in China Unicom, as it governs the distribution of rights and duties among the company's key decision-makers: managers, board members, shareholders, and stakeholders. As stated by Liu et al. (2022), corporate governance rules and regulations provide a comprehensive framework within which the company operates. They ensure that all members of the organization are aware of their rights and responsibilities, and help to promote transparency and accountability in the decision-making process. Good corporate governance practices help to create an environment in which the company can flourish, by ensuring that decisions are made in the best interests of all stakeholders. As opined by Aguilera et al. (2021), In particular, they help to protect the rights of shareholders and promote communication between different interested parties. By adhering to sound corporate governance principles, China Unicom can help to build trust and confidence among its stakeholders, which is essential for long-term success.
Corporate governance is a complex and ever-evolving topic and one that is of particular importance in China Unicom. As one of the largest telecommunications companies in the world, China Unicom plays a critical role in the country's economy and society, and as such its governance practices are closely scrutinized. There are a number of key issues to consider when analyzing corporate governance in China Unicom (Liu et al. 2022). First, the company is state-owned, which means that the government has a significant degree of control over its operations. This can often lead to conflicts of interest between the government's goals and the company's bottom line. Second, there is a high level of corruption in China, which can pose significant challenges for companies doing business there. Finally, shareholder rights are not well protected in China, meaning that investors may have difficulty exerting influence over the company's management.
Despite these challenges, China Unicom has made significant progress in recent years in improving its corporate governance practices. In 2017, it was ranked first among Chinese companies for disclosure by the Global Reporting Initiative, and it has also been recognized by MSCI as a leader in environmental, social and governance reporting. However, there is still room for improvement, particularly with regard to transparency and accountability. As opined by Wang, and Cheng-Han (2020), different stakeholders have their own opinions on how China Unicom should be run. Some believe that it is important to delegate work effectively in order to manage risks properly. Others think that stakeholders should focus on evaluating new strategies and positioning the company. However, all agree that China Unicom must become more efficient if it wants to survive and compete in today's market.
The different stakeholders in the company "China Unicom" have mentioned that there should be an effective delegation of work in order to manage risks and improve company performance. By evaluating new strategies and positioning, the stakeholders can provide input on how best to proceed with delegating work tasks. As viewed by Jun-tu, H.J.Z. (2022), there are many factors to consider when looking at company performance, and effective delegation of work is just one way to help improve overall efficiency. Other ways to improve company performance may include process improvements, system changes, or training employees on new methods. Whatever the case may be, it is important for all stakeholders to be aware of the different options available and to provide their input on how best to improve company performance. Different stakeholders in the company "China Unicom" have mentioned that there should be an effective delegation of work. The stakeholders are trying to manage risks by evaluating new strategies and positioning the company.
The company's shareholders believe that an important part of the company's turnaround lies in its ability to delegate authority and responsibility effectively. The board of directors is also supportive of this view and has been working hard to ensure that the company's management team is up to the task. China Unicom's employees are another important stakeholder group, and they too have a vested interest in seeing the company succeed (Wang, and Cheng-Han (2020). Many of them have been with the company for many years, and they understand the challenges it faces. As such, they are willing to work hard to support any initiatives that will help China Unicom return to profitability. Finally, China Unicom's lenders also have a say in how the company is run, as they provide vital financing. They too want to see the company turn things around and are therefore supportive of efforts to improve efficiency and accountability.
Recommendation
The corporate governance issue in China Unicom has been subject to much debate. Some critics argue that the current system gives too much power to the managers and board members, while others argue that the shareholders should have more control. There has been no consensus on how to resolve this issue. One proposal is to give more power to the shareholders. This would allow them to have a greater say in how the company is run. Another proposal is to give more power to the stakeholders. As stated by Fan et al. (2022), this would allow them to have a greater role in shaping the company's strategy. Corporate governance is a system that delineates the rights and duties of all members of a company, including managers, board members, shareholders, and stakeholders. It establishes rules and regulations for the organization in a comprehensive manner. The purpose of corporate governance is to promote transparency and accountability in the decision-making process, so as to protect the interests of all stakeholders.
The issue of corporate governance came to prominence in China Unicom when it was revealed that several top executives had engaged in illegal activities, such as embezzlement and nepotism. As stated by Kwan (2020), these revelations caused a great public outcry and led to calls for reform of the company's governance structure. In response to these calls, China Unicom implemented a series of reforms, including introducing new internal controls and increasing transparency in its operations. While these reforms have helped to improve corporate governance at China Unicom, there is still room for further improvement.
Conclusion
The above-mentioned corporate governance issues have led to a decline in share value and an increase in debt levels at China Unicom. In order to regain shareholder confidence and improve its financial situation, the company needs to address these issues head-on. This includes making changes to its board of directors and share structure that will promote
Corporate governance is a system that outlines the rules and regulations for how a company is run. It lays out the rights and duties of all members of the company, including managers, board members, shareholders, and stakeholders. Corporate governance is important because it helps to ensure that the company is run in an efficient and effective manner. In China, corporate governance has become an issue of concern in recent years. This is due to the fact that many Chinese companies have been found to be engaged in unethical or illegal practices. As a result, the Chinese government has been cracking down on these companies and has enacted stricter laws and regulations regarding corporate governance.
The corporate governance issue in China Unicom is a complex one. There are many stakeholders involved in the decision-making process, and each has its own interests and agendas. The managers, board members, shareholders, and stakeholders all have different rights and duties within the company. This can make it difficult to reach a consensus on important decisions.
References
Journals
Dat, P.M., Mau, N.D., Loan, B.T.T. and Huy, D.T.N., (2020). COMPARATIVE CHINA CORPORATE GOVERNANCE STANDARDS AFTER FINANCIAL CRISIS, CORPORATE SCANDALS AND MANIPULATION. Journal of security & sustainability issues, 9(3).
Fan, R., Pan, J., Yu, M. and Gao, H., (2022). Corporate governance of controlling shareholders and labor employment decisions: Evidence from a parent board reform in China. Economic Modelling, 108, p.105753.
Fang, E.F., Xie, C., Schenkel, J.A., Wu, C., Long, Q., Cui, H., Aman, Y., Frank, J., Liao, J., Zou, H. and Wang, N.Y., (2020). A research agenda for aging in China in the 21st century: Focusing on basic and translational research, long-term care, policy, and social networks. Aging research reviews, 64, p.101174.
Jiang, F. and Kim, K.A., (2020). Corporate governance in China: A survey. Review of Finance, 24(4), pp.733-772.
Jianjun, M., (2020), October. Cluster analysis of China Unicom mobile phone users based on the K-Means algorithm. In 2020 2nd International Conference on Machine Learning, Big Data and Business Intelligence (MLBDBI) (pp. 375-378). IEEE.
Jun-tu, H.J.Z., (2022). Research and Development of Efficient Emergency Startup System in China Unicom Business Support System. Computer & Telecommunication, (10), pp.77-81.
Kwan, C.H., (2020). China’s Unfinished Ownership Reform: Privatization and a Fair and Competitive Environment Remain to be Achieved. Public Policy Review, 16(3), pp.1-26.
Liu, K., Shen, X. and Cheng, X., (2022). Public relations in corporate mergers and acquisitions. Asia Pacific Public Relations Journal, 24.
Lu, Z. and Zhu, J., (2020). Tracing back to the source: Understanding the corporate governance of boards of directors in Chinese SOEs. China Journal of Accounting Research, 13(2), pp.129-145.
Mbona, R.M. and Yusheng, K., (2019). Financial statement analysis: Principal component analysis (PCA) approach case study on China telecoms industry. Asian Journal of Accounting Research, 4(2), pp.233-245.
TONG, S.Y. and Yin, X., (2019). Mixed ownership reforms of China’s state-owned enterprises. East Asian Policy, 11(02), pp.104-116.
Wang, J. and Cheng-Han, T., (2020). Mixed ownership reform and corporate governance in China's state-owned enterprises. Vand. J. Transnat'l L., 53, p.1055.
Websites
China Unicom, (2021). Corporate Governance Report. Available at: http://ar2021.chinaunicom.com.hk/English/corporate-governance-report.html accessed on 16th March, 2023
China Unicom, (2021). Global. Available at: https://www.chinaunicom.com.hk/en/global/home.php accessed on 16th March, 2023
Statista, 2021. Number of employees at China Unicom from 2011 to 2021. Available at: https://www.statista.com/statistics/232530/number-of-employees-at-china-unicom/ accessed on 16th March, 2023
