Private Constitution
私营企业主立宪制度 Private Entrepreneurial Constitutional System
所以，我要探索一种制度，这就是大午集团的私企立宪制度。这个制度对于企业接班人，它既不是继承制，也不是培养制，而是一种选拔制度。接班人需要德才兼备，需要从实践中锻炼出来。如何让他们成长起来，一个是通过思想品德教育，一个是锻炼的途径，更重要的是要有一种制度的约束，需要制度的环境和氛围来塑造他们的人格。
I want to explore the Dawu Group's Private Enterprise Constitutional System. This system for business successors is neither of inheritance nor culture, but rather of selection. Successors need both ability and integrity forged from practice. How to let them grow up? One way is through the exercise of ideological and moral education. More importantly, there must be a system of constraints along with an institutional environment and atmosphere to shape their personality.
Presentation at the International Conference on Corporate Governance in Asia and China on March 11, 2005 Hongbin Cai (UCLA) Hongbin Cai (UCLA)
Qiao Liu (HKU)
Geng Xiao (XKU)
Does competition encourage unethical behaviour? The case of corporate profit hiding in China.
Sun Dawu and Ex CEO of Dawu Group
"My group's fixed assets amount to over RMB 100 million, but I could not get any bank loans".
Concern #2
Firms that have been consistently discriminated against behave differently.
(Partial Quote of Text)
2. Successfully created a model that was later called "Dawu model". Never borrow from banks (because you cannot), borrow directly from your fellow villagers. Has borrowed RMB 159.89 million directly from more than 3185 households.
4. Arrested and charged with a crime called "illegal deposit taking" in early 2003; his case immediately drew tremendous amount of media attention, which made him a hero, of course in China's informal sectors.
5 His eldest son succeeded him and became the CEO of Dawu Group; his first priority, as he claimed, is to establish good relationship with local government and try to get loan from the banks, which his father and failed for past 8 years.
http://www.baf.cuhk.edu.hk/research/cig/pdf_ ... age%20Unethical%20Behavior.ppt
http://www.baf.cuhk.edu.hk/research/cig/pdf_download/Does%20Competition%20Encourage%20Unethical%20Behavior.ppt.
A Project Proposal
The Financing Environment of Private Enterprises:
from the Sun Dawu Case, July 31, 2003
Contents:
The defects of current financing system.
The necessity and feasibility for opening financial market.
The relationship between government and private enterprises.
The barriers of current law to the development of private enterprises.
Experts:
Jiang Ping (Prof. Chinese University of Political Science and Law)
Sheng Hong (Prof. Unirule)
Bao Yujun (Vice Chairman, National Association of Industry and Commerce
Chen Ping (Prof. Peking University)
Zhou Zhenxiang (Prof. China Youth College Of Political Science, deceased)
Zhang Shuguang (Prof. Unirule)
Li Shuguang (Prof. Chinese University of Political Science and Law)
Zhu Jiuhu (Lawyer)
Zhang Xingshui (Lawyer)
Impact:
Mr. Sun Dawu 孙大午 got out of prison on probation. The survival environment of private firms attracted more focus.
Closet Liberal or Conservative
Reuters, September 27, 2005
Benjamin Kang Lim
"The leadership is using very moderate methods because domestic contradictions have deepened and cannot be resolved," Wu Guoguang, a professor of political science at the University of Victoria in Canada, said referring to social tensions.
On the contentious issue of media and speech freedoms, too, there have been rare displays of official tolerance. Internet dissidents Liu Di and Du Daobin were released last year after months of detention, and private entrepreneur Sun Dawu, accused of illegally taking deposits, was spared imprisonment in 2003.
A Hero To Many, Freed
World Briefing | Asia: China: Businessman
by Chris Buckley (NYT)
October 31, 2003
A court in northeastern Hebei Province convicted and then freed a rural businessman who has gained a national reputation as a modern Robin Hood. Under a law that many considered to be vague, the businessman, Sun Dawu, 50, was accused of running an illegal bank. To raise money for his agriculture business, Mr. Sun had accepted money from his employees, paying them interest rates above those of state banks. Soon even non-employees were making deposits. The court found him guilty but ordered his immediate release, a decision hailed by advocates of precise definitions for Chinese laws. ''The criminal code still needs clearer explanation,'' one of his lawyers said, ''but this is one step forward.'' Chris Buckley (NYT)
http://www.nytimes.com/2003/10/31/international/asia/31BRIE1.html
The Grandson Great Noon
一个民营企业家的意外被捕揭示了中国金融体制的深层次悖论，也凸现出政治民主改革对建立公民社会和塑造商业环境的意义
2004年5月27日，当大午集团的员工们坐在阶梯教室里看凤凰卫视和中央电视台对集团的相关报道时，看到妻子坐在那里哭，孙大午还是感慨万端，写下两首诗。前言为：阶梯教室看光盘，纪念蒙难一周年。满腔愤怒无呐喊，妻哭无泪诗两篇。其一曰：回首噩梦已经年，亲人仍旧泪涟涟。别说晴天愁阴影，本分农民耕田难！自由劳动生财富，淳风化雨多善男。不是大午花一点，万国遍呈桃花园。
http://www.info.china.alibaba.com/news/detail/v5000060-d5622927.html
http://info.china.alibaba.com 2006-01-01 07:00
大午改制 The Great Noon Changes the System
本报记者章轲发自北京
电话那端的孙大午语调低沉但不失热情。
噢，你是章轲啊。我每天都在公司上班，除了关心中央近期有关非公经济发展的文件精神外，更关心大午集团改制的事。孙大午对记者说，谢谢你的关心，也欢迎你再次 来徐水坐坐。
这天是2005年8月10日。看书、上网和滑旱冰
今年50岁的孙大午曾是河北徐水市大午集团董事长，市养殖协会会长，也是探讨中国民营企业发展和民间金融问题时难以回避的人物。2003年5月27日，他因非法吸收公众存款罪入狱，当年11月1日走出看守所。
回到集团后，孙大午把整个集团都交给儿子去管理，自己退到后台。但他每天仍然会到原来的办公室里办公、看书学习。
我刚看完《杰斐逊集》，对我的启发实在是太大了。孙大午对记者说，书上有关权力的分割和制约，对大午集团的改制非常有帮助。家族企业靠血缘、亲缘、地缘相维系，这是一种宗法式的管理，必须向现代的公司治理转型。
http://finance.sina.com.cn/chanjing/b/20050817/08501893527.shtml">The Great Noon Changes the System
2005-8-10 Finance.sina.com.cn
From dirt-poor farmer to entrepreneur, Sun Dawu in many respects is a model of what can be achieved in today's China.
But wealth did not come easily. In fact, Sun was detained for six months in 2003, convicted of running an illegal underground bank and given a suspended prison term and a hefty fine.
Through it all, Sun says he has been guided by the teachings of the ancient philosopher Confucius.
Now, at the age of 51, Sun is back with the food production he founded two decades ago. His business acumen has earned him nearly 3 billion yen during that time.
Sun cites the Confucian saying, "The people must be affluent."
And his investors--the villagers and farmers who sell their produce to his Dawu Group companies and invest their cash in his underground bank--certainly agree.
"http://www.asahi.com/english/Herald-asahi/TKY200603080136.html">Asian Entrepreneur Guided by Confucius is Making a Difference
by Keiko Yoshioka
The Asahi Shimbum
March 08, 2006
China's First "Family Business Constitution"
In 2004, Sun Dawu investigated various management systems for his business. These included joint-share, senior joint-share and family joint-share systems. However, he foresaw conflicts between individual interests and responsibilities. As a result, he devised the first Family Business Constitution in China which separated the rights of ownership, decision-making and operations.
Sun drew upon many outside sources in order to devise a sustainable development of the family business. He was inspired by lessons to be learned from The Incident at Xuanwu Gate in the early years of the Tang Dynasty. He also looked at the Central Government System of Three Councils and Six Boards in the Sui Dynasty. His research included both the Constitutional Monarchy in the U.K and the Separation of Powers in the US.
As a result, Sun Dawu designed a Family Business Constitution. This was intended to create a stable system in which "the three powers could co-exist while checking and balancing each other at the same time" according to Professor Yuping Du. The Constitution is the bedrock of the system.
D. Carlton Rossi
Constitutional System
The family enterprise adopted a unique corporate citizenship culture. In the Dawu enterprise people were encouraged to have a kind and gentle disposition and refined manners, to believe in justice and truth and to act with humanity and reason. Sun insists that power and money only embody wealth, not the value of life; instead, the value of life exits in effort, knowledge and devotion. Sun believes that the people who dare to take responsibility are the real bosses.
Family Enterprise in the Asia Pacific: Exploring Transgenerational Entrepreneurship in Family Firms
Kevin Au, Justin B. Craig, K. Ramachandran, Elgar Publishing, Northampton, Massachusettes, 2011, page 62
Case Study Four, The Sun Family (Dawu Group): Passing the Helm to the Wise, Bing Ren, Bin Yang, Ya Li
Sun Dawu is a peasant turned entrepreneur who criticizes government policies that discriminate against peasants and rural industries. When his criticism became too harsh the government detained him. This aroused a big wave of appeals and petitions from university students, professors, journalists and public intellectuals challenging the basis of his detainment. Eventually the government had to water down its case and find a face-saving excuse to issue a relatively light punishment on Sun.
China's "Peaceful Rise" in the 21st Century: Domestic and International Conditions
"Sun Dawu hoped that his employees could consume in Dawu City instead of saving their money in banks. Therefore, people could turn individual wealth into community wealth shared by every member"
W. Glenn Rowe and Laura Guerrero, Cases in Leadership, Third Edition, Ivey Publishing, Western University, London, Ontario: 2013, p.477
"Sun also studied carefully the "Constitutional Monarchy" in the United Kingdom, the "Separation of Powers" in the United States, and the "Central Government System of Three Councils and Six Boards" in the Sun Dynasty in ancient China".
K. Praveen Parboteeah and John B. Cullen, Business Ethics, p. 294
Capitalism with Chinese Characteristics
The key to getting the China story right is to recognize the existence of two Chinas -– an entrepreneurial rural China and a state-controlled urban China.
CAMBRIDGE UNIVERSITY PRESS
Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo, Delhi
Cambridge University Press
32 Avenue of the Americas, New York, NY 10013-2473, USA
Evolution of capitalism in China is a function of a political balance between two Chinas - the entrepreneurial, market-driven rural China vis-à-vis the state-led urban China. In the 1980s, rural China gained the upper hand but in the 1990s, urban China gained the upper hand. Although China made notable progress in the 1990s in terms of FDI liberalization and reforms of SOEs, this book assigns greater weight to the rural developments in determining the overall character and the pace of China's transition to capitalism.
Many economists rely on GDP data to formulate their view of Chinese economy. The tale of the two decades is not reflected in the GDP data but is reflected in the household income data (obtained through surveys). Rural household income grew substantially faster in the liberal 1980s than in the illiberal 1990s. Also social performance deteriorated in the 1990s as well.
© Yasheng Huang 2008
Individualisation and Politics in China: The Political Identity and Agency of Private Business People
Authors: Delman, Jørgen; Yin, Xiaoqing
Source: European Journal of East Asian Studies, Volume 7, Number 1, 2008 , pp. 39-73(35)
Publisher: Brill
It is argued that informal political agency is part of the political dynamics of the nexus and that it develops through critical tension between private business people and the autocratic party-state. This is illustrated through the case of Sun Dawu, a Hebei businessman turned political activist.
Family Enterprise in the Asia Pacific: Exploring Transgenerational Entrepreneurship in Family Firms
Kevin Au, Justin B. Craig, K. Ramachandran, Elgar Publishing, Northampton, Massachusettes, 2011, page 62.
Case Study Four, The Sun Family (Dawu Group): Passiong the Helm to the Wise, Bing Ren, Bin Yang, Ya Lit
The family enterprise adopted a unique corporate citizenship culture. In the Dawu enterprise people were encouraged to have a kind and gentle disposition and refined manners, to believe in justice and truth and to act with humanity and reason. Sun insists that power and money only embody wealth, not the value of life; instead, the value of life exits in effort, knowledge and devotion. Sun believes that the people who dare to take responsibility are the real bosses.
Sun Dawu 2014-09-16 17:22
I feel very good about traditional Chinese culture, but this is not only about how the traditional culture is reflected in Confucianism, Buddhism and Taoism, and will never exist only in schools and books, more traditional culture should be reflected in the home, family, clan, and ancestral heritage. A man without culture is not terrible, terrible is uneducated. Culture can be derived from the schools, from books, but education must come from the family, from the family environment.
孙大午 2014-09-16 17:21 于 北京 通过网站
我 感觉中华传统文化非常好，但这种传统文化绝不仅仅体现在儒释道，也决不仅仅存在于学校和书本，更多的传统文化应该体现在家庭、家族、宗族、宗祠传承上。一 个人没有文化并不可怕，没有教养才是可怕的。文化可以来源于学校，来源于书本，但教养一定来源于家庭，来源于家族环境。
Business Ethics
By K. Praveen Parboteeah, John B. Cullen, Routledge: New York, 2013, page 294
The core concept of Sun Dawu’s “Family Business Constitution” was separating the rights of ownership, decision-making and operations thus creating a stable system in which the three powers could co-exist while checking and balancing each other at the same time. The constitution was the foundation of the system and was placed at the top of the “Family Business Constitution” hierarchy.
China's "peaceful Rise" in the 21st Century: Domestic and International Conditions
Edited by Sujian Guo, Ashgate Publishing: Burlington,VT, 2006, page 125.
Hebei Dawu Group: Building the First Family Business Constitution in China
Sun Dawu is a peasant turned entrepreneur who criticizes government policies that discriminate against peasants and rural industries. When his criticism became too harsh the government detained him. This aroused a big wave of appeals and petitions from university students, professors, journalists and public intellectuals challenging the basis of his detainment. Eventually the government had to water down its case and find a face-saving excuse to issue a relatively light punishment on Sun.
China’s laws also contain extremely stringent rules on private enterprises. This popular saying vividly illustrates the problem: “[If you want to] find fault with an enterprise and it doesn’t evade taxes, check if it’s operating illegally. If it’s not operating illegally, check its registered capital. If its registration isn’t fake, check if it has illegally resold land. No matter what, there are nearly a hundred accusations that can be used against enterprises in China today!”
Beyond these, other common charges include “illegal deposit taking” levied against Sun Dawu, the owner of Hebei Dawu Farming and Stock Breeding Group, several years ago, and “fraudulent fund raising” directed against the self-made Wenzhou billionaire Wu Ying last year. Because the boundaries for these charges are ambiguous, they can easily be used to crush private company owners.
October 15, 2012 China Economic Review Yang Junfung
www.chinaeconomicreview.com/crowded-out
