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Bmgt 421: Business Ethics 2009 Question Paper

Bmgt 421: Business Ethics 2009 

Course:Bachelor Of Science

Institution: Kabarak University question papers

Exam Year:2009



KABARAK UNIVERSITY EXAMINATIONS
2008/2009 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF COMMERCE
COURSE CODE: BMGT 421
COURSE TITLE: BUSINESS ETHICS
STREAM: Y4S2
DAY: FRIDAY
TIME: 9.00 – 11.00 A.M.
DATE: 27/03/2009
INSTRUCTIONS:
- Answer Question ONE and any other TWO questions.
QUESTION ONE
a) ABC Ltd is a successful medium size company that supplies parts for electrical
cooker and microwaves.
During an interview by the press, the company’s managing director Mr. Mwatu
Kaza was asked to express his view on social responsibility and how ABC Ltd
reflected a socially responsible position.
Mr. Mwatu began by explaining that the company had never carried out a social
responsibility audit, he thought that the company was a good corporate citizen.
We pay our employees well and provide many fringe benefits. We take a lot of
precautions in the factory and no accidents have happened during the last decade
except for a few minor incidents that only required first aid. Whenever we
receive customers complaints, we make sure that they are handled promptly. We
charge a fair price for our products and services which are of higher quality than
those of our competitors. We pay our bills when due and not evade taxes and
other statutory obligations. Based on the above points, I believe we are a socially
responsible company.
Required:
i) Explain whether you agree with managing director that the company is
acting in an socially responsible manner. (5mks)
ii) Identify and explain the major stakeholders of ABC Ltd. (5mks)
iii) Explain to the MD the business activities the company could undertake to
improve its social responsibility position. (5mks)
b) Unfair activities are common in marketing. Explain your views with examples of
Fast Moving Consumer Goods (FMCG) items (8mks)
c) For marketing of movies lots of unethical scenes are shown. Explain the erosion
of social cultural values involved. (7mks)
QUESTION TWO
a) Explain the various unethical practices in:
i) Financial management and accounting (4mks)
ii) Human resource management (4mks)
iii) Information technology (4mks)
b) Discuss the ethical and unethical aspects of insider trading (4mks)
c) Discuss the sources of business ethics (4mks)
QUESTION THREE
a) Sexual harassment to a person creates hostile work environment to the person.
Explain the factors that could be deemed as sexual harassment (8mks)
b) Discuss the corporate responsibilities vested to international corporations
(12mks)
QUESTION FOUR
a) The authority and responsibility to implement corporate governance rests with the
top management through its CEO. Discuss the benefits that accrue from good
corporate governance. (8mks)
b) The growing attention to business ethics can be attributed to several factors.
Identify and explain these factors. (12mks)
QUESTION FIVE
a) Discuss the ethical issues in fundamental international rights. (8mks)
b) Discuss the non consequential theories that are used in evaluating business ethics.
(12mks)






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