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Substandard Diesel Issue
In Sri Lanka - 2012
By V E R S A T I L E
What Are Ethics?
Ethics are the code of moral principles and values
that governs the behaviors of person or a group
with respect to what is right or wrong.
Why Do The Organizations Need Ethics?
? Attract customers to the firm's products
? Attract investors and keep the company's share
price high
? To control high competition among businesses
? To protect consumer's rights
? Improve consumer confidence
Ceylon Petroleum Corporation
Introduction
Vision
To be the premier customer driven, environmental
friendly, enterprise in the petroleum and related
industries in the region while contributing towards
the prosperity of our nation.
Mission
To achieve excellence in refining, sales and marketing of
high quality products and meet the expectations of the
stakeholders through a dedicated team of professionals
and a loyal & efficient dealer network and by providing
total solutions and services exceeding customer
expectations, while utilizing a high technology base for
growth and development of the enterprise with total
employee participation and innovation, by maintaining
high ethical norms in all its activities and with highest
concern for health, safety and environment.
Substandard Diesel Issue In Sri Lanka
? First ¡°Fiasco¡± ¨C High Sulphur Fuel Oil by ¡°Elibank Germany, to
Independent Power Producers in 2009
? Second ¡°Fiasco¡± ¨C¡°Dirty Petrol¡± contaminated or substandard
gasoline (petrol) by CPC
? Third ¡°Fiasco¡± ¨C Jet A1 Fuel Oil (Aviation Fuel Oil) supplied by
British Petroleum Singapore Pvt. Ltd., in May 2012
? Fourth ¡°Fiasco¡± ¨C distribution of ¡°Dirty Diesel¡± (Gas Oil) and/or
off-specification/contaminated Diesel (Gas Oil) by CPC
throughout the country ¨C 2012. supplied by Singapore based
company ¡°Vitol¡±
Root Causes For The Importation Of
Substandard Diesel
? Outdated lab testing standards and lack of lab
facilities
? Delayed arrival of products
? Dissatisfying Response for Bid Invitations
Outcomes And Consequences
Government
? Mostly damaged A large number of state vehicles
? 18 of the container cranes at the ports authority
? SLTB has suffered losses of around Rs.6 million
? 26 vehicles of the Department of Post
? Several train engines have encountered
Consumer
? 20000 tons of diesel entered the market
? 150 complaints about cases of stalling of vehicles
? CPC accepted that the cause of the damage
Strategies To Fix Adverse Impact
? Appointed a three member committee
? Pay compensation
? Testing samples of low quality petrol
? Suspended the tender of a Singaporean company
that supplied substandard fuel to the CPC.
Recommendations To Prevent Such
Unethical Behavior
? Introduce new Policies and Practices to regulate ethical behavior
? Examine the ethical climate and put safeguards
? Do a depth analysis about the suppliers
? Compliance officers must be appointed to keep a check on fraud,
corruption, and abuse within the organization.
? Separate auditing from consulting functions
? Establish an Ethics Committee
? Regulate laws and regulations accurately towards the wrong
doers.
Thank You

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Substandard Diesel Issue in Sri Lanka - 2012

  • 1. Substandard Diesel Issue In Sri Lanka - 2012 By V E R S A T I L E
  • 2. What Are Ethics? Ethics are the code of moral principles and values that governs the behaviors of person or a group with respect to what is right or wrong.
  • 3. Why Do The Organizations Need Ethics? ? Attract customers to the firm's products ? Attract investors and keep the company's share price high ? To control high competition among businesses ? To protect consumer's rights ? Improve consumer confidence
  • 5. Vision To be the premier customer driven, environmental friendly, enterprise in the petroleum and related industries in the region while contributing towards the prosperity of our nation.
  • 6. Mission To achieve excellence in refining, sales and marketing of high quality products and meet the expectations of the stakeholders through a dedicated team of professionals and a loyal & efficient dealer network and by providing total solutions and services exceeding customer expectations, while utilizing a high technology base for growth and development of the enterprise with total employee participation and innovation, by maintaining high ethical norms in all its activities and with highest concern for health, safety and environment.
  • 8. ? First ¡°Fiasco¡± ¨C High Sulphur Fuel Oil by ¡°Elibank Germany, to Independent Power Producers in 2009 ? Second ¡°Fiasco¡± ¨C¡°Dirty Petrol¡± contaminated or substandard gasoline (petrol) by CPC ? Third ¡°Fiasco¡± ¨C Jet A1 Fuel Oil (Aviation Fuel Oil) supplied by British Petroleum Singapore Pvt. Ltd., in May 2012 ? Fourth ¡°Fiasco¡± ¨C distribution of ¡°Dirty Diesel¡± (Gas Oil) and/or off-specification/contaminated Diesel (Gas Oil) by CPC throughout the country ¨C 2012. supplied by Singapore based company ¡°Vitol¡±
  • 9. Root Causes For The Importation Of Substandard Diesel ? Outdated lab testing standards and lack of lab facilities ? Delayed arrival of products ? Dissatisfying Response for Bid Invitations
  • 11. Government ? Mostly damaged A large number of state vehicles ? 18 of the container cranes at the ports authority ? SLTB has suffered losses of around Rs.6 million ? 26 vehicles of the Department of Post ? Several train engines have encountered
  • 12. Consumer ? 20000 tons of diesel entered the market ? 150 complaints about cases of stalling of vehicles ? CPC accepted that the cause of the damage
  • 13. Strategies To Fix Adverse Impact ? Appointed a three member committee ? Pay compensation ? Testing samples of low quality petrol ? Suspended the tender of a Singaporean company that supplied substandard fuel to the CPC.
  • 14. Recommendations To Prevent Such Unethical Behavior ? Introduce new Policies and Practices to regulate ethical behavior ? Examine the ethical climate and put safeguards ? Do a depth analysis about the suppliers ? Compliance officers must be appointed to keep a check on fraud, corruption, and abuse within the organization. ? Separate auditing from consulting functions ? Establish an Ethics Committee ? Regulate laws and regulations accurately towards the wrong doers.