SASI CREATIVE SCHOOL OF BUSINESS, MYLERIPALAYAM,

COIMBATORE 641032

IIMBA IV Semester Test No. 1

BA 7402 Business Ethics - Corporate Social Responsibility and Corporate Governance

Part-A (5 Q X 2 = 10 Marks)

1. What Business Ethics do for Business?

2. What do you mean by Unethical Behaviour?
3. What is meant by deontological theory?
4. What do you mean by Ethical Dilemma?
5. What is meant by Unfair Practices?

Part-B (5 Q X 6 = 30 Marks)
1. Explain the need and Importance of Ethics in Business. (Or)

Why do people behave unethically in Business? Give Examples of

unethical behaviour. How they are corrected by code of conduct?

2. Explain the Hosmers Model of Business Ethics with examples and with
a case study (Or)

Explain the various Environmental issues which affect Business?

3. Explain how legal environment affects the functioning of the businesses.

(Or)
Explain how the Political Environment affects the functioning of the
Businesses in India.

4. Explain the salient features of Indian Business Culture.

(Or)
Explain as how you will formulate the Code of Conduct in an
organisation. .

5. Explain the Code of Ethics in Advertising in India. (or)

Explain how you would file a complaint for unfair practices in

Businesses in India.

Part-C ( Case Study - 10 Marks)

Read the Following Situations and answer the following questions :

Ethical Dilemma #1: Mr. A is the manager of a Pizza House and is in dire need
of money because his Father was hospitalized due to serious illness. He needs to
settle the hospital bills of his father immediately but is really financially drained. He
is the type of manager who treats his employees well and has high regard from his
employees. One of his subordinates, who happen to come from a well-off family,
offered to lend him money to settle the hospital bills. Is it ethically ok for Mr. A to
take the money being lent to him by one of his subordinates?

Ethical Dilemma #2 : you are the accountant of the company that is making
losses but the management of the company instructed you to inflate the profits in
the financial statements to appease the shareholders, lenders and the customers.
What will you do?

Ethical dilemma #3 : you have a student who is from a single parent family. The
student must work to attend college. However, the job is interfering with the
students performance and several assignments have not been turned in. You have
determined that a D is all the student can make when a counsellor informs you
that the student need a C to qualify for academic scholarship. What would you
do?

Ethical dilemma #4: Retailing

You are the buyer for a retail-clothing store. Your store has a policy of not
accepting gifts. However, over the years, salesmen have offered, and other
employees have accepted lunch, theatre and baseball tickets. You arrive home from
the office and find a new TV and DVD player on your doorstep with a note that
says: A personal gift for our long standing friendship. Enjoy it with you family in
good health. The Jones Clothing Company What do you do?

Ethical Dilemma #5: Journalism / Advertising

Your newspaper has published a report on a national study, which concluded that
bottled water has virtually no health advantages over the tap water in more cities,
including yours. The study included comments from local health storeowners and
water distributors challenging the study. The Aqua Pure Bottled Water Company,
Advertising account worth over 50, 00,000 a year, has threatened to pull its
account with your newspaper unless you run another story of equal prominence,
focusing on the benefits of bottled water. What do you do?
(2+2+2+2+2)