M.B.A. (Part II) (Semester III) (Old CBCS) Examination, 2018
Paper XVIII busines ethics
Day and Date Tuesday, 11-12-2018 Total Marks 70
Time 10.30 a.m. to 1.00 p.m.
1. Multiple Choice Questions (one mark each) 14
The word 'ethics is derived from the Latin word' ethics which means
Principles Character Beliefs Value
According to principles the outcome of action should generate
great benefit to greatest number of people.
Distributive justice Altruism
Utilitarianism All the above
Greek philosopher is associated with the concept of virtue
ethics.
Aristotle Adam Smith
Milton Freidman Alcott Parson
We should treat others the same way that we want others to treat us is
principles of
Meta ethics Applied ethics
Morality Normative ethics
The Act of 1986 focussed on reducing industrial pollution.
Factories Act MRTP Act
Environment Protection Act The Air Pollution Act 1981
is a practice of trading on price for sensitive information by
employees that is closely connected with firm.
Insider Trading Money Laundering
Management buy outs All the above
In making decisions and choosing the right alternative where choice of
alternative is not is called as
Ethical challenge Rationalization
Ethical Dilemma Elimination
Corporate governance are a set of structural arrangements to align
management of companies with interest of
Customers Employees Suppliers Shareholders
is a sense of obligation of companies to be socially responsible
for building relationship with community.
Corporate Social Responsibility Corporate Culture
Corporate Communication Corporate Ethical Conduct
10) Companies and business responding in a positive way to fulfil needs of
community is called
Social Management Responsive Management
Ethical Management All the above
11) The Consumer Protection Act established to provide legal rights to customers
was in Corporate in the year
1961 1956 1986 1972
12) A is a view and judgement of what is right and wrong and desirable
of a person's personality.
Values Attitude Morality Beliefs
13) is not a characteristic of ethical organization.
Trust Honestly Fairness Fraud
14) The model of cognitive moral development of decision making was
developed by
Robert Owen Lawrence Kohlberg
Keith Davis Ralph Nader
2. Write short notes 14
Need for business ethic. 7
Responsive management. 7
3. Write short notes 14
Social responsibility of business organization. 7
Ethics in H.R.M. 7
4. What is the importance of Ethics in Business Explain factors and principles
affecting business ethics. 14
OR
4. Explain the concept of corporate social responsibility. Explain forces inducing
social responsibility and objectives and importance of CSR. 14
5. Case study 14
Wells Fargo was the darling of the banking industry, with some of the highest
returns on equity in the sector and a soaring stock price. Top management
touted the company's lead in "cross-selling" the sale of additional products to
existing customers. "Eight is great", as in eight Wells Fargo products for every
customer, was CEO John Stump Mantra.
In September 2016, Wells Fargo announced that it was paying $185 million in
fines for the creation of over 2 million unauthorized customer accounts. It soon
came to light that the pressure on employees to hit sales quotas was immense
hourly tracking, pressure from supervisors to engage in unethical behaviour
and a compensation system based heavily on bonuses.
Wells Fargo also confirmed that it had fired over 5,300 employees over the past
few years related to shady sales practices. CEO John Stump claimed that the
scandal was the result of a few bad apples who did not honour the company's
values and that there were no incentives to commit unethical behaviour. The
board initially stood behind the CEO but soon after received his resignation and
"clawed back" millions of dollars in his compensation.
Further reporting found more troubling information. Many employees had quit
under the immense pressure to engage in unethical sales practices and some
were even fired for reporting misconduct through the company's ethics hotline.
Senior leadership was aware of these aggressive sales practices as far back
as 2004, with incidents as far back as 2002 identified.
The Board of Directors commissioned an independent investigation that
identified cultural, structural and leadership issues as root causes of the
improper sales practices. The report cites the wayward sales culture and
performance management system; the decentralized corporate structure that
gave too much autonomy to the division's leaders; and the unwillingness of
leadership to evaluate the sales model, given its long time success for the
company.
Analyze the case. 5
Identify the problem. 2
Identifying alternative solutions. 5
Giving the best solution. 2