Knowledge Business School Salem

Internal Examination QP - I
Subject Name: Business Ethics, Corporate Social Responsibility and Governance
Subject Code: BA7402 Semester: IV Year: II
Duration: 1.30 hrs Marks: 50
Part – A 10x2=20
1. What is Business Ethics?
Business ethics is a branch of ethics which prescribes standards of how the business is to
be carried out. It is a guideline of stakeholders
2. What are the advantages of Ethical Behavior?
Higher revenues – demand from positive consumer support
Improved brand and business awareness and recognition
Better employee motivation and recruitment
New sources of finance – e.g. from ethical investors
3. Why ethics are important in Business?
Goodwill
Profitability
Going concern is assured
Sustainability
4. What is ethical abuse?
Ethics abuses include mishandling of client funds, conflict of interest and lapsed licensing, etc.,
5. Define Code of Conduct.
A code is an open disclosure of the way an organization operates.Codes of conduct offer an
invaluable opportunity for responsible organizations to create a positive public identity for
themselves.
6. How to improve ethical behavior in Business?
A reputation as an ethical vendor makes customers want to do business with you.
Ethical behavior can improve the organization’s relation with the community, which tends to
attract customers and top-notch employees.
Ethical behavior tends to reduce public pressure for government regulation.
7. What are the characteristics of Business ethics?
Moral standards deal with matters that can seriously insure the society without them.
Moral standards are not created or changed by the decisions of any particular authority like
legislature.
8. What is Deaontology?
It is about strict adherence to rules regardless of consequences.
9. What are the causes of unethical behavior?
Individual factors
Values
Morals
Social factors
Situational opportunities
10. List out the benefits of ethics management.
Attention to business ethics has substantially improved society
Ethics program help maintain moral course in turbulent times
Ethics programs cultivate strong teamwork and productivity
Ethics program support employee growth and meaning.
Part –B 2x10=20

1. Explain the needs and importance of Business ethics.

 Introducing Socialism in Business
 Interest of Industry
 Buyers’ Market
  Better Relations with Society
 Advantages to Business and Society.
 Business is a subsystem of society
 Empowers all stakeholders concerned
 Reduction in cost of friction with social environment
 Important for organizations leaders because they influence the ethical climate for the rest.
Or
Explain the different sources of unethical behavior in an organization.
 Overly aggressive financial or business objectives
 Abusive & intimidating behavior
 Conflict of interest
 Fairness & honesty
 Communications
 Business relationships
2. Explain the ethical behavior of managers and how to develop their code of ethics.
A formal statement of an organization’s primary values and the ethical rules it expects its
employees to follow
Be a dependable organizational citizen
Don’t do anything unlawful or improper that will harm the organization
Be good to customers.
Effective Use of a Code of Ethics
•Develop a code of ethics to guide decision making
•Communicate the code regularly
•Have all levels of management show commitment to the code
•Publicly reprimand and consistently discipline those who break the code
Or
Write the structure of ethics management?

Ethical management refers to corporate management that not only fulfills economic goals
andlegal responsibilities, but also meets the ethical expectations imposed by social norms in
conducting business.

STRUCTURE OF ETHICS MANAGEMENT

Everyone who is entrusted to manage ethics in this organization is bound to prepare a sound
ethical programme which should include the following components:

1. Formal code of conduct

2. Ethics committee
3. Ethical communication
4. An Ethic office with Ethical officers
5. Ethics Training Programme
6. A disciplinary system
7. Establishing an ombudsperson.
8. Monitoring
Part – C 1x10=10

Prepare a code of conduct for a HR manager of an agency supplying security personnel to

industries. State your assumptions (If any)