Ethics and Governance in Business — DU Bachelor of Management Studies Previous Year Question Papers

Your Roll 1. Case study-based question. (9+9=18) Aakash Infra is a BSE-listed company where the Founder, Mr. Mehra, holds 48% of shares and serves as Chairman. The Board consists of 10 members: 5 are Mr. Mehra's relatives or long-term associates, and 5 are Independent Directors (lDs). Recently, the Board approved a {500 crore "lnterest-Free Loan" to a private entity owned by Mr. Mehra's son, citing "future strategic synergy." The Audit Committee, headed by an ID who is also a consultant for Mr. Mehra's other firms, cleared the deal without an independent valuation. Minority shareholders are protesting, alleging a breach of Fiduciary Duty and Siphoning of Funds. Meanwhile, the CEO (a professional hire) is being pressured to sign off on the financial statements or face "non-renewal" of his contract. (a) "The presence of Independent Directors is often a 'structural mask' for promoter dominance in India. "Critically analyze this statement in the context of the above case. (b) Apply the Kantian Deontological Theory to the CEO's dilemma. If the CEO signs the fraudulent 2. Case study-based question. Answer any three. (llt) Aijun is the newly appointed CEO of Vayu Electronics, a mid-sized lndian lirm aiming for a massive IPO (Stock Market Listing). To attract global investors, the Board pressures Arjun to label their new air purifier series as "l00% Carbon Neutral." However, Arjun's internal R&D report reveals that while the product is eco-friendly, the manulacturing process still relies on high-emission coal power. The Board argues that "slight exaggeration" is necessary for the "greater good" of the company's survival and the jobs of 2,000 employees. Arjun must decide whether to sign the misleading marketing campaign or risk the IPO's failure by being fully transparent. (a) Critically analyze the Board's argument using Utilitarianism. Does the "greater good" of saving 2,000 jobs justify misleading thousands of potential investors? (b) If Arjun follows Immanuel "Categorical Imperative," what should his decision be? Can the act of "lying for profit" be turned into a universal moral law? (c) Apply Virtue Ethics to Arjun's situation. Which "Virtues" e.g., Integrity, Courage, Honesty, is Aqun required to demonstrate as a leader in this crisi s ? (d) Critically evaluate the situation from the lens of Ethical Egoism. If Arjun chooses to stay silent to secure his own position and bonus, is he acting ethically according to this theory? (e) Analyze the conflict from the Rights Perspective. Do the potential investors have a "Moral Right" to truthful information, even if it results in a financial loss for the company's current employees? 3. Answer following question. (a) "A whistleblower is often seen as a hero by the public but a traitor by their colleagues." Critically analyze the ethical conflict between Organizational Loyalty and the Duty to the Public. (b) Critically analyze the ethics of Targeted Advertising directed at children or the elderly. Does