Case Study of China Aviation Oil Corporation Ltd

Case Study of China Aviation Oil Corporation Ltd Risk Management and Corporate Governance A Case Study of China Aviation Oil Corporation Ltd. Background introduction to CAO China Aviation Oil (Singapore) Corporation Ltd (CAO) is the Singapore subsidiary of China Aviation Oil. CAO was established in 1993 and its main business were jet fuel (kerosene) purchase for Chinese airports and international trading of fuels. CAO developed really fast and achieved 92% market share of the procurement of imported jet fuel for Chinas civil aviation industry by 2001. However, it was then involved in a big scandal which lead to its failure. In November 2004, CAO declared a total loss of $550 million and filed for bankruptcy. timeline of critical events Q1 2003 CAO enters into speculative option trades on oil prices with a bullish view Q4 2003 CAO changed its strategy and started trading speculative option trades taking a bearish view. Oct 2004 à ¢Ã¢â€š ¬Ã‚  international oil prices rose steeply, leaving CAO facing significant margin calls on its open (short) derivative positions. Nov 2004 in a press release CAO stated it was unable to meet some of the margin calls arising from speculative derivative trades. The total derivative losses amounted to $550m. Mar 2006 à ¢Ã¢â€š ¬Ã‚  CEO Mr. Chen Jiulin was arrested with the charge of insider trading, fined and sentenced to 51 months imprisonment. Literature Review option-based strategies There are two types of options: call and put option. One can either long or short the two options to gain profit (speculating) or mitigate risk(hedging) from price changes. In this case, CAO started its option trading in 2002 initially to hedge its jet fuel risk thorough. derivatives of futures and swaps. However, in the mid 2003, CAO started trading in speculative derivative options. hedging A hedge is needed to mitigate the risk from potential unfavorable swings in commodities. However, considering the cost and benefit effect, a hedge is not always necessary. One needs to understand the risks to be hedged, evaluate the severity and timing of downside risks properly, consider the financial instruments available and costs of certain instruments to determine the most cost-effective way to hedge. risk management and corporate governance Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risks can come from various sources including uncertainty in financial markets, threats from project failures, legal liabilities, credit risk, accidents, natural causes and disasters, or uncertain events, etc. The Board should establish appropriate guidelines for trading and ensured that they were consistent with the companys fundamental risk management policies, management capabilities and expertise, and overall risk appetite and tolerance. Senior managers (including executive members of the board) should formulate the major policies and guidelines of an institution. There should be a separation of duties between those who generate financial risks and those who manage and control these risks. Analysis CAOs trading strategies escalating bets As mentioned above, the companys trading strategy changing from hedging risks in 2002 to speculation with bullish strategy (bought calls and sold puts)in Q1 2003, which proved to be an accurate prediction. However, CAO then took a bearish view of the trend in oil prices in the fourth quarter of 2003, and began to sell calls and buy puts, with the result that it was in a short position at the end of the quarter. As the assumption was that oil prices would fall, it was further assumed that the counterparties would not extend the options, and these would therefore lapse to the benefit of the company. However, the price went further upward this time. The rise in oil prices resulted in the counterparties exercising the extendible features on options, and with the calls that were sold, the company faced the real risk of having to sell the contracted number of barrels at the strike price and realizing substantial loss. incorrect option valuation methodology The Special Auditor from PwC assigned by SGX discovered that the company used the wrong MTM valuation method by ignoring the time value, which lead to the misestimation of oil price and the wrong speculation strategy. While CAO had the chance to remedy the mistake by comparing the pricing with counterparties but the company met the margin calls without protest until it lost the financial capacity to do so at the end of September 2004. motivations behind Financial: the company developed fast and became monopoly in the market since 2000. In order to bolster its profile as well as boost investors confidence and generate more profit, the company was willing to take high risk. Political: according to exhibit 8, the year 2003 saw the burst of Gulf War. The company may want to take advantage of the war so that higher risk is acceptable as fuel is a critical resource during wars. Corporational: the lack of risk management knowledge of the CEO, insufficient management environment within the company and the inefficient external audit, as will be discussed in detail in the next section, further accelerated the fall of the big company. CAOs risk management and corporate governance In its 2003 annual report, CAO indicated that it had a formal system of rigorous internal controls over three layers. Meanwhile, other sources of control includes China Securities Regulatory Commission and External Audits. It seems that the company should have a stringent risk appetite. However, according to PwCs report, despite a continuing significant loss in 2004, in order to avoid recording and reporting losses, the company adopted a much larger risk exposure by selling longà ¢Ã¢â€š ¬Ã‚ term options with extremely high risk profiles to raise the premiums to cover the cost of closing out the lossà ¢Ã¢â€š ¬Ã‚ making option contracts (Exhibit 1). So in effect, CAO coveredà ¢Ã¢â€š ¬Ã‚ up the losses that were realized when closing out the lossà ¢Ã¢â€š ¬Ã‚ making nearà ¢Ã¢â€š ¬Ã‚ dated options. Exhibit 1 It was unclear why the companys directors did not question or object to this contravention of regulations. The Audit Committee did not carry out its function of identifying and monitoring the financial risks involved in options trading, and investigating whether the risk management framework and safeguards were sufficient for dealing with the business. Follow-up Development Restructuring outcome: In response to the investigation results by PwC, CAO indicated in a press statement that it intended to form a committee to study the results and to recommend the company on specific remedial or disciplinary improvements. It also expressed the willingness to be more honest on past events and to move forward with the debt and equity restructuring exercise in a positive manner. The company then called for a creditor meeting to approve its latest debt restructuring plan on June 8. As far as I am concerned, with the resources of the parent company, both from the aspects of finance and entrepreneurship, the support from Chinese government, and the establishment of a strict risk management framework, CAO can still gain back confidence from stakeholders, which may need time and effort. Conclusion Improper application of accounting principles, lack of oversight, inadequate knowledge of market and ineffective risk management systems for the speculative options deal were the major contributing factors towards CAOs failure. We should learn a lesson from the case as factors are similar and equally applicable to different business contexts so it is important to avoid certain mistakes. References Li, S., Nadeem, M. (2010). Risk Management and Internal Control: A case study of China Aviation Oil Corporation Ltd. Farhan. (2016, April 10). China Aviation Oil (Singapore) Corporation Limiteds Jet Fuel Scandal (2005) Casestudy. Retrieved January 15, 2017, from https://financetrainingcourse.com/education/2014/04/china-aviation-oil-singapore-corporation-limiteds-jet-fuel-scandal-2005-casestudy/ Yeo, A. (2014). China Aviation(Singapore) Limited- Sliding down a Slippery Slope: The $550m Derivative Trading Loss on November 2004.

Review of Medicine Literature

Review of Literature How is health promotion defined? Health promotion is a process of enabling people to increase control over and improve their health (WHO, 2013). People involved in health promotion should consider the meaning of what do they think health means relating to themselves and to others. This will assist with clarifying outcomes and expectations (Edelman & Mandle, 2010, p. 3). In order for health promotion to have a successful outcome, people must take control over all aspects of their health and life. People must be held accountable for their life decisions. Health promotion is the science of helping people change their lifestyle and behaviors. This paper will discuss the purpose of health promotion, the nursing roles and responsibilities, implementation methods, and a comparison of the three levels of health promotion prevention. Purpose of Health PromotionThe purpose of health promotion is to provide education. The emergence with new computer technology allows for mu ch more access to knowledge. The internet and smart phones have a vast base of information. It provides all forms of information. People can then make an informed decision. The ultimate goal of the health promotion model is to promote a sense of well-being, not just the absence of disease (â€Å"GCU,†2013, p. 1). Health promotion is used on the private level, the public level, and also the community level (Edelman & Mandle, 2010.). These levels are all important for the educational process. Along with improving patient outcomes, health promotion helps to decrease the costs that are always increasing in healthcare.Nursing Roles and ResponsibilitiesNurses are responsible to educate patients in every aspect. They are  the primary care givers in the medical setting. The rapport that is developed leaves a lasting impression. They are able to discuss the positive aspects of prevention and how this can provide a better life for the patient. Nurses are advocates, consultants, care managers, educators, healers, and researchers. They are part of the multidisciplinary team that provides health promotion. Their roles and responsibilities develop gradually with the improvement of health. They educate in life changing activities with a holistic approach. This would include stress management, the introduction to healthy foods, the promotion of increased physical activity, the increased benefits of adequate sleep, the reduction of alcohol, and smoking cessation.ImplementationNurses implement health promotion by providing appropriate care to all patients. Culture and diversity should be taken into consideration. Nurses need to maintain the patients’ identity and privacy. They practice the code of moral principles and values. This is met by treating patients equal regardless of age, seriousness of disease, or different cultural background. Nurses can help implement programs. They can make patients aware of resources to provide a safe environment or a vaccination program for their children.Three Levels of Health PromotionThere are three levels of health promotion. These levels are primary, secondary, and tertiary. Prevention is not only inclusive of health promotion and preventing diseases, but also curing them and limiting the progression of disease. There is no distinctive flow pattern between the three levels, but there is an overlap at times. These three levels will be discussed in relationship to three recent journal articles.PrimaryThe primary level of health promotion is considered to be educational and preventative by nature. This is in process prior to a problem. The primary prevention article discusses motivational interviewing. Women have a lack of risk perception. Through screening, risk factors are brought to light. They should be screened for past medical history, family history, smoking, physical activity, and diet. Research suggests that women should be screened using the Framingham Risk Assessment  of 10-year Global Risk (Schroetter & Peck, 2008, p. 109). This is a risk predictor. It calculates a woman’s chance for experiencing a heart attack. Nurses should also promote awareness by the various government programs such as WISEWOMAN and Go Red for Women. These are two campaigns that increase awareness of heart disease.SecondarySecondary prevention consists of early detection and diagnosis, timely treatment, and limiting disability. This would encompass mass screening surveys and selective examinations used to prevent, spread, and cure the disease process. Through limiting disabilities and providing the adequate treatment, the goal would be to prevent progression of the disease and the complications associated with the disease. Secondary prevention of stroke has focused on medical and surgical interventions.Healthcare professionals should use a multimodal approach, combining optimal medical therapies with interventions designed to support patients to make changes in lifestyle behaviors (Lawrenc e, Fraser, Woods, & McCall, 2011, p. 42). This model consists of combining medical treatment (medications) with comprehensive dietary modifications and exercise. These medications would include aspirin, statins, and antihypertensives. Nurses need to have a good understanding of the risk factors for stroke. They should also know the recommendations for healthy lifestyle choices. Interventions should be tailored to each patient.TertiaryThe tertiary level is the care and education given after the diagnosis of a disease. This level also includes restoration and rehabilitation. It also includes educating the public with selective placement and various work therapies in the hospital setting. There are many vaccines that can be considered a preventative measure for infectious diseases. Any vaccination can be given to an oncology patient if there are no contraindications. The influenza vaccination is an example that will be utilized. It is a recommendation for cancer patients. A first recom mendation was made by a gynecologist.This was for the tertiary prevention with a patient with uterine cancer. Patients that are vaccinated have a significant longer survival period (Wiwanitkit, 2010, p. 339). The influenza vaccination can decrease the infection rate and mortality due to influenza. It has been  thought that oncology patients receive the vaccination. All three levels of health promotion are equal in that they educate. The difference in educating is related to the disease process and the patients’ willingness to learn.

Spectator Violence at Sporting Events

â€Å"These people want to hurt you. It†s frightening. You feel like you†re in a cage out there†. Reggie Smith, (Berger, 1990). Spectator violence at sporting events has been recorded throughout history. People who have power over the events, often team owners, indirectly influence the amount of spectator violence by encouraging the factors contributing to violence, in order to benefit themselves. Sale of alcohol, encouraging crowd intensity, creating rivalries, and targeting social groups, are factors affecting the degree of spectator violence and can be proven to be influenced by the owner†s actions. Therefore the blame for spectator violence can be attributed to whoever has power over the sport. Many historians suggest that an increase in spectator violence coincides with the commercialization of sports. Anthropologists agree that in societies where games were not for profit, they were enjoyed as celebrations of physical skill without competitiveness or violence between players or spectators (Berger, 1990). However, when people gained power or financially from the sporting events, spectator violence increased (Berger, 1990). Public spectacles and games were part of the Roman Empire. Each emperor had an amphitheater and the size of the crowd reflected the emperor†s wealth or power. The emperor through crowd excitement could influence spectator violence to such an extent that gladiators could be killed or freed depending on the crowd†s effect on the emperor (Robinson, 1998). The emperor encouraged the Roman working class, â€Å"to forget their own suffering, by seeing others suffer,† while the senators, and emperor would benefit financially from gambling profits (Robinson, 1998). With the commercialization of sports, owners† profits increased with alcohol sales. Beer drinking has been an integral part of sports since the late 1870†³s. Chris van der Alie noticed that his saloon did well when St. Louis Brown Stockings were in town. As a result, he decided to sell beer at the games. On February 12, 1880, Alie signed a contract with the Browns allowing him to sell alcohol on their property (Johnson, 1988). During a game on July 6, 1881, the first alcohol related brawl broke out in the crowd, injuring twenty spectators and killing two (Johnson, 1998). The signed contract with the Browns† was a financial bonus for the owner, however permitting alcohol to be sold, might have indirectly contributed to the injuries and deaths. Alcohol sales contribute financial support to teams. â€Å"Without beer companies as sponsors, the teams would have trouble making ends meet. † Bob Whitsitt, president of Seattle Supersonics, (Berger, 1990). The more alcohol consumed, the more revenue for the owners. During the 1987-1988 season the Cincinnati Reds sold 12,610 half-barrels and 35,365 cases of beer. The amount of beer consumed averages out to a pint for every man, woman, and child who attended the 81 games the team played at home (Johnson, 1988). The team†s owner benefited with a financial profit of over 1 million dollars. Sponsorship or ownership of teams by alcohol manufacturers, increases the alcohol sales. The first major partnership of beer and baseball dates from the 1953 purchase of the Cardinals by August A. Busch, Jr. , president of the Anheuser-Busch brewery (Johnson, 1988). In twenty-five years its† sales soared from fewer than 6 million barrels a year to more than 35 million (Johnson, 1988). In addition to direct profit, alcohol also indirectly increases profit through increased attendance. In 1974, when the Cleveland Indians† fan attendance was down, the owner implemented â€Å"Beer Night† where they sold beers for 10 cents at the first game of a three game series against the Texas Rangers (Berger, 1990). Attendance was up by 3500. The night turned out to be the first and last â€Å"Beer Night†. When a brawl occurred during the 5th inning, hundreds of Indian fans charged the field and beat up the Texas Ranger players. Seventy-six people were arrested. All were intoxicated (Berger, 1990). There†s no question that the beer played a great part in the affair† (GM Eddie Robinson). Eddie Robinson did not apologize for the incident, and it took Lee MacPhail, president of American League to intervene and ban the beer nights (Johnson, 1988). The rowdy behavior contributed by alcohol consumption often accompanies the throwing of beverage containers. Cups, bottles, and cans act as stimuli and provide a throwing opportunity. In 1988, Pete Rose of Cincinnati Reds was pelted with full cups of beer and whiskey bottles, when he stormed out of the dugout to dispute a call. It was insane, many of the fans were throwing unopened beer cans† Pete Rose, (Johnson, 1988). To restrain spectator violence, many agree with not selling alcohol at sporting events. â€Å"The selling of alcohol at sporting events should be banned† (Johnson, 1988). Other solutions have been implemented, such as limiting drinking to designated areas, selling low alcohol beer, and making it more difficult to buy. The solution of prohibiting alcohol at games was never implemented (Johnson, 1988) Alcohol sales increase revenue; profits keep the owners satisfied. The owners to increase entertainment and increase attendance often promote other stimulants such as music, hearing obscenities, and aggressive play in the event or in the stands. Since sports are a source of entertainment, loud music and aggressive play in the event pump up the crowds, increasing the fans† enthusiasm. Hearing obscenities can be contagious and escalate into more swearing, name calling and fighting. An obscene cheer starts with two fans, increases to eight and soon a whole section is vibrating to the pulse. If fans take exception to the obscenities individual fights break out building into group fights, as friends come to assist. Owners are often able to control the crowd†s involvement in the game with the type of music they play and how loud they control the volume (Robinson, 1998). An excited, participatory crowd heightens the atmosphere and increases future ticket sales, benefiting the owner. However, the same atmosphere can increase hostility leading to fan violence. Basketball games attract anywhere from twenty to thirty thousand fans, whereas a gymnastic competition may attract a few hundred (Robinson, 1998). This is party due to the loud, exciting atmosphere at a basketball game. Goldstein did a study comparing crowd hostility before and after a basketball game to before and after a gymnastic competition. He proved that the hostility increased considerably for the basketball fans, and also discovered that hostility occurred no matter if the fan was rooting for the winning or the losing team (Robinson, 1998). Large sport events like basketball often use music to increase the crowd†s hostility and competitive awareness of the game. Owners often don†t realize at what point hostility turns to fan violence. This may have been the situation for Dan Goodenow, organizer of the 1988 Martin Luther King Classic basketball tournament where 5 fans were arrested, a man's face slashed, and a police officer injured during a riot (Atyeo, 1979). Coaches and game officials blamed the rap group Public Enemy, who played before the game shouting obscenities, carrying plastic guns, and working up the crowd to an extent of raucous excitement (Chapman, 1988). Owners or school leaders help create team rivalry by encouraging fans, through city or school patriotism, to support their team. With media support, owners use historical team rivalry, competitive stories, propaganda and team loyalty to promote high-ticket sales and increase profits. Excessive promotion of rivalry changes crowd cheers to jeers that can lead to violence. The most common rivalries are school rivalries. Starting as far back as 1899 the students of Colorado School of Mines and those of Colorado College would celebrate victory by using dynamite to blow up the rival†s goal posts (Taylor, 1992). During one game the presidents of the universities promoted the final game, as â€Å"The top college in Colorado will win† (Taylor, 1992). By game time, most students from both schools were there to cheer their teams on. When Colorado College was down their fans, frustrated by the score and the name-calling, stormed the field at half time where a riot broke out. When rivalry was claimed to be a factor it was no longer promoted, and violence diminished (Taylor, 1992). A similar example of rivalry leading to hostility occurred in the 1999 Red Feather game Banting vs. Westminster. To encourage attendance and raise money for charities both schools had pep rallies to pump up the students by using music, videos and chants. During half time the two schools emerged towards the center of the field taunting each other. The organizers of the rallies intent on boosting ticket sales inadvertently encouraged spectator violence. There is an increase in violence following sporting events promoting rivalry as compared to regular promotion, as seen in professional boxing following a highly talked about match. The promoters in boxing do everything they can to make sure the matches turn out violent to satisfy the crowd. David C. Phillips a sociologist studied the rate of homicides following highly publicized heavyweight championship fights. The survey was done the 3 weeks following each of 18 highly publicized bouts from 1973-1978 compared to those bouts with normal publicity (Davidson, 1983). Phillips found that there were 193 more murders, in the surrounding areas, after the promoted fights as compared to the norms (Davidson, 1983). After the highly promoted Muhammad Ali vs. Joe Frazier fight on October 1, 1975, the murder rate shot up thirty-two percent (Davidson, 1983). Phillips theory is â€Å"people see how violence is prized in the boxing ring and come to believe that violence outside the ring will also be rewarded† (Davidson, 1983). The rewards however, are the financial rewards to the owners, through increased ticket sales and media advertising. Spectator violence may be parallel to violence in the society. For example in a violent society, play will be violent, whereas in a peaceful society play will be more peaceful. The make up of the social group contributes to the possibility of violence. Spectators can be divided into different social classes and the event advertised in areas where a particular social group is targeted for ticket sales. Often working class males are targeted, as their values and attitudes of aggressiveness, fearlessness and toughness are well suited to competitive sports (Bonney & Giulianotti, 1994). They are likely to be the fans that are betting on the game or are there for the thrills (Berger, 1990). These fans are more likely to attend contact sporting events such as rugby and to be violent, compared to the upper class fans who analyze the game are more likely to attend a cricket match. In the sport soccer, hooligans who dominate the crowds are mainly males who generally act in rough, noisy behavior (Taylor, 1992). They have lawless fun, fighting spectators, throwing objects and vandalizing property. Most hooligans are from the working class. They have low ambitions, violent behavior and high stress levels (Bonney & Giulianotti, 1994). They act out their frustrations, like the Roman working class, by attending sporting events where they loose their individualities. Fans in Glasgow, Scotland, trampled sixty-six persons to death when they tried to return to the stadium they had just left upon hearing that a last-minute goal had been scored. Berger, 1982). â€Å"Hooliganism gives the organization of a team motivation with their traditional cheers and it builds the atmosphere which builds a team† Lesie Davis, management of Peru†s soccer organization (Taylor, 1992). Major soccer teams target this low-income social class because it brings atmosphere to the game and alcohol sales and profits increase (Shumacher, 1975). In marketing ticket sales for most team sports, owners target males nineteen to forty-five. Sixty three percent of males and twenty percent of females in that age range are involved with sports whether they participate in them, or follow them (Oliver, 1971). Team owners often exclusively target males, resulting in an increase of ticket sales and merchandise. However, when males are bonded they often act violently emphasizing their masculinity, machismo, bravery and fighting skills (Tiger, 1970). Many teams in the American Baseball League in the 1970†³s were having problems concerning fan violence, and found the main instigators were males. They changed the games to Sunday, traditionally a family day and encouraged female fans by admitting them free. With women and family present the men were less likely to loose their individuality and act violently as a group. The results for the next 5 years were positive as fan violence decreased by 30 percent (Berger, 1990). By studying the occurrences, degrees, and causes of fan violence over history, owners are able to decrease the incidents of fan violence while maintaining profits and entertainment value of their organization. Slowly but effectively owners, teams, coaches and professional leagues are creating solutions to minimize fan violence. The American Baseball League, National Baseball League and the National Basketball Association participate in TEAM (Techniques for Effective Alcohol Management), which is a program for training everyone from vendors to ushers in handling people who have had too much to drink (Berger, 1982). Many of the NFL teams have moved their tailgate parties outside the stadium to eliminate the hostility caused by loud rock bands on the premises (Berger. 1990). Security cameras have been installed in many of the soccer stadiums and transportation centers to games, spotting the fans that cause the violence, and acting as deterrents for others. Controlled drinking areas, entrance controlled security checks, and increased visible security personnel are measures, which have helped to reduce fan violence in all sports. Most important, the owners need to be aware that some of their actions to benefit their organization have an indirect influence on the factors for fan violence. Sport is a basic feature of Australian culture. The achievements of Australian athletes have enhanced our image as a nation. Participation in sporting activities contributes to the health of millions of Australians; the teamwork and fair play which Australians learn on the playing field provide the basis for a good society. But Australian sport is not without shortcomings. Whilst sporting violence, on the part of both participants and spectators, is less frequent and less severe in Australia than in many overseas locations, it remains grounds for concern. Violence on the playing field sets a bad example for impressionable young Australians. Unruly crowd behaviour can spoil a pleasant family outing.

Essay Business Ethics - 1686 Words

The stockholder and stakeholder theories are two popular frameworks used to examine the purpose of business and its ethical obligations. With reference to the quote above, both theories seem rational and enjoy strong support. However, a common failing of both is typically how humans interpret and implement the theories in contemporary business environments. For instance, Enron was so focused on the raising the price of their stock that they â€Å"cooked the books to produce fake profits†1. This paper will provide a description of each theory and, analyze ethical justifications and major objections to each theory. The ethical justifications will be based on pertinent examples - policies and actions, of businesses such as Wal-Mart. Based on this†¦show more content†¦The stock chart below illustrates how Wal-Mart, one of the companies seen as being stockholder focused, has benefited its stockholders immensely over the last three decades. Ethical theories provide adequate support for the stockholder theory as detailed below. Entitlement theory maintains that if someone acquires resources by just means they are entitled to those resources. Stockholders who acquire ownership of a business by investing in it are therefore the owners of the business and entitled to its profits. The entitlement theory also states that benefiting other stakeholders at the expense of stockholder dividends is akin to stealing. Year after year, it has been quoted that â€Å"Wal-Mart pays low wages and appears to aggressively seek to keep wages down†2. In this respect, Wal-Mart’s policy on employee wages seems to indicate that they respect the stockholder rights over those of their employees. Utilitarianism theory holds the view that profit maximization directly or indirectly maximizes benefits for the greatest number of people. Wal-Mart uses its retail clout to bring the lowest possible prices to its customers and â€Å"the giant retailer is at least partly responsible for the low rate of U.S. inflation†3. Wal-Mart’s legendary toughness in dealing with suppliers forces them to improve every aspect of their operations and this can help profit growth with other customers as well. DesertShow MoreRelatedBusiness Ethics : Ethics And Business943 Words   |  4 Pagesdiscussions in Business is Ethics. Some people believe that the decisions businesses make in interest of the business has no place in ethics and that they are essentially amoral. These businesses believe that their main objective is to simply make a profit and that it does not affect the success of the business. Whereas some businesses believe that they have to take ethics into consideration, in order for their business to be a success. Richard T. 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