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PESIT Bangalore South Campus

Hosur road, 1km before Electronic City, Bengaluru -100

Department of MBA


Date : 15/05/2017 Max Marks : 50 marks

Subject & Code : Workplace Ethics & Value Systems - 14MBAHR408 Section : A
Name of faculty : Prof. Ravi Urs & Prof. Rashmi Rai Time : 11:30 1:00 PM

Note: Answer all questions

1(a) Define Professionalism at workplace

Professionalism is the conduct, aims or qualities that characterize or mark a profession or (3 marks)
professional person; it implies quality of workmanship or service

(b) Define Corporate Governance

Corporate governance is concerned with ways of bringing the interests of investors and (3 marks)
manager into line and ensuring that firms are run for the benefit of investors.

2(a) Explain the factors leading to unethical Behaviour

Pressure can drive people to do things they wouldnt normally do.

Some people make unethical choices because they are not sure about what really is the right
thing to do.

Self-interest, personal gain, ambition, and downright greed are at the bottom of a lot of
unethical activity in business.

Misguided loyalty.
(7 marks)
Then there are those who simply never learned or do not care about ethical values

Individual characteristics

Values - basic convictions about what is right

and wrong.

Ego Strength - a personality measure of the strength of a persons convictions.

Locus of Control - a personality attribute that measures the degree to which people believe


PESIT Bangalore South Campus

Hosur road, 1km before Electronic City, Bengaluru -100

Department of MBA

they control their own fate.

Organizations Culture

(b) What are the various ethical issues in HR

(7 marks)

3(a) What are the various measures to control unethical behaviour

Create a Code of Conduct

Reinforce Consequences

Show Employees Appreciation

Welcome an Ethics Speaker

(10 marks)
Create Checks and Balances

Hire for Values

Using incentives/reward systems

(b) What are the various ethical dilemmas at workplace

Conducting Personal Business on Company Time

Taking Credit for Others' Work

Harassing Behavior

Case Study


PESIT Bangalore South Campus

Hosur road, 1km before Electronic City, Bengaluru -100

Department of MBA

You are one of three partners in a firm of accountants. Five years ago the firm was
appointed as external accountants to a young, successful and fast-growing company,
engaged to prepare year end accounts and tax returns. The business had started
trading with a handful of employees but now has a workforce of 200, while still
remaining below the size of company requiring a statutory audit.

Due to your close relationship with the directors of the company (who are its owners)
and several of its staff, you become aware that staff purchases of goods manufactured
by the company are authorized by production managers, and then processed outside
the accounting system. The proceeds from these sales are used to fund the firms 10 marks
Christmas party


1.What are the considerations that should be taken in mind before proceeding for a
Christmas Party
Identify relevant facts, Identify affected parties, Who should be involved in the
2.What are the possible course of action you should take in such situation
Having brought the issue to the attention of your partners, and obtained the relevant
details of the clients system for accounting for staff sales, you should raise your
concerns with the directors of the client company. You will also have to determine
whether the financial statements of previous years are likely to be misleading and, if
so, consider your responsibility (or that of your client) to inform the relevant
authorities (including the tax authority). You should strongly advise the directors that a
staff sales policy should be introduced to ensure that these sales are fully recorded in
the companys accounting system in the future.