Product details

This case discusses the corporate governance practices of Sinopec Corporation, the largest petrochemical company in China. Sinopec had won several global awards and recognition for its sound corporate governance practices. The case describes in detail Sinopec's corporate structure that centralised decision-making and delegated authority to various management levels. It also explains how the structure promoted corporate fairness, transparency, and accountability. The case also examines other issues in corporate governance including executive compensation plans, shareholders' general meeting and board meeting, and describes their powers, functions and responsibilities. The case also describes the roles and responsibilities of the chairman of the board of directors, the chairman of the supervisory committee, and the independent directors. The case is structured to enable students to: (1) examine the best corporate governance practices followed by leading companies like Sinopec; (2) understand the need and importance of a corporate structure in implementing the best corporate governance practices; (3) understand the role, powers and functions of the board of directors and various committees (supervisory, audit, strategic planning, and remuneration) in implementing good corporate governance practices; (4) examine the rules and procedures for conducting various meetings (shareholders' general meeting, board of directors and supervisory committee); and (5) identify various ways in which a company can improve its relations with the investor community and other stakeholders by promoting corporate fairness, transparency, and accountability. The case is intended for MBA/PGDBM level students as part of the business ethics and corporate governance curriculum. The teaching note does not contain an analysis of the case. There is a Simplified Chinese translation available.