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Research on Internal Governance System of Trade Association

Author: JiangYanMiao
Tutor: LuLi
School: Southwestern University of Finance and Economics
Course: Law
Keywords: trade association internal governance organizational institutions operating mechanism
CLC: F203
Type: Master's thesis
Year: 2008
Downloads: 82
Quote: 1
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Abstract


Viewing“the third sector”of trade associations in a civil society and market economy context, their existence is reasonable and legitimacy. With the trend of“States-civil society - the economy”ternary structure, as the basis for civil society forces, industry associations effectively promote the economic democratization process, stimulate interaction and information exchange between the country and the market subjects. Facts illustrate that the trade Association fully showed its functional advantages during operation.However, in the present Chinese context, there are many issues exist in China’s trade associations, such as personnel, systems, functions, evaluation and other "administrative" issues, which has largely become a subsidiary and derivatives of the government,and thus hamper the self-regulatory industry Association’s self-government and the functional advantages. What are the reasons? It is resulted from the change of government functions, the development of the market and other outside obstacle factors, and in the eyes of this writer, inner systems, such as trade association’s organizational structure, function distribution , the rules of procedure , the standardization of its operation mechanism, and the degree of marketing etc are ,are major elements impeding their functions; Therefore, inspecting and analyzing China’s trade association and propose appropriate countermeasures become the homework as theory can not evade the reality.This dissertation is mainly structured from the perspective of organizational arrangements, duties and operational rules. It fully explore and clarify the necessity of internal management, and study the internal organizational structure frame and its theoretical basis, various organizations’inherent logic and its operating rules of procedure; Striving to establish regulation structure and rules which are management, orderly and effective functioning, open and transparent, balance and abiding for the purpose of protection of the interests of members and industry. Besides, it also designs an inner operation atmosphere based on specific laws and regulations, charter-cored, sound internal decision-making and operation system, as well as internal control mechanisms of respecting system, implementation system, create an effective internal control environment of industry associations, and thus achieve membership services, industrial self-discipline, self-government and social governance objectives. In this paper, more than 40,000 words are divided into three parts, total to six chapters.The first part, that is the first chapter in this paper, mainly illustrates the basic content of trade association internal governance and the significance of this research, demonstrate and analyze the industry associations internal control’s necessity and basic requirements and put forward an internal governance ideal model of the mechanism and system designing arrangements. In writer’s view, trade association’s internal control refers to the harmonize of internal interests, and the main channels are internal institutional arrangement, functional mechanism operation, exercise of members’rights and obligations, the internal dispute settlement mechanism operation; In China’s current context, the conduct of trade associations internal governance is the natural requirement to achieve industry autonomy, resulted from trade association’s involvement into social cooperative governance, trade association’s demand of economy democratic values, members and various subjective’s needs to special market and the system, as well as the result that our country has successively promulgated several laws and regulations to promote the development of the industry associations ; However, internal control of trade association needs strong self-organizing capacity to draw resources, high social legitimacy (the social identity), as well as rational relationship between trade associations and the government; and based on this, I made an ideal mode of internal governance mechanism and specific systems design. In my view, internal control should goal-oriented at service members, develop industry, and industry self-regulation as the goal-oriented, value-orientated at equality- emphasize, resources integration, efficiency highlighting, thus achieving effective integration of organizational and operational mechanism.The second part, namely, the paper II, III and IV, is the main content of this paper. It mainly illustrates the internal three organizations of trade associations, namely decision-making bodies, implementing agencies, business organizations’ operating mechanism, functional mechanisms and procedure rules of the three institutions, extruding trade association’s characteristic institutional professional commitment’s functional advantage and operating procedure.Chapter II discussed internal structure and operating mechanism of trade association’s policy-making body. Firstly, the meaning and characteristics of decision-making bodies (Member General Assembly) is illustrated, and reveals the importance and the basic principles of operation. Secondly, members’source, qualification, rights and obligations are demonstrated, and the duty scope of members’general assembly is pointed out. Thirdly, discussion mode and rules of the decision-making body are drawn out.Chapter III discussed the implementation department’s internal institution and its operating mechanisms of trade association. First outlined the executive body members sources, selected standards and their functions, designed the conference regulation and discussion rules of implementation body, explored its funds and financial management system; Second, the daily office form and its staff selecting issue is discussed, and the Secretariat and the Secretary-General’s formation and responsibilities are stressed particularly. Third, trade association executives’importance, selection and replacement as well as their rights and obligations are distinctively analyzed.Chapter IV mainly explains business agency’s internal institution and its operating mechanisms of trade association. First, demonstrated the meaning, status and its found process of professional committee; Second, revealed experts source, conditions and selection procedures; Third, focusing on interpretation of the functional advantages of the professional committee, pointed out that it should acquire the database, industry and technical personnel for technical development and daily work, formulating industry standard, dispute settlement, information exchange, government decision making, government trust, carrying out self-discipline function of trade association, which have a positive effect on industry built. And, through workable rules of procedure, it is expected to play their role advantage better; Finally, the article set up a professional committee’s right limitation and remedy procedures, and filed a complaint review system.The third part, that is the fifth chapter in this paper, mainly inspected the internal management of China’s trade association status. The author took Sichuan hotel and catering industry associations internal operating mechanism as studying and interpretation case, on one side, effectively respond to the second part of the system design, on the other side, for the purpose to examine the status of Internal Governance of China’s trade associations. And then, explored and analyzed the causes of china’s trade association’s internal management present situation. Finally, combined to present condition and raised specific recommendations and guiding ideology on improvement of the internal management of trade association.In this paper, the main innovation lies in the following areas:First, innovation lies in the topic. Now academics study little about the internal organization and its governance of industry associations, thus the topic has certain forward-looking meaning both in theory and practice.Second, trade associations and specific internal system design perspective on innovation. This paper is in connection with reality on internal organization structure, functions arrangements, rules of procedure of industry associations to raise a more workable program.Third, we seize the characteristics of the study objective, and focus to elaborate it. This paper focused on the professional committee system, timely explored its right to develop industry standards, dispute settlement mechanisms, and other function issues.Fourth, the paper persisted in case study based on theoretical study. The author with this research ideas in the process of writing, did research on part of industry associations in Sichuan Province, expected to examine the internal organization and the operation of trade association, explore its causes and proposed guiding ideology and specific recommendations to China’s immature industry associations.

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CLC: > Economic > Economic planning and management > Management of National Economy > Production industry management
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