JUNE 2021 MAIN EXAMINATION

TAKE HOME EXAMINATION QUESTION PAPER

PROGRAMME Master of Business Administration:9

MODULE Governance and Sustainability

MBA 9_GOVSU_23 June 2021_S1

INSTRUCTIONS TO CANDIDATES:

• Students are required to carefully read and fully understand the questions before

answering them.

• Students must answer the questions fully but concisely and as directly as possible using

sufficient research and application.

• Students should follow all specific instructions for individual questions (e.g., “list”, “in

point form”, “show all workings”).

• The mark allocation is there to show you the weighting and length of each question.

• The assessment must be your own work only, plagiarism cases will be investigated.

• Students are to read the examination requirements, rules and instructions on the Home

Page of the Regent Online platform.

• An additional 15 minutes have been granted for set up and reading time.

DATE: 23 June 2021 TIME: 08h30 - 12h30

DURATION: 4 Hours MARKS: 100

EXAMINER: Joseph D Dr MODERATOR: Kharsany K

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QUESTION ONE [40]
Read the following article and answer questions that follow.

CSR AND SOCIAL CHANGE

Source: Putting the S Back in Corporate Social Responsibility: A Multilevel Theory of Social Change in Organisations |
Cynthia Williams - Academia.edu. Accessed on 9 March 2021. Edited for examination purposes by the Examiner.

In 1996, it was alleged that Royal Dutch Shell supported the Nigerian military to execute the writer,
Ken Saro-Wiwa and several other Ogoni community members for their political organising against
Shell. The public outcry related to this event, and the contemporary environmental controversy over
Shell's decision to discard the Brent Spar oil drilling platform in the North Sea, caused Shell to
change its social outlook and relationships with host countries and consumers. In response, Shell re-
evaluated its operating principles to establish more explicit human rights guidelines and issued its
first social report. Although this example represents reactive social change, there are many
examples of proactive social change.

Many corporations are engaging in "triple bottom line" thinking, which suggests an organisation's
success hinges on economic profitability, environmental sustainability, and social performance (Hart
& Milstein, 2003). Over half of the Fortune Global 500 MNCs produce a separate CSR report
annually (Williams, 2004), and most have senior executives with responsibility for CSR efforts
(Economist, 2005).

One premise in our analysis is that, in either case (reactive or proactive CSR initiatives),
corporations are being pressured by internal and external actors to engage in CSR actions to meet
rapidly changing expectations about business and its social responsibilities (Clark & Hebb, 2004;
Cuesta Gonzalez & Valor Martinez, 2004; Economist, 2005). Another premise is that organisational
practices such as CSR are exposed to decoupling effects, so that some companies introduce CSR
practices at a superficial level for window-dressing purposes. In contrast, other companies embed
CSR into their core company strategy (Weaver, Trevin & Cochran, 1999). We further assume that
companies' responses to changing social expectations—particularly their serious implementation of
CSR initiatives into their strategic goals—have the potential to change their corporate culture and
impart real social change. As one example among many CSR initiatives leading to positive social
change, we point to the Chiquita company, which has implemented living wage standards for all its
farmworkers in every country in which it operates (Taylor & Scharlin, 2004). We assume that such
efforts are being replicated by numerous other global companies in every sector (Global Compact,
2005).

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1.1 According to Hart & Milstein (2003), "Many corporations are engaging in "triple bottom line"
thinking, which suggests an organisation's success hinges on economic profitability,
environmental sustainability, and social performance".
In light of this statement, evaluate the Triple Bottom Line (TBL) approach toward an
organisation's sustainability and critique its feasibility in achieving the desired results.
(20)

1.2 In the case of Shell and the Nigerian military, the failure to adhere to practices of good
governance resulted in, among other things, the demise of an important stakeholder. Identify
and discuss sound governance principles and elaborate on those principles that the Shell
organisation ignored that eventually led to a fresh social outlook by the organisation, all be it
somewhat reactively. (20)

QUESTION TWO [20]

Analyse and discuss the different approaches that have characterised stakeholder theory and
elaborate on the implications of these approaches on stakeholder management.

QUESTION THREE [20]

Critically analyse the arguments for and against corporate social responsibility.

QUESTION FOUR [20]

Under the broad ambit of justice and society, analyse and discuss John Rawls' "Principles of
Justice".

END OF THE QUESTION PAPER

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