Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 4th Sem 3549201 Business Ethics And Corporate Governance Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 4 ? EXAMINATION ? SUMMER 2019
Subject Code: 3549201 Date:02/05/2019
Subject Name: Business Ethics & Corporate Governance
Time: 10:30 Am to 1:30 Pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.
No.
Marks
Q.1 Briefly explain the below terms.
(a) Ethics
(b) Morality
(c) Ethical Dilemma
(d) Independent Director
(e) Compensatory Justice
(f) Dual Board Structure
(g) Audit Committee
14
Q.2 (a) What is Utilitarianism? What are the two types of
Utilitarianism? Discuss major limitations of this theory with
practical examples.
07
(b) Two Indian companies, Tata Steel and Wipro figure in the 2019
list of most ethical companies of the world, published by
Ethisphere Institute. The institute believes that in the coming
years, Ethical Business Practices will become the most
important factor for the success of any company. Evaluate and
discuss this observation in the light of your understanding of
Business Ethics.
07
OR
(b) India's third-largest lender, found the former chief executive
guilty of violating internal bank policies and professional
misconduct and sacked her. Discuss her role in the light of the
theory of Ethical Dilemma and Ethical Decision Making.
07
Q.3 (a) Discuss the role played by the technique of Creative
Accounting in major business scandals like Enron and
WorldCom in USA?
07
(b) What is Corporate Ethical Leadership? Discuss the role played
by Corporate Ethical Leaders like Azim Premji of Wipro in
propagating Corporate Ethical Leadership.
07
OR
Q.3 (a) Define Whistle Blowing. Discuss the role that whistleblowers
play in ensuring ethical practices in organizations with relevant
examples.
07
(b) The famous economist Milton Friedman said that business has
only one Social Responsibility It is to earn profits for its
07
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 4 ? EXAMINATION ? SUMMER 2019
Subject Code: 3549201 Date:02/05/2019
Subject Name: Business Ethics & Corporate Governance
Time: 10:30 Am to 1:30 Pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.
No.
Marks
Q.1 Briefly explain the below terms.
(a) Ethics
(b) Morality
(c) Ethical Dilemma
(d) Independent Director
(e) Compensatory Justice
(f) Dual Board Structure
(g) Audit Committee
14
Q.2 (a) What is Utilitarianism? What are the two types of
Utilitarianism? Discuss major limitations of this theory with
practical examples.
07
(b) Two Indian companies, Tata Steel and Wipro figure in the 2019
list of most ethical companies of the world, published by
Ethisphere Institute. The institute believes that in the coming
years, Ethical Business Practices will become the most
important factor for the success of any company. Evaluate and
discuss this observation in the light of your understanding of
Business Ethics.
07
OR
(b) India's third-largest lender, found the former chief executive
guilty of violating internal bank policies and professional
misconduct and sacked her. Discuss her role in the light of the
theory of Ethical Dilemma and Ethical Decision Making.
07
Q.3 (a) Discuss the role played by the technique of Creative
Accounting in major business scandals like Enron and
WorldCom in USA?
07
(b) What is Corporate Ethical Leadership? Discuss the role played
by Corporate Ethical Leaders like Azim Premji of Wipro in
propagating Corporate Ethical Leadership.
07
OR
Q.3 (a) Define Whistle Blowing. Discuss the role that whistleblowers
play in ensuring ethical practices in organizations with relevant
examples.
07
(b) The famous economist Milton Friedman said that business has
only one Social Responsibility It is to earn profits for its
07
Page 2 of 3
shareholders. Rest is the responsibility of the Government. Do
you agree with this statement? Support your answer in light of
the theory of Corporate Social Responsibility (CSR)
Q.4 (a) List and explain some of the important recommendations of
Narayanmurthy Committee on Corporate Governance.
07
(b) Discuss the role of Independent Directors in ensuring good
Corporate Governance.
07
OR
Q.4 (a) What is Corporate Governance Rating ? What is the
importance of CGR for companies ? Enumerate the steps of
getting a Corporate Governance Rating.
07
(b) What is Board Structure? List and explain the composition and
functions of various committees of the Board and their role in
effective corporate Governance.
07
Q.5
Read the case below and answer the questions at the end of
the case.
THE CORPORATION : A REVIEW
Greed, at a personal level is not considered a virtue in any
religion or culture of the world. Greed at an institutional level
is encouraged and celebrated all over the world in the form of
the Corporation. There is no CEO in the world, who has said
that this year we plan to be at the same level of revenue and
profits as that of last year, because we are not greedy and greed
is not a good thing and we are happy to be content with
whatever we are doing. The greediest CEOs are rewarded with
awards and prizes for helping their companies grow at an
exorbitant rate.
In 1916 the US Government had a strong hand in shaping the
free and independent corporate entities that were emerging.
Henry Ford made his fortune from cars; but he was a man of
conscience, who chose to limit his profits and share the wealth
with employees. He even canceled the shareholders? dividend
at one point, by reducing prices in order to divert money to
customers. But one of Ford?s shareholders objected to his
generous methods. John Dodge wanted to start his own
business with the dividend earned from Ford stocks, and he
took Ford to court when the dividend was canceled. The judge
agreed with Dodge: ?Ford had no right to give their money
away to customers, however good his intentions.?
Corporations were from that point forward, legally required to
act in the best interests of the profits of shareholders, and not
for the general good. Thus in 1916, corporate investment on
behalf of the environment, human health and welfare, or human
rights, was deemed illegal in the US if it was not in the
shareholders? best interests financially.
14
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 4 ? EXAMINATION ? SUMMER 2019
Subject Code: 3549201 Date:02/05/2019
Subject Name: Business Ethics & Corporate Governance
Time: 10:30 Am to 1:30 Pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.
No.
Marks
Q.1 Briefly explain the below terms.
(a) Ethics
(b) Morality
(c) Ethical Dilemma
(d) Independent Director
(e) Compensatory Justice
(f) Dual Board Structure
(g) Audit Committee
14
Q.2 (a) What is Utilitarianism? What are the two types of
Utilitarianism? Discuss major limitations of this theory with
practical examples.
07
(b) Two Indian companies, Tata Steel and Wipro figure in the 2019
list of most ethical companies of the world, published by
Ethisphere Institute. The institute believes that in the coming
years, Ethical Business Practices will become the most
important factor for the success of any company. Evaluate and
discuss this observation in the light of your understanding of
Business Ethics.
07
OR
(b) India's third-largest lender, found the former chief executive
guilty of violating internal bank policies and professional
misconduct and sacked her. Discuss her role in the light of the
theory of Ethical Dilemma and Ethical Decision Making.
07
Q.3 (a) Discuss the role played by the technique of Creative
Accounting in major business scandals like Enron and
WorldCom in USA?
07
(b) What is Corporate Ethical Leadership? Discuss the role played
by Corporate Ethical Leaders like Azim Premji of Wipro in
propagating Corporate Ethical Leadership.
07
OR
Q.3 (a) Define Whistle Blowing. Discuss the role that whistleblowers
play in ensuring ethical practices in organizations with relevant
examples.
07
(b) The famous economist Milton Friedman said that business has
only one Social Responsibility It is to earn profits for its
07
Page 2 of 3
shareholders. Rest is the responsibility of the Government. Do
you agree with this statement? Support your answer in light of
the theory of Corporate Social Responsibility (CSR)
Q.4 (a) List and explain some of the important recommendations of
Narayanmurthy Committee on Corporate Governance.
07
(b) Discuss the role of Independent Directors in ensuring good
Corporate Governance.
07
OR
Q.4 (a) What is Corporate Governance Rating ? What is the
importance of CGR for companies ? Enumerate the steps of
getting a Corporate Governance Rating.
07
(b) What is Board Structure? List and explain the composition and
functions of various committees of the Board and their role in
effective corporate Governance.
07
Q.5
Read the case below and answer the questions at the end of
the case.
THE CORPORATION : A REVIEW
Greed, at a personal level is not considered a virtue in any
religion or culture of the world. Greed at an institutional level
is encouraged and celebrated all over the world in the form of
the Corporation. There is no CEO in the world, who has said
that this year we plan to be at the same level of revenue and
profits as that of last year, because we are not greedy and greed
is not a good thing and we are happy to be content with
whatever we are doing. The greediest CEOs are rewarded with
awards and prizes for helping their companies grow at an
exorbitant rate.
In 1916 the US Government had a strong hand in shaping the
free and independent corporate entities that were emerging.
Henry Ford made his fortune from cars; but he was a man of
conscience, who chose to limit his profits and share the wealth
with employees. He even canceled the shareholders? dividend
at one point, by reducing prices in order to divert money to
customers. But one of Ford?s shareholders objected to his
generous methods. John Dodge wanted to start his own
business with the dividend earned from Ford stocks, and he
took Ford to court when the dividend was canceled. The judge
agreed with Dodge: ?Ford had no right to give their money
away to customers, however good his intentions.?
Corporations were from that point forward, legally required to
act in the best interests of the profits of shareholders, and not
for the general good. Thus in 1916, corporate investment on
behalf of the environment, human health and welfare, or human
rights, was deemed illegal in the US if it was not in the
shareholders? best interests financially.
14
Page 3 of 3
Since the days of John Dodge and Henry Ford, corporations
have been legally obligated to be motivated solely by
shareholder profit. US states courted, and soon many nations
competed, to attract big business. Each state or nation sought
the influx of jobs and capital investment which go with
corporate growth.
Corporations, which held no responsibility for the general
welfare but only for shareholders, soon carried their disregard
for public safety and welfare into the global arena. The author
accuses corporations of being psychopathic, in that they are
?singularly self interested and unable to feel genuine concern
for others in any context... The corporation, like the
psychopathic personality it resembles, is programmed to
exploit others for profit. According to the author, corporations
have a ?built-in compulsion? to externalize costs, and any
concern for the environment or human safety quickly dissipates
when big businesses are faced with the bottom line ? profits.
For example, General Motors studied the best place to locate
the gas tank to minimize the risk of a fire in the event of a crash.
He alleges that this giant car company then calculated the cost
of paying off victims and the cost of improving the design, and
a comparison of the two figures demonstrated that it was
cheaper for shareholders to pay off the families of the deceased
in lawsuits than to protect human life by locating the gas tanks
in a safer place.
(a) No CEO should be allowed to spend its profit on social
activities, because it is money of shareholders. Do you agree?
Support your answer with facts from the case.
07
(b) A business corporation cannot be ethical, because it is a
psychopathic organization with least concern for others.
Discuss.
07
OR
Q.5 (a) Greed is not good for a person.- All religions, culture
Greed is very good for a Corporation, more is better.
Discuss this contradiction.
07
(b)
Should a company cancel its dividends to shareholders for
reducing prices of a life saving drug, so that it is easily
available for poor people? What is the legal position on this as
per the case?
07
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This post was last modified on 19 February 2020