BBA/B.Com Business Ethics & Corporate Governance SEP 2025

Description

Business Ethics and Corporate Governance

Sep 2025 Examination

 

 

Q1. A mid-sized technology company is facing declining profits due to increased competition and market saturation. The executive team is considering a significant reduction in workforce to cut costs and satisfy shareholder expectations. However, several managers are concerned that such layoffs will damage employee morale, erode the company’s collaborative culture, and harm its reputation among customers and future talent. The board is divided: some members argue for immediate action to protect financial performance, while others advocate for a more ethical approach that balances business needs with employee well-being. Based on the scenario, how should the leadership team apply utilitarian and deontological frameworks to resolve the ethical dilemma of laying off employees to improve short-term profitability, while also considering the long-term impact on organizational culture and stakeholder trust? (10 Marks)

Ans 1.

Introduction

Ethical dilemmas in organizational decision-making often arise when leadership must choose between financial performance and broader responsibilities toward stakeholders. The given scenario presents a conflict where a mid-sized technology company faces declining profits due to market pressures, leading to considerations of workforce reductions to satisfy shareholders. However, such a decision risks damaging employee morale, collaborative culture, and long-term stakeholder trust. Ethical frameworks such as utilitarianism and deontology provide structured approaches to guide decision-making in such complex situations. Utilitarianism emphasizes outcomes and

 

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Q2. WeWork, a co-working space provider, experienced explosive growth, expanding to 500 cities and becoming the largest office space leaseholder in several major markets. However, the company’s leadership promoted a ”work hard, play hard” culture, with reports of excessive partying, unrealistic expectations, and questionable business practices. As the company prepared for its IPO, concerns about governance, transparency, and ethical conduct surfaced, leading to a dramatic collapse in valuation and loss of stakeholder trust. Evaluate the ethical challenges faced by WeWork’s leadership during its rapid global expansion, particularly in relation to its workplace culture and stakeholder interests. What alternative strategies could have been employed to better align business growth with ethical practices? (10 Marks)

Ans 2.

Introduction

WeWork’s meteoric rise in the global co-working market exemplifies the challenges organizations face when rapid business expansion is pursued without balanced ethical considerations. As the company expanded to over 500 cities, its leadership aggressively promoted a “work hard, play hard” culture that emphasized growth at all costs, often at the expense of workplace ethics, governance, and stakeholder interests. Reports of excessive partying, unrealistic performance expectations, and questionable business practices raised concerns about transparency and accountability, ultimately leading to a failed IPO attempt, plummeting valuation, and loss of stakeholder trust. This case highlights the importance of integrating ethical

 

 

Q3(A). A large food processing company is planning to launch a corporate social responsibility (CSR) program focused on community health. However, there are conflicting interests among shareholders, employees, local communities, and regulators. The company needs a stakeholder engagement framework that ensures all voices are heard and balanced. Create a stakeholder engagement framework for a company seeking to implement a new CSR initiative that balances economic, legal, ethical, and philanthropic responsibilities. How would your framework address potential conflicts among stakeholder groups? (5 Marks)

Ans 3a.

Introduction

Launching a Corporate Social Responsibility (CSR) program that focuses on community health requires an inclusive approach that considers the interests of all stakeholders. A large food processing company must balance the expectations of shareholders seeking profitability, employees advocating for fair workplace practices, local communities expecting health benefits, and regulators ensuring compliance. A structured stakeholder engagement framework can guide decision

 

Q3(B). In the above case, How Would the CSR initiative  fulfill the  economic, legal, ethical, and philanthropic responsibilities towards the community & business organisation. (5 Marks)

Ans 3b.

Introduction

Corporate Social Responsibility (CSR) initiatives must go beyond philanthropy to address the four dimensions of corporate obligations: economic, legal, ethical, and philanthropic responsibilities. For a food processing company launching a community health-focused CSR program, balancing these responsibilities is crucial to ensure that the initiative benefits both the community and the organization. By integrating social welfare objectives with business goals, CSR can create long-term value while strengthening stakeholder trust, ensuring compliance, and enhancing the company’s overall