Pir Mehr Ali Shah

Arid Agriculture University, Rawalpindi

Office of the controller of Examinations
Final Exam / Spring 2020 (Paper Duration 48 hours)
To be filled by Teacher

Course No.: MGT-407 Course Title: Ethics in Business

Total Marks: 30 Date of Exam: 14-08-2020
Degree: BBA Semester: 4th Section: A/B
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Registration No.: 18-Arid-879 Name: Syeda Tashifa Batool

Answer the following questions in the specified area (add more lines/insert images if needed).

Q.No.1.

i. Prevailing pandemic caused by COVID-19 has created numerous ethical issues in business world
and societies around the globe. Discuss four such ethical issues with examples. (4 Marks)
Answer:
Covid-19 stances difficulties to firms and associations concerning business. It has been accounted for
that a few firms/retailers have attempted to profiteer from this emergency. So as to control the
possible wide spreading of profiteering, in the UK for instance its opposition guard dog, the
Competition and Markets Authority, set up an exceptional team to take action against organizations
benefitting from the pandemic by blowing up costs or making deluding claims about items. Definitely
this emergency has put organizations under test for its pledge to moral business direct and CSR.
Some may contend that the money related strains, both present moment and long haul, brought
about by the episode could altogether pushed firms to seek after momentary increases, now and
again even through extortion and offense, and lessen long haul CSR speculation, presumably
because of absence of slack assets and mounting pressure for endurance. Luckily, we have seen that
numerous organizations not just have opposed deceptive business work on during this emergency,
yet in addition have proactively occupied with different CSR exercises, especially those that can offer
prompt assistance and help to the battle against the infection. Without a doubt, the current

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pandemic offers a wide scope of noteworthy chances to those with a more careful and astuteness
way to deal with CSR. For instance, UK fabricating organizations changed their industrial facilities to
create ventilators, individual defensive hardware, hand sanitizer, etc., with some of them giving,
rather than selling, these items. Then again post-coronavirus a striking, and furthermore restored,
issue with respect to CSR would be the business instance of CSR, especially in the medium and since
quite a while ago run. The pandemic opens organizations' weakness to uncommon outside powers,
for example, the dark swan occasion of this pandemic. As the business situations are getting more
fierce and unpredictable, with anticipated incredible gloom.
ii. How consumerism is affecting our world as an ethical issue? (3 Marks)
Answer:
Ethical consumerism is a type of political activism dependent on the reason that buyers in business
sectors devour products as well as, certainly, the procedure used to deliver them. From the
perspective of moral industrialism, utilization is a political demonstration that endorses the qualities
epitomized in an item's assembling. By picking certain items over others, or even whether to buy by
any stretch of the imagination, shoppers can grasp or reject specific ecological and work practices
and make other worth cases dependent on the moral qualities they hold. Practicing decision along
these lines makes motivating forces for makers to make creation rehearses adjust to customer
esteems. Environment corruption and biological overshoot Increased waste streams
Planned. Outdated nature Unfulfilling employments; working longer hours for decreased
compensation; work frailty Economic wasteful aspects Uneven asset dissemination Growing
incongruities between the rich and helpless Feelings of disappointment, rejection, of failing to have
enough or being sufficient. Consumerism incorporates the Production of merchandise and
enterprises Variations of consumerism: opulence, prominent utilization, over utilization, degenerate
utilization Quality of life as opposed to obtaining merchandise Relationship among political and
monetary premiums, speculation choices, creation, advertising and conveyance, and utilization
The sets of principles made by moral consumerist developments to guarantee that creation
rehearses stay consistent with specific qualities themselves encapsulate disputable ideas of political
portrayal. What considers a reasonable pay or naturally maintainable practice stays challenged
across political, social, and financial settings. Pundits consider moral to be as a hazardous
marketization of morals whereby the estimations of well off customers "go worldwide," unjustifiably
compelling the opportunity of others. These pundits charge that consumerist developments in
cutting edge nations rush to liken their inclinations with the wellbeing of the workers and ecological
worries for whose benefit they imply to act. Supporting the act of moral industrialism is along these
lines the assumption that utilization, a procedure driven by the worldwide dissemination of riches,
can fill in as a successful proxy for other, more conventional types of law based portrayal, for
example, casting a ballot. Regardless of whether moral commercialization turns into a viable
methods for financial administration in the post national request is not yet clear.

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iii. What is Differential Association? Explain with examples. (2 Marks)
Answer: Differential association is the view in humanism that individuals learn degenerate conduct
through their collaborations with others. First created by Edwin Sutherland in the right on time to
mid-twentieth century, differential association clarifies degenerate conduct. Various gatherings have
various convictions, qualities, and practices; at times a gathering's convictions, qualities, and
practices conflict with standard normal practices. As per differential association, when an individual
connects more with such gatherings than with others, that individual learns freak conduct.
Example: -
A child grows among proficient thieves is bound to figure out how to take; such an individual may
learn not exclusively to view taking as adequate, yet additionally explicit procedures for taking. In
this view, more youthful individuals are bound to learn deviance than more established individual.
Q.No.2.

i. There are two basic dimensions to describe an organization’s culture; concern for people and
concern for performance. What are the four organizational cultures based on these concerns?
Explain with examples. (6 Marks)
Answer:
Corporate culture: -
Corporate culture can be characterized as, "the common convictions top administrators in an
organization have about how they ought to oversee themselves and different workers, and how they
should lead their business.
Leader:-
Leaders are liable for the activities of their subordinates, and companies ought to have moral
corporate societies.
The two dimensions to describe the organizational culture are in which organizations concern for
their personnel and their well- being and also it concern for the output and productivity. The four
organizational cultures are given below;
 Apathetic culture
 Caring culture
 Exacting culture
 Integrative culture
Apathetic culture: -
It shows insignificant worry for either individuals or execution. Here, people center on their own
personal responsibility.
For example: -

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An impassive culture countrywide appeared to show little worry for representatives and clients. The
organization culture seemed to support deceptive lead in return for benefits.
Caring culture: -
A culture displays high worry for individuals however insignificant worry for execution issues. It
might appear to be engaging however hard to keep up.
For example: -
A mindful culture grasps network, causes, treats to its workers fairly, and extend various assets to
upgrade the prosperity of client.
Exacting culture: -
An exacting culture shows little worry for individuals however a high worry for execution; it centers
on the interests of the association.
For example: -
A demanding society are held to exclusive requirements to guarantee greatest performance,
consistency of conveyance, and effectiveness.
Integrative culture: -
An integrative culture joins a high worry for individuals and execution. An integrative culture
consistently search for far to extend and improve execution.
For example: -
It shows a high worry for individuals through network causes, manageability, and representative
social insurance.

Q.No.3.

i. What are the five key reasons that ‘codes of ethics’ fail? (5 Marks)
Answer: Most codes come up short since they raise unreasonable desires or they attempt to control
excessively. Codes that require over the top revealing and following can create skepticism inside the
association and among general society. The quest for total respectability can be a blockhead's
interest if the outcome is authoritative inadequacy. A move in political initiative can likewise push a
working code to the edge of total collapse. "It isn't remarkable for new political pioneers to either
de-stress morals programs or to reprimand them as being insufficient. At last, codes can fall flat if
there is no idea of an expert open assistance or on the off chance that they basically get old.
Changes in innovation, the legitimate structure, or the hierarchical culture that happen after some
time require a persistent assessment of the code of ethics. The code isn’t advanced and
representatives don't peruse it. The code isn't effectively open. The code is return legalistically and
don't comprehend by representatives. Composed too ambiguously, giving no precise direction. Top
the executives never alludes to the code in the body. An organization set of accepted rules is a lot of
rules which is ordinarily composed for representatives of an organization, which secures the

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business and illuminates the workers regarding the organization's desires. It is suitable for even the
littlest of organizations to make a report containing significant data on desires for representatives.
The report shouldn't be perplexing, or have expand strategies. A code of ethics is a guide of
standards intended to assist experts with leading business sincerely and with honesty. A code of
ethics record may layout the strategic estimations of the business or association, how experts should
move toward issues, the moral standards dependent on the association's guiding principle, and the
norms to which the expert is held. A code of ethics additionally alluded to as a "moral code," may
include zones, for example, business morals, a code of expert practice and a worker set of principles.
A code of ethics sets out an association's ethical rules and best practices to follow for
trustworthiness, uprightness, and professionalism. For individuals from an association, disregarding
the code of morals can bring about approval including termination. In a few ventures, including
banking and account, explicit laws oversee business lead. In others, a code of morals might be
willfully received.
ii. What are the five benefits of ethics auditing? (5 Marks)
Answer: The Ethics Audit: -
Systematic assessment of an association's ethics program and execution to decide if it is effective
regular, complete, and archived of consistence with strategies and techniques. It is very well may be
an antecedent to setting up a morals program. It helps to recognize the company's present moral
guidelines, arrangements, and hazard zones. Recognize possible dangers and liabilities and improve
legitimate consistence. It can be key in improving hierarchical execution and improved associations
with stakeholders. Pressure to represent activities in zones including corporate administration,
morals programs, client connections, representative relations, natural strategies, and network
contribution.
Ethical Crisis Management: -
Plans to react to and recoup from catastrophes that can disturb activities, pulverize authoritative
notoriety and disintegrate investor certainty. Includes possibility arranging, evaluating authoritative
dangers, anticipating likely events and giving apparatuses to react.
Measuring Non-financial Ethical Performance: -
Ethics auditing centers around non-budgetary regions of execution for an organization to guarantee
the uprightness in everything organization does. Non-money related proportions of execution are
vital to a company's well-being.
Benefits of auditing: -
Morals reviewing process is attached to consistent improvement that is firmly identified with
improved money related performance. The evaluating procedure can feature patterns, improve
authoritative learning, and encourage correspondence and working connections. Morals inspecting
carries improved associations with partners who want more prominent straight forwardness.

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iii. What are the six stages of cognitive moral development? Explain with examples. (5 Marks)
Answer: people have different opinions and they have different ideas about their lives because they
have different moral development stages. There are six stages that will be discuss below. These are ;
 Stage of punishment & obedience
 Instrumental orientation
 Good boy nice girl orientation
 Law & order orientation
 Social contract orientation
 Universal-ethical-principal orientation
1st stage: punishment and obedience: -
It centers on the child's craving to obey controls and abstain from being rebuffed. Following the
'great' and 'awful' characterized by somebody in authority because of dread of punishment.
For instance, an activity is seen as ethically wrong in light of the fact that the culprit is rebuffed; the
more terrible the discipline for the demonstration is, the more "awful" the demonstration is seen to
be.
2nd stage: instrumental orientation: -
Communicates, “How might this benefit me?" position, in which right conduct is characterized by
whatever the individual accepts to be to their greatest advantage. Stage two thinking shows a
constrained enthusiasm for the requirements of others, just too where it may facilitate the person's
own advantages. Accordingly, worry for others did not depend on steadfastness or inborn regard,
yet rather a "do something for me and I'll return the favor" attitude. A model would be the point at
which a youngster is asked by his folks to do an errand. The kid asks "how might this benefit me?"
and the guardians offer the kid an impetus by giving him a recompense.
3rd stage: good boy nice girl: -
Children need the endorsement of others and act in approaches to stay away from objection.
Accentuation is put on acceptable conduct and individuals being "pleasant" to other people. Dealing
with the interests of others alongside one's own and keeping the guidelines.
4th stage: -law& order orientation: -
Child indiscriminately acknowledges rules and show in view of their significance in keeping up a
working society. Rules are viewed just like the equivalent for everybody, and obeying rules by doing
what one is "assumed" to do is viewed as significant and significant. Moral thinking in stage four is
past the requirement for singular endorsement showed in stage three. On the off chance that one
individual disregards a law, maybe everybody would—along these lines there is a commitment and
an obligation to maintain laws and rules. Most dynamic citizenry stay at stage four, where profound
quality is still overwhelmingly directed by an outside power.
5th stage: social contract orientation: -

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The world is seen as holding various sentiments, rights, and qualities. Such points of view ought to
be commonly regarded as extraordinary to every individual or network. Laws are viewed as implicit
understandings instead of unbending orders. Those that don't advance the overall government
assistance ought to be changed when important to meet the best useful for the best number of
individuals. This is accomplished through greater part choice and unavoidable trade off. Law based
government is hypothetically founded in front of an audience five thinking.
6th stage: universal ethical principle orientation: -
Moral thinking depends on unique thinking utilizing general moral standards. For the most part, the
picked standards are conceptual instead of cement and spotlight on thoughts, for example, balance,
pride, or regard. Laws are substantial just to the extent that they are grounded in equity, and a
guarantee to equity conveys with it a commitment to resist vile laws. Individuals pick the moral
standards they need to follow, and on the off chance that they disregard those standards, they feel
remorseful. Along these lines, the individual demonstrations since it is ethically option to do as such
(and not on the grounds that the person needs to keep away from discipline), it is to their greatest
advantage, it is normal, it is legitimate, or it is recently settled upon. In spite of the fact that Kohl-
berg demanded that stage six exists, he thought that it was hard to distinguish people who reliably
worked at that level.

**THE END**

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