Download GTU (Gujarat Technological University) MBA 2019 Winter 4th Sem 2840003 Business Ethics And Corporate Governance Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? IV EXAMINATION ? WINTER 2019
Subject Code: 2840003 Date: 28-11-2019
Subject Name: Business Ethics and Corporate Governance
Time: 02.30 PM to 5.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a)
1.
2.
3.
4.
5.
6.
Choose the correct option.
The first voluntary code of corporate governance in India was
a) Narayan Murthy Committee CG Code.
b) CII Desirable Corporate Governance Code.
c) Birla Committee CG Code.
d) Naresh Chandra Committee CG Code.
Utilitarianism means
a) Decisions which results into greater good for self.
b) Decisions which results into greater good for many.
c) Decisions which benefits to others even though not beneficial for self.
d) None of the above.
Cynthia Cooper was the whistle blower in
a) Enron
b) NASA
c) World Com
d) None of the above
Ethical Theory which focuses on end result
a) Deontology
b) Teleology
c) Meta Ethics
d) None of the above
Narayan Murthy Committee was initiated by
a) SEBI
b) Ministry of Corporate Affairs
c) IRDA
d) RBI
GVC rating is given by
a) ICRA
b) CARE
c) FITCH
d) CRISIL
06
Q.1 (b) Short / Definition Questions
1) Corporate Governance. 2) Teleology.
3) Values. 4) Altruism.
04
Q.1 (c) Explain in short the nature of ethics. 04
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Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? IV EXAMINATION ? WINTER 2019
Subject Code: 2840003 Date: 28-11-2019
Subject Name: Business Ethics and Corporate Governance
Time: 02.30 PM to 5.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a)
1.
2.
3.
4.
5.
6.
Choose the correct option.
The first voluntary code of corporate governance in India was
a) Narayan Murthy Committee CG Code.
b) CII Desirable Corporate Governance Code.
c) Birla Committee CG Code.
d) Naresh Chandra Committee CG Code.
Utilitarianism means
a) Decisions which results into greater good for self.
b) Decisions which results into greater good for many.
c) Decisions which benefits to others even though not beneficial for self.
d) None of the above.
Cynthia Cooper was the whistle blower in
a) Enron
b) NASA
c) World Com
d) None of the above
Ethical Theory which focuses on end result
a) Deontology
b) Teleology
c) Meta Ethics
d) None of the above
Narayan Murthy Committee was initiated by
a) SEBI
b) Ministry of Corporate Affairs
c) IRDA
d) RBI
GVC rating is given by
a) ICRA
b) CARE
c) FITCH
d) CRISIL
06
Q.1 (b) Short / Definition Questions
1) Corporate Governance. 2) Teleology.
3) Values. 4) Altruism.
04
Q.1 (c) Explain in short the nature of ethics. 04
2
Q.2 (a) Explain in brief various theories of ethics. 07
(b) What are the major ethical issues that business faces today? Discuss them
with examples.
07
OR
(b) Ethical dilemma is faced by every individual and businesses. Explain what
ethical dilemma is and how one should resolve it by taking a hypothetical
example of ethical dilemma.
07
Q.3 (a) Explain briefly Sarbanes Oxley Act of 2002. 07
(b) What is whistle blowing? Explain points to be considered by a whistle
blower.
07
OR
Q.3 (a) Explain essence of Narayan Murthy Committee code for corporate
governance.
07
(b) What is creative accounting? Discuss techniques adopted by companies for
creating accounting.
07
Q.4 (a) Explain Indian Model of Corporate Governance. 07
(b) Explain in brief how ICRA rates a company for corporate governance. 07
OR
Q.4 (a) Explain roles and responsibilities of Board of Directors. 07
(b) Explain in short historical evolution of corporate governance in India. 07
Q.5 On March 10, 2014, a team-led by V K Pandey, Food Safety & Drugs
Administration (FSDA) officer, had collected a few Maggi Noodles samples
from one retailer in Barabanki. He had sent the samples to test whether
Nestle India was complying with its stated claim that Maggi doesn't contain
Monosodium Glutamate (MSG) a possible carcinogen.
In one test in Gorakhpur, it was proved that MSG was used more than the
prescribed level. The FSDA, Barabanki, had sent a notice to Nestle India
asking its officers to appear before a designated officer under section 46(4)
of the FSDA Act. However, the company had challenged the authority of the
designated officer to start prosecution against them.
Facing resistance, Pandey had sent another notice to Nestle India. The
company then had paid a requisite fee of Rs. 1,000 for getting Maggi
samples tested in the Kolkata laboratory. Kolkata laboratory is considered as
one of the best laboratories in the country. Test in Kolkata laboratory not
only confirmed the presence of MSG in Maggi but also detected dangerously
high lead content in the Maggi samples.
Maggi instant noodles came under the scanner for three main reasons. The
first was the aforementioned violation of the regulations for adding lead and
MSG into the product. As against the maximum limit of 2.50 parts per
million (ppm), the amount of lead detected in the Maggi samples was
perilously high at 17.2 ppm. The second offence was mentioning 'No added
MSG' on the packaging, which is an act of mislabeling. Also, it launched
'Maggi Oats Masala Noodles' without meeting the appropriate norms of
standardization. On June 5, 2015, a nationwide ban was imposed on Maggi
by FSSAI (Food Safety and Standards Authority of India).
To begin with, in June 2015 itself, Nestle announced a recall of all its instant
noodles from the markets. It began to be executed within two days. At the
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? IV EXAMINATION ? WINTER 2019
Subject Code: 2840003 Date: 28-11-2019
Subject Name: Business Ethics and Corporate Governance
Time: 02.30 PM to 5.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a)
1.
2.
3.
4.
5.
6.
Choose the correct option.
The first voluntary code of corporate governance in India was
a) Narayan Murthy Committee CG Code.
b) CII Desirable Corporate Governance Code.
c) Birla Committee CG Code.
d) Naresh Chandra Committee CG Code.
Utilitarianism means
a) Decisions which results into greater good for self.
b) Decisions which results into greater good for many.
c) Decisions which benefits to others even though not beneficial for self.
d) None of the above.
Cynthia Cooper was the whistle blower in
a) Enron
b) NASA
c) World Com
d) None of the above
Ethical Theory which focuses on end result
a) Deontology
b) Teleology
c) Meta Ethics
d) None of the above
Narayan Murthy Committee was initiated by
a) SEBI
b) Ministry of Corporate Affairs
c) IRDA
d) RBI
GVC rating is given by
a) ICRA
b) CARE
c) FITCH
d) CRISIL
06
Q.1 (b) Short / Definition Questions
1) Corporate Governance. 2) Teleology.
3) Values. 4) Altruism.
04
Q.1 (c) Explain in short the nature of ethics. 04
2
Q.2 (a) Explain in brief various theories of ethics. 07
(b) What are the major ethical issues that business faces today? Discuss them
with examples.
07
OR
(b) Ethical dilemma is faced by every individual and businesses. Explain what
ethical dilemma is and how one should resolve it by taking a hypothetical
example of ethical dilemma.
07
Q.3 (a) Explain briefly Sarbanes Oxley Act of 2002. 07
(b) What is whistle blowing? Explain points to be considered by a whistle
blower.
07
OR
Q.3 (a) Explain essence of Narayan Murthy Committee code for corporate
governance.
07
(b) What is creative accounting? Discuss techniques adopted by companies for
creating accounting.
07
Q.4 (a) Explain Indian Model of Corporate Governance. 07
(b) Explain in brief how ICRA rates a company for corporate governance. 07
OR
Q.4 (a) Explain roles and responsibilities of Board of Directors. 07
(b) Explain in short historical evolution of corporate governance in India. 07
Q.5 On March 10, 2014, a team-led by V K Pandey, Food Safety & Drugs
Administration (FSDA) officer, had collected a few Maggi Noodles samples
from one retailer in Barabanki. He had sent the samples to test whether
Nestle India was complying with its stated claim that Maggi doesn't contain
Monosodium Glutamate (MSG) a possible carcinogen.
In one test in Gorakhpur, it was proved that MSG was used more than the
prescribed level. The FSDA, Barabanki, had sent a notice to Nestle India
asking its officers to appear before a designated officer under section 46(4)
of the FSDA Act. However, the company had challenged the authority of the
designated officer to start prosecution against them.
Facing resistance, Pandey had sent another notice to Nestle India. The
company then had paid a requisite fee of Rs. 1,000 for getting Maggi
samples tested in the Kolkata laboratory. Kolkata laboratory is considered as
one of the best laboratories in the country. Test in Kolkata laboratory not
only confirmed the presence of MSG in Maggi but also detected dangerously
high lead content in the Maggi samples.
Maggi instant noodles came under the scanner for three main reasons. The
first was the aforementioned violation of the regulations for adding lead and
MSG into the product. As against the maximum limit of 2.50 parts per
million (ppm), the amount of lead detected in the Maggi samples was
perilously high at 17.2 ppm. The second offence was mentioning 'No added
MSG' on the packaging, which is an act of mislabeling. Also, it launched
'Maggi Oats Masala Noodles' without meeting the appropriate norms of
standardization. On June 5, 2015, a nationwide ban was imposed on Maggi
by FSSAI (Food Safety and Standards Authority of India).
To begin with, in June 2015 itself, Nestle announced a recall of all its instant
noodles from the markets. It began to be executed within two days. At the
3
same time, the other step was confidence building measures. They set up a
mechanism for maintaining customer relationships, be it through a customer
services helpline or posting FAQs regarding recent developments on its
website, not to mention its presence on social media platforms like Facebook
and Twitter, where representatives answered all sorts of questions asked by
irate customers
a) Who was the whistle blower in case of Maggi Noodles case? What care
did he take before whistle blowing?
b) What kind of ethical lapse was found in Maggi production and towards
whom? How did Nestle make up to this loss of reputation?
07
07
OR
Q.5 Recently a peon was appointed in your office (DM office). He is illiterate
and mentally not sound. Ever since his appointment he has been more of a
?burden? than any help in the office. He doesn?t know any work. Staff in
your office feels that their work is disturbed by his behavior. The peon is
always found to be talking either alone or with anyone he encounters. He is
not obeying your staff?s orders in the office.
He was appointed on sympathy grounds after his father?s untimely death.
His mother is ill and always bedridden. His income is the only source for his
family now. He got the job after lobbying by a group representing his caste.
He was appointed by your predecessor after he was pressurized by local MP.
Some moves to remove him by your predecessor were met with public
protests by a group representing his caste.
You are very strict and disciplined in your office. You are being respected in
your district for your integrity and honesty. You come to know about the
peon few days after you assume power. You have observed his behavior and
found him to be unfit to continue in his job. The peon has no other relatives
except his mother.
a) Identify your moral and professional responsibilities in this case study.
b) Explain how you will deal with the peon.
07
07
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This post was last modified on 19 February 2020