Seat No.: ________ Enrolment No.

___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER– IV EXAMINATION – WINTER 2020
Subject Code:3549201 Date:01/01/2021
Subject Name:Business Ethics and Corporate Governance (BECG)
Time:02:00 PM TO 04.00 PM Total Marks: 47
Instructions:
1. Attempt any THREE questions from Q1 to Q6. Q7 is compulsory.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Que-1 (a) Explain the following terms: 6

1. Ethics
2. Managerial Ethics
3. Corporate Social Responsibility
4. Corporate Governance
5. Values
6. Leadership

Que-1 (b) Define the term managerial ethics and explain managerial mischief and 6
managerial mazes.
Que-2 (a) What is CSR? Is CSR same as business ethics? Explain it in detail. 6
Que-2 (b) Explain following ethical concept. 6
1. Ethical Subjection
2. Consequentialism
Que-3 (a) Explain rights and responsibilities of investors and shareholders in brief. 6
Que-3 (b) “ There may be the times when we are powerless to prevent injustice, but 6
there must never be a time when we fail to protest.” Discuss the
importance of the statement with context to ethics of whistle blowing.

Que-4 (a) Explain three dimensions of ethical leadership. 6

Que-4 (b) Explain the Sarbanes Oxley Act of 2002 for corporate governance. 6
Que-5 (a) How important are independent directors in an organization. Give your 6
opinion.
Que-5 (b) What do you mean by ethical leader? Explain qualities of ethical leader 6
in detail.

Que-6 (a) Explain in detail of Principles and structure of corporate governance. 6

Que-6 (b) As an HR head of your organization , focus on the area you should keep 6
in mind for ethical practice related to HR and Marketing.
Que-7 Satyam Computers Limited (Satyam) was a leading global business and 11
information technology (IT) services company, delivering consulting,
systems integration and outsourcing solutions. It began its journey with 20
employees in 1987 and grew to become the fourth-largest software
company in India with a market capitalization of Rs.15,262 crs. Over a
period of two decades, the company built a highly skilled employee base
of 53,000 and was on attractive IT outsourcing destination for a number of
multinational companies across the world. It was given the Golden
 Peacock Global Award twice for its excellence in corporate governance in
2002 and 2008 by the world council for corporate governance. The golden
peacock global award was one among the several honours received by
Satyam for corporate governance. It rated the company with best corporate
governance practices by investor relations global rankings (IRGR) in 2006
and 2007 in the investigation, Ramalinga Raju (Raju) founder and
chairman of Satyam confessed fudging the accounts books of the company
to the tune of Rs.7,800 core. After the government changed the
management, Satyam was taken over by Tech Mahindra (TechM) and was
renamed Mahindra Satyam (Msat). It addressed the customers and
employees’ issues very effectively; yet, even after a year of the takeover,
Msat continues to face a hoard of legal and financial hurdles in stabilizing
the business. Lack of re-instated financial statements has been posing
tough situations for Msat to bag contracts. The Satyam saga poses a
question whether the government should bailout such companies when
they reach a dead end due to financial bankruptcy or moral bankruptcy
resulting in financial bankruptcy endangering the very economic and
corporate image. Questions:
1. What are the ethical violations of corporate governance in the case?
2. How can you prevent these kinds of ethical violations, suggest
some code to stop these kinds of practices?
OR
Que-7 BHOPAL GAS TRAGEDY December 3, 2009, marked the 25th 11
anniversary of the world's worst ever industrial disaster - the gas leak that
occurred at Union Carbide India Ltd's (UCIL) pesticide plant in Bhopal
(Madhya Pradesh, India). The tragedy that instantly killed more than 3,000
people and left thousands injured and affected for life, occurred when water
entered Methyl Isocyanate (MIC) storage tank No. 610 of the plant on
December 3, 1984. MIC is one of the deadliest gases produced in the
chemical industry and is known to react violently when it comes into contact
with water or metal dust. The fact that UCC and then Dow had been able to
evade the real costs of compensation and clean-up, was viewed by critics as
an example of the power and impunity enjoyed by multinational
corporations. The victims' struggle against UCC, and then Dow, were
recognized as the world's longest running struggle against corporate
excesses. Experts felt that the outcome of this struggle would have huge
implications for globalization. And as such, the incident at Bhopal was not
just an industrial disaster from the past century, but a very important issue
of the new millennium of people's right, government responsibility, and
corporate accountability.
Questions:
1. Discuss and debate the stance taken by the multinational
corporation, host government, and other stakeholders following the
disaster.
2. Understand why this tragedy and the outcome reflect the dark side
of contemporary capitalism.