Model Question Paper

Please be advised that this just a model; The marks, time etc., may vary when the actual examination takes place.


Type of Examination: Internal Examination – Feb 2008

Model: Multiple Choice Questions – Open Book

Subject: Corporate Social Responsibility

Distribution of Marks: Each question carries 1 mark (total 25) – 25 Marks are awarded for attendance

Total time for the examination: 60 minutes


Tick () the most appropriate Statement in the rectangular space provided for each of the questions below
1.




The following are the three pillars of Sustainability
a) Profits, Environment and Enterprise
b) Economic, Environment and Society
c) Environmental, Ecological and Philanthropy
d) Social, ecological and people

2.




Environmental conflicts arise because of the following:
a) Air Pollution, Water Pollution and Soil Pollution
b) Destruction of biodiversity and loss of flora and fauna
c) Excessive use of resources and increasing cost of non-renewable resources
d) Characteristics of the Physical environment, viz., common property, multiple use and uncovered cost

3.




Established methods for avoiding environmental conflicts include:
a) Dialogue with the stakeholder
b) Complying with legislation
c) Command & Control, Economic Instruments and Voluntary Initiatives
d) Establishing ISO-14001 and ISO-9001 Management Systems

4.




An organization’s stakeholders
a) are the employees and contractors of the organization
b) are the shareholders of the organization
c) are those interested in the organizations activities, products and services including flora and fauna and the Government
d) All the above

5.




Social Issues covered under CSR include
a) Poverty alleviation and social upliftment
b) Provision of clean drinking water, medical facilities and education to the population in and around the operational area of the organization
c) Issues related to inclusion, diversity, bribery, discrimination, donations, child labour etc.
d) All issues covered by UN Global Compact, Universal Declaration of Human Rights, ILO Guidelines, SA-8000, OHSAS-18001, AA-1000 , OECD Guidelines etc.

6.




Sustainable Development is defined as:
a) the development that meets the needs of the present without compromising the ability of the future generations to meet their own needs
b) the development the improves the lives of people who are under the poverty line
c) the development with a futuristic outlook on returns on investment
d) the development that can sustain the livelihood of people

7.




UN Global Compact addresses issues related to:
a) UN Development policies and programmes
b) Labour Rights and Occupational Health & Safety
c) Human Rights, Environment, Labour, Anti-corruption
d) None of the above

8.




Child Labour
a) is allowed under certain circumstances
b) is not allowed under any circumstance
c) is allowed if it is voluntary
d) is allowed in certain industries such as carpet industry and rag picking
9. OECD Guidelines are meant especially for
a) Multinational enterprises operating in / from developing countries
b) Multinational enterprises operating in / from developed countries
c) Multinational enterprises operating in / from OECD countries
d) All enterprises operating all over the world

10. UN Universal Declaration of Human Rights demands
a) Employment to everyone
b) Equal pay for equal work
c) Work with self-esteem
d) Right to livelihood

11. PDCA refers to:
a) Plan, Do, Check, Act cycles
b) Please Do Corrective Actions
c) Please Don’t Carry Anything
d) Programmed Demand Corrective Action

12. Environment according to ISO-14001 is:
a) The Physical environment which provides resources, which acts as sink for the waste generated and which provides the Amenity value
b) The bio-sphere consisting of all living species
c) Surrounding in which the organization operates, including air, water, land, natural resources, flora, fauna, humans and their inter-relations
d) All that is happening around us, including the natural phenomenon like earthquakes

13. Environmental aspect according to ISO-14001 is:
a) The element of the organization’s activity, product or service that can interact with the environment
b) That aspect of the organization that causes environmental problems
c) That aspect of the organization that is potentially dangerous to the environment
d) That part of the organization that can cause significant environmental impacts

14. Environmental impact according to ISO-14001 is:
a) The impact on the society arising out of the activities of the organization
b) Any change to the environment, whether adverse or beneficial, wholly or partially resulting from the organization’s environmental aspects
c) The environmental effect caused by the activities and products of the organization
d) The impact on the organization caused by the environmental activities of the organization

15. As per ISO-14001 the environmental policy shall commit the organization
a) To comply with applicable legal and other requirements
b) To prevent pollution
c) To continual improvement
d) All the above

16. Significant environmental aspects are addressed in the ISO 14001 by
a) Setting up objectives, targets and programmes
b) Establishing operational control procedures
c) Training employees on significant environmental aspects
d) All the above

17. Internal Environmental Management System (EMS) Audit is carried out to:
a) Ensure the continual improvement due to the EMS
b) Ensure that employees are well trained in environmental matters and that the environmental management programmes are carried out without fail
c) Inform the Management the non-conformances to ISO-14001
d) Ensure that the EMS conforms to ISO-14001, that the system is established and maintained and to report the results of the audit to the management



18. Inputs to the Management Review of the ISO-14001 Environmental Management System include:
a) The performance of the environmental management system
b) The economic environment and its effect on the organization
c) Quality of products and their sales during the period under consideration
d) Customer complaints and compensations given to customers based on field returns

19. Corporate Social Responsibility is defined as:
a) The responsibility of business enterprises to contribute to the GDP of the country and to improve the lives of millions who live below the poverty line
b) The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large
c) The responsibility of the enterprise towards its employees, neighbours and populations in its area of operation towards better education, health and general life
d) The responsibility of the Corporation towards its social commitments including donations to the society and NGOs towards improving infrastructure and earning capacity of the populations.

20. Child Labour relates to employment of persons below the age of:
a) 14 years
b) 16 years
c) 18 years
d) None of the above

21. “Insider Trading” is about:
a) Trading in commodities that are dear to the enterprise
b) Trading in areas which were not catered to in the past
c) Trading in company’s stocks and other securities by officials of the company
d) Trading on raw materials used by the company by the officials of the company
22. The triple bottomline approach highlights the need to:
a) Maximize earnings, profits before tax, and profits after tax
b) Compromise between the necessity to meet the demands of the government officials and the demands of the shareholders while taking care of the interests of the employees
c) Address environmental performance, economic performance and health & safety of employees
d) None of the above

23. Occupational Health & Safety relates to:
a) Healthy use of products that are safe
b) Employee health and safety related to the operations of the organization
c) Health Security and Safe environment for the employees
d) None of the above

24. Discrimination at the workplace can take place, through:
a) Biases based on sex, creed, religion
b) Biases based on language, nationality
c) Biases based on colour
d) All the above

25. EcoDesign is about
a) Design for the environment
b) Design of economically sound products
c) Design of Green Buildings
d) None of the above

Part B: Case Studies (Please answer both B.1 and B.2 in the space provided)

B.1. Marks (12)

CEO Quits Amid Resume Questions


ABC Corporation's embattled president and CEO, Tejas Khanna, resigned on Monday following questions about his resume's accuracy. The major electronics retailer said that its board accepted his resignation and has promoted Makhrand Deshpande — executive vice president and chief operating officer — to acting CEO. Rohit Roy, ABC Corporation’s chairman and Khanna’s predecessor as CEO, said that the move was necessary to restore the company's credibility. "One of the most important things we have as a corporation is integrity and trust and we know we have to restore that back to the public," he said.

Khanna issued a brief statement on Monday but did not discuss his resume. "For the last 11 years, it has been my privilege to be associated with ABC," he said. "At this time the board and I have agreed that it is in the best interest of the company for new leadership to step forward so that our turnaround plan has the best possible chance to succeed, as I know it will."
Khanna’s troubles began last Tuesday when errors in his resume were reported by the Sunday News. The company's board said that it stood behind its CEO, a decision Roy said he now regrets.

On Wednesday, Khanna said that he took responsibility for the errors. Separately, ABC Corporation said that it would hire outside lawyers to investigate errors in Khanna’s resume, including claims that he earned two degrees for which the colleges he attended has no records. That investigation won't continue since Khanna quit, the company said.
Khanna, 46, joined ABC in 1994 and had been CEO since May, 2007. Khanna had claimed that he received degrees in Economics and Psychology from XYZ College in Chandigarh, which moved in 1998, due to shortage of space, to Jallundar and renamed itself Great Value College. The College Principal told this correspondent that records showed Khanna completed only two semesters in his course in economics and that the college never offered degrees in psychology.
Khanna said last Wednesday that he believed that he received a diploma in economics by attending two semesters, but not the three year bachelor of arts degree listed on his resume.

Roy said that the company background checks did not include academic verification in 1994 as it does today. Roy said that Khanna’s severance package would be less than Rs.10 lakhs in a cash payout, but said more details would be released on Tuesday in a regulatory filing.

The move did not surprise Ms. Devaki Kulkarni, an analyst for Fulcrum Global Partners Ltd., though she didn't think the change would come on a public holiday, as it did, when financial markets were closed. "If you think about his tenure, it's not as if he's led a turnaround of this company," she said. "That being said, it would be difficult for the board, considering the things that have come out, to find a reason to keep him."

The company has since removed biographical sketches of its executives, including that of Deshpande, and replaced it with the following statement: "We are currently updating and validating all of the biographical information for each of our senior executives."

For now, it will be Deshpande’s job to lead a turnaround that begins with closing 400 to 700 stores and two distribution centers as part of a campaign to fix its financial performance. This plan was announced on Friday, when the company also disclosed that its fourth-quarter earnings fell 50 percent. Its shares tumbled 8 percent, after sinking at midday to a three-year low of Rs. 119.

Roy said that Deshpande is also a candidate to become the permanent CEO; ABC Corporation has hired executive search firmer Au Foi to conduct a nationwide search. A representative of Au Foi said that Desphande, a former Sunrise Corporation executive hired last summer, would fit well as CEO, even if it is temporary. "He is the right candidate," she said. "I like his approach at how he looks at the business. He walks into a store and wants to see it through the consumer's eyes."

1. Write the summary of the above case in 5 sentences

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2. What is/are the ethical issue(s) involved in this case ?

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3. What action would you have taken if you were Rohit Roy ?

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4. What are the ethical issues of your suggested action(s) ?

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B.2. Marks (8)

Dilemma of Chandra

Chandrasekhar, the insurance surveyor, was playing with his 4-year-old daughter Chithra when the telephone rang. At the other end of the line was Chidambaram, the insurance agent, pleading for urgent help. Would Chandrasekhar please visit Mrs. Chitale in his neighborhood who had made claims for bodily and mental injury resulting from a car crash with a person insured by the Insurance company? Mrs. Chitale had consented to a visit from their surveyor to assess the injuries to her nose and her mental state. Apparently the crash had caused her to relapse into a condition of paranoia and manic depression, previously stabilized.
Chandrasekhar agreed readily, but said that he had to take his daughter Chithra along as there was no one in the house to take care of her in his absence.
When Chandrasekhar arrived at Mrs. Chitale’s house, he found no one at home, so he and his daughter Chithra waited in the car. Eventually, Mrs. Chitale arrived, parked, and emerged from her car, at which point Chithra shouted happily, "Miss Chitale!"
"Who is Miss Chitale?" asked Chandrasekhar with surprise. Miss Chitale turned out to be Chitra’s teacher. Chandrasekhar conducted a short interview with Mrs. Chitale on the front steps of her home, satisfying himself that she did indeed have some facial injuries and that she was taking prescription medicine for her mental problems.
Insurance ethics mandates that claims investigations are completely confidential. An insurance professional with knowledge of a claims case is expected to keep silent and to refrain from using the knowledge for personal benefit.
Chandrasekhar had a real dilemma. On one hand, to uphold his industry's code of ethics, he was not to discuss or act on the information he had received about Mrs. Chitale’s (mental) situation. On the other hand, he did not want his daughter under the care of a person who was undergoing treatment for mental illness and who might be dangerous. Chandrasekhar's wife was an insurance surveyor for another company. Even if Chandrasekhar told her, she was bound by the same code of ethics.

1. Give the summary of the case in five sentences

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2. What are the ethical issues of this case ?

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3. What action(s) would you have taken if you were Chandrasekhar ?

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4. What are the ethical issues involved in your proposed action ?

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