nAm I B lA UnIVERSITY OF SCIEnCE AnD TECHnOLOGY

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF MANAGEMENT

QUALIFICATION: BACHELOR OF BUSINESS MANAGEMENT

QUALIFICATION CODE: 07BBMA LEVEL: 6

COURSE CODE: BBE612S COURSE NAME: BUSINESS ETHICS

SESSION: JANUARY 2017 PAPER: PAPER 1

DURATION: 3 HOURS MARKS: 100

SECOND OPPORTUNITY EXAMINATION QUESTION PAPER

EXAMINER($) Ms. D Carballo Ms. J Hambabi Ms. Kangandjo

Mr. M Nelenge Ms. E Olivier Mr. K Uirab

Mr. B Zealand

MODERATOR: Mr. JVO Ojo

INSTRUCTIONS 1. Answer ALL the questions.

2. Write clearly and neatly.

3. Question 1 section A should be answered on the answer sheet provided on page 10 of this

question paper. Detach the answer sheet and submit it with your examination booklet before

you leave the exam hall.

THIS QUESTION PAPER CONSISTS OF 10 PAGES (Including this front page)

SECTION A Question 1

[SO Marks] [20 x 2 = 40 marks]

Multiple choice questions from 1 - 20. Shade or Cross in the appropriate box on the Answer

Sheet provided for this question. The answer sheet is attached on page 10 of this question

paper. Please submit your answer sheet with your examination booklet.

Indicate your answers next to each corresponding number on the Answer Sheet Provided.

1.1 Which ofthe following issues is not investigated by Business Ethics? A. Public Education issues

B. Systemic issues

C. Corporate issues.

D. Individual issues.

1.2 Moral standards can be distinguished from non-moral standards using the following characteristics:

A. They deal with matters that can seriously injure or benefit humans. B. Are not established or changed by authoritative bodies. C. They are based on impartial considerations. D. All the above

1.3 Example of negative rights: A. Right to privacy B. Right to medical care C. None of the above D. All of the above

1.4 Which statement is not true of Kant's categorical imperative: A. We should act only on maxims that can be universally accepted and acted upon. B. The inability to universalize the maxim of an act may sometimes be ignored if the

act in question will produce the greatest good for the greatest number. C. Universalization of maxims prohibits us from giving our personal point of view

privileged status over the points of view of others. D. Our fundamental ethical duty is to treat other human beings as autonomous

persons who may choose their own ends and purposes/ not simply as means for the ends of others.

1.5 Which statements are characteristic of Virtue Ethics? A. Our character traits are easily modified/ almost on a day-to-day basis if we so

choose. B. Even if a person is caring/ empathetic/ charitable and sympathetic/ the challenge

of excessive self-interest is still a factor in his or her decision-making. C. All ofthe above. D. None of the above.

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1.6 According to John Locke or his followers,

A. free markets are best because oftheir superior productivity and efficiency. B. free markets are best because they best preserve negative liberty and property

rights. C. since free markets violate positive health and welfare rights they should be

eliminated. D. governments have an unl imited moral authority to regulate commerce and

trade.

1.7 Immorality of sexual harassment:

A. inflicts psychological harm on the harassed individual.

B. Is an unjust use of the unequal power that an employer or supervisor wields

over an employee.

C. None of the above.

D. A and B

1.8 "lt might be true that society as a whole would benefit by having some group discriminated against" is a/an __ argument for discrimination.

A. Kantian

B. Capitalist

C. Utilitarian

D. Communist

1.9 In this view, the employee's main moral duty is to work toward the goals of the firm . This view is referred to as:

A. Law of Legitimacy

B. Law of Structure

C. Law of Agency

D. Law of Duty

1.10 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

1.11 Institutionalised discrimination:

A. is based on the prejudices or morally offensive attitudes shared by a group.

B. is always intentional

C. can be the act of a single individual

D. all of the above

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1.12 Which statement does not describe an ethical rule governing contracts

A. Both parties to a contract must have full knowledge of the agreement.

B. Neither party to a contract must intentionally misrepresent the facts.

C. The contract must not bind the parties to an immoral act.

D. Contracts must bind individuals or agents only; they do not apply to governments.

1.13 Under strict liability, which ofthe following is true?

A. Absence of negligence or having exercised "due care" excuses the producer from

liability for damages caused by their products.

B. Absence of knowledge of the product's potential for the harmful effects excuses the

producer from liability for these harmful effects.

C. Both ofthe above.

D. None of the above

1.14 Which of the following questions are addressed by all economic systems?

A. What goods and services should be produced?

B. How much of each good and service should be produced?

C. How should the goods and services be distributed?

D. All of the above.

1.15 Kevin and his friends dislike their seventh-grade math teacher. They decide to scratch his

car in the school parking lot. Kevin knows that this is wrong but doesn't want his friends

to think he isn't part of their group. According to Kohlberg, what stage of moral reasoning

is Kevin in?

A. Law and Order Orientation

B. Social Contract Orientation

C. Punishment and Obedience Orientation

D. Interpersonal Concordance Orientation

1.16 Business Ethics advocates that when corporate organizations commit moral or immoral

acts the following should happen

A. Human individuals should be held responsible because they are the primary carriers

of moral duties and moral responsibilities.

B. Corporate organizations should be held responsible in the secondary sense.

C. A & B

D. None of the above

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1.17 Seniority based promotion and lay-off practices, according to Velasquez,

A. are illegal in most jurisdictions.

B. being race and sex neutral have no discriminatory effects.

C. are race neutral but not sex neutral.

D. tend to perpetuate inequities caused by past discrimination

1.18 Ethical violations destroy:

A. nothing.

B. jobs.

C. trust.

D. Profits

1.19 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

1.20 The most fascinating argument for bringing ethics into business is the prisoner's

dilemma.

A. If both choose not to cooperate, neither gets the benefit.

B. If one cooperates while the other chooses not to cooperate, the one who

cooperates suffers a loss while the one who chooses not to cooperate gains a

benefit.

C. All of the above.

D. None of the above.

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Question 2

Indicate whether the following statements are True or False in the examination booklet

provided [1 x 10 = 10 marks]

No. Statement

2.1 Supply and demand regulates production and exchange in a free market, according to Adam Smith.

2.2 The root meaning of "to discriminate" is morally neutral-it isn't necessarily wrong to discriminate.

2.3 Whistle-blowing in business, is when an individual demands a consideration from persons outside the firm as a condition for favorably dealing with them.

2.4 Although bribes are an accepted part of commercial transactions in many Asian, African, Latin American, and Middle Eastern countries, it is usually against the law in these very same countries.

2.5 Advertising is a massive multi-billion-dollar-a-year industry whose costs are ultimately borne by the business firms who produce the advertised products.

2.6 The supply curve is downward sloping because of the principle of diminishing marginal utility; each additional item a person consumes is less satisfying than each of the earlier items the person consumed.

2.7 Alienation is not allowing lower working class to develop their productive potential, satisfying their real human needs.

2.8 The basic problem underlying the views of the social Darwinist is the fundamental normative assumption that survival of the fittest means survival of the best.

2.9 The second stages of moral development are known as the conventional stages.

2.10 Contractual rights and duties are for the society as a whole.

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SECTION B Question 3 (30 marks]

3.1 The fact that political tactics are usually covert means that they can easily become deceptive or manipulative and therefore unethical. Identify five examples of political tactics used in organisations. {10)

3.2 A dishwasher knows that the restaurant's chef typically reheats three or four day old

food and serves it as fresh to customers. Since she believes that the serving of old food

is injurious to the society, she reported the matter to the manager and the manager told

her to forget about it. What should she do? (5)

3.3 Arguments against job discrimination are generally grouped in three moral principles.

Outline and explain each group's argument against discrimination. (9)

3.4 Distributive justice requires that benefits and burdens be fairly distributed fairly in the

society. Explain three different types of distributive justice. {6)

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SECTION C Question 4 [20 marks]

Read the case below and answer the questions that follow:

NACC probes E-Med over 'monopoly'

News- National I 2014-01-30

by Ado m Hartman

AN official complaint was filed at the Namibian Competition Commission (NACC) against E­Med Rescue Namibia over its alleged market manipulation and monopoly.

Although NACC corporate communications officer Dina Gowases did not give details, she told The Namibian that a complaint was filed in February 2013 and that it pertained to an alleged infringement that has a bearing on fair competition in the market.

As you are aware, two of the biggest emergency medical evacuation service providers, E-Med Rescue Namibia and I-SOS filed a merger notice on 29 October 2012 with the commission. This merger was prohibited due to the fact that it could result in certain anti-competitive practices, one being the fact that this transaction could result in a situation of market dominance in the relevant market, she said.

Unfair competition relates to any conduct within the business environment that deters other businesses to grow, or creates barriers for any entrepreneur to enter a certain market. lt also entails agreements by businesses to only trade amongst themselves, allocate certain market locations to each other or fix prices to enhance the growth of their businesses at the expense of others, as this type of conduct leads to the closure of other businesses.

Unfortunately, the commission is not in a position to divulge more on the motivation and merits of the complaint to maintain confidentiality during its investigation process.

Holding a dominant position is not prohibited but the abuse of that dominance by undertakings is not allowed. Unfair competition is not inherent merely because a market is monopolised but rather the abusive conduct by dominant players poses a problem, she explained.

E-Med Rescue Namibia's managing director Eddie Bezuidenhout said investigations are ongoing and their lawyers were handling the case.

He said the investigation was launched to determine if E-Med is not giving other ambulance companies the rightful opportunity to grow and develop the quality of their service delivery.

This is not true. If you deliver a good service and more people become join you because of your good service, this, in my opinion, is not a monopoly, but rather a result of your quality service. Some people therefore had a bit of a bad taste because we are serving more clients because of our quality service and the way we manage emergency scenarios, he explained.

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He said E-Med is not focused to manipulate, but to give quality service to Namibian citizens.

There are concerns over the partnerships Namibia's medical aid services providers have entered into with E-Med.

Bezuidenhout said medical aid funds look at who can give the best service to their (the medical aids service providers') clients- and that E-Med was duly considered.

This partnership, however, did not exclude any of the other emergency services. In fact, according to him, if there was an emergency situation and any of the other ambulances were closer to the scene to help the victims, then these other services would still benefit financially from the medical aids.

Many times we'll say that we cannot do it but there is another service that may be willing to do it, and so we give others the opportunity to follow that route, and still be paid. There is no medical fund that will not pay for an emergency service. This is where the manipulation and monopoly would come in -if we had said we have a partnership with a medical aid, and seeing that another ambulance served the client, we refuse to pay, Bezuidenhout said . We don't do that.

As for E-Med and ISOS, there is no merger, but there is a service agreement between them.

Source: http:/ /www.namibian.com.na/index.php?id=119107&page=archive-read

4.1 lt is evidenced in the case that there is fear that a certain unethical market structure might develop in market of emergency medical evacuation services. What is this market structure? {2)

4.2 According to the case the merger between E-Med Rescue Namibia and I-SOS could result in anticompetitive practices. Identify five anticompetitive practices that could result from the merger or the cooperation between the two companies discussed in the case. {Hint: Your detailed discussion should be applied on the case) {15)

4.3 Whilst there are seven features defining perfectly competitive markets, its moral benefits can only be reaped where three additional conditions are present. What are these conditions? {3)

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SURNAME & INITIAL:----------­

STUDENT NUMBER:------------

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 B 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 MARKS 20 X 2 = 40

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