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Everything the West believed about China’s peaceful rise was wrong. Now, there is a broad consensus that China is actively undermining key elements of the international rules-based order. And so it’s no surprise that resource-rich countries such as Canada and Australia are casting a critical eye on any proposed Chinese resource acquisitions that involve companies under their jurisdictions.
Could it be that the Viola MacMillan Award foreshadows misfortune for its recipients? The correlation is too strong — and eerie to ignore. Looking back to when the award was first introduced in 1985, many recipients have experienced a decline in their fortunes, reputation, or a combination of both.
When under crisis, the tendency is to hunker down and hope the problem will fade away. But that’s precisely the mistake. Prompt and credible disclosure, tireless communication and the courage to face tough questions could have earned management goodwill and sympathy.
An accident happened. It touched off a panic, which hasn’t subsided yet and the stock remains in deeply oversold territory. In just over a month, investors have lost more than half a billion dollars. Is this value destruction warranted?
As challenging as rebuilding the pad from the wreckage and getting the company out a tailspin, salvaging one’s reputation is much tougher. Regaining stakeholders’ trust and support will take work and demonstrated meaningful actions.
The world is in an inexorable transition toward green energy brought about through a confluence of increasingly severe climate disasters, constantly improving green technologies such as fusion, and rising consciousness on a global scale. The dynamic at work here will idle a lot more coal-powered plants outside China and steadily reduce the overall consumption of met coal.