Ethics, Governance & Risk

September examination 2022

Answer 1

Introduction

A moral conundrum arises when an individual's core values run counter to those of the
culture in which they live. Dishonesty is poison to friendships, whether they are either
personal or professional. There are always going to be difficulties when two organisations
work together.

There are times when violating the law is the only way out of a jam, yet doing so may have
deadly repercussions. It's possible that individuals might become more violent if they knew
there would be no legal consequences for their actions.

The concept and application

Coca-morality Coca's etymological roots have been studied for decades

The competition against Coca-dominance Cola's in the soft drink market is strong, yet it still
pales in comparison to the ubiquitous Coke. The company's formerly spotless reputation has
been sullied by moral questions. Experts will go at the company's past to see whether it has
behaved ethically.

The company's reputation took a hit due to illegal practises such discrimination, sickness,
overbooking, incompetent management, increased competition, and pollution. A succession
of unethical missteps has caused the corporation to lose customers and institute a refund
policy.

The organisation has come a long way toward its ethical restoration objectives since it
implemented the new rules and procedures to address the interrelated concerns.

The corporation has developed a social responsibility plan to publicise its philanthropic
activities as part of its mission to improve the world. A greater number of potential customers
will be attracted to the company if its ethical problems are resolved.
The company's worldwide reputation has been tarnished through questionable toxicological
practises since 1999. Three people in Belgium were found dead towards the end of June
1999, and the cause of death was determined to be Coca-Cola consumption. When kids drank
the tainted beverages, they became sick.

Changes similar to the one in Belgium have been seen in several other nations, most notably
Germany. Nothing in their response boosted their credibility. According to the company's
studies, carbon dioxide pollution is the primary cause of harmful air quality.

Because of this, numerous nations, like Belgium, have outright outlawed them

Coke has been accused of engaging in misleading advertising in order to increase sales. As
Coca-Cola expanded rapidly in the 1990s via mergers and joint ventures, the French
government voiced concerns about the company's increasing monopoly in the country's soft
drink industry.

Italy's intention to take legal action against Beverage for suspected antitrust crimes was
validated by the results of an inquiry conducted by the Italian government. That's why the
European Competition Committee is keeping a close watch on the company to make sure it
isn't up to any shady business. PepsiCo, Coca-chief Cola's rival, also paid a significant
punishment to the EU for regulation violations. Cola's

African-Americans who used to work for Coca-Cola have spoken out against what they call
the company's "institutional racism." As the name implies, a "class action" is a lawsuit filed
on behalf of a large group of plaintiffs against several defendants.

It has recently come to light that prejudice in the workplace may have a variety of
unfavourable effects, including unequal compensation, biassed hiring practises, and flawed
appraisals of workers' performance. Company assertions that they have a solution have not
been accepted by the general public. The company's reputation took a hit due to the
discrimination complaint.

Coca-Cola has poured billions of dollars into attempting to fix its diversity issues. Employees
from unaffected divisions who previously held equivalent positions inside the company were
not adversely impacted monetarily.
The policy of the organisation is to treat all employees with respect and fairness, regardless of
their gender, race, or sexual orientation. An applicant's race or ethnicity was used as the only
grounds for rejection by the company's diversity committee.

HRM-related criteria were evaluated fairly. Before the climax, it was the most essential
portion of the story

There is a link between drinking Coca-Cola and an increased risk of cancer, according to
research. Similar correlations between studies on animals and humans have been discovered.

The dye's recipe was changed such that it no longer contained any carcinogens. If you want a
sugar-free soft drink, Coca-Cola Zero Sugar is a good option.

Companies that focus on sugar-free drinks make this choice because they believe that certain
health problems are more common in populations who consume a lot of sugar compared to
those that consume a lot less. Therefore, they exclusively serve customers with a sweet tooth.

Sugary food consumption is associated with increased body fat. Many health issues have
been linked to eating a poor diet that is heavy in sugary foods and drinks.

There is nothing more in the products of Coca's rivals, Pepsi and Cola's, that would turn off
potential customers.

The company was confronted with a slew of unexpectedly difficult ethical challenges. If
people cease supporting the company's brand, it might be financially disastrous. Because of
the widespread prejudice and dishonesty, many dissatisfied former customers have
abandoned ship.

Conclusion

People who did not appreciate privacy put New York City's economy in danger. Since Coca-
Cola was banned in all 50 states, the nation's capital has taken a lot of flak. Not just Belgium
and France, but also many other countries are well-represented.

As a consequence of the disaster, the firm has suffered significant financial losses. The
corporation might perhaps regain its previous grandeur if it makes advantage of the resources
at its disposal.
Despite Pepsi's increasing success, Coke remains the market leader among soft drinks. When
moral standards are upheld, corporate success spreads to all parties.

The corporation suffered enormous financial losses as a result of this incidence. The company
might lose credibility if its leaders fail to implement the provided resources and advice.

Even though Pepsi has expanded rapidly in recent years, Coke remains the market leader in
the soft drink category. Maintaining moral standards benefits everyone, not just the few.

Answer 2

Introduction

The Board of Directors is responsible for the day-to-day operations. The company's success
is not attributable to its founders or a select few employees. Workers, consumers, and
members of the general public are all taking part.

In every corporate setting, shareholder needs must be prioritised. In any situation, people's
right to their own independence must be honoured. Sometimes the interests of bank
shareholders and directors are at clash with the interests of other stakeholders.

The concept and application

It is important for a country to have good corporate governance in order to protect its many
interests. After Satyam's passing, there were further restrictions put into place under both the
Act and the Csa Regulation.

In spite of efforts to remedy the situation, many organisations still have trouble filling up
their boards with non-management outsiders who are true independence. In this research,
we'll look at how JetBlue has handled similar corporate governance problems in the past.

The airline industry has been hit hard by the demise of Jet Airways. The unusual management
style of the company's founders was only one of several causes that led to Jet Airways'
demise. In this piece, we will investigate not just what went wrong for Jet Airways, but also
how the firm plans to fix its problems going forward.

A few of the moral difficulties Jet Airways must resolve are listed below
Jet Airways has always been the preferred airline for the vast majority of Indian passengers.
The firm failed because to incompetent management and rapid growth. An extensive set of
factors, such as:

1. The promoters have little input and must adhere to the event organisers' guidelines

The Board of Directors is ultimately accountable for guiding the company's activities.
Concerns regarding the board's objectivity were raised when it was claimed that certain
members had prioritised business needs above those of the public.

As much as half of the company's shares may have been controlled by Jet Airways' promoter,
giving him enormous sway over the company's day-to-day operations and major policy
problems. The developer's financial actions were illegal since they disregarded the demands
of the other investors.

Shareholders of all sizes are granted the same safeguards under the SEBI Regulations, 2015
as outlined in this document (2015 Regulations). One expert believes it was a bad idea to
invest $650 million in Air Sahara in 2006.

2. These challenges are merely the beginning of what board members face

With few members, an independent board cannot influence the company's management.

Each publicly listed company must have "independent directors" in accordance with Section
149 of the Firms Act of 2013. (ID).

In accordance with SEC and CA 2013 regulations, shareholders practically never act contrary
to the advise of independent directors.

The responsibilities of directors are spelled out in full in Article Vi of the Companies Act of
2013.

3. The Board ensures that the Code of Conduct is followed by keeping a close eye on
daily activities

Despite the fact that Jet Airways incurred losses in both 2018 and 2019, Tata is mulling over
the possibility of acquiring the airline.
In spite of objections from a significant number of independent board members, the merger
was approved by the board of directors of Jet Airways. After the agreement fell through, a
number of independent board members protested by resigning their positions.

To put it another way, the health of the general population ought to be the first focus.

The rapid ascent to prosperity of a company is often one of the most fascinating aspects of
modern business for the general public. It's possible that individuals like salespeople and
customer support representatives who make major contributions to the bottom line may be
deemed investors.

4. All directors and big shareholders should act in the best interests of the firm

While acting as Jet Airways' chairman of the board of directors, Naresh Goyal disregarded
the concerns of the company's workers and passengers. The company's board of directors
blew a once-in-a-century chance to save Jet Airways.

5. The Airline There has been a worsening in the airline's financial status

Due to financial difficulties, the airline ceased operations in April. In an attempt to salvage
the firm, the directors of the company went all out to attract new investors.

The government's rescue measures restored confidence among investors. The Corporate Law
Board filed suit against the investors to collect their losses (NCLT).

1. Among U.S. airlines, American has been in operation continuously for longer than any
other.

2. The company's full name is United Airlines.

3. Unlike publicly listed airlines, Jet is privately owned and run for the benefit of its
consumers.

In the past, commercial airlines often utilised the Airways brand. The firm has shut down
since those days, thus they no longer exist. The lessons that bigger companies may take away
from Jet Airways' mistakes, such as undervaluing the work of its employees, would be
excellent.
The larger an investor's investment in a company, the more influence they may want to have
over operational decisions.

This might potentially cause problems for the company. Founders of the firm need to
understand that the Board of Directors is responsible for keeping tabs on daily business.

Conclusion

A corporation is more likely to engage in practises that contravene ethical norms or the law if
the promoter decides to ignore the suggestions of the board of directors or independent
experts. The founders of Jet Airways had much too much say, leading to poor business
choices.

Even after an organisation has apologised and confessed wrongdoing, customers may still
have trouble getting their money back. There doesn't appear to be much hope for the
company's continued existence in the current economic climate. There is stiff competition
from low-cost airlines, and some of them may offer lower total tickets but fewer first-class
seats.

Answer 3 (A)

Introduction

Good corporate governance provides the foundation for efficient firm administration, which
may be seen from several angles. Business leaders on a global scale need to keep an eye on
developments in international banking and regulatory standards.

There will undoubtedly be several ways in which research into corporate governance varies
from other research into the same topic.

The concept and application

Because of my extensive knowledge in risk assessment and management assessment, I have

helped set global standards in these areas. Specifically, consider the following examples:

Appointing capable leaders is essential

What is often known as "corporate governance" refers to a wide range of management
practises used inside a company. There is consideration for the present political and social
climate.

Increased trust among workers is only one benefit of sound corporate management practises.
When a company is well-run, honesty, transparency, and integrity serve as its foundation.

Since the turn of the century, multinational corporations in both rich and developing nations
have made great strides in corporate governance.

You feel that you need to take this step, adopt a risk management

There is a chance of loss when investing in the financial markets, just as there is when
investing in anything else. This highlights the need of maintaining a state of constant
vigilance. All potential threats must be catalogued, evaluated, and ranked in order of severity.
With any luck, disasters may be anticipated and avoided in the future thanks to advances in
risk management.

Disregard for early warnings of fires and floods is a major contributor to their growing
severity. Due to the increasingly interdependent and dynamic nature of the global economy,
effective risk management is more important than ever.

Compliance

Having management that is dedicated to adhering to all industry standards is crucial to any
business's long-term success. There are too many benefits to keeping one's core beliefs and
principles intact to enumerate here. Companies need to ascertain the regulations that pertain
to their operations and structure themselves properly.

Entrepreneurs starting a business would be wise to study up on the rules and requirements of
their field. Business plans should have a management structure that actively works to reduce
misbehaviour inside the organisation.

Stunning natural scenery

Business ethics is the study of the moral and philosophical implications of business practises.
In the last several decades, there has been a steady increase in the number of people who
recognise the value of maintaining a moral stance while at work. When a new moral compass
isn't implemented, morale declines further.

Conclusion

The success and expansion of any business is totally due to the leadership team. There is a
strong commitment to honesty, openness, and responsibility in companies with excellent
governance. The global monetary system might be threatened by policies that increase the
influence of shareholders in corporate governance.

Answer 3 (b)

Introduction

Judgments about what is right and what is wrong are illogical and hard to refute. However,
they lack any sense of right or wrong. Put other people's feelings first. The morality of a
person's choices is a reflection of their character. Our values and principles serve as a kind of
defining narrative for who we are. When it comes to your reputation, honesty is always the
best policy.

The concept and application

This is more about a guiding philosophy than a rigid set of rules. Maybe we can win over the
public if we show that we care about them and are open to hearing out opposing arguments.
These are trying times, and we could all use a little extra motivation.

Every day, we are confronted with a wide variety of moral dilemmas:

1. You need to start looking for a solution right away

Aiding others is more satisfying than gaining riches or social status if you wish to live a good
life. Everything will work out OK if you can relax and have some fun.

2. You shouldn't try to be the centre of attention

The Golden Rule is especially important in trying times. The best way to figure out what to
do in a sticky situation is to put yourself in it and act as if it were genuine. To treat somebody
fairly, one must have compassion for them.

3. Weigh the outcomes of your decisions carefully

Everyone in our near vicinity will feel the repercussions of our actions. Worrying about the
past or the future is a waste of time. It's not about the means, but about the outcome. We are
more likely to injure people for our personal profit if we lack the capacity to empathise with
them.

4. Remember that lawbreakers will be punished

Possessing both a firm grasp on one's identity and a reliable network of people who have
one's back are essential. If you want other people to respect you, you must respect yourself
first. Watch out for potential threats at all times.

5. Treat yourself with love and respect

If we cherish our worldwide status, we must follow Covey's "natural norms." We must follow
the rules, whether we agree or not.

These beliefs must be understood and practised to conduct ethically. Successful solo
entrepreneurs are typically held up as examples. You may need to do your own dirty work.

Conclusion

From Stephen R. Covey's point of view, human worth is based on four pillars: justice,
honesty, development, and service. Aiming for my level of success is something everyone
should do. They look strangely same, like nothing else in existence. Do your best to put as
many of these ideas into practise as possible.