156 Huawei Investment & Holding Co., Ltd.
■ ICT regional organizations are the company’s
regional ICT business operations centers. They
are responsible for developing and effectively
leveraging regional resources and capabilities, and
also for implementing the company’s ICT business
strategy in their regions. While establishing closer
partnerships with customers and helping them
achieve business success, ICT regional organizations
will develop ICT management systems, cyber
security and privacy protection management
systems, and internal control systems in their
regions, and will continue to support the company
in achieving profitable and sustainable growth.■ The Intelligent Automotive Solution BU is an
end-to-end organization responsible for the
company’s intelligent automotive business. This
BU will help extend Huawei’s strengths in ICT to
the intelligent automotive sector by providing
incremental ICT components and solutions. This
BU’s business goal is to use ICT to help automotive
manufacturers produce even better products.To strengthen strategy and risk management within
our consumer business and increase the efficiency
of its decision-making process, the company set up
the Consumer Business Managing Board, which is
the primary owner of consumer business strategies,
operations management, and customer satisfaction.■ The Consumer BG focuses on serving device
consumers and ecosystem partners, and deals with
all aspects of the consumer domain. This BG is
responsible for business performance, risk controls,
market competitiveness, and customer satisfaction
in the consumer business.■ The Consumer BG’s regional organizations are
responsible for their overall business results,
consumer satisfaction, ecosystem partner
experience, and the brand image enhancement
of regional consumer business. They need to
gain insight into environmental changes and
competition dynamics for the consumer electronics
industry, and develop and implement regional
consumer business plans and resource investment
strategies. These organizations are also responsible
for launching products, managing product
lifecycles, developing ecosystems, planning and
implementing marketing events, and developing
and managing channels, retail outlets, and services
in their regions. They also need to develop and
maintain partnerships, create a favorable business
environment, and ensure operational compliance
and sustainable development of regional consumer
business.To gradually build a shared service platform to
support the development of our multiple businesses
and create an anchor for corporate policy execution,
the company set up the Platform Coordination
Committee. This committee is designed to push group
functions to optimize their execution and operations,
simplify cross-function operations, and strengthen
collaboration, so that group functions will become
the best service organizations available to support
and promote business operations. Group functions
provide business support, services, and oversight. They
are positioned to offer accurate, timely, and effective
services to field offices and strengthen oversight while
delegating sufficient authority to them.Improving the Internal Control
System
Huawei continued to design and implement an
internal control system based on its organizational
structure and operating model. The internal control
framework and its management system apply to all
business and financial processes of the company and
its subsidiaries and business units. The internal control
system is based on the five components of the COSO
framework: Control Environment, Risk Assessment,
Control Activities, Information & Communication, and
Monitoring. It also covers internal controls of financial
statements to ensure their truthfulness, integrity, and
accuracy.Control Environment
A control environment is the foundation of an
internal control system. Huawei is committed to a
corporate culture of integrity, business ethics, and
compliance with laws and regulations. Huawei has
issued the Business Conduct Guidelines (BCGs) to
identify acceptable business conduct. The BCGs
must be observed by all employees, including senior
executives. Regular training programs are offered,
and all employees are requested to sign the BCGs to
ensure that the BCGs have been read, understood, and
observed.Huawei has implemented a mature governance
structure, with clearly defined authorization and
accountability mechanisms. The governance
structure comprises the Board of Directors (BOD),
its committees, group functions, and multi-level
management teams. Huawei clearly defines the roles
and responsibilities of its organizations to ensure the
effective separation of authority and responsibilities as
well as checks and balances through mutual oversight.
The CFO of Huawei is in charge of internal controls.
The business control department reports to the CFO