Research On Internal Control Of Multinational Corporations Based On Compliance Perspective

In April 2018,the US Department of Commerce adopted a “seven-year ban on sales” against ZTE,and ZTE Corporation was almost devastated.This incident exposed ZTE's lag in the construction of compliance risk management and control system.And major flaws in the internal control system of the enterprise.For multinational enterprises,compliance with laws and regulations has become a basic requirement for conducting transnational business operations.Internal control is an effective guarantee for enterprises to prevent and control risks,and is a key factor in the success or failure of business operations.Therefore,it is imperative to strengthen the research on the internal control of multinational enterprises and improve the compliance management system of multinational enterprises in China.Based on the domestic and international research on internal control and compliance management,this paper adopts literature research and case study methods from the perspective of compliance,based on internal control related theories,to influence ZTE with great influence and typical significance.The US sanctions incident is a case study,introducing the company's internal control overview from the perspective of corporate background and compliance.It provides new ideas for the internal control system construction of China's multinational enterprises from the problems of internal control of ZTE Corporation.This paper firstly sorts out the beginning and end of ZTE's US sanctions.Secondly,it analyzes the consequences of the incident on the company's own operations.Finally,it proposes targeted recommendations to promote the construction of the internal control system of China's multinational enterprises based on the compliance perspective.After being sanctioned by the United States,ZTE's internal control system can be seen.After being sanctioned,ZTE reshaped the compliance management system,established a professional compliance team,and conducted global employee compliance training.The “Compliance Management Committee”was established to ensure the independence of the compliance department.Experts with relevant experience were hired as compliance consultants,and the internal control system was revised to ensure the compliance of the company.In order to achieve the goal of compliance management,multinational enterprises need to build a corporate compliance team,form a compliance culture,establish a risk management and compliance inspection and supervision mechanism,and government departments need to strengthen the legal and regulatory system of compliance management,thereby improving the enterprise.The internal control system,which is clear to the outside and from the inside and outside,meets the requirements of the international operation of multinational enterprises and escorts the long-term development of multinational enterprises.The specific performance of ZTE Corporation before and after the sanctions incident has important warning significance for Chinese enterprises.Multinational enterprises want to establish themselves in the international market.First,they must make themselves bigger and stronger,so that they can have sufficient voice,but this It is also inseparable from the guarantee of long-term internal control mechanism,and the construction of internal control system is of great significance to the development of domestic and foreign enterprises.This paper believes that for Chinese multinational enterprises,only by constructing an internal control system based on compliance objectives can they effectively face the compliance risks in the transnational business process.