Core Viewpoint - ByteDance, as a leading global technology company, recognizes the need to enhance its internal supervision mechanisms following the Seed incident, which exposed management and compliance issues, emphasizing the importance of compliance for sustainable development [1][5]. Group 1: Governance Structure - Strengthening the corporate governance structure is the primary step for ByteDance to improve its internal supervision mechanisms, ensuring transparency in decision-making and reducing risks associated with power concentration [3]. - The company has clarified the responsibilities of management and established specialized committees, such as the audit committee and compliance committee, to oversee critical areas like financial auditing and risk assessment [3]. Group 2: Data Privacy and Security - ByteDance is enhancing data privacy protection and information security as part of its internal supervision improvements, addressing vulnerabilities in user data management revealed by the Seed incident [3]. - The company plans to establish a dedicated data security department and implement advanced encryption technologies and data auditing mechanisms to ensure user data safety and privacy [3]. Group 3: Corporate Culture - Building a strong corporate culture is crucial for ByteDance to enhance its internal supervision mechanisms, focusing on compliance culture and raising employees' legal awareness [5]. - The company is increasing compliance training, particularly for departments handling data security and information processing, to ensure employees remain sensitive to compliance issues [5]. Group 4: Technological Innovation - ByteDance is leveraging artificial intelligence (AI) and blockchain technology to improve internal supervision, with AI algorithms monitoring operational data in real-time to detect potential compliance issues [7]. - Blockchain technology is being introduced in key business processes to ensure transparency and traceability in data management, particularly in financial transactions and supply chain management [7]. Group 5: External Collaboration - The company is enhancing collaboration with external audit firms to conduct regular third-party audits, ensuring the effectiveness of its internal supervision mechanisms [9]. - ByteDance is also focusing on communication and cooperation with external regulatory bodies to ensure compliance with global regulations, which is crucial for its market expansion [9]. Group 6: Future Outlook - The Seed incident has prompted ByteDance to view the enhancement of its internal supervision mechanisms as an opportunity, laying a solid foundation for future development through governance improvements, data security, technological innovation, and compliance culture [9].