Managing field research Our process of creating a case involves initial research based on publicly available information, followed, where possible, by meetings with the parties involved in order to get as broad and balanced a picture as we can.
The society has to rely on inside information from prior or present employees of the organization. However, wrong bets on fuel prices inby taking a bearish stance in the jet fuel market, forced the company into a scandal which cost China aviation oil failure essay dearly.
This is the first case series on a successful restructuring overseas for a Chinese stateowned company and we would expect participants to gain a clear understanding of some broad issues: The interviews allowed us to flesh out the publicly available information, which we came to realise was not only too dry, but also not necessarily balanced.
In recent years, cases such as Enron, the National Kidney Foundation, China Aviation Oil etc have intensified the awareness of whistle-blowing within organizations.
MAS and SGX concluded that while the losses incurred were large, they did not pose any systemic concerns for the market or to financial institutions operating in Singapore. IMD cases are non-judgmental, as we prefer to let the facts speak for themselves. Organizations have developed to be so intricate and proficient at hiding wrongdoing, that only employees in the organization are capable of discovering any wrongdoings and revealing them Miethe One of his top topics during interviews is, not surprisingly, what he refers to as his "great tribulation" in Singapore.
For teaching CAO, we have prepared a comprehensive teaching note, accompanied by a detailed PowerPoint presentation. Teaching colleagues in other organisations should be able to China aviation oil failure essay quite easily the materials that they need to conduct a good class session.
The ability for moral motivation China aviation oil failure essay a general ability to be motivated as well as the ability to be motivated by visibly moral reasons and considerations. Many of these cases have acknowledged significant negative consequences of organizational wrongdoing for victims, such as employees, customers, and society at large.
That resulted in accounting errors being present in the all quarterly disclosures. The objective behind the speculative options trading was to generate profits from the premium. Once an agent accepts an ethical theory, he should be autonomous and rational.
Intensifying economic development is what China needs to learn from Singapore," said netizen He Xie. However, the risk of such trades was not properly assessed by CAO; in fact CAO did not have the proper risk management framework to handle such complex options.
Making continuous disclosure of material information by listed companies a statutory requirement under SFA; ii. An online search shows that at least 25 major Chinese publications, including the state-linked Beijing Youth Daily and Global Times, have interviewed or run features on him.
In contrast to a normal business setting, we had nothing to offer or trade, and it takes time to build trust. A former student wrote to me when the China Aviation Oil CAO scandal broke inand I realised that this was an opportunity to fill that gap.
Written put options expired worthless. However, we then needed to contact the majority of the interviewees for the case series directly.
In this essay, we will talk about the importance of whistle-blowing, ethics and corporate governance in an organization, moral agency and responsibility as well as whistle-blowing as an internal control mechanism. Losses could have been floored if CAO had followed the risk management procedure, where a stop-loss limit would have affectively applied and further trading halted.
According to Picou and Rubachcorporate governance guidelines are a tool where a company can endorse to reduce organization costs and better support the interest of the shareholders and stakeholders.
Still, he said he was more at peace, thanks to various religious scriptures he had read while in prison. With these whistle-blowing hotlines in place, employees can now confidently raise any issues that they feel is not morally right in their organization without jeopardizing their career or life.
Predicting that the market price of jet fuel would continue its upward trend, CAO took a long position in the market, and sold puts and bought calls. One of his latest blogs has created some buzz in China. Once we have the results of the current reviews and investigations, MAS will work with the other agencies to review them carefully and consider whether we need to add new rules or tighten existing ones.
This shows the effectiveness of whistle-blowing in exposing any unethical or illegal acts within an organization. Such erroneous valuation of the option was done throughout by CAO. Do your homework first, and know what you are talking about.
In JanuaryMr Chen Jiulin returned to China immediately after his release from prison in Singapore for his role in a sensational corporate fraud scandal. We also believe that this case series can be taught from many angles including finance, cultural issues and governance.
MAS considers it in the public interest to provide an update on current developments and the steps being taken by the relevant authorities. CAO was an overseas listed subsidiary of a Chinese state-owned company, which I thought could make it a good case to illustrate risk management issues, corporate governance, approaches to restructuring, and the implications for Chinese state-owned companies expanding overseas.
Differentiating facts from opinions also became a huge challenge as did the timing. That stance clearly differs from the view of top Chinese leaders such as incoming President Xi Jinping and former Guangdong party secretary Wang Yang, who have supported efforts to study Singapore practices such as social management.
After the scandal of the National Kidney Foundation, there was a massive public outcry and citizens have become skeptical in donating to charities.The China Aviation Oil Debacle, Essays for Business Finance.
Shaheed Zulifkar Ali Bhutto Institute of Science and Technology. Why China Aviation Oil? Stewart Hamilton: Although I have written a book 1 and cases on corporate failure (Enron 2, Parmalat, WorldCom, Swissair), my only Asia Pacific case was Barings Bank 3.A former student wrote to me when the China Aviation Oil (CAO) scandal broke inand I realised that this was an opportunity to fill that gap.
In AugustChina Aviation Oil Holding, the parent company, paid an S$8 million penalty. China Aviation Oil Holding breached Singapore’s insider trading laws by selling 15% shares of CAO to Deutsche Bank without informing the share holders. China Aviation Oil (Singapore) Singapore 16 December The Monetary Authority of Singapore (MAS) notes the strong media and market interest in the events following the announcement by China Aviation Oil (Singapore) Corporation Limited (CAO) on 30 November of significant losses from speculative oil derivative trading.
Accusations of the happenings at Enron, the National Kidney Foundation and China Aviation Oil, etc could all have been discovered earlier, if these organizations had reinforce whistle-blowing procedures in the first place. Essay on Derivative Words | 8 Pages DERIVATIVES A derivative is a financial instrument - or more simply, an agreement between two people or two parties - that has a value determined by the price of something else (called the underlying).Download