> SAM GROUP NEWS NEWS
Recently, the Office of China and the State Council issued the Guidelines on the Promotion of State-owned Cultural Enterprises to Put Social Benefits in the First place, and to Realize the Combination of Social and Economic Benefits.
The guidelines highlight the main body of state-owned cultural enterprises, set the goal of establishing a sound system and mechanism ensuring state-owned cultural enterprises to put social benefits in the first place, and to achieve the combination of social and economic benefits, and put forward specific opinions focusing on internal organizational structure, Performance and salary assessment, joint-stock reform, merger and reorganization, asset supervision and operation, cadre talent management and so on in the reform and development for state-owned cultural enterprise.
The Guidelines clearly put forward:
We shall correctly deal with the relationship between social benefits and economic benefits, as well as the relationship between social value and market value. When the two benefits and the two values are contradictory, the economic benefits shall be subject to the social benefits, and the market value shall be subject to the social value. Deep reform and innovative development put more emphasis on placing social benefits in the first place.
We shall correctly handle the relationship between the ideological attributes and the industrial attributes of culture, as well as the relationship between the characteristics of cultural enterprises and the requirements of modern enterprise system, unify the strengthening of CPC's leadership and perfection of corporate governance, strengthen the classification guidance, innovate the asset organizational form and the operation management mode, and establish and improve the assessment criteria of putting social benefits in the first place and realizing the combination of social and economic benefits.
We shall correctly handle the relationship between party committee, government and state-owned cultural enterprises, coordinate the system design and policy support, clarify who takes charge, who takes responsibility and the territorial management, respect the principal status and autonomy of corporate legal person, strengthen policy guidance, enhance the supervision according law, pay attention to moral adjustment, stick to social responsibility, and implement the requirement of unifying two benefits together.
We shall clearly reflect the business philosophy of social benefits first and give the social value priority in the articles of association and the rules and regulations of enterprises, promote the combination of party committee leadership and corporate governance as well as the combination of internal incentives and constraints, so as to form of asset organization and management model reflecting the cultural enterprise characteristics and in line with the requirements of modern enterprise system.
Members of the Party committee of enterprise shall enter the board of directors, board of supervisors and management in bi-directional way and in the form of cross appointment. The party secretary shall concurrently hold the post of chairman of the board to earnestly carry out the content-oriented management duty of the first responsible person. Decision-making body such as party committee, the board of directors and the manager team without board of directors, shall discuss and decide the major matters concerning the content-oriented management and other major decisions on the operation and development of enterprise, appointment and removal of important personnel, arrangement of major project, use of large amount of funds and so on according to their respective duties, extent of authorities and rules of procedure.
The cultural enterprises engaged in content creation, production and communication shall establish and improve specialized agencies such as the editorial board, the art committee and so on to strengthen the duty of content control posts such as editor in chief, and have the veto power for the matters involving content-oriented issues. News units such as CPC newspapers and journals, radio and television stations, news agencies, concurrent political newspapers and so on, may carry out business activities according to laws and regulations, but such units must make sure to separate the non-profiting institutions from enterprises, separate the editing personnel from operation personnel, and prohibit the news collecting, editorial and communication personnel from getting mixed with the operational personnel.
We will improve KPI system to assess staff based on their actual performance, assess those departments and positions directly relating to creation of works mainly according to their social benefit and allocate remuneration and bonus properly in favor of them.
We will endeavor to enhance our development level in scale, intensification and specialization, push forward transformation of state-owned cultural enterprises towards shareholding system reform, change the development mode, strengthen guiding system, improve quality and efficiency in all rounds, and develop a group of state-owned or state-controlled cultural enterprises with core competence which shall grow into the leading power of cultural market and strategic investor of cultural industry.
We will build up fine work awareness, develop guide and motivation system, focus on original creation and realistic theme writing, and produce more fine works which shall convey current value of China, express spirit of Chinese culture, promote traditional Chinese culture and reflect endeavor of Chinese people.
We will improve communication network, regulate communication order, develop modern distribution mode, improve marketing, encourage and lead cultural consumption, and enlarge the coverage and influence of excellent cultural products. We will make more efforts in research and development, build up and improve related standard, regulation and technical method to take the lead in integrated development of culture and scientific technology. We will expand foreign cultural trade and cultural investment, promote our international communication capability, tell good Chinese story and spread sound Chinese voice.
Clarify on shareholding system’s reform scope, equity structure and regulation requirementWe will implement state-owned ownership or equity diversity ownership under the control of state-owned cultural enterprises on those presses, publishing agencies of non-political newspapers, news websites and so on. Under the condition of holding the rights of publication, broadcasting and franchising, we shall explore the separation of production with publication, and separation of production with broadcasting. We could separate advertisement, printing, distribution and network from news media agency and transform them into enterprises which shall be controlled by national capital and developed in its main business of news and publicity. We shall explore and develop special regulation system for sectors of press, publication and media, and launch pilot business in active and steady way.
We will encourage qualified state-owned cultural enterprises to go public and finance. We will promote cross-shareholding or cross-regional merger and acquisitions, cross-sector and cross-ownership mergers and acquisitions of publication, distribution, film and television, art performance group, highlight the content construction and strengthen technical support. We will promote the integrated development of traditional media and emerging media, and strengthen the Internet thinking to achieve development of cross-media and all media.
We will promote the integration of regional newspaper resource lead by non-political newspapers and periodicals of the Chinese Communist Party(CCP) and competitive industrial newspapers and periodicals. We will push forward gradually the separation of party and government departments with their press, non-political newspapers and periodicals, and other similar enterprises so that we can integrate resource to build up publication and press group who will be in charge of related management responsibilities. We could also choose to hand over this group to suitable enterprise to separate government administration from enterprise management.
Strengthening the management of state-owned cultural assets and effectively exercising the rights of contributors is an important basis for the party committees and governments to strengthen the management and guidance management of state-owned cultural enterprises. It is to ensure that state-owned cultural enterprises stick to putting social benefits first and realizing the combination of social and economic benefits. We must hold the decision-making power of major matters, the control of asset allocation, the right of finalization of publicity business, the appointment and removal of major leading cadres, and ensure that state-owned cultural enterprises correctly fulfill their social and cultural responsibilities and ensure the preservation and appreciation of state-owned cultural assets.
In accordance with laws and regulations, we will explore the establishment of combined supervision by the party committee and government, and the establishment of regulation mode lead by publicity department to promote the integrated management of human resource, business, assets and guidance. Regional departments can continue to explore the local state-owned cultural asset management mode, improve the effective supervision system and working mechanism for publicity department, and promote the integration of executive sponsor system and the investor system.
We will study and formulate the supervision and management method of state-owned assets of cultural enterprises, take full account of the functional role of different types of state-owned cultural enterprises, clarify that the weight of social indicators should account for more than 50%, and quantify the social benefits assessment to political orientation, cultural production and services, the response of audience, social impact, internal system and team building and other specific indicators so that social benefits can be quantified and examined. We will set economic evaluation indicators in a scientific way and firmly oppose to only using sales volume, ratings, circulation volume or click rate. We will strengthen the preparation of state-owned capital management budget to ensure the preservation and appreciation of state-owned capital, and the implementation of social benefits requirements.
We will promote authorized operation of state-owned culture, consider requirements of the two benefits, carry out capital restructuring of state-owned culture, set up effective platform to optimize the allocation of capital resources, and promote state-owned cultural enterprises to enhance their strength, vitality, risk-resistance and influence. We will fully reflect the cultural characteristics and formulate the guidance of intangible assets assessment for cultural enterprises. We will carry out assets and capital verification work, improve and implement the specific approach on assessing state-owned intangible capital of cultural enterprises, establish and improve the state-owned capital audit supervision system of cultural enterprises, establish and improve the accountability system for asset loss.
Cultural and economic policy is an important means to promote the development of socialist culture and ensure the unity of the two benefits. It is an important means to support and guide the cultural industry and cultivate the cultural market. We must focus on the implementation and improvement of cultural and economic policies to ensure the reasonable economic efficiency of state-owned cultural enterprises and reasonable economic interests of workers, and to guide the state-owned cultural enterprises to spontaneously pursue social maximum of social interest and achieve sustainable development.
We will improve the government procurement and funding methods, actively and orderly promote government’s buying public cultural services from the community, and further support the development of state-owned cultural enterprises. We will improve management of special funds for cultural industry at all levels, and give more support to those projects which have outstanding social benefits. We will increase the input of government capital in central SOE, explore the merger and reorganization of enterprises with the method of inputting SOE capital, cultivate national backbone enterprises. Provincial key cultural enterprises, if approved by the provincial government, can be exempt from state-owned capital gains before end of 2020.
We will encourage the formation or reorganization of state-owned cultural capital investment companies, set up state-owned cultural capital investment funds, play the role of financial and state-owned capital leverage, promote social capital participation, support innovative enterprises and small micro-enterprises, better guide the culture Industrial Development.
We will continue to carry out policies to promote the transformation of commercial cultural institutions and the development of cultural enterprises. In accordance with the overall requirements of the fiscal and taxation system reform, we will co-ordinate the study of tax incentives to the benefit of cultural content creation and operation of intangible cultural heritage.
We will implement the principle of Party managing cadres and talents, adhere to both ability and virtue of which virtue come first in selecting and employing talents, strengthen the sense of responsibility, responsibility and dedication, and build up educated cadre and talent team with political awareness, self-discipline, business sense and management sense.
We will coordinate the management of executives, the management of the key positions and the management of the socialized talents. We will implement the integration of the existing cadre management with modern enterprise system, and the integration of organizer’s cadre management system with the requirements of the sponsor system. Provincial publicity department shall work together with organization department for nomination, evaluation and management. We shall gradually establish stratified and classified management system for enterprise leaders.
We will Strengthen the daily management of business leaders, timely adjust positions of incompetent or inefficient leaders. We will establish enterprise executive reporting system in terms of position, virtue, clean governance and law abiding. We will establish and regulate welfare system and expenditure system for person in charge of enterprise, improve business liability audit system and off-office audit system. We will set up accountability system, remind those incompetent leaders by informing them, lowing their salary standard and even removing them from positions.
We will implement relevant requirements of the reform on the remuneration system of state-owned enterprise executives, establish and improve the evaluation system of state-owned enterprise executives on business performance and remuneration management methods, assess overall social benefits, operating performance, management responsibility and salary standards. In accordance with the relevant provisions of the state, we will carry out pilot equity incentive mechanism for state-controlled listed companies. We will carry out pilot system of professional managers of state-owned cultural enterprises and explore ways to recruit talented people.In addition, the Opinion also proposed to strengthen the party building and ideological and political work, strengthen the organization and leadership, revoke or cancel business license and shut down those state-owned cultural enterprises in lack of guided content or in bad management condition. It also proposed to explore the establishment of social responsibility reporting system of state-owned cultural enterprise, carry out social appraisal, and establish and improve the self-discipline system within this industry.