Companies that fail to meet safety standards will face 4 major penalties!

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This post was last edited by yinkuilin6868 on 2016-6-15 at 10:54. Recently, the State Council issued the \"Guiding Opinions on Establishing and Improving a System of Joint Incentives for Those Who Abide by Rules and Joint Punishments for Those Who Fail to Do So, in Order to Accelerate the Development of a Culture of Integrity in Society.\" The opinions state that for acts of dishonesty that pose serious threats to the health and safety of the public (including those in areas such as work safety, fire safety, and mandatory product certification), those that severely disrupt fair competition in the market and normal social order, those involving failure to fulfill legal obligations and thereby undermining the credibility of judicial and administrative authorities, as well as those related to non-compliance with national defense obligations and threats to national defense interests, administrative, market-based, industry-specific, and societal constraints and penalties should be imposed in accordance with laws and regulations, in order to significantly increase the cost of dishonest behavior. The proposal suggests adopting joint disciplinary measures against those who breach trust, as well as providing joint incentives for those who demonstrate integrity, in order to establish a coordinated mechanism for joint incentives for trustworthy behavior and joint disciplinary actions against those who fail to keep their promises. So, what kind of penalties will be imposed on those who engage in unsafe production practices as a form of serious breach of trust, and what incentives will be available for honest enterprises? Let’s take a look together! What incentives will honest behavior receive? 1. Designated as models of integrity 【A】Administrative counterparts with good credit records, models of integrity and ethics, outstanding young volunteers, members recommended by industry associations and chambers of commerce as being honest and trustworthy, as well as entities recognized as honest by the news media, will be designated as models of integrity. 【B】Relevant departments and social organizations will establish credit records for various entities in the context of supervision and services, promote those with no adverse credit records as well as model individuals who demonstrate integrity, and work together with other departments and social organizations to implement incentives for those who abide by their commitments. 2. Access to a \"green channel\" for administrative approval: [A] Entities that are considered model cases of integrity or those with no adverse credit records for three consecutive years can benefit from convenient services such as a \"green channel\" and acceptance of applications despite incomplete documentation during the process of obtaining administrative approvals. 【B】For eligible administrative counterparts whose application documents are incomplete aside from those required by laws and regulations, if they provide a written commitment to submit the missing documents within a specified period, their applications should be accepted first to expedite the processing. 3. Priority in accessing public service facilities 【A】When arranging projects funded by public money or implementing various preferential policies to attract investment, creditworthy market entities are given priority and receive greater support. 【B】Provide targeted support and priority benefits to honest individuals in areas such as education, employment, entrepreneurship, and social security. [C] In activities related to the trading of public resources, it is recommended to adopt measures such as granting credit points to honest market entities in accordance with laws and agreements. 4. Improvements in supervision 【A】Market supervision authorities should, based on the credit records and credit ratings of the entities under supervision, make use of big data techniques to enhance supervision measures both during and after events, thereby providing convenient services for market entities. 【B】For honest enterprises that meet certain criteria, the frequency of inspections is optimized during routine and special inspections. 5. Reduce market transaction costs 【A】 Relevant departments and units will develop incentive products for trustworthy entities, such as “Tax-Easy Loans”, “Credit-Easy Loans”, and “Credit-Easy Bonds”. These efforts aim to encourage market service institutions, including financial institutions and commercial sales organizations, to utilize information on market entities’ credit status, credit scores, and evaluation results. This will enable honest market participants to receive preferential treatments and conveniences, thereby giving them more opportunities and benefits in the market. 6 Honest market entities will be given strong promotion. 【A】Relevant departments at all levels will promptly publish the excellent credit information of honest market entities on official websites and the “Credit China” website, and give priority to promoting such honest enterprises in events such as trade fairs and bank-enterprise meetings, so that credit becomes an important factor in the allocation of resources in the market. 【B】Encourage credit reporting agencies to strengthen the collection of positive information on market entities, and in industries where issues related to integrity are particularly common, give greater weight to incentive-based ratings for those who maintain integrity. [C] Encourage industry associations and chambers of commerce to strengthen integrity building and self-regulation within the industry; commend members who uphold integrity, and tell “integrity stories” related to the industry. What penalties will be imposed for second instances of dishonest behavior? 1 Administrative restrictions and sanctions: For entities that have seriously violated trust, relevant regions and departments should designate them as key subjects for supervision, and impose administrative restrictions and sanctions in accordance with laws and regulations. 【A】Strictly review administrative licensing applications, strictly control the issuance of production licenses, restrict the approval and authorization of new projects, limit financing through stock issuances and listings or bond issuances, restrict listing and financing on national equity exchange systems, restrict the establishment of or investment in financial institutions as well as entities such as microloan companies, financing guarantee companies, venture capital firms, and internet financing platforms, and restrict activities related to internet information services. 【B】Strictly restrict projects that apply for financial funding, limit participation in related public resource procurement activities, and restrict involvement in the franchising of infrastructure and utilities. [C] Impose market and industry entry bans on severely dishonest enterprises, their legal representatives and principal responsible persons, as well as registered professionals directly responsible for such dishonest behaviors. 【D】Promptly revoke the honorary titles of enterprises with serious credit violations, as well as those of their legal representatives, managers, senior executives, and directors or shareholders who are directly responsible for such violations, and deny them the eligibility to participate in award evaluations. 2 Market-based constraints and penalties: For entities that commit serious breaches of trust, relevant departments and agencies should use the unified social credit code as a reference to publicly disclose relevant information in a timely manner, so as to enable the market to identify such dishonest behaviors and prevent credit risks. [A] Measures such as restricting exit from the country, limiting the purchase of real estate, traveling by air or high-class trains, going on vacations, staying in hotels of a certain star rating, and engaging in other high-cost activities are imposed on entities that have the ability to fulfill their obligations but refuse to do so, constituting serious credit violations. 【B】Allows credit reporting agencies to collect information on serious acts of dishonesty and include it in credit records and credit reports. [C] Encourage financial institutions such as commercial banks, securities and futures firms, and insurance companies to apply risk-based pricing principles by raising loan interest rates and property insurance premiums for entities with serious credit violations, or by restricting the provision of services such as loans, sponsorship, underwriting, and insurance to them. 3 Industry-specific constraints and sanctions: Establish and improve industry self-discipline agreements and professional ethics codes to promote the development of industry credit. [A] Guide industry associations and chambers of commerce to improve mechanisms for collecting and sharing credit information within the industry, and record serious acts of credit violation in members’ credit files. 【B】Encourage industry associations and chambers of commerce to cooperate with qualified third-party credit service agencies to conduct credit rating assessments for their member enterprises. [C] It supports industry associations and chambers of commerce to impose disciplinary measures on members who breach trust, such as warnings, internal criticism within the industry, public condemnation, exclusion from the organization, or urging them to leave, in accordance with industry standards, rules, and agreements, depending on the severity of the offense. 4 Social constraints and sanctions: Fully leverage the role of various social organizations to encourage widespread participation by societal forces in joint sanctions against those who breach trust. [A] Establish and improve a system for reporting dishonest behavior, encourage the public to report serious cases of corporate dishonesty, and strictly protect the confidentiality of those who make such reports. 【B】It supports relevant social organizations in filing public interest lawsuits in accordance with the law against acts of collective infringement such as environmental pollution and violations of the legitimate rights and interests of consumers or public investors. [C] Encourage fair, independent, and qualified social organizations to carry out big-data monitoring of public opinion related to dishonest behavior, and to prepare and publish credit analysis reports by region and industry. Additionally, in cases of serious acts of dishonesty by enterprises and public institutions, such acts shall be recorded not only in the credit records of those entities, but also in the personal credit records of their legal representatives, principal responsible persons, and other individuals directly accountable for such acts.