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Msfi 513:Ethics &Amp; Corporate Governance Question Paper

Msfi 513:Ethics &Amp; Corporate Governance

Course:Master Of Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2012

KENYA METHODIST UNIVERSITY

SCHOOL OF BUSINESS & ECONOMICS

END OF SEMESTER EXAMINATION FOR MASTER IN BUSINESS ADMINISTRATION DECEMBER, 2012 (EVENING)
UNIT CODE : MSFI 513
UNIT TITLE : ETHICS AND CORPORATE GOVERNANCE

TIME: 3 HOURS

Instructions: Answer Any FOUR Questions.

Question One

The IFAC code of professional ethics (2001), adopted as being relevant to professionalmembers and students, contains the following advice.

’A professional accountant in business or an immediate family may be offered an inducement. Inducements may take various forms, including gifts, hospitality, preferential treatment, and inappropriate appeals to friendship or loyalty. Offers of inducement may create threats to compliance with the fundamental principles (of professionalism).

Executive director and qualified accountant many Jenny was in charge of awarding outsourcing contracts for large public listed company. When her family fell into debt, she looked for a way to make some additional income. When her company was seeking to place a contract for a large outsourced service, without inviting other tenders from which to select, she accepted a bid from one supplier who said it would pay er $50,000 as a ’thank you’ once the contract was awarded. She justified her behavior by reminding herself that she obtained her job partly because she was awarded. She justified her job partly because she was an accountant and that she had worked extremely hard to obtain her accounting qualification. She believed she was entitled to make a ’higher personal return’ on her investment of time and effort in her accountancy training and through successful qualification as a professional accountant.

Required:

Briefly describe the FIVE ethical threats in the IFAC code of professional ethics and discuss how accepting excessive ’gifts’ or ’hospitality’ can give rise to some of these threats within this case.

(20 Marks)

Criticise Mary Jenny’s beliefs and behavior and explain why accepting the 50,0000 conflicts with her duty to uphold public interest.

(50 Marks)

Question Two

For any business to be successful, it has to create an awareness to the public for its existence and activities it is involved in through marketing and advertising.

Briefly identify important ethical issues that arises in marketing and advertising context.

(10 Marks)

Explain why most organizations do have a growing need for business ethics.

(10 Marks)

Question Three

Describe the roles of corporate governance and how it assist the company to grow.

(12 Marks)

Briefly explain why monitoring of performance is important in corporate governance.

(8 Marks)

Question Four
Write short notes on the following theories as applied in ethics and corporate governance. (20 Marks)

Teleological theory
Deontological theory
Relativistic theory
Virtue theory
Justice theory

Question Five
According to Kohlberg’s model of cognitive moral development, different people make different decisions in similar ethical situations. Discuss the Kohlberg’s six stages of individual development and how they relate to the corporate culture. (20 Marks)

Question Six
Discuss the ethical dilemmas facing managers in most company’s and state the method to resolve the dilemmas. (20 Marks)

Msfi 513:Ethics &Amp; Corporate Governance Question Paper

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