Bmgt 421: Business Ethics Question Paper
Bmgt 421: Business Ethics
Course:Bachelor Of Commerce
Institution: Kabarak University question papers
Exam Year:2008
KABARAK 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: 10/12/2008
INSTRUCTIONS:
1. Answer question ONE and any other TWO questions
1 (a) Modern trends and practices call for organization to pursue wiser objective
in addition to global profitability. Explain the concept of social corporate
responsibility and discuss the various components that a socially
responsible firm should address. (16 marks)
(b) You are the chief executive of a fast growing middle level business
enterprise. Discuss the measures that you would put in place to improve
the ethical behaviour of your employees. (14 marks)
2 (a) Assess the ethical issues in the following scenarios (10 marks)
(i) Black marketing and hoarding
(ii) Unfair practices in advertising
(iii) Corrupt practices in organizations
(iv) Unfair practices in labeling
(v) Bribery in government offices
(b) “It is argued that the practice of ethics play a significant role in shaping
modern business organizations.” Discuss the arguments in support of this
statement. (10 marks)
3 (a) Super Health Ltd is a private company that deals with manufacturing and
selling of mosquito treated bed-nets, which are distributed in and outside
Kenya. The Chief Executive of Super Health Ltd has stated that the
objective of the company will be “to supply the best possible product to
the greatest number of consumers at the lowest possible cost.
The lowest possible cost will only be achieved by introducing a number of
radical changes which will affect employees, shareholders and
management. The holders of this view who include the CEO are people
who joined Super Health Ltd recently. The group is small in number but
has had extensive private sector experience where managerial internal
controls are strict and well established.
This is in contrast with what has been happening at Super Ltd where there
are many loopholes and contradictory systems of control.
Explain the reasons why the Chief Executive may realize that the interest
of customers could conflict with efforts to serve the shareholders.
(10 marks)
(b) Discuss the forces that account for increased corporate governance in
modern business organizations. (10 marks)
4 (a) Discuss the sources of business ethics (10 marks)
(b) Giving examples, describe the indicators showing whether a manager is
behaving ethically or not. (10 marks)
5 (a) Discuss the contemporary ethical theories paying attention to their
application in evaluating business ethics (12 marks)
(b) You are in the management of a medium sized electrical company and you
approach the lower rank workers to get to know about processes and products.
The Managing Director has arranged a master phone on his table so that he
can enter and listen to any tele-conversation being made between employees
in the company. MD uses this master phone to know what is happening
around with a few groups of employees. MD also checks e-mails of
employees at random.
Discuss the ethical issues in the above case (8 marks)
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