Page 1 of 2
Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME)- SEMESTER EXAMINATION WINTER- 2018
Subject Code: 4519901 Date:29/12/2018
Subject Name: Business Ethics and Corporate Governance
Time: 10:30 AM To 01:30 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 Define the terms with suitable explanation
Corporate Governance
CSR
CGR
Managerial Ethics
Whistle Blowing
Ethics of Care
Creative Accounting
14
Q.2 an action produces most utility, is it always moral?' Discuss
the statement in light of the Utilitarian approach to ethics.
07
What is your understanding of an ethical leader? What do you
think should be the qualities of an ethical leader to lead the
nation?
07
OR
Discuss the Kohlberg's six stage of moral development to
establish any violation of moral responsibility.
07
Q.3 'The rights of individuals are also intricately joined with the
duties of the individual in an organization.' Discuss the statement.
07
"Independent directors are known to bring objective view in
Board deliberations. They also ensure that there is no dominance
of one individual or special interest group or the stifling of healthy
debate. They act as the guardians of the interest of all shareholders
and stakeholders, especially in the areas of potential conflict."
Discuss the above statement in the light of Clause 49 of the listing
agreement.
07
OR
Q.3 'Corporate Social Responsibility can be made an effective
strategy for good governance'. Elucidate the statement.
07
Why do you think so many big corporate got into business troubles
since late 1990s? What measures were taken by USA as well as
India to contain the problem of non-transparent governance of listed
companies since 2001?
07
Page 2 of 2
Q.4 CASE STUDY:
Arthur Edward Anderson (1885-1947), the founder of Arthur
Anderson Co. must have turned in his grave in 2001, as the
auditor firm founded by him became a synonym for scandal in
the accounting profession. On 15th August 2001, Sherron
Watkins, an employee of Enron, questioned the company's
accounting practices, in a single-page letter to its CEO. Enron,
the energy giant that ruled the world, and its auditor Arthur
Anderson Co., became the ridicule of the world. In early
2002, the US Justice Department began criminal investigations
into Enron's bankruptcy. In 2002, Arthur Anderson was
convicted by the lower and appellate courts for obstruction of
justice. The firm had worked hand in glove with Enron and
cooked its account books. The audit firm that once had an
85,000 strong workforce now had closed offices and business
interests around the globe. The firm's name is so tarnished that
there is no other business going on in it, other than attending to
over a hundred civil suits.
What do you think can be the outcomes of an accounting fraud
to the society and business at large?
07
Why do you think that the history of accounting fraud repeats
itself, such as so many frauds which we have heard after Enron
scandal?
07
OR
Q.4 Describe the CRISIL methodology for CG Rating. 07
Write a detailed note on Sarbanes Oxley Act.
07
Q.5
CASE STUDY:
A junior member of staff has just returned to work after taking
special leave to care for her elderly mother. For financial reasons
she needs to work full-time. She has been having difficulties with
her mother's home care arrangements, causing her to miss a
number of team meetings (which usually take place at the
beginning of each day) and to leave work early. She is very
competent in her work but her absences are putting pressure on
her and her overworked colleagues. You are her manager, and you
are aware that the flow of work through the practice is coming
under pressure. One of her male colleagues is beginning to make
comments such as "a woman's place is in the home", and is
undermining her at every opportunity, putting her under even
greater stress.
In light of the above case, elaborate the ethical dilemma. 07
How should you proceed so as not to discredit yourself, your
profession or the practice for which you work and at the same
time maintaining integrity and confidentiality in your actions?
07
OR
Q.5 How important are Independent Directors in an organization. Give
your opinion.
07

Write a detailed note on the principles and structure of corporate
governance.
07