Definition of the concept of social credit system - World Credit Organization

2.3 Definition of the concept of social credit system

2.3.1 The significance of the concept definition of social credit system

At present, regarding the concept of social credit system, domestic theoretical circles and practice circles have different definitions. For example, the social credit system is directly interpreted as the national credit system, and some are interpreted as the sum of the credit system and work. Scientifically defining the concept of the social credit system can correctly divide the responsibilities of various forces (such as: legislative, judicial, administrative and social forces) in the construction of the social credit system, and better carry out the construction of the social credit system. Different definitions of the concept of the social credit system will lead to different work plans, work ideas and work methods.

2.3.2 Definition of Social Credit System

If the definition of the social credit system is too general, it is correct but meaningless; if it is too microscopic, it will have no guiding significance for the construction of social credit systems by governments of all countries. After long-term research, the World Credit Organization (WCO) elaborated the following concepts. The concept below is the latest concept introduced in October 2013.

After honest behavior or untrustworthy behavior occurs, corresponding rewards and punishments may be obtained. According to the classification of the creators of reward and punishment measures, it can be divided into three types of rewards and punishments (including: rewards\punishments):

First, legal rewards and punishments (including: rewards\punishments).

Legal rewards and punishments refer to the rewards/punishments given by state agencies to honest actors\dishonest actors in accordance with laws and regulations. Among them, legal punishment can be borne due to effective complaints, and the intensity of legal punishment is determined and affected by the legal system. The legal system refers to the system of legislation, law enforcement and justice in a country or region. Compared with the person responsible for dishonesty, legal punishment is an external punishment and external constraint.

Second, moral rewards and punishments (including: rewards\punishments).

Moral reward refers to the psychological pleasure that honest behavior people get physically and mentally due to their own good deeds. Moral punishment refers to the guilt, guilt, and insecurity of worrying about being exposed by the dishonesty actor due to his own bad deeds. It is the psychological torture of the dishonesty actor's own moral conscience. Among them, moral punishment belongs to self-punishment, and the beliefs, values, and moral standards of dishonesty actors determine the intensity of moral punishment they receive. Compared with dishonest actors, moral punishment is a kind of internal punishment and internal constraints.

Third, social rewards and punishments (including: rewards\punishments).

Social rewards refer to giving more opportunities for cooperation and development after the honest behavior of honest actors is known by stakeholders and other social subjects. Social punishment refers to the prudence or refusal to give cooperation and development opportunities to untrustworthy actors after their untrustworthy behavior is known by stakeholders and other social subjects. Social rewards and punishments are powerful and necessary supplements to legal rewards and punishments and moral rewards and punishments.

The social reward and punishment mechanism for honest and untrustworthy behavior is the social credit system. The healthy development of the credit evaluation industry in a country or region (credit evaluation industry refers to the industry that was born out of the social demand for anti-fraud, takes anti-fraud as its bounden duty, and specializes in credit information collection, credit evaluation and related services.) determines its healthy development. The speed and quality of credit information dissemination determine the strength of social rewards and punishments. If the social rewards and punishments are strong enough, we can say that the social credit system of the country or region is relatively complete. If the social reward and punishment mechanism is unscientific or unsound, the social reward and punishment for the actor will be weak, and we can say that the social credit system of the country or region is not perfect.

A country or region's moral system (public beliefs, values, social moral foundation, standards of right and wrong) also directly or indirectly affects the intensity of the above three rewards and punishments. The integrity of a country or region depends on the intensity of the above three rewards and punishments.

Defining the social credit system as a [social reward and punishment mechanism for honest and untrustworthy behavior], it is a good solution to the conflict between [social subjects such as credit evaluation industry] and [subjects of state agencies such as legislative, judicial, and administrative agencies] in social credit. Division of labor and responsibilities in system construction. This definition is particularly important for countries in transition to a planned economy. Because countries in transition to a planned economy often have a large government and a small society, the power of the government has no boundaries, and there is always the urge to do things that they cannot do well. This concept seems simple, but it can actually cover all matters related to credit activities. Because only rewards and punishments can finally correct people's untrustworthy behaviors and encourage honest behaviors, and all credit activities can ultimately be attributed to a part or a link of the social rewards and punishments mechanism.

2.3.3 Social credit system and influence factor map of social integrity:

2.3.4 Credit rating industry and social credit system

As mentioned above, we have already said that the credit evaluation industry refers to the industry that was born out of the social needs of anti-fraud, takes anti-fraud as its bounden duty, and specializes in credit information collection, credit evaluation and related services. The social credit system is a [social reward and punishment mechanism for honest and untrustworthy behaviors]. Whether the mechanism is perfect is determined by the degree of development of the credit evaluation industry. Only with the healthy development of the credit evaluation industry dedicated to anti-fraud, people will have sufficient credit information and be able to identify whether the transaction partner is a dishonest person in a timely manner.

Although it is sometimes profitable to associate with dishonest persons, once such associations become known to the public, the associates will face accusations of supporting dishonest behavior, having no social responsibility, no standards of right and wrong, and no moral pursuit, and thus be subject to loss, so people are still reluctant to associate with the dishonest. For example: Some factories produce products by cruelly squeezing workers or polluting the environment, and the prices are very low. It is beneficial for people to buy such products. However, when it is revealed that factories brutally exploit workers or pollute the environment, people will actively boycott or even openly boycott these products. For those who know or should know that the perpetrator is untrustworthy but still associate with him, because his behavior objectively encourages the untrustworthy behavior, the credit evaluation industry will take it as bad credit information, objectively record and faithfully disseminate it, such as: Many standards of ICE8000, It is to record and disseminate such credit information.

2.3.5 The market economy itself has a social credit system (a social punishment mechanism for the dishonest)

The social credit system is [a social reward and punishment mechanism for honest and untrustworthy behavior]. In fact, the market economy itself has a social punishment mechanism for the dishonest. Let's start with the most primitive village economy. At that time, the scope of human activities was small, and the area of economic transactions was small. Most of the parties to the transaction lived in the same village or community, or lived relatively close together, and people lived together for a long time. At this time, people are unwilling to break their promises, because once they break their promises, the whole village or the whole community will know about it, and they will not want to deal with him again. For example: Zhang San borrowed 500 yuan from Li Si. If he refuses to pay back the debt, Li Si will tell other people, so it will be difficult for Zhang San to borrow money in the future. Later, the economy developed, the social division of labor increased, and the trading area also expanded. Both parties to the transaction did not recognize each other, and lived far away, so they were not afraid of others saying that he was dishonest, and the punishment for dishonesty based on the village economy became invalid , began to appear in large numbers of liars. In terms of economics, there must be a market for defects, and at this time, the credit evaluation industry came into being. In order to satisfy clients and increase their own competitiveness, credit companies collect and organize a large amount of information on dishonesty, and credit companies have also organized alliances and the World Credit Organization (WCO) to share their respective credit information. The record of dishonesty of a person or unit will be collected and organized by the credit company and provided to the society, so people will not want to break their promises, and there will be fewer scammers. In this way, the social punishment mechanism for dishonest persons has been established.

The above content is excerpted from "Introduction to ICE8000 Credit Knowledge" (written by Fang Bangjian, free to use, but please indicate the source)