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ANIL SURENDRA MODI SCHOOL OF COMMERCE

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Academic Year: 2019-2020 LI Z F5 -i?" £!,I- I?' ¥,

Program: B.Sc.Finance Year: III Semester:

Subject: Environmental Management and

Batch: 2017-20
Corporate Governance
Date: 26 November 2019 Time: 3.30 pin -5.30 pin (2 Hrs)

Marks: 60 No. of Pages:i

Final Examination

Instructions:

1. Figures to the right indicate marks

2. All the questions are compulsory

3. Internal choice is provided in question 1 and 2

Write short notes on

Attempt Any Five

1 Write short notes on thefollowing terms. (Attemptanyfive) (5x2 Marks= 10 Marks) 10

(a) Moral Development

(b) Moral Equilibrium

(c) Code of Ethics

(d) Sharing Economy

(e) Social Entrepreneurship

(D Conscious Capitalism

Answer the following question

Attem pt Any Two

2 Answerthefollowing questions(Attemptanytwo)(10 Marks) 10

(a) The 1991 Gulf War was a triumph for CNN. The network emerged from the war not
simply as the world's network of record but as the one that proved the indispensability

of 24-hour television news at moments of crisis. But as the 2003 war in Iraq winds down,
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CNN leaves the field with its reputation battered. In an Opinion piece in The IV€w York

ri.mes, CNN's news chief, Eason Jordan, wrote: "Each time I visited, I became more

distressed by what I saw and heard -awful things that could not fie reported because

doing so would have jeopardised the lives of Iraqis, particularly those on our Baghdad

staff." Jordan acknowledged in 2003 that for years the network had sugar-coated

coverage of saddam Hussein's human rights atrocities to maintain access to the Iraqi

dictator. Jordan said reporting Saddam's crimes would have endangered CNN reporters

in Iraq and meant the closing of the network's Baghdad bureau. But critics said CNN's

glossing over of Saddam`s misdeeds was happening at a time when the United States
was debating whether to go to war to remove him from power. As Franklin Foer wrote

in The Wcr// 5freef Joumcy/, "CNN could have abandoned Baghdad. Not only would they

have stopped recycling lies, they could have focused more intently on obtaining the

truth about Saddam."

What is the role of media in a democracy? Discuss the ethicality of CNN in the
above mentioned case. (2+3)

(b) In 2007, the European Investment Bank issued its first green bond, a EUR 600 million
equity index-linked security, whose proceeds were used to fund renewable energy and

energy efficiency projects. A year later, the World Bank followed suit, and by 2017, over

$155 billion worth of public and corporate green bonds had been issued, paving the way

for the Seychelles government to issue the first ever `'blue bond" last year-a $15

million bond to fund marine protection and sustainable fisheries. The investors are

increasingly conscious of the social and environmental consequences of the decisions

that governments and companies make. The result has been an increasing demand for

integrating Environmental, Social, and Governance (ESG) criteria into investment

decisions. In the beginning of 2018,$11.6 trillion of all professionally managed

assets-one $1 of every $4 invested in the United States-were under ESG investment

strategies, a sharp increase from 2010, when the amount was close to just $3 trillion

overall. The through-line that ties together these new investing models and strategies is

quite simple: While they have generated competitive returns, it so happens that they all

positively benefit society as well. Essentially what investors want is the performance

promise of financial engineering combined with the assurance of a better tomorrow.

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__.,, ::ine. environmental strategy. Write any three drivers behind prioritizing
environment in business decision making. (2+3)

(c) The former Google software engineer felt a mix of emotions as she watched
the massive walkouts protesting sexual harassment at the corporation's offices across

the globe. She said it was moving to see thousands of employees demonstrate, but that

it was hard not to feel frustrated and stuck on a nagging question: what took so long?

She also wondered if Google would ever say sorry. When Ellis tweeted her accusations, it

was also long before anuber scandalsparked a mainstream debate

aboutdiscrimination in Silicon Valley, and before the#MeToo movement exposed

rampant sexual abuse in many industries. Ellis, who was first hired in 2010 as a software

engineer for Google Photos, eventually discovered that other male software engineers

who were less qualified or at the same level were placed and promoted into higher

positions than hers, according to her lawsuit, which could affect more than 8,000
current and former employees. Google ``segregated" her and other women into less

prestigious and lower-paying engineering roles then men, and she quit in 2014 due to
the "sexist culture at Googie". A year later, she made headlines when she alleged that

she was sexually harassed by her male superiors and faced inappropriate comments,

and that Google failed to support her.

In light of the above case, elaborate on the true meaning of CSR. Also, brief on any
two drivers of CSR. (3+2)

Ethical dilemma

3 Read the below mentioned dilemma and answerthefollowing questions (20 Marks) 20

Abortion is a difficult issue, no one approaches it lightly or makes a decision about

whether to have an abortion lightly. Abortion also touches upon a significant number of

important, fundamental ethical questions: the nature of person-hood, the nature of

rights, human relationships, personal autonomy, the extent of state authority over

personal decisions, and most specifically the never ending war with religion. For some

people, their approach to the ethical questions will be purely secular; for others, it will
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 be heavily informed by religious values and doctrines. There is nothing inherent,ly wrong

or superior to either approach. What would be wrong, however, would be to ima'gine

that religious values should be the determining factor in thes'e debates. However
\
important religious values may be to someone, they cannot become the basis for laws

that apply to all citizens.

Religions have taken strong positions on abortion; they believe that the issue

encompasses profound issues of life and death, right and wrong, human relationships

and the nature of society, that make it a maj.or religious concern. People involved in an

abortion are usually affected very deeply not just emotionally, but often spiritually, as

well. They often turn to their faith for advice and comfort, for explanation of their

feelings, and to seek atonement and a way to deal with their feelings of guilt.For them

it.s not just a matter that concerns a human being and their conscience, but something

that concerns a human being and their God.

Similar dilemma arose when Mrs. D]soza was expecting her baby for the second time.

Mr and Mrs D'soza had been married for 8 years. Mrs D'soza lost her first child due to

miscarriage and severe health issues. Both of them were extremely happy as they were

going to welcome their baby after 8 years. But in the 4th month of pregnancy they came
to know that she is suffering from serious gynaecological disorder which can risk her life

and also lead to biological disorder of the baby and therefore they were advised to abort

their child. Mr and Mrs D'soza are strong follower of Christianity and their religion

consider abortion as a sin. But Mr D'soza considering the life threatening risk to his wife,

due to delivery, decided to abort the child.

(a) Elaborate on the co-relation between values, morals, ethics and laws. Decide the

ethicality of the decision taken by Mr. D'soza and justify the same on the basis of the

theory of Consequentialism or Non-Consequentialism. (5+5)

(b) Differentiate between consequentialism and behavioural ethics. Do you fine the role
of behavioural ethics in decision making in the above case. Justify your stand.(5+5)

Long case study

4 Read the below mentioned casestudyand answerthefollowing questions(20 Marks) 20

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Arabian Sea for decades, continues to defy closure orders and coerc'e the authorities to

grant it more to comply with the environmental laws. The agency welding the stick is the
Supreme Court monitoring committee (SCMC) on hazardous waste. The committee

made its first visit to Kerala in August 2004. The State Pollution Control Board (PCB)

within months of SEMC's visit identified 108 out of 120 industries way below the

minimum standard limit of hazardous level. It was found that TTP was continuously

discharging year by year even after the Water and Air Acts came into force in mid-1970.

According to PCB, the company discharged 2,073,577,400 Kg hazardous liquid effluent

into the Sea during 2003-2004, among which free concentrated Sulphuric Acid was

present at a concentration level of 5,47,246 milligram of dry water, well above the

prescribe limit in the hazardous waste rules. Even till date the company has no material
recovery or waste water treatment facility installed in their plant. They even won a case

filed against them under the water act by the water appellant authority. Fish and other

marine species have deserted the area and the fisheries economy have also faced a set

back as the fishermen living on the coast for decades enduring the acidic discharge and

pungent smell of deep yellow brown crust of the sea. Their frequent agitations have
remained unheard rather they were even forced to withdraw agitation on the basis of

employment.

Till date TTP generates around 120 tonnes of concentrated sulphuric acid every day

along with lesser quantities of ferrous sulphate as waste products. Strange thing is, lTP

under the pretext of complying with the Supreme Court directions, is proposing to

undertake the pollution control through the costliest recovery route, along with

substantive expansion and diversification programmes. TTP successfully managed till

now by claiming that the the company has been trying the level best to neutralise the

the waste effluents so discharged in the sea and has no harm to the ecosystem.

The matter became worse when a wide spread epidemic at one of the coastal village of

Kerala leading to the death of more than 100 people and hospitalization of many,

majority of them being children, women and old aged.On investigation it was found that
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 \
the pH level of the drinking water was around 1 against the range of 5.5-9.0, ir]dicat.ing \
very high acidity. Astonishingly, the state government instead of taking immediate

action approved rupees 256 Cr project promising the comparny's expansion and

diversification need, keeping into consideration that TTP is one of the few profit making

PSU, leading to the involvement of politicians and local authorities, especially members

of the state pollution control and even the chief ministers office. Upon investigation it

was also observed that despite of regular orders and directions from the District Court,

TTP has remained successful in ignoring the same and still carrying the methodology,

From the pollution control perspective, however, the company that the PCB ordered to

be closed for flouting pollution control norms was being allowed to expand capacity and

diversify without addressing, in any way, the PCB's directions in the closure notice. The

case against TTP is now at the Centre under the Anti-Hazardous waste campaign by the

SCMC launched in Kerala but the justice still waits.

(a) What is stakeholder theory ? Identify the stakeholders of TTP and map them in
Mendelow's matrix. (2+3)

(b) What is the relevance of Triple-bottom Line for a successful business? What ethical
dilemmas a company may face while incorporating environmental concerns in their

business strategy. (2+3)

(c) With reference to the above case highlight the importance of corporate governance.
Has TTP violated the drivers of CSR? Justify your stand. (5+5)