PGDM (2017-19) Term – I END-TERM EXAMINATION BUSINESS ETHICS & SOCIAL RESPONSIBILITY Time: 2 Hours Maximum Marks: 40. Weightage: 40% Full Name of the Student: Roll No.: Section: Date: Signature of the Invigilator INSTRUCTIONS: 1. Answer all the questions. Write only in the space provided. Do not exceed the page limit. 2. If in any doubt, make the required assumptions and state them clearly while writing your answers 3. Exchange of any stationary is not permitted during the exam 4. Write your name; roll number and section details wherever required PART A: BUSINESS ETHICS Answer all questions: (8 x 0.5 = 4 marks) Section I: In this section circle your choice 1. In Manville Corporation, the executives continued to rationalized their actions based on one of the following: a. Their actions will continue to remain a mystery forever b. Their actions yield far more benefits than the costs to the organization c. Their actions are in the larger interest of the organizations d. Their actions will be condoned by the organization e. None of the above PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 1 2. Which one of the following is mostly used as an ethical system by corporate: a. Relativism b. Virtuism c. Dutism d. Majoritarianism e. None of the above 3. Which one of the following is an enduring source of happiness a. Job b. Social status c. Wealth d. Family e. All of the above 4. Which one of the following can be called as the closest to the feminist ethics: a. Utilitarianism b. Virtue ethics c. Ethics of care d. Ethics of duty e. All of the above 5. Which of the following is not one of the factors that Crane and Matten identify as the most important in deciding whether a situation should be assigned a moral status? a. The decision is likely to have significant effects on others. b. The decision is likely to be open to legal challenges. c. The decision is likely to be characterized by choice, in that alternative courses of action are open. d. The decision is perceived as ethically relevant by one or more parties. e. None of the above 6. The bureaucratic dimension of organizations has been argued to have negative effects on ethical decision-making. Read the following carefully and indicate which is not one of these negative effects. a. Instrumental morality b. Denial of responsibility c. Denial of moral status d. Suppression of moral autonomy e. None of the above PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 2 7. The law can be said to be a definition of the minimum acceptable standards of behaviour, with many morally contestable issues not covered by the law. What does this imply for business ethics? a. Businesses should prevent laws from being enacted so as to give themselves maximum freedom to act. b. Business ethics is about uncovering the definitive answer to business ethics problems in the absence of guidance from the law. c. In a sense, business ethics can be said to begin where the law ends. d. All of the answers are all correct e. None of the answers are correct 8. Given the emerging role for corporations in the administration of civil, social and political rights, Crane and Matten argue that the extended view of corporate citizenship suggests the following definition: a. Corporate citizenship describes the corporate role in public policy creation. b. Corporate citizenship describes the position of the corporation with respect to the government. c. Corporate citizenship describes the corporate function for governing citizenship rights for individuals. d. Corporate citizenship describes the situation in which the corporation takes on a governmentlike role towards individuals. e. None of the answers are correct Section II 1. Managers at Ford only responded to market forces and they did not have individual choices. Reinforce your answer citing Moral Intensity factors and rationalizations that managers often cite while facing moral dilemma (4 marks) PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 3 2. Why Good Managers make bad ethical Choices? Cite examples and reasons (4 marks) PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 4 3. Lance Armstrong was a thorough crook. What reasons do you ascribe for his falling from grace? What internal and external factors you think were responsible? What rationalizations Armstrong had resorted (4 marks)? PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 5 4. Briefly explain various normative ethical theories and indicate their potential use in the modern corporate (4 marks) PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 6 PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 7 Full Name of the Student: Date: Roll No.: Section: Part B: Social Responsibility 1. Read the following articles and answer the questions given below. (10 marks) Gau Seva Is Now A Corporate Social Responsibility: Who would have thought? 14/06/2017 11:31 AM IST | Updated 14/06/2017 12:47 PM IST Vinit Agarwal, the founder and director of the Ahmedabad-based pharmaceutical company, Delwis Healthcare, routinely drives for five hours to ensure the successful running of a gau shala, which is home to over 100,000 cows. The Economic Times reported that Delwis Healthcare has tripled its spending on the gau shala in the past three years, spending 25 percent of its Corporate Social Responsibility (CSR) expenditure on taking care of cows. "We are interested in any kind of gau seva. Our primary objective is to save the cow from butchers and slaughter houses," Agarwal told ET. “We don’t mind going up to 50% in the next couple of years,” Agrawal said. For Agrawal of Delwis, the primary objective remains gau seva but he doesn’t completely rule out the broadening of that vision. “Cow products have proven scientifically good,” he said. “Right now it is not linked to our business but who knows we might come up with a business case and related products.” Gau seva enters India Inc’s CSR stable, companies spending big money on cow upkeep By Rica Bhattacharyya, ET Bureau | Jun 14, 2017, 01.50 PM IST Tata Power, through its wholly-owned subsidiary Coastal Gujarat Power Ltd (CGPL), provides replicable models for establishing fodder supply centres and building gaushalas in the Kutch region to help strengthen livelihood options. The company has undertaken other infrastructure work in gaushalas including constructing drinking waterlines for cattle troughs, construction of overhead tanks for cattle, weighbridges and fodder storage yards. “Successful commissioning of the programme has resulted in a big rise in livestock, and increase in the income of the cattle owners. The initiative has encouraged more people to engage in the business of animal husbandry,” a company spokesperson said. Source: http://www.huffingtonpost.in/2017/06/14/meet-the-new-avatars-of-gau-seva-in-india_a_22185152/ http://economictimes.indiatimes.com/news/politics-and-nation/gau-seva-enters-india-incs-csr-stablecompanies-spending-big-money-on-cow-upkeep/articleshow/59134230.cms PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 8 a) Explain any three core characteristics of CSR activities that Gau Seva activity for Delwis Healthcare satisfies. (3x2=6 marks) PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 9 b) When Coastal Gujarat Power Ltd adopts Gau Seva , what type of CSR strategy is it? Explain. (2 marks) c) If Delwis Healthcare starts a cow based business, can Gau Seva still be considered a CSR activity? Explain. (2 marks) PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 10 2. Explain the following terms with examples: (5 x 2 = 10 marks) a) Stakeholders b) Strategic CSR activity PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 11 c) Social investment d) Managing externality PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 12 e) Beyond philanthropy Space for Rough work: Anything written below will not be evaluated PGDM (2017-19) Term-I: End Term Examination – Business Ethics and Social Responsibility Page 13
