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MARWADI UNIVERSITY

Faculty of Business Management

[ MBA ] SEM: IV SUMMER-2019

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Subject: - (Business Ethics & Corporate Governance) (03BM0401) Date:-06/05/2019
Total Marks:-100 Time: - 03:00 hours
Instructions:
1. All Questions are Compulsory.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Question: 1. [10]
(a) Answer the following Multiple Choice Questions:
1 Business ethics deals primarily with ___________
a. Social responsibility b. The pricing of products and services
c. Moral obligation d. Being unfair to the competition
2 All the following are sources of values that give rise to ethical dilemmas EXCEPT
which ONE?
a. Society, through the legislative b. Individuals, through their personal
process values
c. Organizations, through codes of ethics d. Courts, through higher judicial
for their staff to follow precedents
3 Normative Ethics
a. Do unto to competitors as you would b. Do unto others as you would have
have them do unto you them do unto you
c. Do unto to friends as you would have d. Thou must attend meeting on a
them do unto you Wednesday
4 Which moral philosophy seeks the greatest good for the greatest number of people?
a. Consequentialism b. Utilitarianism
c. Egoism d Ethical formalism
5 Fairness in employment practices rests upon
a. Hiring no family members or friends b. Giving people equal rewards for
accomplishing the same tasks.
c. Obeying equal employment d. Avoiding conflicts of interest
opportunity legislation
6 The ethical dilemma of choosing between two rights refers to
a. Choosing between two equally b. Deciding which of two employee
undesirable situations rights is the most important
c. Deciding to offer a bribe or lose out on d. Choosing between the two types of
an important opportunity sexual harassment
7 Why should managers communicate to employees what they believe about ethics and
values?
a. to provide ethical leadership b. to offer social impact management
c. to be good whistleblowers d. to provide formal mechanisms to
protect employees who face ethical
dilemmas

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8 An activity is probably ethical if __________

a. It is approved by most of the b. It is approved by most of the
individuals in the organization and is individuals in the organization
customary in the industry
c. It is customary in the industry d. It is legal
9 An employee for Satyam Inc., has been asked to carry out an assignment that she
believes is wrong. This situation can be classified as:
a. ethical b. unethical
c. an ethical issue d. a dilemma
10 An ethical value that is associated with ethical behaviour is:
a. caring b. trustworthiness
c. respect d. all of the above

b. Answer the following in short: [10]

1. Egoism
2. Insider Trading
3. Values
4. Corporate Governance Rating
5. Ethics of Virtue
6. Independent Director
7. Moral reasoning
8. SEBI
9. Corporate Governance
10. Shareholders

Question: 2.
(a) Why would you consider the study of ethics important for today‟s business [08]
practices? Give examples of five areas of business operations where ethical practices
play dominant roles in the success of business.
(b) Explain the Kohlberg‟s six stage of moral development to establish any violation of [08]
moral responsibility. Illustrate your answer with reference to an example of known
violation of moral responsibility in a society or in a business place.
OR
(b) Critically discuss the role and usefulness of the „Utilitarian Theory‟ in assuring [08]
ethics and morality in the society.

Question: 3.
(a) What do you understand by the Corporate Social Responsibility (CSR) functions of [08]
business? Critically discuss the pros and cons of CSR in business.
(b) What are the main requirements of the revised Clause 49 of the Listing Agreement as [08]
given by SEBI for ensuring good Corporate Governance?
OR
(a) “Our scriptures have a lot of moral values to teach.” Discuss briefly in light of Indian [08]
scriptures.
(b) List some of the important recommendations of the Narayan Murthy Committee [08]
report for improving Corporate Governance.

Question: 4.
(a) Discuss the concept of creative accounting with appropriate examples. [08]
(b) Write a note on ethical issues arising out of activities of professionals in banking and [08]
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financial sector.
OR
(a) “Manipulating Financial statements to attract investors does not pay in the long run.” [08]
Explain in light of Satyam scandal.
(b) What is whistle-blowing? Under what circumstances is whistle-blowing justified? [08]

Question: 5.
(a) Discuss Roles and Responsibilities of Directors. Which types of actions you would [08]
like to take to increase the standards of corporate governance in your business?
(b) What is your understanding of an ethical leader? What do you think should be the [08]
qualities of an ethical leader to lead the organization?
OR
(a) What is the role of „Corporate Governance Code‟? Briefly state OECD principles of [08]
Corporate Governance.
(b) „Good ethical decision-making requires a careful exploration and analysis of the [08]
problem at hand.‟ In light of the statement design steps for ethical decision-making.

Question: 6.
(a) “Dilemma is a situation that requires a choice between options that are seen equally [08]
unfavourable or mutually exclusive”. In light of this statement, elaborate the ethical
dilemma. State the steps to resolve ethical dilemma.
(b) Write a detailed note on Corporate Governance in Family-owned Business. [08]
OR
(a) How we can formulate our Values? What are the business values for the 21st [08]
century?
(b) Why do you think so many big corporate got into troubles since late 1990s? What [08]
measures were taken by USA as well as India to contain the problem of non-
transparent governance of listed companies since 2001?

---Best of Luck---

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Que. Paper weight-age as per Bloom’s Taxonomy
No. Que. Level % of weight-age
% of weight -age Que. No.

1 Remember/Knowledge
2 Understand
3 Apply
4 Analyze
5 Evaluate
6 Higher order Thinking

GRAPH:

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