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:2010
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : ACCOUNTING AND FINANCE
TIME : 3 HOURS
INSTRUCTIONS Answer Question ONE (compulsory) in Section A and any Other THREE Questions in Section B
SECTION A
The Sales Case
Two sales people, Mr. Ian and Mrs. Duncan are both trying to win a desirable order for their business. Both are in the same situations in that their companies are struggling and to lose the business would almost certainly result in mass redundancies. It is also very likely that the losing sales person will lose their jobs as well.
Mr. lan takes teleological approach. He reasons that he has to get the order because if he doesn’t then he would lose the business. Losing the business would have a very adverse effect on the lives of many people in his company. In addition there would be the lost business for the company’s suppliers and so forth. He might therefore reason that anything that he does to get the order is acceptable because the end justify the means. What anything; means clearly has its limits for everyone. However he might consider that bribery or sabotaging the completion might be acceptable under certain conditions.
Mrs. Duncan takes deontological approach. She would take the view that getting the order is clearly an important factor, but not at any cost. She has certain rules, morals if you like, that she would stick to, irrespective of the outcome. She might take the view that bribers can now be justified.
Question 1
Required
a) Highlight the ethical issues in the character of Mr. Ian for the sales case above (10marks)
b) Examine critically the ethical issues in the character of Mrs. Duncan making reference to the case above. (10marks)
c) In the light of good governance advise the entrepreneurs of the respective businesses (10marks)
SECTION B
Question 2
Following global scandals and failures in the United States, and Europe there has been growing demand for corporate governance reform. Discuss the objectives of corporate governance reform, and describe the obstacles that can thwart the reform efforts (20marks)
Question 3
Describe the functions and roles of the principles and codes of good corporate governance. (20marks)
Question 4
The public corporate is owned by a multitude of shareholders but run by professional Managers. Managers can take self-interested actions at the expense of shareholders. In the light of governance and ethics discuss the conditions under which the so called agency problems arises (20marks)
Question 5
Critically Discuss the various options available for making Boards of corporations effective (20marks)
Question 6
Examine the critics view that corporate governance is only good for the multinational company. Support your argument with practical examples. (20marks)
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