Advancing Democratic Management and Building a Harmonious Enterprise

On October 31, CCB held the second meeting of the first workers congress in Zhengzhou, Henan province. More than 370 people including the representatives of staffs, representatives of part of the model workers and nonvoting delegates attended the meeting. It is the second meeting of the workers congress held since CCB went public, with the major tasks of deliberating the annual working report, reviewing the progress of participating in the management of bank affairs and protecting the interest of staffs by the workers congress and the labor union and addressing staffs’concern. The meeting is another major measure of the bank to further improve corporate governance, raise the awareness of democratic management, enhance the consciousness of masters and working enthusiasm of staffs, promote healthy and rapid business growth, protect the legitimate rights and interest of staffs and build a harmonious bank.

Delivering an important speech at the meeting, Guo Shuqing, Secretary of CPC Committee  and Chairman of CCB, spoke highly of the sense of masters and great contributions of all the staffs to the reform and development of the bank. As the most valuable assets of the bank, the staffs of CCB are extremely hard-working and boast the strong capacity of learning and fighting against difficulties. CCB attaches importance to implementing the “people-oriented” development concept and improving corporate governance by encouraging staffs to play active roles and advancing the democratic management. In front of the fundamental changes brought about by the shareholding reform, the staffs faithfully implement the policies and principles of the Central CPC Committee and the State Council on deepening the reform of state-owned banks. Following the instructions of the headquarters and the “customer-centric” business philosophy, they keep updating concepts and pressing ahead, actively step up the innovation of financial products and services, business process and management systems and raise advices on improving products and services in line with the needs of the market and customers, which have greatly enhanced the efficiency of the bank and well demonstrates the brand-new image of CCB to the investors, customers and the public. All the achievements of the bank made during the past year are attributable to the hard work of its staffs. It is the joint efforts of the 300,000 CCB staffs that write the glorious story of shareholding reform and reorganization, successful IPO and rapid business growth of the bank.

Guo pointed out that CCB, as the first state-owned bank going public, faces many challenges despite its achievements in the past year. Its operational model and organizational structure generally fall short of the requirements of the market and resources allocation, employee structure and incentive and disincentive mechanisms fail to catch up with business growth. There are still problems of risk management and internal control. Meanwhile, the external legal and credit environment need to be improved. The bank will face greater competition pressure at the end of the year when the Chinese financial market completely opens to foreign financial institutions. All the staffs should remain alert, change the old way of thinking, keep confident, continue to deepen the institutional reform and implement the development strategy faithfully to ensure the rapid and healthy business growth.

Guo stressed that further efforts should be made to strengthen the democratic management and supervision, improve the mechanism of employee support and providing assistance to the low income staffs, build their sense of recognition, belonging, achievement and satisfaction and create a harmonious and pleasant working environment. It is important to pay attention to the progress of staffs, build a study-oriented organization in line with the post qualification and the career development planning of staffs, strengthen the technical training, highlight the training of backbone staffs and intensify the training of those staffs who stand at the very front line of business. The human resources reform should be deepened and the performance evaluation system be established to link income distribution with the value created so as to enable the staffs to benefit from the achievements of reform and encourage their enthusiasm, attract and retain the talents and raise the competitiveness of the bank.

The meeting deliberated the working report submitted by President Zhang Jianguo on behalf of the bank’s management. Zhang noted that in the past year under the new situation after IPO CCB faithfully implemented the “market-guided and customer-centric” business philosophy, advanced the strategic transition, improved corporate governance, deepened the reform of management system, upgraded the operational mechanism, strengthened risk management and internal control, stepped up the cooperation and sharing of experience with such strategic partner as the Bank of America, intensified the optimization of business process and business expansion, adopted effective measures to raise the service quality and efficiency, increased market competitiveness and scored satisfactory achievements of business growth and profits. In the future, CCB will continue to follow the existing strategic planning, insist on prudent operation, advance the strategic transition, push forward the institutional reform and innovation, build up the capacities of risk control and customer service, competitiveness and profitability and stride toward the goal of growing into a leading international commercial bank.

The meeting is moderated by Xin Shusen, vice president and chairman of the labor union of CCB. The meeting called on all the staffs to unite as one, work hard and keep dedicated to the reform and development of the bank. It also made deliberations on such concerns of staffs as the mutual fund and implementation of resolutions, listened to the suggestions and opinions of the staff representatives on the reform and development of the bank, the salary and benefit system, career development planning, employee stock option plan and aid to the low income staffs and conducted in-depth discussions on a number of major issues.