Research On Internal Governance Structure Of Social Enterprises

Enterprise internal governance structure is the core and soul of modern enterprise system.In recent years,Social Enterprises have rapidly emerged and flourished in China as a form of enterprises that uses business models to solve social and environmental problems.Due to the differences in the development background,growth process and development model of China’s Social Enterprises from the specific legal forms formed under the European "Socio-Economic" path,as well as the Social Enterprise formation under the "Non-Profit Organization " path in the United States,the internal governance structure of China’s Social Enterprises has its own uniqueness and complexity.The current Chinese law incorporate the internal governance structure of Social Enterprises into the general governance of commercial enterprises for adjustment,without taking into account the central issue of social standard in the internal governance of Social Enterprises,which results in the realization of social interests not receiving the recognition and protection that should be given to shareholders’ interests,leading to the risk of Social Enterprises becoming non-profit organizations or deviating from social missions,resulting in a series of symptoms of internal governance structure discomfort,It is urgent to accelerate the construction of an internal governance structure of Social Enterprises with Chinese characteristics.A sound internal governance structure of Social Enterprises regards the rights of social interest holders as the source of power for Social Enterprises,establishes the representative assembly of Social Enterprises as the power organ of Social Enterprises,and includes social directors and supervisors in the board of directors and supervisory board of social enterprises.Gradually,the moderate separation and balance of decision-making,management,and supervisory powers of Social Enterprises are achieved,promoting the healthy operation and development of Social Enterprises in China.The fundamental position and key foothold that must be followed in the allocation and operation of power in internal corporate governance are the value orientation of corporate governance.The value purpose of Social Enterprises is to achieve the overall interests of society,and their internal governance structure is no longer limited to maintaining the interests of individual entities.Instead,they fully utilize the organizational form of the company to obtain commercial benefits,achieve the demands of stakeholders such as investors,donors,employees,and the government,and achieve the broadest degree of social welfare and social care,reflecting a strong social standard value orientation.Under this central issue,the legalization and empowerment of social stakeholders within Social Enterprises are constantly being strengthened,becoming the source of power for Social Enterprise governance,thereby configuring the power structure and operation of internal governance in Social Enterprises.According to the governance logic,the internal governance power allocation of Social Enterprises is no longer limited to the goal of maximizing shareholder interests,but is subordinate to the value mission of mobilizing diversified market resources,improving social interest performance,and safeguarding the overall interests of society.The internal governance structure of an enterprise is the specific process and process of power distribution,delegation,derivation,exercise,supervision,and other different forms of power transformation from the origin of enterprise power to the center of enterprise power to the end of enterprise power.As the right of investors to distribute profits is restricted,the control of Social Enterprises is transferred to the holders of social interests,and the shareholders’ meeting representing shareholder interests is no longer the highest authority,but replaced by the representative assembly of Social Enterprises;At the same time,as representatives of social interests,social directors are appointed by the government or relevant departments to serve on the board of directors of Social Enterprises according to the unified process of appointment and enterprise appointment,overcoming operational obstacles in the internal execution agencies of Social Enterprises and improving the decision-making ability of the board of directors;In addition,the dual nature of internal governance goals in Social Enterprises involves numerous participants.The establishment of a supervisory body system for social supervisors ensures the detachment and fairness of supervisors themselves,in order to maximize the maintenance of social interests and the achievement of Social Enterprise goals.