a 21 Introduction to Ethics them supersede personal egocentric interests. Moral agents are bound to the whole of society by a tacit social contract. Being human being we can recognize others problems, if want. This quality leads to recognition of individuals, institution and society. This recognition ethics helps to resolve conflict. The basic moral principles that play a leading role in recognition ethics are the principles of: (1) Justice and (2) Beneficence. Questions for Self-Practice (1) Multiple Choice Questions (MCQs): (1) The word Ethics is derived from the Greek word which Means custom, usage or habit. (Oct. 18) AF Ethos’ (ii) Mos (iii) Ethico (iv) meta (2) ________: Its based on the notion that ethics should deliver the greatest number of people. $y Utilitarian view (ii) Individualism view (iii) Moral right view {iv) Justices view (3) _______: This view seeks to advance the long term self-interest of individuals. (i) Utiitarian view (iyindividualism view (ji) Moral right view (iv) Justices view : This emphasizes respect for and protection of the fundamental right of people. (i) Utilitarian view (ii) Individualism view (if Moral right view (iv) Justices view (5) ______: Ethical behaviour or decision should treat people impartially and fairly according to guiding rules and standards. (i), Utilitarian view (ji) Individualism view (iii) Moral right view 46) Justices view (6) What is right or wrong is consistent in all places or circumstances is called ethical : (i) Subjectivism (ii) Relativism (i#/Absolutism (iv) feminism (7) _____is the study of principles, rules, or theories that guide our actions and judgments, To determine what actually is morally right or wrong. Ai Normative ethics (ii) Descriptive ethics (iii) Analytical ethics (iv) Applied ethics (4)joking about the presupposi © ao pewctve mes fh Metethcs () Apptag nics ven tenes wre const oF RO OMA ® Prmporal e8veS ca aye eis (8) MetaotNES YP) Arpag ocr that Ho isan amen, or Donel (10) moral agents oughy ism (iv) Absolutism "ene oe palace a decision making, . ‘comer! Ghee (i Contemporary ethics pA) Cognitive ethicg —2 ' ‘emphasizes the role of we geese a fy Comer ‘ethics (ii) Contemporary ‘ethics (ili) Cognitive ethics s) Virtue ethics: Seon ryan van ety erp tie tt ‘one's character and the vintues termining or evaluating ethical “4 » Eta! Alvuism (i) Ethical egoism 43) Utitarianism (v) Absolutism (16) According to Culture fent approach to the concept of morality. “ora eis (@) Contemporary eis (i) Cognitive ethics (v) Vitue ‘ethics identalty and objectivity ransparency ard accou il of the above (18) Professional Etics covers the following standards based behaviour expected of professionals: () personal standards (i) organizational standards (li) corporate indamental for gender and democratic MF Transaction ethics (i) Contems Give (ii) Contemporary ethics (ji) Cognitive ethics Introduction to Ethies goo 2B Of individual and collective citizenship, Contemporary ethics (wi) Cognitive etrics a set of principles and rules that define what is organization. Personal (i) Professional (\v) Normative s deals with how we treat others in our day-to-day ubjectivism (iv) Normative 1 notion that ethics should deliver the }) Utiitarian (i) Individualism (ji) moral right (iv) Justice view seeks to advance the long term self-interest of (ip Individualism (i) moral right (iv) Justice view emphasizes respect for and protection of the ntal right of people. ) moral right (') Justice ‘behaviour of decision should treat ing to guiding rules and standards. alright (iv) JusticeQe eee of moral be wd Introduction to Ethics js the scientific study (38) aces © ES now peop Ber=Y® ty think when dealing wit : ; petal issues and arguments iv) Professional ethics if esr Normale) AOE ttle, ees, OF HOH thy, ne above: (28) Managers s jubyectrvism, Cra ad agree oerng I ranaalsm (8) Mra) ont — (40) TP tH rate i) AHS Professional ethics ; ita eee {Deere «) Noman te race ‘application of mora, 2 jecogni Transactora! Ci jderations. ° ied (W) ee i Nomave (i) APE ics is the empirical investi gpa (w Prtessnal tics ls acon anit evaluates why Professional ethics igation of als. {0 Descriptive (i) Normative () ‘ethics is the study of (6) respecting and protecting inva it | @)_ Morais 9 individual liberties | (F) Situational ethics | 1 ‘Ans.: @ Te Te, @ E Recognition (iv) Professional ial value system and hisher IG Parsapatry (i) Tansactonal (i) Mrs elude the individ Tacltats interaction. tory Tansactona (i) Recoom cet te eis of human i tudy of moral beets and practices Atnism mean ineatiahconem rhe near of abe. ‘Transactional ii) Recognition (v) Professional ‘Contemporary ethos refers to Concept of ethics is stationary and do rpealy adopied of absorbed since childhood from ioe yon, religious leader and $0 on. ‘Morality is the esst Law is guided by Ethics is guided Recognition ethic basic needs. the ethics of human rights and of acknowledged26 "ta" ta" Vipul’s™ Ethics and Governance (BMS) (CI i) [Ans.: (a) True; (b) True; (c) False; (d) False; (e) False; (f) True; (g) Tr (h) False; (i) True; (j) ee: (k) True; (I) False; (m) True; (n) Fals (0) True; (p) True; (q) True; (r) True]Introduction to Business Ethics a) 53 Questions for Self-Practice Multiple Choice Questions (MCQs): (1) Characteristics of Business ethics includes: (i) Lays support to social welfare functions (ii) Provides code of business conduct and basic functional frame (iii) Acts as guiding principles of business (iv) Alll of the above (2) An____in an organization ensures that compliance with law is fuelled by a desire to abide by the laws. Hy ethical climate (ii) Moral climate (ii) Information system (iv) Control system (3) _______ have a responsibility in ensuring that corporations act according to the rules and norms of society. J Governments (ii) Public (iii) Customers (iv) Creditors (4) strives to follow ethical principles and precepts, moral mangers strive for success, but never violate the parameters of ethical standards. @Y Moral management (ii) Amoral management (iii) Immoral management (iv) all of the above (5) According to ethical and moral principles are run by examining a certain action, which has to avoid any harm. Q@ Buddhism (ii) Jainism (iii) Sikhism (iv) Christianity (6) According to it redefines the concept of Maya, and preaches that not Maya but attachment to Maya has to be avoided. (i) Buddhism (ji) Jainism (ii) Sikhism (iv) Christianity (7) According to teachings of the focus on good intention may bring harmony and transparency in the economy if applied in businesses. (i) Buddhism (ji) Jainism (iii) Sikhism (iv) Christianity (8) According to those who are in commerce should not desire “to get another's goods or labour for less than it is worth. (i) Buddhism (ii) Jainism (iii) Sikhism (jf) Christianity (9) management not only ignores concerns, it is actively opposed to ethical behaviour. (i) Moral management (ii) Amoral management ys Immoral management (iv) all of the above (10) Most companies begin the process of establishing organizational ethics programs by developing : J code of conduct (ii) Law (iii) both (i) and (ii) (iv) none of the above (11) The form of ethics that endeavours to help professionals decide what to do when they are confronted with a case or situation that raises an ethical question or moral problem is referred to as: (i) Personal ethics (ii) Organizational ethics (jj Professional ethics (iv) Business ethicsEthics and Governsh vigat's™ seqaisaton MEMBETS When ace prepared 0 "9 eouterng pea oorrss 5 J vot () and G() Mone of Prcese oe (a Code of conde arly wala fre DOE cram, StUBtO OF Tang several actions, Saeceaage ns ema wse romeo A Erica sous i good? uu wen eel pve sect rosea and (0) none above wrich oe nar (il nove o ) tecue does 8 een coma tical (15) What type of ‘aj Financial (i) social (wp sh eve the tolowing rau acca porate weu0s (Hi) FMdviduay ae sien = Se cain paar that an individual OF 8 STOUP hag on bef fe prlosoph (ii) Law OMe Ee is at at the above ag a policy on Corporate, Social {i Protessional (v) Applied Mice aims at wriing a tesis on the nature of @ percepiion in moral judgment poplied ‘Meta (ii) Professional (iv) (@) (Bases J erst rating a white paper on the tical ‘conduct of Managers. (i (i) Meta (jj) Protessional ('v) Applied 7 em ra ros i) Professional fv) Applied i) Protessional('v) Applied descriptive in nature. 1ess ethics ines et 8 apy the conduct of ver 5s 's a form of applied ethics or professional ethics that principles and moral or ethical problems that arise in an be approached trom a normatve perspective the society in a better way than even the legal FS to the application of everyday moral or ethical be approached from a descriptive perspective and control mechanism that guides viour of people. self-interest of businessmen in long jonship. to all aspects of business conduct and is ividuals and entire organizations. (8) What does occur Transforming products to be more cal56 (e) 10) (9) (h) Viput’s™ Ethics and Governance (BMS) (CHI) Justice as ethical principle (vi) Ethics Greenwashing (April 18) | (vil) Descriptive perspective Philosophical study of moral values Business ethics (April 18) | (x) (i) Organizational Systems (April 18) () _ Personal ethics (April 18) (viii) Normative perspective (ix) Customers Founder Eanes: (a= nh (B= x) (© — vil = vis (0 eh = Wh (= Wi (Oh (b) Match the column: Column ‘A’ Column ‘B’ (a) (b) () (@) (e) (9) (h) @ ‘Atmano Moksharathan, Jagat hitaya cha Paraspar Devo Bhava Tesham sukhm tesham ‘shanty shaswati Atmana Vindyate Viryan Yogah karmasu kaushalam. Samatvam yoga uchyate Yahishi Bhavana yasya siddhi bhavati tadrishi Parasparam bhavayantah shreyah param bhavapsyathah Archyet Dana Manabhyam Dharmo Rakshathi Rakshithaha (i) Those who are ethical, their ethics will support them most (ii) Worship people not only with material things but also by showing respect to their ever present divinity within (iil) By mutual co-operation, respect and fellow feeling all of us will enjoy the highest good both material and spiritual. (iv) As we think, so we succeed, so we become. Attention to means ensures the end. (vy) He who works with calm and even mind achieves the most. (vi) Strength and inspiration for excelling in work comes from the divine, God within, through prayer, holy readings and unselfish work. (vii) Infinite happiness and infinite peace comes to them, who see the Divine in all beings. (viii) Regard the other person as a divine being. All of us have the same consciousness though our containers are different. (ix) All work is an opportunity for doing good to the world and thus gaining materially and spiritually in our lives. [Ans.: (a — ix); (b — vil); (c — vil (0 — vs (© ~ Ws (FM) (@ — il: (h- d-i]70 3.8.2 Developing Increased inter the proliferation of yrominence among Character” devel important to consi my oor ess eics has Ted 10 both i ‘ and 10 th ap ® Smpanies and t0 their a = oy uch codes Used to be ments; rmpanies are adding employ’ measures t0 i Jephson Joped by The Jos er ‘when setting up an el honesty, ode: promise-keeping, Trustworthiness: i courtesy, tolerance, Recpects autonomy, privacy, dig, courtesy, espect . of excellence. Responsibi Caring: compassion, considera loving | fairness, impartiality, imess: proce Justice and faimess: pi roces concistency, equity, equality, due p' virtue and ci izenshi protection of environment, g, sharing, kindness, epee Pee rate of equivalent pace (i) The re ot Soramence 9 BSNess (y) ao he above brioincod of people refers to Nomrtaterences in choices * {rare proce (0) Farnese prec f) Autnomy prince (™) a ore toe (6) Freecom tom deceptive practices s known 2s @ Ham penople @ Femmes principle (@) Autonomy principe (7 Peaity Precpe Principles and Practices of Business Ethics vor n (5) Three R's (3 F's) of busines thie a tr Respect, Ya Resale 44 Rospect Respect, Responsibility and er const ity and Results (iv) None 6) 7 C's (9's) of business ethies are 18, contributions and consequen are, sequence: ‘complications, consequences (ii) compliance, comforts and None of the above to anyone, (8) As por Greek philosophy we are following ethics because me must reatment to approach Faimess approach by establishing idden Agenda ‘employees on formal ethical ion making, i) code of conduct (ii) Hidden ‘are formal statements that describe what an organization employees, ining (pF code of conduct SS, accuracy, honesty, and reason as essential to the integrity of communication.” ication. This is a commitment that would most likely be found in a (17) The form of ethic that endeavours to help professional decide what to do when they are confronted with a case or situation that raises an ethical question or moral problem is ethics. () Personal (i) Organisational (ji) Professional wf Businessor oe n ies begit Mat cone en Fare ne tree pila of .¢ & Result Reports & Reciprocation ‘Gonsequel Nomintederences in choices of|(P) ple 6 Freedom irom decepive practices (6) Considering the interest of ll cy training arco oases, accord bw pect, Responsibility 4 Results o (ay Respect. Responsit “Stakeholder 9 decision (w) Law thinkers and authors we F principle ‘ether people Reality rine oa Justice 10 (c) Autonomy princi Respecting individual privieges | ( ; Human rights principles Falmoss incite Harm principle ishing organisationg, ty 0———~cgn (8) Comploaons, usiness ethic a8 Consequonce, 3) Autonomy principle, yohty and. Rosule; related key influencers ‘Ans: @ A @ 3) ® m e . c oy “Taw Fale: ° (a) The Utilitarian approach refers (0) Gonadang te interest of al stkehol Seoiese eis. fordg to Fares and Justice ap ‘ecetsctne mat ge equa etre ‘of everyone in the society ess approach. (f) Ethics and Business can't go together. (April 19) to make the most good & least harm to \ders isnot considered in 3h we are following ethics the ethics for wetfare Principles and Practices of Business Ethics wr; (9) According to the virtue llowed We approach ees are fo tal oso wil Deore my habs & wl ops ana et lo employes not espera of raroon ent tte ea dlorna chen novos ‘Most manage Good business means good ethics Business and ethics shal go hand in hana thical companies are more profitable than other co nn other companies. AS per British pri we are following ethics because me must rn ) ICS are statements of inciples nts_of values and that e the purpose of the company. m (©) lowed with the belie that these will become my im i the uiltarian approach. to make the most good & least hams is utilitarian approach. Sot & leat harm Ye anyone (@) Ou empoyes ae tics so no need o pay anton to business isonet hike Explain the Concept 2 (April 19) Explain Issues in Business ethics. (April 1 Code of Ethics? Explain Major Trends in Code of Ethics. Indian industry. ‘myths associated with Business Ethics. '3.C’s of Business ethics. 9 R's of Business ethics. Basic Principles on which business ethics is built. ‘Myths about Business eties, Business culture of India, we 08 i]eenics iy Marketing 0 08 put also to businesses and governments, Consumers have not only the right but also the responsibility to protect them-selves instead of leaving this function to the government or someone else. Consumers who believe that they got a bad deal have several remedies available, including the media and going to small claims courts, Consumers should also make good consumption choices, rewarding companies that act responsibly while punishing those that do not Questions for Self-Practice (1) Multiple Choice Questions (MCQs): (1) ______ is a practice by which a rival company attempts to associate its products with an event that already has official sponsors. @ Ambush marketing (ii) Bad-mouthing (ili) Green marketing (iv) Spamming (2) __________ is when you send unsolicited emails to potential customers, encouraging them to buy your products or services. (i) Ambush marketing (ii) Bad-mouthing (iii) Green marketing (ver Spamming (3) _______is advertising where one party advertises his goods or services by equating them with the goods or services of another party. 117 Comparative advertising (ii) Offensive advertising (iii) Misleading advertising (iv) Deceptive advertising (4) ______is a form of advertising which is used to promote banned products, like cigarettes and alcohol, in the disguise of another product. (i) Comparative advertising (i Surrogate advertising (iii) Misleading advertising (iv) Deceptive advertising (5) ______ is defined as advertising or promotional material that makes broad exaggerated or boastful statements about a product or service. (i) Comparative advertising (ii) Surrogate advertising (iii) Misleading advertising (irPuffery advertising (6) Sustainable marketing principle which states that company must considers society's long term interest, consumer wants and company requirements is called. (i) sense of broad marketing (ii) sense of mission marketing (iii) sense of vision marketing (jvy societal marketing (7) Sustainable marketing principle which states that company invest most of its resources to customer value building is classified as (i) innovative marketing (ii) inbound / outbound marketing (iii) consumer oriented marketing (customer value marketingpg™ ethics 206 SON” ove “e to meet eabie mane sooo Seietag seed finer ure ersue hat (w) PETA IRDA (@) SEB! G G the phrase 'a stronger f ovens ch See anes ne characterise of gs ‘poo and emncal pea smentting (i) FEN Marketing Sambar marneing (82 coves marketing a fa a ero ane! sve 0 80 ag 1 Unneatiny comeetivon, surogate caring (op Brand BuldIng Gruen in Aver Pomc iscmination if Whi Pale Chain 8 Pe ee osovatage regress ating (i) advertising (W) avoicing eng tne Word Wide Wed 10 Practice any fxm Use of » advertising (v) avoiding practice of SE°YiN9 people eating and perpelt pectically through the use of digital technologies. BPoiaial Resining i) Weblin (17)“The concept of ____— the needs of its present con future. fr Sustainable marketing (i) Ar bush marke 0 ronials advertisensents stimulate sales of products ‘Ss and cigarettes. This leads to (19) The tobacco industry faced an en the Government ce (y} Product (wv) Promot >° Low-value consumes would probably pay the .dvertising (iv) avoiding Ambush belhali dl 103 mart ‘adverse: 7 (2) Seamming: (3) Comparative aaverssing. (8) Paty wor socoa nary Sustanate manetng. (9) ASC! rang. (17) Sustarable oduct (20) wasinngy, (1 Svsanae formation decreas a iSe5 customer satisfaction as the ng Good ethics are a comerstone When competit Sustainable marketing is between or eter (April 19) he eyo Geopmariing eter has been proved ot. rally right and wrong ood : ‘moray ght and wrong can be seit tough the sock owadays ha ronadays as ecm ss port p 18) ‘wong canbe dette though ie soa and busines cut le ard business cure anny ave very te dea whether a rod Personal moral webiining high-val Su webring high-value consumers would probably pay the most io (p) True] (3) _ Match the following:104 ao Vipul’s™ Ethics and Governance (BMS) (cy (4) Sending an unwanted email to another (D) Spamming person. (April 19) (5) Advertising which is used to promote (E) Ambush marketing banned products. (April 19) (6) Exaggerated or boastful statements about a product or service. (7) Mentions a competitor by name to show the inferiority of their product. (4)Governance (EMI. ™ ethics and vigul’s for Most of the time thy a ring the (i) Allof the above Y 3d in order to promote candidates, ions, referendum 8, party ci js an Act of the Parliament of esigate misuse of power by exposes loged wrongdoing for decision-making ) Turf guarding ) Tur guarding itions even when wrong. ay reters to showing a better Risk avoiding (i) Window dressing formation relers to not complying with provisions with regard to sue 131 Signiicance bundled together faahOMOQENEIy grouping of tems to be 'o ditterent items of | inversion of privacy through thetts via electronic means. 'nadequacy (iv) Non-comparabilty Mnotdisclosure of one's own interest /Alteration (ii) Misapplication fecord the elfets oft jetes rds / documents. ne comes ii) Suppression (iv) Un- {0 creation of fictty (i) Falsitication/Atterat Misapptica Suppression (iv) Un- is an attempt by a corporate employee to disclose wrong aniston 8) porate crime (Wv) window ‘Ough which some individuals or by legal means. (Oct. 18) syndication (iv) remittance ;PPIVing accounting policies and rules Ks, Suppression (ii) Misrepresentation results is one of the primary reasons ‘many companies, Very short hare price of a company's stock may I down (i) increase (li) remain same (iv) equate to zero is the term used when a personwe ee ros wore he finds thy done by an emoioyee 2h cary _ Bas) ingly oF uninownhy al es ae ene dng (i) Frauen) seppression Co Wreesfeowers Provecton ACL oro, enables any person 2s) Tre Ast misuse OF POW oF ASCreton, gy “NS 201s 5 Ov on afte the oxganizabon @y External (i intemal (H) Open (W) AnonyneLE eo yrete Blowing indicates that Information iS COMveyed ip “Zomeone within he organization i Extemal (ternal () Open (#) AnonyHON 2) Whistle Blowing inccates hat Individuals reveal their Ganiy as They convey the information. {) extemal (tetera () Open () ANoryenONs ‘lowing indicates that involves not opening one's (iv) Anonymous ‘had recommended that, Taw to protect whistleblowers was ‘Gommitied by business and government () Write-colia (ji) Biue colar (i) Grey (37) Examples of crimes (99) The term colar crime’ was first defined by Sutherland as crimes committed by persons who hold high societal ‘status and repute in their profession. () Edwin Hardin suthertand (i) Edward Hardin (il) Edwin Hardy (0) Edward Hardy (@) Emphasis on shor term res Fesuts is one of the Primary reasons which many companies. yeans taking safe positions even when wrong, blatant fraud and is done ater the tax habiity has vide for setting out the practical regime ot to secure access to information under134 (4) woe Vipul’s™ Ethics and Governance (BMS) (CHI) (1) (2) (3) (4) (5) (6) (7) (A) Insider information (B) Turf guarding (C) Overproning (D) Un-substance (E) Abhorrence (F) Inadequacy (G) Window dressing Showing a better position than what really are Not complying with provisions with regard to “statutory minimum” Not accepting responsib! making Creation of fictitious transactions Making impractical commitments. Hoarding reserves. (April 19) Disclosure of confidential information of clients to outsiders. for decision- Ans.: Brief Questions: (a) What do you understand by Ethics in Finance? Explain Reasons for ur athical behaviour in Finance.ee ET vipers ethics and Governance CSR (BMS) (cy) Questions for Self-Practice Muttiple Choice Questions (MOOS): oo le Coles Questions ge tev of workiace ees ao Tre act standards) Supers nature (8) Inivence of °-worky @) Decurere Oe sists ofall ethical standards that employer expecrs from employees 1s classified a ne ey gcc ting @ Ginn of the folowing is workplace exploitation? tec treed tooo work tat is dangerous of hart 10 yOu heat 1 oe sem, akowed to Keep your passport of tavel documents (eevee i pay of & heavy debt 10 your employer fv) al of the behaviour of all employees is called (pero cote deserve coe (i) procedural code (toute ‘code (6) Standards that are decided to what kind of conduct employees of ‘orpanczaton should possess are classiied as: (r descroive jstce (i) procedural jusice (i) distabulve justice (00 eabordesaton (7) Vinich of tne fliowing are ethical issues faced by workglace? () Unlasr pricing (i) Discrimination in promoting (i) Bribery fv) all of the above (8) Ettucal behaviour within a business involves: 0) Keeping company secrets (i) Meeting obligations and responetoities (14) Avoiding undue pressure that may force others 10 2c unettically Wf ali of the above wo _ (action based on prejudice resuiting in unfair treatment A people i, Dacteinaton (Exon (i) Harasement (v) Hone of the “ (99) means geting things done forcefully rom employees, ) Diecrenination (x) Explotation ym) Harasement (iv) None of the above (11) Witch of the folowing is workplace exploitation, () Having \0 pay of & heavy detA to your employer (i) Getting lite oF 10 payment for the work you Bo (it) Boing riot lod oF ” pep nel conelathaatad reatod, blackma nagement following can be ettect of wv 159 [2TPOYEC (i) Misuse of Power (i) Vetason larassmon 1 gf lemma (v) Expotaton is dangerous or harmful your heathCe 1@ 4 lo © ‘Ani (22) Discrimination; (23) Harassment; (24) Dilemma: (2) _ Match the following: [(@) Choosing between right and night_l vipul's™ Ethics and Governance CSR (BMS) (CH) ‘above: (2) ethics code: (3) all of the above: (4) ethics ‘misconduct: (7) ) Harassment (11) a of Voice and Vit tax evasion: (18) tax ev Faimess, dishonest advertising, ae Biles the Principle of Equality and disturb ‘work place environment Getting things done forcetully rom employee ‘An understanding of and commitment 10 ou" individual core principles Virtue Voice (c) Ability o frame our actions (0) Vision ‘The process of articulating our vision to others |(E) Values Understanding that we become what we|(F) Harassment practice (G)_ discrimination © TL @ ) E c ‘True or False: @ ) © @ ‘A company will be benefited more by treating its customers fairy, truthfully and equitably. Managers cannot influence employees’ ethical actions, due to their positional authority idual has to make a choice al interests. expense of an organization The effect of a decision taken in a situation of “co never can have a financial impact on the company ‘The effect of a decision taken in a situation of “conflict of interest” has ‘and misleading advertising can never lead to the 8. ‘and honesty are the heart of business ethics and the general values of decision makers. Employees in an organization are being mistreated, blackmailed oF threatened is notin the purview of HR ethics. It an employee was “forced” to accept a job with inadequate wages oF jnadequate working conditions, then the work contract would be unfair. Firing an employee on the basis of his or her races or gender is @ clear form of exploitation. ethics in Fume ee aBement rs eed 8s sweaihons and at stents TiSUS@ ofthe neu employees waplcearasmen” COOH cA execse sre cage oe lomake chovebetean mote ethes ics management wih ter marageret pects he ‘8 ur ining won't help employees. (Apri 1 dan ope peg dit hat maybe unt, i (0) False: (c) True; (a) True; (e) Fi (h) True; (i) False; ()) True; (k) Fals ; (@) False; (1) True; (g) False; (Tove: ) Paso) ru F888: (m) Tr; () Fase; ()_Underpay their worktorces ist be encouraged. (om) Urivst es ng 18) ste ce yan nual ply. Ap The Employee's Obligations to the fm vast The Frms Oates oe Empey What do you understand by Wo 2 ex Workplace Ethics. (Oct. 18) pear Seat Seah heparanee (9) Describe Factors attecting level of workplace ethics. (@) What are the Guidelines io Promote Workplace Ethics? Explain Measures to ensure ethics inthe workplace (h) is need for employee cod fine Ethical Leadership. Wi ership? (m) Explain 4-V Model of Ethical Leadership. (April 18) () Explain eightfold path model by Buddha. (©) Compare qualities of ethical leader as given by Patanjali and Dharmasastras. (p) State the meaning of Ethical Leadership and discuss its importance. are the Cha teristics of Ethical Ethics vs. Moral Ethics in HAM. ‘Scope of ethical HRM. Work Exploitations. Workplace Discrimination. (April 18) Workplace Harassment Ethical issues in HRM. (April 19) 3 3| troduction to Corporate Governance Gao hd 2) You are financial director of a large multinational organisation and have been privy to information about a takeover bid to acquire a rival firm. A family friend is considering selling shares in this rival organisation and has asked you, as an expert in the industry, for advice on this matter. What would you do? As financial controller at a manufacturing company you have been advised by a colleague that the sales director is unlawfully declaring fuel benefits as the tax value is high. This has been creating higher profit margins and if declared those margins will go down. There is potential that this could push the company into insolvency, which would result in job losses for 300 employees. You have made the other directors aware of the situation but they have expressed a wish not to disclose the misleading tax bill. You are aware that by declaring this information to the tax authorities, as required by law, that the organisation may have to declare insolvency and those 300 employees could lose their jobs. What would you do? Questions for Self-Practice (1) Multiple Choice Questions (MCQs): (1) The word ‘governance’ comes from the root ‘gubernare’ to steer. : “T) Latin (ji) Italian (ii) Indian (iv) American (2) Which of the following is not one the underlying principles of the corporate governance Combined Code of Practice? @ acceptability (i) accountability (ii) openness (iv) integrity (3) The pivotal role in any system of corporate governance is performed by : @ board of directors (ii) Shareholders (iii) Government (iv) stakeholders (4) According to ICSI "Corporate Governance” is: : (i) the application of best management practices (ii) compliance of law in true letter and spirit (iii) adherence to ethical standards for effective management (i¥}Alll of the above (5) Accriminal offence committed only by directors of a limited company “() Fraudulent trading (ii) Speculative trading (iii) Investible trading (iv) None of these (6) Factors influencing Corporate Governance include : (i) Institutional environment (ii) Financial structure (iii) Ownership structure (jyyall of the above (3)ethics and GovernaNCE LEMS) governance problems aise becays, { Board of Directors (i) the Sharenolde diverse interest smance recognizes the SIS oy Good corporate gover esi) goverment al of he above mar reguaton #4) Sel reGUaion fabishing good corporate govemance vyana Moorthy, fa) Cadbury (i) Neste ‘while at the same time protecting the interest Corporate goVernance is concerned wi ractices and processes by which distinguishes between the owners and the managers, Business ethics yy Corporate goveinance (li) Corporate to Corporate Governance vuctle oT ww ______ ensures transparency w (2) nome development e¥ which brings strong and balanced Business ethics YF Corporate govern ) CSR Se Governance (ii) Corporate culture ensures corporate success Bass ees Comets gre neon om i) Corporate eure Investors’ confidence as a result of ily and etfectivel ness ethics Jf Cor i se BB Corporate governance (i) Corporate cuture j00d corporate governance also. minimize ks and mis- management, eS wastages, corruption, Business ethics $M Corporate governance (i) alee Corporate Governance is an instrument for benfting al stkeholiers of a corporate entity. (April 18) = (@) Good corporate govermance recognizes the diverse interests of shareholders, lenders, employees, government, et. i (@) Corporate govemance is the mechanism by which the values, principles, management nd Procedures of an organization ‘are made manifest in the real word. (e) A.company’s customers are potentaly the most effective instrument of good corporate governance, (f) The framework for establishing good corporate governance and was originally set up by Cadbury commites ing reports the effectiveness, ‘Of an organization's. corporate (@) Corporate governance ‘governance measures. ale governance standarDs rrr Vipul’s™ Ethics and Go ©) Sustainable development \ (2) Equal opportunities (8) Productive employment (4) framework for establishing good corporate governance (5) Latin word gubernare (6) Similar to trusteeship (7) principles of the corporate (F) Social impact (G) Environmental impact198 eon viput's™ Ethics and Governance (BMS) (cy Practice Questions for Self- le governance refers tothe: _ ess 9) At to dove sing good corpeale QOvemnaNre. ang Row tree Committee Share holder theory fi) Co governance procedu'» are needed to ensure 1 es remain Nigh) ma trarages advert etice rolders may behave in which ‘eave the organi Gossip about oro print Tranparety un Bbw toronto regen pany’ stakeholders, (15) Without the 1d comp Corporate Culture (iv) Corporate 9 17) As per theory the managers are working and serwn (17) ine stakeholders 38'S are working and serving for (18) _____ ‘network of relationships to Serve this include and business parines. () Agency (yf Stakehol % theory st stewardship (iv) Shareholders 888 not on the perspective of individualism being as stewards, dship (iv) Shareholders focesses, structures, policies ding to fs are the agents. lakeholders (i) stewardship (iv) Shareholders, theory is introduced by Milton F stewardship) Sharehoicors Iimportancé of social contracts, not just a business contrac’s. () Agency (yy StakehcMr saracctr bo Ca roan ree fakeholder theory demands that interests of all stakeholders shoug feporting reports the —efective ‘credibility of an organization's —corpor Corporate governance standards should be attest to, and report on the quality and effect ‘The view that sees profit maximization as the main objective is known prin (9. Devloping an employee fet Que Explain Scope for Corporate Governance lain Principles of Goog ©) Ee monly accepted p sof copora amtance ond some Explain Theories of corporate govemance, face (6) Explain Characerisics of Good Comore the issues of Corporate governance? {e)_ Explain Imponance of Corpo {9 _ Explain The Agency Theory Pi (hr) Explain, The Role of Corporate Whistl-biowers in Corporate CEO, Board and Senior Executives, rporate G holders, appointment of directors, role and Board. Gilobalised Economy, tes and incentives as required for Corporate Governance. arious thrust areas of good Corporate Governance? lework on corporate governance, Corporate Governance, rate Governance, te governance. (April 16) , Manages and Directors. gugMi (1) German model is also known as: Oe Umtany model) Two.Ter board model (i) Business networ model (iv) Geo tagging model @ i Japan, some corporations operate within the philosophy of ‘kyoser, ‘The term wyose? means: _ (i) I the corporation is bad, society is bad (i) Living and working for the common good (i) All stakeholders are equal (iv) No man shall be richer than another man (2) Which of the following commitioes approves management strategic plans? () Governance committee (i) Audit committee (ii) Compensation ‘ot (i) Audit committee (i) Board commitee (il) Remuneration comm: tee (v) AM ofthe above Which of the folowing is responsibilty of audit committees? (i) Relations with the independent auditor (il) Reviewing corporate ‘eporting processes (i) Monitoring management. (iv) All of the above i) Nomina noe o corse 3 ee on ecommendations of Kumar M: Y 2000, based on Govemance Mangalam Bia Commitee on Conerne (i) Cll (i) RBI (ii) OECD (iv) SEB (8) Good corporate governance does al of the Fam Soponle acO680% 6) Eaesac eee etcency of te capil mae a) Eine be pepe i +E inancial information. () Enhance the retabity and qualty of puke 8 apmayeicidenae: () Debtors (i) Creditors (ii) Shareholders (Wv) Banks fone copoee pros cae (10) iva companies re of @ company reflects the () Cultural and economic aysien(@ fusinoes {ay Social and regulatory system (a) Ach toons oem (11) The corporate govemance scutes pened en mplemetes ty (9 Internal governance mechanisms (0) Poicy ntertentons twongh regulations (ili) Policy interventions through regulations (iv) All of the (12) The corporate governance structure is shaped by: {i) Internal governance mechanisms (b) Policy interventions through regulations (6) Poicyietervensons trough reqdates (3) A of te (13) Aucit committees should utiize intemal auctor services in futiing their oversight responsibilties, 7 ()_ Financial reporting (i) Internal contols (@) Audit actwtes& | |= a 2 ‘SEB! Committee Report in inca a (9 2000 (i) 2003 (m) 1998 (14) 160g MN ne ay With the goal of promoting ease OP ta. the Masry of Cone OP orescence up Natonal Foundation tor Corporate GomeTITeM Oka. nae ve the below is not mn partnership tig, OTS (NEC). Viner oy | o )OO 226 Tow Vipul’s™ Ethics and Governance (BMS) (CHI) (2) True or Fat (1) The Audit Committee has wide powers and also looks into the Compliance with Accounting Standards. (2) Cadbury committee was chaired by Mr. Kumara Mangalam Birla was @ landmark document in India. (3) The new SEBI (PIT) Regulations, 2015 intend the listed entities to formulate a stated framework and policy for fair disclosure of events. (4) Every Listed Company shall formulate a code of conduct to regulate, Monitor and report trading by its employees and other connected Persons towards achieving compliance with these regulations. (5) ee Notified and issued Prohibition of Insider Trading Regulations, (8) Members of the Board committee take decisions, keeping in view the interest of all stakeholders. (7) Audit Committee is one of the main pillars of the corporate governance mechanism in any company. (8) The Auit Committee shall consist of a minimum of thirty directors. (8) The Revised Clause 49 of the listing agreement provides that audit committee of listed company shall have minimum three directors as members. (10) Anglo American model also called as two tier board model. (11) Japanese model is also called as the business network model. (12) Individuals not on a firm's board of directors should comprise the audit committee. (13) The audit committee generally helps in resolving conflicts between the auditors and company management. (14) Audit committees are required for all companies. (April 19) (15) All companies listed on the NSE are required to have an audit committee. (16) Custodian of investor interests in India is SEBI. (April 19) (17) Conflicts of interest among corporate governance participants are referred to as an agency problem. (18) The Leadership theory explains the relationship between principals and agents in business. (19) The corporate governance structure of a company ignores the social and regulatory system. [Ans.: (1) True; (2) False; (3) True; (4) True; (5) False; (6) True; (7) True: (8) False; (9) True; (10) False; (11) True; (12) True; (13) True; (14) True; (15) False; (16) True; (17) True; (18) False; (19) False] (3) Brief Questions: (a) Evolution of Corporate Governance in India. (b) Explain evaluating corporate governance. (c) Explain Legal Framework in India of Corporate governance. (d) What are the CG Statutory Regulations in India? (e) Explain Corporate Governance and Government initiatives. (f) What is the purpose of Board committees? Explain it functions.1*5™ Ethics and Governance {PI - tion to" a -e i slut vo iviies help both a il of pollution comm; em © Waters cleanse humanity from the eo Ps ited (2) = society Ployees ang el by it. (Atharva Veda Samhita xii-2-4 {i Placement services 57 cm (a OF tt ce + Waters are healing and they strengthen one to see great joy, ‘accounting WMistetionng (uy ae (Taittiriya Samhita vii-4-19) 3) Promotes pri Questions for Self-Practice se of corporate soi Consumer tis ay LY Brererial imperatives BUSES MT Governance ii) Con teay tt Corporate plan a fuxury items @ business unt wil produce oy ne) 0) Pe mexe sss to protect and serve public interest is business unit will eam ity of business. ‘SR is applicable to: a6) © ‘overnmental(v) None of above 08) OO pri ‘and NGO (i) Public sector sector only ccounont Neo and pubic seer OY Pile secre eas 3 t0 the accountng tool hat looks at he impact en (4) Essent how well a company has discharged its - id is ‘social Obligations () Statutory auatt Soci rax audit (iv) Regulatory audit © measure the performance of any ) Social accounting ho Management accorting the triple bottom lines and the goal le, Peace and profit (ii) People, Place and product (iv) Product, Process and profit (8) The UN Global Compact, a widely used sustainability framework has sustainabity (i) accouting () Aust is. an essential assesment of Row wel 2 Company has discharged its social Obigatons eon yeu accounting (W) Aust rate Social Response Ly Corporate Soca 's the positive involvement of a company in a society and environment () Placement services (9 CSR (ii) Whistleblowing (iv) Social business’ ‘contribution of time, money. See (legal (i) philanthropic (i) economs () em@ producing goods and services at a prott ay _ level of Carrot's pyramid 1nd beneficial business ‘and region in which Corporate Social Responsibility is the continuing commitment by business to behave ethically To avoid government regulations businessmen shoul uties voluntarily, ‘The eamings of business never depend upon the public image of its activities. CSR means Company Society Responsibility. (April 19) CSR has to take into account integrity and accountability in the long: fun process of sustainablity, CSR integrates the needs of both the business and the charitable cause. When an organization shows concern for the people and environment in wh 'Sacts business itis called environmental scanning, CSR refers to meeting the needs of the present without compromising the ability of future generations to meet their own needs. Ss When 8 CODAEY SHAKLHS & chacrey rare ” D) jpission and vision, that company Hise geet * Mt ry ‘The sola tEOponAstlty Of trecwae a 0 ene len, SI Whe oa, Socially responsible paler 0 WO N0a10 trerracey ay (nm) CSR discourages goverenert sete, socially reoponsitle company angie (°) Pmpants tard and repaaten! 1% MEA og he, (8) What do you mean by CSR? Descrte Evolisen of CSA. (0) Define CSA. Explain Reasons for inceasog tos on Sena (©), What is CSR? Explain Need for CSA. {@) Define CSR. Describe its Benefits. (e) Whatis CSR? What is its Scope? (Apri 18) (Explain different Aspects of CSA. O° ho bast of Caras yr (et 18) een g moccemctaiention ce (a) Triple bottom line. (April 18; Oct. 18) (9) Social audit274 ties of Business (NVGs) were released by the 2017 (i) 2008 (i) 2004 ey Gaal Reporting Initiate (GRI) A 1000 was launched in the year 2004 (iv) 1976 fobal Compact was launched in the year 2004 (wv) 1976 feconomic co-operation and development (OECD) reduced in the year 2008 (i) 2004 (9 1976 for econonfic co-operation and development (OECD) led in the year 2004 (v) 1976 mic corporation (APEC). Was introduced in the Sustainabilty iv) None of the above has laid 10 principles. 6 ssiness and Human Rights 2011 are a of guidelines for States and companies (to prevent human rights abuses committed in business ‘operations fo address human rights abuses committed in business ‘operations, to remedy human rights abuses committed in business operations iv) Allof the above (10) Some conventions have established complaints mechanisms for violations of the convention provisions. The contents. are: The state duty to protect human fghts: Foundational and Operational principles 7 eoeeeeee eae um . Foundational principles, Operational prine ee Accesso femedy: Foundational pnp il of the above: tee tional principles | | i} {ip Institute. of ‘Aa1000 series of the above The section 135 of the Act stipulates Constitute a CSR committee ofthe Boar 10 crore or | turover a 000 ere or QF mare. Meng any rare ey, proft of °§ crore to spend .¢ years on social developmentrelated aces, on lay PICA (i) 8 bs ‘The Companies ( (17) "The Companies ( 2004 (i) 2004 {7/2014 serves as a guidance document or buseses at and geography to achive te le bate nal enterprises detalled on the ble business behaviour '" princiles on jompact states —__— ons ne oa sp276 @ 1 ethics and Governance (BMS) (CH) 2%; (16) ICAL: (17) 2014, Viput’s sny one of the above: fuer Uo ee cg we ne o) Camera nee, © Spr Patt sa eee! © ee an tare te eee ot (6) Social Accountability International (SAI): SA 8000. Standard is one of Sess oer leat oo ener scaee pny he eet 2 rr 9 OER want ty oad cmos tv Ot cS ae co ee Dey aay tn nga toe Seat aa at pecteet ees oe on os oe ee Set ot cceeres 0 teeters gees ono 1 to redefine corporate ourage businesses sible policies, ang (Many corporate in India, especialy t ional industries, gave generously to society wel before the la sme into effect. (0) CSR funding needs to be more cause- and impact-oriented than Purely compliance-ied (CSA stands for Corporate Search and Rescue. (April 18) (0) CSRis a company's contrbuion to sustainably (0) CSA address the concer as to Moral and ethical issues. (©) CSR addresses Legal and regulatory issues of nation. (9) $SR ascresses Soil and envionment ses, The rules prohibit CSR e from bei i Tre es 0 penses from being claimed as business False; (c) True; (d) True; (e) False; () True: (Q) False: False: (k) True; ()) True; (m) False; (n) True 2) True (1) Trve) (b) ‘Column “A Column ‘8 to environmental challenges; Businesses should suppon and respect the protection of international proclaimed human ngs, 1) Principle 7 should uphold the freedom of sive recognition of the right sexton should work against corny ion in a | aust i bit is 19 Betincuding extortion a Pic fo gure tat they are Pot Comp " apuses jon_of discrimination in respect ot The tion. i) Princip 8 |e) oyment and occupa make initiatives t0 Promote greater environmental (a) pri | tne development and diffusion of ly tiendly technologies. 0) Prine Muttinational enterprises. .nd Ethical Accountability: Accoumtabitys AATC0O 1SO 26000: Social responsibilty OECD CSR policy tool. f-assessment. ao Sci Responsty F Peto to fo What are the recent regulatory guidelines 1 72 consi. ICAI's Guidance Note GN (A) 34 for ‘CorporateEmerging Trends in CSR wo 297 (16) Transparency in end use and transparent supply chain. qa) Questions for Se Multiple Choice Questions (MCQs): a) (2) @) (4) (5) (6) (7) (8) (9) (10) 1) An effective CSR strategy should articulate: ______ (i) Who it wishes to address i.e. e the target group? (ii) Where it wishes to work i.e. e the geography? (iii) What sectors or issues it wishes to address? (iv) All of the above Going by the state-wise distribution CSR funding was highest in the state of: J Maharashtra (ii) Tamil Nadu (ii) Kerala (iv) Orissa While considering sector-wise spending of the CSR in FY 2017, the spending was more in following: (i) Education and Skills (ii) Poverty Alleviation, Healthcare and WASH (iil) Rural Development (iv) All of the above While considering sector-wise spending of the CSR in FY 2017, the spending was less in following: (i) Protection of Heritage and Art (ji) Rural Sports and Paralympic (iii) Gender Equality and Women Empowerment (iv) Alll of the above India Project implementation mode can be: (i) The Direct (By Company) (ii) CSR Foundation (iii) Implementation Partners (iv) Alll of the above An effective CSR strategy should articulate: (i) who it wishes to address i.e. the target (ii) group (iii) where it wishes to work i e the geography (iv) what sectors or issues it wishes to address (v) All of the above Developing a CSR strategy that defines for the next three to five years, what the company's CSR activities will cover in terms of: (i) vision and mission (ii) sectors and issues (ii) KPIs (iv}-Ail of the above Penal action will be initiated against companies for failing to comply with CSR norms under the law. (i) CSR ((ii) Business (iii) Criminal (iv) Mercantile The Law has brought in a higher level of governance, monitoring requirements and hence accountability on CSR. (i) CSR (ii) Business (ii) Criminal (iv) Mercantile The intent of the laws is largely to encourage corporate philanthropy. LES (ii) Business (iii) Criminal (iv) Mercantile Companies often try to align their strategies with CSR strategy will help firms to leverage their CSR expenditures. (i) CSR GéBusiness (ili) Criminal (iv) Mercantileror Vipuire™ Ethics and Governance (2M (cy (12) “CSR cant be Sroemons OY fa NS Sah Hay, diya Bir (13) and Rural Devel * Cente {er lndian corporate comes close to ing the charge for clmate change 0) mess Practices. 7 () toss (i) Wipre gi Mahindra & Mahindra (iv) Ad indra & Mahindra (w) Aditya Bita Com oe Initiatives and Rural Development Cente airman Sanjy Puri leads the socal intiatves of mix of hu )) Infosys. 4) ITC Lit Centre tor Community aad en pe with a Matiera & Maina (o) Aa and Rural Development ‘ya Bia more and mare coraated to pone reg Footy (9) Me tees) hanee © Manna Vesey ) fos) Limited (18) World CSR Congress bestowed the Halol unit of 2018 Global CSR Excellence and Leadership Award an Bots ruses infosys (i) ITC Limited (w) Wipro Lt, 7) The CSR work is carried out under the aegis of the Astya Bila Centre for Community Initiatives and Rural Development with Fajashree Birla as the Chaiperson : infosys (i) ITC Limited (v) Wipro Lid with focus on 1 Yocus for its flagship corporate with the rC Limited (iyy Godrej entities based on three income (i) profit (ii) net worth criteria (iv) Kindness (20) When CSR regulations were introduced in 2013, India became the ‘country to mandate specific spends on CSR. Fourth (i) Fifth (2) The CSR activity shall have proximity and budget best company. (0) Indian companies’ prescribed CSR budget and actual spending has increased in FY 201 (©) CSR funding in the ‘quality educabon initial cial year has given less importance 10 Emerging Trends in CSR @ oer 299 NSE companies are moving beyond compliance to focus (2) Te 1 Mor npr! or benacare of her CSF Bros eae town te ont ate te econo nda i espe atoning economies n te wo. (0 Maharashtra received less CSR spen ()_The CSR Law has brought in highe tequirements and hence account : (0) The intent of the CSA laws is largely to encourage corporate phitanthropy. Wn their business strategies with CSR tary in India and not legal ted against companies fo ‘Companies law. alse; (d) True; (@) True; (0) Fal to comply (g) True: Describe Tata Group's CSR Rating Framework. e Sachar Committee Report on CSR. Recent Issues in CSR in India. (April 19) for CSR in India? (Oct. 18) Tata Group's CSR Framework. ‘Sachar Committee's Report on CSR. (April 19) ‘Current Issues in CSR in India. sa ag og