In early November, 80 entrepreneurs from Jiangsu, Zhejiang, and Shanghai came to our School for the Fudan EMBA Open Class, in which Professor Ruoshan LI from the Department of Accounting of our School made a speech on “Internal Control of Private Companies in China”.

Associate Dean YIN of our School welcomes the audience

Before the speech, Associate Dean Zhiwen YIN of our School, who is also Executive Director of the EMBA Program, made a welcoming speech. He indicated Fudan is a prestigious university of a history of over 100 years, dedicated to cultivating and guiding management elites for the benefits of further social development in China. In addition, the EMBA Program of our School provides a platform of interactions and exchanges between entrepreneurs and business schools, bringing win-win results for both parties.

Professor LI started the speech with an analysis of the current economic environment facing Chinese companies, indicating that it is the best time for them because “there are particularly many new economic growth points in China”. However, there are bigger risks for them, particularly private companies. “The model of SOE advancing and private companies retreating from the market has made life very difficult for some private companies.”　

Professor LI shares his insights into corporate internal control

According to Professor LI, traditional management experiences are no longer sufficient for private companies under such circumstances. He analyzed the different characteristics of companies in three stages of development and concluded companies in the transition stage are more prone to disastrous risks.

With more and bigger risks confronting private companies, better and more “scientific” internal control has become more important. However, many companies have frequent problems with choosing the right internal control measures and tend to end up with unsatisfactory results. Professor LI listed several common mistakes of internal control among private companies in China. In addition, he also showed a news video about a large private supermarket franchise to illustrate how to better incorporate internal control into corporate management.

Fudan University is one of the first education institutions in China approved by the State Council to establish EMBA programs in 2002. The EMBA Program of our School now has a history of 10 years and has cultivated over 3,000 entrepreneurs and management elites who are now leaders in driving China’s contemporary development. In Financial Times’ 2012 Rankings of EMBA Program in the World announced in October 2012, the EMBA Program of our School ranked the 35^th place in the world and the 1^st place among all the Chinese EMBA programs. This has set an unprecedented record of the best achievement of a Chinese home-grown EMBA brand participating in international rankings for the first time.

Nov. 21, 2012