Section A
·
Corporate
Social Responsibility makes companies more profitable and
sustainable. Analyse. 2017
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·
In contemporary world, corporate
sector’s contribution in generating wealth and employment is increasing. In
doing so, they are bringing in unprecedented onslaught on the climate,
environmental sustainability and living conditions of human beings. In this
background, do you think that Corporate Social Responsibility (CSR) is efficient
and sufficient enough to fulfill the social roles and responsibilities
needed in the corporate work mandated? Critically examine. 2022
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·
What do you understand by ‘moral integrity’ and ‘professional
efficiency in the context of corporate governance in India? Illustrate with
suitable examples. 2023
Section B
2016 – Corporate Company in Backward Area
ABC Ltd is a large transnational company having
diversified business activities with a huge shareholder base. The company is
continuously expanding the generating employment. The company, in its expansion
and diversification programme, decides to establish a new plant at Vikaspuri,
an area which is underdeveloped. The new plant is designed to use energy
efficient technology that will help the company to save production cost by 20%.
The company’s decision goes well with the Government policy of attracting
investment to develop such underdeveloped regions. The government has also
announced tax holiday for five years for the companies that invest in
underdeveloped areas. However, the new plant may bring chaos for the
inhabitants of Vikaspuri region, which is otherwise tranquil. The new plant may
result in increased cost of living, aliens migrating to the region, disturbing
the social and economic order. The company sensing the possible protest tried
to educate the people of Vikaspuri region and public in general that how its
Corporate Social Responsibility (CSR) policy would help overcome the likely
difficulties of the residents of Vikaspuri region. In spite of this the
protests begin and some of the residents decided to approach the judiciary as
their plea before the Government did not yield any result.
a) Identify
the issues involved in the case
b) What
can be suggested to satisfy the company’s goal and to address the residents’
concern?
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2020 – A Progressive Model of Ethical Entrepreneurship with some
limitations
Parmal is a small but underdeveloped district. It
has a rocky terrain that is not suitable for agriculture, though some
subsistence agriculture is being done on small plots of land. The area receives
adequate rainfall and has an irrigation canal flowing through it. Amria, its
administrative centre, is a medium-sized town. It houses a large district
hospital, an Industrial Training Institute and some privately owned skill
training centres. It has all the facilities of a district headquarters. A trunk
railway line passes approximately 50 kilometers from Amria. Its poor
connectivity is a major reason for the absence of any major industry therein.
The state government offers a 10 year tax holiday as an incentive to new
industry.
In 2010 Anil, an industrialist decided to take
benefits to set up Amria Plastic Works (APW) in Noora village, about 20km from
Amria. While the factory was being built, Anil hired the required key labour
and got them trained at the skill training centres at Amria. This act of his
made the key personnel very loyal to APW.
APW started production in 2011 with the labour drawn
fully from Noora village. The villagers were very happy to get employment near
their homes and were motivated by the key personnel to meet the production
targets with high quality. APW started making large profits, a sizeable portion
of which was used to improve the quality of life in Noora.
By 2016, Noora could boast of a greener village and
a renovated village temple. Anil liaised with the local MLA to increase the
frequency of the bus services to Amria. The government also opened a primary
health care centre and primary school at Noora in buildings constructed by APW.
APW used its CSR funds to set up women’s self-help groups, subsidize primary
education to the village children and procure an ambulance for use by its
employeed and the needy.
In 2019, there was a minor fire in APW. It was
quickly extinguished as fire safety protocols were in place in the factory.
Investigations revealed that the factory had been using electricity in excess
of its authorized capacity. This was soon rectified. The next year, due to
nationwide lockdown, the requirement of production fell for four months. Anil
decided that all employees would be paid regularly. He employed them to plant
trees and improve the village habitat.
APW had developed a reputation of high-quality
production and a motivated workforce.
a) Critically
analyse the story of APW and state the ethical issues involved.
b) Do
you consider APW as a role model for the development of backward areas? Give
reasons.
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2015 – R&D Laboratory - Profit
vs Helping Poor People
One of the scientists working in the R&D
laboratory of a major pharmaceutical company discovers that one of the
company’s bestselling veterinary drugs has the potential to cure a currently
incurable liver disease which is prevalent in tribal areas. However, developing
a variant of the drug suitable for human being entailed a lot of research and
development having a huge expenditure to the extent of Rs. 50 crores. It was
unlikely that company would recover the cost as the disease was rampant only in
poverty stricken areas having very little market otherwise.
If you were the CEO, then
(a) Identify
the various actions that you could take
(b) Evaluate
the pros and cons of each of your actions
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2021 – Food Product Company – Economic Interest vs Ethical
Responsibility
A reputed food product company based in India
developed a food product for the international market and started exporting the
same after getting necessary approvals. The company announced this achievement
and also indicated that soon the product will be made available for the
domestic consumers with almost same quality and health benefits. Accordingly,
the company got its product approved by domestic competent authority and
launched the product in Indian market. The company could increase its market
share over a period of time and earned substantial profit both domestically and
internationally.
However the random sample test conducted by the
inspecting team found the product being sold domestically in variance with the
approval obtained from competent authority. On further investigation it was
also discovered that the food company was not only selling products which were
not meeting the health standards of the country but also selling the rejected
export products in the domestic market. This episode adversely affected the
reputation and profitability of the food company
a) What
action do you visualize should be taken by the competent authority against the
food company for violating the laid down domestic food standard and selling
rejected export products in domestic market?
b) What
course of action is available with the food company to resolve the crisis and
bring back its lost reputation?
c) Examine
the ethical dilemma involved in the case.
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2022 – Shoe Company - Inspecting Team – Pressure to Clear the
Consignment - Defects
You have done MBA from a reputed institution three
years back but could not get campus placement due to COVID-19 generated
recession. However, after a lot of persuasion and series of competitive tests
including written and interview, you managed to get a job in a leading shoe
company. You have aged parents who are dependent and staying with you. You also
recently got married after getting this decent job. You were allotted the
Inspection Section which is responsible for clearing the final product.
In first one year, you learnt your job well and was
appreciated for your performance by the management. The company is doing good
business for last five years in domestic market and this year it is decided
even to export to Europe and Gulf countries. However, one large consignment to
Europe was rejected by their Inspecting Team due to certain poor quality and
was sent back. The top management ordered that ibid consignment to be cleared
for the domestic market.
As a part of Inspecting Team, you observed the
glaring poor quality and brought to the knowledge of the Team Commander.
However, the top management advised all the members of the team to overlook
these defects as the management cannot bear such a huge loss. Rest of the team
members except you promptly signed and cleared the consignment for domestic
market, overlooking glaring defects.
You again brought to the knowledge of the Team
Commander that such consignment, if cleared even for domestic market, will
tarnish the image and reputation of the company and will be counter-productive
in the long run. However, you were further advised by the top management that
if you do not clear the consignment, the company will not hesitate to terminate
your services citing certain innocuous reasons.
(a) Under
the given conditions, what are the options available to you as a member of the Inspecting
Team?
(b) Critically
evaluate each of the options listed by you.
(c) What
option would you adopt and why?
(d) What
are the ethical dilemmas being faced by you?
(e) What
can be the consequences of overlooking the observations raised by the
Inspecting Team?
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