F 5373 (Pages : 3) Reg. No............. Name M.B.A.

DEGREE EXAMINATION, FEBRUARY 2006 First Semester BUSINESS AND ETHICAL VALUES Time : Three Hours Maximum:60 Marks Part A Answer all questions Each question carries 3 marks. 1. What is business ethics values ? 2. Business is subset of monal structure of a society. Comment. 3. What are consumer rights ? 4. What is ethical leadership ? 5. What is social audit ? (5 x 3 = 15 marks) Part B Answer all questions Each question carries 5 marks. 6. (a) Explain factors that influence business ethics. Or (b) What are two major ethical issues which business faces today ? Discuss with examples. 7. (a) Explain the role of ethics in business success. Or (b) Rights plus power equals transforming justice. Explain the statement with examples. 8. (a) Explain ethical dilemmas in marketing. Or (b) Discuss the societal marketing concept. 9. (a) What are the dimensions of ethical leadership ? Or (b) Discuss various motives to indulge in unfair practices n marketing. 10. (a) Give details of how training programmes can be conducted to train employees in ethics. Or (b) Explain the role of law in enforcing business ethics. (5 x 5 = 25marks) Turn Over

2 F5373
Part C (Compulsory Questions) Answer the questions given at the end of the case. SAY HELLOT TO THE CALL PIRATES Illegal exchanges deprive telecome department of crores and could be a security concen. Two years ago, the vigilance cell of the telecome department in Delhi got a call from a private telephone company; Some 20 mobile numbers of its corporate customer were active 24 hours a day. Cell ID to a village, Shahabad Markanda in Kurukshetra, Haryana. The village was hardly the kind of place which would account for thousands of calls every day. It was clear that an illegal telephone exchange was operating in the area.

The officers asked the villagers whether they had seen any satellite dish, which they had so describe in sign language. A sweeper rememebered having seen something of that sort in a cold storage at one end of the village. Raiding the cold storage, the officers found a satellite dish antenna in a large hole in the roof and sophisticated telecommunications equipment like routers and multiplexes which were being used to divert international calls from the normal route. The mastermind of the racket, the investigators said, was a Parampreet Singh, who lived in the US. Parampreet, apparently, was helped by a relative who bought the cold storage and range the racket in India. Call pirates like them rob the telecom department of Rs.500 crore annually. According to a survey conducted in 2003 by the Communications Fraud Control Association (CFCA), an international body, the value of illegal communication businesses worldwide is between $ 35 billion and $ 40 billion. In India, since the first case of grey market telephony was detected in Mumbai in 1998, over 180 cases have been detected in Delhi, Bangalore, Hyderabad and Chennai. Illegal telephone, in the Indian Context, is largely about incoming calls from abroad bypassing the approved channel of communication. The racketeer abroad mainly in the UK, the US or the Gulf countries solicits Indians there to make calls at a cheap rate to India. He issues them pre-paid cards. But instead of the normal telephony route via the international gateway, the operator abroad sets up a parallel line using a dedicated lease line, satellite, Internet or ISDN. The calls are received at the illegal exchange in India and individual calls are sent to the customer through mobile phones so that the call is recorded as a local one. Apart from cheating the government of its revenue, illegal exchanges have possibly helped those involved in drug and human trafficking, gun-running and money laundering in countries such as Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. In August 2001, the Delhi Police busted an international illegal exchange run by a German-born Israeli, Shlomo Wolf, in Jasola Vihar. In another case a German national, Robert Richard Fillip, was arrested in Delhi after he set up an exchange in Defense Colony. Although the background of Shlomo and Fillip may suggest the involvement of the international mafia or even espionage, there is no evidence yet to indicate that the exchanges were used for such purposes. In the cases investigated by us, we are yet to find any motive other than money, said Deputy Commissioner of Police Ashok Chand of the Delhi Police Special Cell. But when foreigners with a dubious past set up untraceable the telephone exchanges, and say Hello from god knows where, the authorities could a least listen harder. Managing Frauds The growth of cell phones in the decade has brought new ethical issues. The recent spat between the two state run telecome service providers, BSNL and MTNL, and Reliance Infocomm, over routing of

international calls fraudulently as domestic calls resulting in huge losses to the former, has highlighted the need for management of fraud in the telecom industry. Such fraud, ranging from falsifying origin of calls, underreporting usage, illegal call-forwarding, switching/interconnect frauds to name a few, is causing a worldwide annual loss to the industry of around $35 40 billion, according to the US-based Communication Fraud Control Association (CFCA) survey. In the correct environment of cutthroad competition and, more importantly, with telecome companies operating at wafer thin margins, losses due to such fraud are too big to be ignored. And it is in such fraud prevention that companies like Subex Systems, a specialist in Telecom Fraud Management (TFM) systems, steps in to make its living. Questions : (a) Explain ethical issues in the case giving the dimensions of frauds. (b) The growth of cell phone in the decade has brought new ethical issues. Discuss the new issues in cell phone areas and cell phone cameras. (c) What are problems in tracing and catching frauds in telecom ? (d) Discuss how advances in telecommunication technologies are bringing new types of crimes. How these can be prevented ? ( 20 marks)

F 8487 (Pages : 2) Reg. No............. Name M.B.A. DEGREE EXAMINATION, FEBRUARY 2007 First Semester BUSINESS AND ETHICAL VALUES Time : Three Hours Maximum:60 Marks Part A Answer all questions Each question carries 3 marks. 1. What is business ethics ? 2. What are morals ? 3. What you understand by corporate culture ? 4. Are codes important for an auditor ? 5. What do you mean by consumer rights ? (5 x 3 = 15 marks) Part B Answer all questions Each question carries 5 marks. 6. (a) Why ethics is important in business ? Or (b) Can law substitutes ethics ? Discuss. 7. (a) Explain the role of ethics in business success. Or (b) Compare ethical value systems between Indian and American business. 8. (a) Excess competition leads to both fair and unfair marketing practices in India. Discuss with examples of motor cycles sales.

Or (b) Discuss various motives to indulge in unfair practices in marketing functions. 9. (a) Explain how ethical value system can be built up in MNC. Or (b) Explain how a top manager can set himself a standard in the company in ethical behaviour. 10. (a) Explain the various objectives of social audit. Or (b) Write a note on corporate governance initiative in India. (5 x 5 = 25marks) Turn Over 2 F 8487 Part C (Compulsory Questions) Answer the questions given at the end of the case. TENDER NEGOTIATIONS Sen Alkalis (SA) was a large company manufacturing caustic soda. SA was well known in business circle and was producing 55,000 tons of caustic soda per year in its plant which was based on a river bank. There was a requirement of 2 Nos. of special transformers for use in their sub-station. The transformers had critical operations of converting AC to DC electricity (Rectifier type of transformers). The budget for the 2 transformers was Rs.75 lakhs. SA management emphasized that the transformer should be of high quality, reliability and good after sale service for smooth running of the plant. SA also planned for a tender for the 2 transformer which was based on a complete turnkey concept of supply, erection, commissioning, testing of the equipment, training of personnel, two year normal operation spares and handling over the plant. The quotations were floated by the Chief Materials Manager (CMM) of SA in two part bid system. The part-I consisted of the technical parameters of the plant and Part-II consisted of the commercial and rice aspect. The limited tender action was approved by the top management of SA considering the special nature of the equipment and that few names are famous in the filed. The enquiries were floated to Siemens Germany, ABB Sweden, Alsthom France, GE USA and BHEL India. The first four parties had good experience in manufacture of such large equipment, whereas the fourth party had no previous experience of building such large transformers. The technical bids were opened by the CMM of SA as per the procedures of the company on the appointed date. The offers of the fist four bidders namely, Siemens, ABB, Alsthom and GE were technically found suitable. BHEL informed that they are finalizing a technical collaboration with Alsthom of France for manufacture of this type of transformers. Based on the reputation BHEL and broad parameters of collaboration, BHEL was also fond technically acceptable. The price bid from all the give bidders were opened as per normal practice of the company and in the presence of the representatives of the bidders. The price bid opening showed the bare prices as opened were : Siemens Rs.38 lakhs each, ABB Rs.37 lakhs each, BHEL Rs.59 lakhs each and

Alsthom Rs.61 lakhs. GE did not quote. After loading taxes, duties, handling cost, expert costs, technical loading and Net present value thereon the inter say tender position was Siemens Rs.39 lakhs, ABB Rs. 41 lakhs, BHEL Rs.60 lakhs and Alsthom Rs.63 lakhs. The CMM of SA ordered re-bidding from all the four tenders. The scope was slightly altered, extended warranty for 6 months was added and the few additional spares for the transformers were included. The re-bidding prices that came were Siemens Rs.48 lakhs each, ABB Rs.48.8 lakhs each, BHEL + Alsthom who made a combine bid Rs.49.3 lakhs each. The bidding and tender opening procedures were in line with the normalpractices followed. The purchase manual of SA had no guidelines for re-bidding and negotiations. BHEL and Alsthom had the strong backing of the Frech collaborators of the SA. SA management was planning for negotiations with BHEL and Alsthom for finalizing the contract. Siemens and ABB started complaining that the unethical methods are being adopted by the CMM of SA to help Alsthom group. Question : (a) What are the ethical issues involved in the particular case ? (b) Should the purchase manager of SA go for re-bidding ? (c) Draw guidelines for SA for re-bidding and negotiations. ( 20 marks)