A Study on the Modernization of Governance and Mechanisms for Fulfilling Social Responsibility in State-Owned Enterprises from the Perspective of Social Systems Theory

Abstract

Drawing on social systems theory, this paper views state-owned enterprises (SOEs) as complex organizational systems. In modern society, functional differentiation is high. Under this condition, SOEs are structurally coupled with several social subsystems, including political, economic, legal, and ethical systems. This paper explores the tensions between SOE governance modernization and social responsibility mechanisms. It also explores pathways for synergy between the two. From a systems theory perspective, the traditional description of SOEs’ “dual objectives” reflects a deeper issue: it shows the adaptive pressures that the enterprise system faces under the functional logics of different social subsystems. The core of modernizing SOE governance is not simple “de-administratization” or “pure marketization.” Instead, it requires building a “structural coupling” mechanism. This mechanism must manage complex relationships with external systems, such as political, legal, and ethical systems, while maintaining the enterprise’s economic attributes. The fulfillment of social responsibility is a key manifestation of this coupling mechanism, and it shows how the mechanism operates. This paper proposes three approaches. First, SOEs should build a governance framework based on risk communication. Second, they should develop a multidimensional performance evaluation system. Third, they should improve the transparency of information disclosure. Through these approaches, SOEs can better balance economic rationality and social responsiveness in a functionally differentiated society. This balance will help them achieve sustainable development.