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Faculty of Management Sciences

Department of Management

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2ND OPPORTUNITY/SUPPLEMENTARY EXAMINATION QUESTION PAPER

SUBJECT: BUSINESS ETHICS SUBJECT CODE: BBE612S Date: Janurary 2016 Duration: 3 HOURS TOTAL MARKS: 100

List of Examiners: Ms. B Kahurumba

Ms. 0 Kangandjo

Mr. B Zealand

Ms. E Olivier

Moderator:

Ms. D Carballo

Ms. J Hambabi

Mr. J Ojo

(This question paper consists of 8 pages including this cover page)

Instructions: 1. All questions are compulsory. 2. This Question Paper consists of Three Sections (A , Band C). 3. Answer all questions on the answer book provided, except question 1 section A. 4. Question 1 Section A should be answered on the answer sheet provided on page 8 of this question

paper. Detach the answer sheet and submit it with your answer book before you leave the exam hall. NOTE: Do not forget to fill in your details on question 1 section A answer sheet.

5. Write as neatly and clearly as possible. 6. Number your answers correctly and clearly. Failure to db so will attract penalty. 7. Write as neatly and clearly as possible. Start each question on a new page. 8. Calculators are NOT allowed.

GOOCV bUCK!!

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!SECTION AI Question 1 [2x20=40]

Multiple choice questions from 1 - 20. Cross in the appropriate box on the Answer Sheet provided for this question. The answer sheet is attached on pages nine and ten of this question paper. Please submit your answer sheet with your answer book.

1.1 Which slogan best fits with the social costs view of producers' & vendors' responsibilities to consumers? a. caveat emptor- let the buyer beware. b. caveat vendor- let the seller take care. c. Both of the above. d. None ofthe above.

1.2 Arguments against discrimination are: a. Utilitarian, rights, and justice arguments b. Rights, entitlements, and fairness arguments c. Justice and Kantian arguments d. Civil and criminal

1.3 "It might be true that society as a whole would benefit by having some group discriminated against" is alan __ argument for discrimination. a. Kantian b. Utilitarian c. Capitalist d. Communist

1.4 Since the jobs women have historically taken pay low wages and salaries, proponents of _____ ｟Ｎｾｲｯｧｲ｡ｭｳ＠ attempt not to place women into higher paying jobs, but to increase the salaries of those jobs where women currently are employed. a. Competitive Value b. Competitive Position c. Comparable Worth d. Comparable Equity

1.5 Risks are sometimes unavoidable and acceptable as long as: a. Employees are not coerced b. Employees are fully compensated for assuming them and they do so freely and

knowingly c. No one else has the expertise to do the work d. All the above

1.6 A firm's main moral duty to its employees is to provide them with: a. Clean working environment b. Friendly supervisors c. Medical and dental insurance d. Fair wage and fair working conditions

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1. 7 An employer can be guilty of sexual harassment: a. only when it intentionally allows particular acts of harassment. b. only when it intentionally creates an intimidating, hostile, or offensive working

environment. c. whenever a woman is offended in the workplace. d. even if the employer had expressly forbidden the act of sexual harassment.

1.8 Which of the following factors is not relevant when considering the morality of a gift given to an employee of an organization? a. What is the purpose of the gift? b. Is the gift forbidden by law? c. What is the value of the gift? d. Who gave the gift to the employee?

1.9 The following is not a form of discrimination a. Isolated and intentional discrimination b. Unintentional and isolated discrimination c. Isolated and institutional discrimination d. Institutional and unintentional discrimination

1.10 Which ofthe following issues is not investigated by Business Ethics? a. Systematic issues b. Individual issues c. Corporate issues d. Public Enterprise issues

1.11 .......... is a system of normative beliefs shared by members of same social group. a. Economic System b. Tradition -based societies c. Free market d. Ideology

1.12 The real purpose of Government according to Marx is: a. To protect the interest of all individuals. b. To protect the interest of the ruling class. c. To protect society's rules and norms. d. To protect freedom and equality.

1.13 Select two correct criticisms of Marx a. The benefits of private property; mass production in the hands of leads to surplus. b. Creates industrial power of a few; factories replaces markets with machines. c. Justice requires free markets; free markets can encourage community instead of

causing alienation. d. Generates injustice; violates individual rights

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1.14 What is job discrimination? a. To make positive decisions against employees who belong to a certain class because of

morally unjustified prejudice toward members of that particular class. b. To make a good decision against employees who belong to a certain class because of

morally unjustified prejudice toward members of that particular class. c. To make a adverse decision against employees who belong to a certain class because of

morally justified prejudice toward members of that particular class. d. To make an adverse decision against employees who belong to a certain class

because of morally unjustified prejudice toward members of that particular class.

1.15 Which one is not an argument against discrimination? a. Utilitarian argument b. Rights argument c. Justice argument d. Affirmative argument

1.16 The following are characteristics of monopoly market except: a. One seller b. Quantity below equilibrium c. Prices above equilibrium and supply curve d. No barriers to entry

1.17 Fish Del ish is chain of food stores whose major product is fish. Fish Del ish would sell a franchise license to a person only if the person also agreed to purchase a certain number of cookers, fryers, and other supplies. This is an example of: a. Tying arrangement b. Exclusive dealing arrangement c. Retail price maintenance agreement d. Manipulation of supply

1.18 If Toyota raises the prices of its new models of pickup trucks by 4 percent and General Motors and Ford follow by raising prices by a similar amount, then this is evidence of: a. a monopoly. b. an oligopoly c. pure competition d. monopolistic competition.

1.19 Which of the following is NOT a valid criticism on the ethics of advertising? a. Advertising uses images that many find vulgar and offensive b. Advertising debases the tastes of consumers c. Advertising is wasteful d. Advertising promotes perfect competition

1.20 Which of the following makes freedom of choice impossible? a. Information b. Probability c. Misrepresentation d. Ignorance

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Question 2 [lOmarks]

Indicate whether the following statements are True or False. Answer all the questions in the answer booklet provided. Indicate true or false next to the corresponding number(s)

2.1 Egalitarian justice requires the benefits and burdens of the society to be distributed in equal propotions.

2.2 Getting others to understand and support one's idea before a meeting is called an act of political tactic.

2.3 Free trade advocated by Adam Smith showed that everyone prospers if nations specialise in making and exporting goods whose production costs are lower that than for other nations.

2.4 In the market approach to consumer protection, if consumers do not place a high value on safety (or are unwilling to pay for it), then it is wrong to force them to accept higher levels of safety through regulation).

2.5 Perfectly competitive markets are regarded to be just because under perfect competition, no one can significantly affect prices of goods exchanged.

2.6 Health is an intrinsic good. 2.7 It's ethical for a business to disJJarage a competitor'sproducts when advertising. e 2.8 Alienation is the condition that one is part of one's true nature. e 2.9 The prisoner's dilemma demonstrates that cooperation is not more advantageous

than continuously trying to cooperate with others, at least when we will meet these others again.

2.10 The "Anti-trust' view on how governments should deal with oligopoly corporations is that it should not be broken up. Total 10 Marks

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lsECTIONBI

Question 3 [40 Marks]

3.1 Distributive justice requires that benefits and burdens be fairly distributed fairly in the society. Explain three different types of distributive justice. (6)

3.2 You are a Human Resources Director at Zebra Investment (Pty) Ltd and there are vacancies at your company. Your brother-in-law is out of work and his wife (your sister) is also unemployed. Their house is about to be repossessed. Your sister asked you to appoint him for a position at your company.

(a)

(b)

(c)

(d)

What is the moral obligation of the employee to the employer?

What is the moral obligation of the employer to the employee?

Name and explain the type of dilemma that you as the Human Resource Manager finds yourself in.

As a human resource manager, how would you deal with this dilemma?

(2)

(2)

(5)

(2)

3.3 When one deliberately keeps oneself ignorant to escape responsibility, that ignorance does not excuse the wrongful injury. When is a person morally responsible for an injury or a wrong? (3)

3.4 What similarities and differences can be made between the views of John Locke and Adam Smith? (10)

3.5 In dealings with job discrimination, there are practices widely recognised as having

discriminatory outcomes and business managers should strive to avoid them in order to ensure

that their companies are not engaged in discrimination. Identify and describe those

discriminatory practices. (10)

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!SECTION cl

Question 4 [10 Marks]

Read the case and answer the questions following thereafter.

Should Companies Dump Their Wastes In Poor Countries?

Lawrence Summers, Director of the White House National Economic Council for President Barack Obama, once wrote a memo claiming that the world's welfare would improve if the wastes of rich countries were sent to poor countries. He gave four arguments for this claim which we can summarise as follows:

1. Clearly, it will be best for everyone if pollution is shipped to the country where it health effects will have the lowest costs. The costs of "health impairing pollution" depend on the wages lost when pollution makes people sick or kills them. So the country with the lowest wages will be the country where the health effects of pollution will be lowest. So with "impeccable" "economic logic" we can infer that it will be best for everyone if we dump our toxic wastes in the lowest wage countries.

2. Adding more pollution to an environment that is already highly polluted has worse health effects, than putting that same pollution into a clean environment where it can disperse. So we can reduce the harm pollution causes by transferring it out of highly polluted cities like Los Angeles, and dumping it into countries in Africa that "are vastly under-polluted". This will make better use of those countries' clean air quality which we now are using "vastly inefficiently", and it will improve "world welfare".

3. The same pollution will cause more harm in a country where people have "long life-spans," than in a country where people die young. When people have "long life-spans," they survive long enough to get diseases, like prostate cancer, that people who die young do not get. So pollution will cause more diseases like prostate cancer in countries where people have long lives than countries where people die young. It follows that we can reduce the diseases pollution causes by moving it out of rich countries where people have long lives, and dumping it into poor countries where people die young.

4. Pollution can cause "aesthetic" damage, such as dirty-looking air, that "may have very little direct health impact." Since the wealthy are willing to pay more for clean-looking air than the poor, clean-looking air is worth more to the wealthy than to the poor. So it should be possible for people in wealthy countries to find people in poor countries who are willing to trade their clean air for the money the wealthy are willing to offer. This kind of trade will be "welfare enhancing" for both parties.

Source: Velasquez M G, Business Ethics Concepts and Cases ih Ed.

i) Based on the case, would utilitarianism agree or disagree with the dumping of wastes in poor countries? Substantiate your answer. (5)

ii) Based on the case, would rule utilitarianism agree or disagree with the dumping of wastes in poor countries? Motivate your answer. (5)

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SURNAME & INITIAL: _________ _ STUDENT NUMBER: _________ _

!sECTION AI

Question 1 (ANSWER SHEET-Cross in the appropriate box) (2 X 20 = 40)

NB: THIS ANSWER SHEET SHOULD BE SUBMITTED WITH YOUR ANSWER BOOK.

NO A 8 c D

1.1

1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 TOTAL 40

MARKS

SURNAME & INITIAL: ________ _ STUDENT NUMBER: _________ _

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