Bmgt 421: Business Ethics 2008 Question Paper
Bmgt 421: Business Ethics 2008
Course:Bachelor Of Commerce
Institution: Kabarak University question papers
Exam Year:2008
KABARAK UNIVERSITY
UNIVERSITY EXAMINATIONS
2008/2009 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF COMMERCE
COURSE CODE: BMGT 421
COURSE TITLE: BUSINESS ETHICS
STREAM: Y4S2
DAY: WEDNESDAY
TIME: 2.00 – 4.00 P.M.
DATE: 6/8/2008
INSTRUCTIONS:
The paper contains four questions
1. Answer questions ONE and any other TWO questions.
QUESTION ONE
(a) You are the Director (Finance) of a company recording Kshs.110 million sales
turnover a year. The Managing Director of your company is standing for
elections under the banner of a political party. You do not like politics. If your
M.D wins the election, the company will benefit and his victory is near certain.
You have been asked to delay the payments to suppliers by increasing the
repayment period from 30 days credit to 90 days credit, and cut down on all other
payments so as to transfer the liquidity to the electoral campaign of your M.D in
six months time with the public interest petitions being very much in the news.
(i) Identify the ethical issues in the scenario and propose your alternative
action. (10mks)
(ii) Discuss the driving forces behind increased corporate governance and how
an organization would benefit from effective corporate governance.
(10mks)
(iii) Explain the sources of business ethics (10mks)
QUESTION TWO
(a) Discuss the role of ethics in business. (12mks)
(b) Is maximizing profits ethical? (4mks)
(c) Explain using relevant examples how manufacturing organizations can use
innovative ways in conserving the environment. (4mks)
QUESTION THREE
(a) You are spearheading preparation of code of ethics for your organization.
(10mks)
(b) The growing attention to the awareness of business ethics starting from 1990s and
the beginning of the 21st century can be attributed to a number of factors. Discuss
these factors. (10mks)
QUESTION FOUR
(a) Discus the sellers’ ethical obligations to customers. (8mks)
(b) How can whistle blowing be effectively administered in a business organization?
(6mks)
(c) How can the following concepts be applied in business organizations?
(i) Discourse theory (3mks)
(ii) Virtue theory (3mks)
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