


































Economics, Law and Policy 
ISSN 2576-2060 (Print) ISSN 2576-2052 (Online) 

Vol. 7, No. 1, 2024 

www.scholink.org/ojs/index.php/elp 

 
 

116 

Original Paper 

The Evolution Law of the Subject of Enterprise Compliance 

Management in China Conflicts with the Logic of Regulation 

Yuxi Fu
1,2

 & Enyi Lai
1,2* 

1
 Fujian Zhongdian Straits Institute of Intelligent Equipment, Xiamen, 361022, China 

2
 Faculty of Business, City University of Macau, Macau SAR, 999078, China 

*
 Enyi Lai, E-mail: laienyi@163.com 

 

Received: May 10, 2024       Accepted: May 27, 2024       Online Published: May 29, 2024 

doi:10.22158/elp.v7n1p116                 URL: http://dx.doi.org/10.22158/elp.v7n1p116 

 

Abstract 

This paper aims to discuss the conflict between the evolution law of the enterprise compliance 

management subject and the regulation logic in China. By analyzing the background and demand of 

the evolution of compliance management subjects, the innovative compliance management concept is 

put forward, and the application of this concept in enterprise compliance management is introduced in 

detail. The results show that this concept has significant advantages in promoting the development of 

enterprise compliance management and solving the conflict of regulatory logic. The study of this paper 

is of great significance for the deep understanding and application of the evolution law of enterprise 

compliance management subjects in China. 

Keywords 

enterprise compliance management, subject evolution, regulation and logic logic, innovative concept 

 

1. Introduction 

With the continuous growth of China’s economy and the continuous change of the market environment, 

the importance of enterprise compliance management is becoming increasingly prominent. Since the 

1990s, the practice of compliance management in Chinese enterprises has been gradually deepened, 

and the relevant regulatory policies and regulatory systems have been gradually improved. However, in 

practice, there is still a certain degree of conflict between the evolution of enterprise compliance 

management subjects and the logic of regulation, which has become a key problem to be solved 

urgently. 

 

 



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This paper aims to discuss the conflict between the evolution law of the enterprise compliance 

management subject and the regulation logic in China. First, this paper analyzes the background and 

needs of the evolution of enterprise compliance management subjects, including the change of 

regulatory environment, the development needs of enterprises and the improvement of social 

responsibility awareness. This part can cite some related management studies, such as Hess analysis of 

enterprise compliance drivers (Hess, 2007, pp. 453-476), and Weaver theoretical model on the 

evolution of compliance management (Weaver, Treviño & Cochran, 1999, pp. 539-552). 

Secondly, this paper identifies the stage characteristics of the evolution of enterprise compliance 

management subjects, and conducts an in-depth analysis combined with the corresponding regulatory 

principles. Existing research shows that the enterprise compliance management subject has shown 

significant evolution characteristics from the initial passive compliance, to the later active compliance, 

and then to the current strategic compliance (Tyler, 2005, pp. 1287-1312). However, in different stages, 

there are certain deviations in the goals and means between enterprises and regulatory agencies, which 

leads to the conflict between the logic of regulation and the evolution of subjects (Hemphill & Cullari, 

2014, pp. 317-340). 

In order to solve the above problems, this paper proposed the innovative compliance management 

concept, and detailed the application of this concept in enterprise compliance management. This 

concept emphasizes the establishment of a dynamic and collaborative compliance management system 

to effectively integrate the regulatory needs and the reality of enterprises, and promote the balance and 

win-win interests of both sides. 

 

2. The Evolution Background and Demand of Compliance Management Subject 

2.1 The Status and Role of Compliance Management in China’s Economic Development 

In the context of China’s rapid economic development, compliance management, as an important part 

of enterprise operations, has gradually attracted more attention. With the increasing trend of 

globalization and the increasing market competition, while pursuing economic benefits, enterprises 

should also need to abide by national laws and regulations, social ethics and other norms to ensure the 

sustainable development of enterprises and the fulfillment of social responsibilities (Birnik & Bowman, 

2007, pp. 303-324). As a modern way of enterprise management, compliance management has multiple 

functions, such as promoting the integrity management of enterprises, enhancing enterprise reputation 

and reducing legal risks. 

Compliance management has its own new mission. First of all, compliance management is not only a 

simple laws and regulations to follow, but also a deep-rooted culture and concept. It requires 

enterprises to fully respect the rights and interests of employees, environmental protection and social 

responsibilities in daily operations, to achieve the organic unity of economic and social benefits 

(Husted & Allen, 2006, pp. 838-849). In the stage of China’s economic development transforming from 

high-speed growth to high-quality development, compliance management has been endowed with a 



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more important mission and become an important driving force for the sustainable development of 

enterprises (Doh, Howton, Howton & Siegel, 2010). Secondly, enterprise compliance management is 

not only in line with laws and regulations, but also a business mode based on integrity, reflecting the 

social responsibility and entrepreneurial spirit of enterprises. In a highly competitive market 

environment, enterprises with a good compliance record can gain the trust of consumers, investors and 

governments, thus winning greater market share and business opportunities. 

Compliance management can generate more internal motivation. Compliance management refers to the 

formulation and continuous modification of internal norms in accordance with the requirements of 

external regulations, and supervises the implementation of internal norms. By establishing a sound 

compliance management system, enterprises can detect and solve potential legal risks as soon as 

possible and avoid losses caused by negligence (Vardi & Weitz, 2016). The main body of compliance 

management optimizes the resource allocation of the enterprise based on compliance, reduce costs, 

improve production efficiency and then promote the internal control and risk control of the enterprise, 

so as to maximize economic benefits and stimulate the maximum internal power. 

2.2 Requirements and Challenges under the Background of the Evolution of Compliance Management 

Subjects 

Enterprise compliance management subject is experiencing the evolution from a single law and 

regulation compliance provider to a comprehensive compliance management implementer. In this 

context, compliance management subjects are faced with new demands and challenges, which need to 

have a more comprehensive understanding of the connotation of compliance and cope with multiple 

challenges like in Table 1. 

Enterprise compliance management conforming to the management philosophy. The compliance 

management subject should realize that if compliance is insufficient to support the long-term 

development of enterprises, it should jump out of the scope of the middle layer of system culture and 

create new value under the background of the new era. In the new era of compliance management, the 

primary demand of enterprises is to deepen the understanding of the connotation of compliance, 

integrate compliance into corporate culture and strategy, penetrate into the spiritual culture of the core 

layer from the level of prescribed laws and regulations, and create a corporate management philosophy 

closely related to the strategy, mission and values of the enterprise. Enterprise development is a 

comprehensive dimension of compliance management is no longer only to avoid fines and litigation, 

but also a way of sustainable development (Ayres & Braithwaite, 1992). Compliance management 

subjects need to understand how compliance affects corporate image, reputation and long-term 

development, as well as how to integrate compliance into corporate strategic decisions and cultural 

construction. 

With the rapid changes of the market and the continuous update of laws and regulations, the 

compliance management subjects are faced with diversified challenges in the implementation process, 

and enterprises need to constantly adapt to the new compliance requirements. For example, with the 



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rise of the digital economy, compliance issues such as data privacy protection and network security 

have become more complex, and compliance management subjects need to constantly learn, update 

knowledge, maintain sensitive risk awareness, and timely adjust compliance strategies. In addition, 

compliance requirements may also vary in different regions and countries, and multinational 

enterprises need to face compliance challenges under different legal systems and cultural backgrounds. 

With the deepening of the transnational operation of enterprises, enterprises need to abide by the laws 

and regulations of different countries or even regions at the same time, and these laws and regulations 

may differ or even conflict. Compliance management subjects need to build a global compliance 

management network and establish transnational compliance teams to ensure that compliance can be 

achieved in different regions. International cooperation and information sharing have also become 

crucial to address compliance challenges on a global scale. 

 

Table 1. Enterprise Compliance Requirements or Challenges 

Normalization  Demand/Challenge Content 

Requirement Content in-depth 

Deepen the understanding of the compliance 

connotation, and integrate the compliance into the 

corporate culture and strategy 

Requirement Diversified challenges 
Adapt to market changes, update regulations, and 

maintain risk sensitivity 

Requirement Globalization challenge 
Establish a global compliance network, transnational 

cooperation and communication 

Challenge 
Balance of regulations 

with commerce 

Look for a balance between regulation and business 

development 

Challenge 
Internal and external 

consistency 

The consistency of internal management and employee 

behavior 

Challenge Transnational compliance 
Dealing with the differences and conflicts between 

different regional regulations 

Inspiration Balance principle 
Find a balance in the conflict and weigh the various 

interests 

Inspiration Multi-party cooperation 
Cooperate to resolve conflicts and achieve common 

goals 

Inspiration technological innovation 
Innovate solutions and apply technology to solve 

problems 

 

 

 



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3. Proposal and Application of Innovative Compliance Management Concept 

3.1 Core Concepts and Principles of the New Concept 

The new compliance management concept is an innovative way of enterprise management, aiming to 

regard compliance as a strategic asset, so as to achieve higher value creation in enterprise operations. 

The core concepts and principles of this concept cover multiple aspects to ensure that compliance is no 

longer limited to regulatory compliance, but in a deeper direction. 

The new concept emphasizes the organic integration of compliance and corporate strategy. 

Traditionally, compliance is often seen as a passive obligation. However, the new concept holds that 

compliance should not be regarded as a limitation, but should be closely integrated with the strategic 

objectives of the enterprise. Enterprises can improve their reputation and competitiveness in the market 

through the implementation of compliance, so as to better achieve their strategic goals. Compliance can 

provide a more stable development environment for enterprises, and provide a strong guarantee for the 

sustainable development of enterprises. On the other hand, the new ideas emphasize the impact of 

corporate culture on compliance. Compliance is no longer just a single task, but requires a consensus 

and values within the enterprise. The implementation of compliance needs to be integrated into the 

corporate culture and guide employees to form compliance consciousness, so that compliance becomes 

a natural behavior in daily work. Enterprises should establish compliance cultures such as integrity, 

transparency and social responsibility, so as to effectively promote the grounding and inheritance of 

compliance concepts. 

In addition, the new concept emphasizes innovation and flexibility in compliance management. In a 

rapidly changing market environment, traditional compliance management methods may fail to meet 

diverse compliance requirements. The new concept emphasizes that compliance management needs to 

be innovative and flexible to timely adapt to new regulations and market changes. Enterprises should 

establish a compliance management mechanism with rapid response, and constantly improve the 

efficiency and accuracy of compliance management through technical means, data analysis and other 

methods. 

3.2 Application Cases of New Ideas in Enterprise Compliance Management 

In order to deeply understand the application of the new compliance management concept in practice, 

the following is a specific case to show how the new concept can have a positive impact on enterprise 

compliance management. When a multinational enterprise integrates the new compliance management 

concepts, on the one hand, it has established the core concept of “creating integrity and sustainable 

development”. Enterprises emphasize the close connection between integrity and compliance, and 

regard it as an indispensable element to achieve sustainable development. Subsequently, enterprises 

began to build a comprehensive compliance management system, covering all aspects from internal 

governance to supply chain cooperation. Through professional training and internal publicity, the 

company has improved employees’ understanding and identity of the new compliance concept, and 

encouraged employees to consciously abide by the compliance standards. In addition, enterprises 



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cooperate with government agencies and industry associations to actively participate in the formulation 

and update of laws and regulations, which promotes the improvement of the compliance level of the 

industry. 

Guided by the new compliance concept, the company has achieved remarkable results in compliance 

management (Paine, 1994, pp. 106-117). In the control of legal risk, it has upheld the new concept, 

effectively reducing the possibility of violation of laws and regulations. At the same time, the 

enterprise has set up the image of integrity, won the trust of investors and partners, and laid a solid 

foundation for sustainable development. In addition, enterprises have also gained advantages in the 

market competition, transforming the advantages of compliance management into economic benefits, 

and achieving steady growth. 

 

4. Discussion on the Evolution Law of Compliance Management Subject 

4.1 Characteristics and Changes of Compliance Management Subjects in Different Stages 

The characteristics and transformation of the evolution of enterprise compliance management subject 

have important enlightenment for the understanding and application of compliance management. The 

compliance management subjects in different stages show different characteristics and changes, which 

reflect the gradual deepening of the compliance concept and the continuous improvement of the 

compliance practice. 

In the early stage, the compliance management subject mainly focuses on the compliance of laws and 

regulations, with avoiding legal risks as the main goal. At this stage usually regard compliance as a 

passive obligation, and their main focus is to ensure that the enterprise operates under the framework of 

laws and regulations, and to ensure that the company’s production and business activities follow 

internal and external laws, systems, regulations, norms, guidelines, etc. At this stage, the compliance 

practice of the compliance management subject is relatively simple, focusing on the implementation of 

the compliance process, but lacking in a deeper compliance concept. 

With the deepening of market economy and the influence of globalization, compliance management 

subjects gradually realize that the importance of compliance goes beyond the scope of legal compliance. 

At this stage, the compliance management subject began to pay attention to the corporate social 

responsibility and reputation. They gradually realize that compliance is not only to avoid legal risks, 

but also to maintain the corporate image and long-term development. Therefore, the compliance 

management subjects began to establish compliance management institutions within the enterprise, 

strengthen the construction of internal norms, and enhance the compliance awareness and education of 

employees. The subject of compliance management has gradually changed from passive compliance 

practitioners to active compliance practitioners, actively participating in social responsibility, and 

paying attention to the sustainable development of enterprises. With the rapid development of 

information technology, the compliance management subject further deepens the integration of the 

compliance concept and the modern management methods. At this stage, the compliance management 



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subjects gradually realize the importance of digitalization and informatization to compliance 

management. They began to combine compliance management with advanced digital tools and 

technologies to enable real-time monitoring and management of compliance information. At this stage, 

compliance management subjects pay more attention to the collection, analysis and utilization of data 

to predict potential compliance risks. The transformation at this stage makes the compliance practice of 

compliance management subjects more refined and can better respond to all kinds of compliance 

challenges. 

To sum up, the enterprise compliance management subject has experienced the transformation from 

passive compliance with laws and regulations to active participation in social responsibility, and then to 

different stages of deep integration of information technology. The characteristics and changes of 

different stages show that the concept of compliance management is gradually deepened and the 

compliance practice is constantly improved, which provides useful experience for the future 

compliance management. 

4.2 Trend and Mode of the Evolution of Compliance Management Subjects 

The trend of the evolution of compliance management subjects is the organic combination of depth and 

breadth. Compliance management subjects will pay more attention to the implementation of the 

compliance concept. In the past, compliance management subjects may pay more attention to the 

compliance of laws and regulations, but with the continuous improvement of social requirements for 

corporate social responsibility, the connotation of compliance is gradually expanding. Compliance 

management subject is developing from a single legal compliance provider to a more comprehensive 

compliance practitioner. Enterprises will pay more attention to ethics, social responsibility, 

environmental protection and other levels, and integrate compliance into their corporate culture and 

core values. This organic combination will enable enterprises in the pursuit of economic benefits 

 

5. The Solution Strategy of Regulating the Logic Conflict 

5.1 Definition and Analysis of Logical Conflict 

As a key problem in the practice of compliance management, the logical conflict of regulation and 

management covers the complex scenarios caused by the contradictions, inconsistency and conflicts 

with business development strategies under the premise of compliance with laws and regulations. The 

existence of such conflict makes the compliance management subject in a dilemma, and it has to weigh 

and choose between compliance and operation to ensure compliance and achieve economic benefits. 

Based on this, the formation and causes of the regulatory logic conflict need to be analyzed in depth. 

These conflicts usually result from the differences in the formulation objectives, timeliness, geography 

and other aspects of different laws and regulations, as well as the mutual influence between laws and 

regulations. Enterprises often encounter different requirements of different regulations for the same 

problem, or the interpretation differences of the same regulation in different situations, thus resulting in 

compliance conflicts. In addition, updates and adjustments of laws and regulations may also lead to 



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conflicts between old compliance practices and new regulations. Therefore, understanding the 

background, purpose and application scope of different laws and regulations, and deeply analyzing the 

logic behind their formulation, are helpful to accurately grasp the essence of the logical conflict of 

regulation. 

After analyzing logical conflict and grasping the essence of conflict, the resolution of conflict requires 

a series of strategies to follow compliance topics. Compliance management subjects need to establish a 

comprehensive understanding of different regulations, and start from the overall compliance system, 

and integrate compliance conflicts into a broader compliance strategy. It should be noted that the 

development of priorities and weights for compliance conflict resolution needs to give priority to 

regulations that affect the core values, business models and development direction of the enterprise. At 

the same time, a cross-departmental cooperation mechanism should be established to form joint efforts 

to jointly deal with compliance conflicts. In addition, risk assessment tools are used to analyze the risks 

and benefits of different solutions to help compliance management entities make informed decisions. 

Most importantly, establish a compliance culture that regards compliance as a basic guideline for the 

enterprise and enables employees to have clear guidance in the face of compliance conflicts. 

In general, the regulatory logic conflict is a complex challenge in the field of compliance management, 

but it is also an opportunity to promote enterprises to continuously improve the compliance 

management system. Through in-depth analysis of the causes of contradictions and conflicts between 

different laws and regulations, formulating reasonable solution strategies, and establishing a 

compliance culture with full participation, enterprises can better balance the relationship between 

compliance and operation, and realize the organic unity of compliance and development. This is not 

only of great significance for the sustainable development of the enterprise itself, but also can provide 

useful reference for other fields in the face of similar conflicts. 

5.2 Impact of Innovative Compliance Management Concept on Conflict Resolution 

The concept of innovative compliance management has a significant impact in resolving the conflicts 

of regulatory logic. Traditional compliance management is often limited to meeting the requirements of 

laws and regulations, and it is easy to fall into mechanical compliance behavior, ignoring the internal 

connection between compliance and the long-term development of enterprises. However, the 

innovative compliance management concept has given compliance a broader connotation, brings 

compliance into the enterprise strategy and culture, and becomes a part of the enterprise value creation. 

An innovative compliance management philosophy emphasizes seeing compliance as part of value 

creation rather than simple legal compliance. Under the guidance of this concept, enterprises will 

integrate compliance into their core price. 

 

 

 

 



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6. Conclusion 

6.1 The Leading Role of the New Ideas in the Future Enterprise Compliance Management 

The new compliance management concept provides a clearer direction and goal for the future 

enterprise compliance management. In the changing economic environment, enterprises are facing 

more complex and changeable compliance challenges, and the traditional compliance management 

methods have been unable to meet the needs. The new concept emphasizes the guidance of compliance 

by values, and the integration of compliance and corporate strategy, not only at the legal level, but also 

to be implemented at the cultural level. This will guide enterprises to pay more attention to integrity, 

social responsibility and sustainable development in compliance management, and enable enterprises to 

achieve a higher level of value creation on the basis of compliance. 

The leading role of the new ideas is also reflected in promoting innovation in compliance management. 

In the current rapidly changing business environment, enterprises need to constantly adapt to new laws 

and regulations while meeting the challenges brought by the technological revolution. The new 

compliance management concept encourages enterprises not to stick to the traditional compliance 

management method, but to encourage bold innovation. Enterprise compliance management subjects 

can actively explore compliance practice methods suitable for themselves, and develop more efficient 

and intelligent compliance management tools with the help of scientific and technological means, such 

as artificial intelligence, big data analysis, etc. This can not only improve the efficiency of compliance 

management, but also can more accurately identify and respond to potential risks. 

In addition, the new concept of compliance emphasizes the close integration of compliance and 

corporate culture. Under the leading role, the enterprise compliance management subject should take 

the cultivation of integrity culture as the starting point, and integrate compliance into the daily 

operation and employee behavior of the enterprise. By strengthening compliance training and 

advocating honest management, the enterprise can cultivate a staff team who consciously abide by laws 

and regulations in practice, so as to promote the effective implementation of compliance management 

at a deeper level. 

To sum up, the new compliance management concept provides a clear leading role for the future 

enterprise compliance management. By combining compliance with values, innovation, culture and 

other elements, enterprise compliance management subjects can better cope with the complex and 

changeable compliance challenges, realize the comprehensive upgrade of compliance management, and 

lay a solid foundation for the sustainable development of enterprises. 

6.2 The Reference Significance of the Experience of Regulation and Logic Conflict Resolution to Other 

Fields 

The experience of solving the conflict of regulatory logic in the field of compliance management also 

has far-reaching reference significance for other fields. In today’s society, various fields may face 

similar conflicts, such as environmental protection and economic development, privacy protection and 

information sharing, etc. From the experience in the compliance field, some useful implications can be 



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used to guide other areas to solving similar issues. 

Experience in the field of compliance management emphasizes that the key to conflict resolution is in 

finding a balance point. When dealing with the logical conflict of regulation, the enterprise compliance 

management subject usually needs to find a balance between laws and regulations and business 

development. This principle applies equally in other areas. For example, in the conflict between 

environmental protection and economic development, environmental protection technology innovation 

can be explored to find ways that can protect the ecological environment without hindering economic 

growth. In the conflict between privacy protection and information sharing, stricter data protection 

regulations can be formulated, while the transparency and legitimacy of data sharing can be encouraged 

to balance the rights and interests of both parties. 

 

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