OUMM3203 SEP05/F/KDP-SI

PART A

INSTRUCTIONS: There are TEN (10) questions in Part A. Answer ALL questions.

QUESTION 1
Various factors are instrumental in the formation of individual ethics. Describe how family
influence and peer influence help shape individual ethics.
[4 marks]

ANSWER:
• Family Influence
Individuals start to form ethical standards as children in response to their perception
of their parents’ behavior. Children are more likely to adopt high ethical standards if
they see their family members adhere to high standards of ethics. Parents are the
closest to the children.

• Peer Influence
When the children go to school, they are influenced by peers with whom they interact
every day. Children are influenced by what their peers are engaging. They adopt
peers’ standards.

QUESTION 2
Social responsibility is the set of obligations that an organization has to protect and extend to
the society in which it functions. Toward which areas should social responsibility be
protected and extended.
[4 marks]

ANSWER:
• The following are the areas toward which social responsibilities should be protected
and extended:-

i. Constituents
ii. Natural Environment
iii. General Social Welfare

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OUMM3203 SEP05/F/KDP-SI

QUESTION 3
Ethics in management represents a conflict between the economic performance and social
performance of an organization. Briefly elaborate this statement by giving ONE (1) suitable
example.
[4 marks]

ANSWER:
Example: To reduce operating cost a company should reduce labor cost. Reducing labor
cost means reducing the number of employees by terminating their service. But, terminating
employees service will cause social problem, that is, unemployment. Therefore, a conflict
arises between enhancing economic performance and creating social problem.

QUESTION 4
Ethical codes are a list of statements containing the norms and beliefs of an organization
published and distributed to all members of the organization. Are ethical codes really
necessary? Why?
[4 marks]

ANSWER:
Yes (in many instances), because it contains obligations by organization to each of the
organization’s constituents. It also contains the norms and beliefs of an organization which
the employees are obliged to follow.

QUESTION 5
What is the difference between “equal pay for equal work” and “equal pay for comparable
work”.
[4 marks]
ANSWER:
• Equal pay for equal work
People performing the same kind of work must be paid the same salaries

• Equal pay for comparable work

Pay the same salary if it can be demonstrated that jobs involving different
responsibilities require the same relative level of education, skill, knowledge
and experience

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QUESTION 6
All employees are subject to a formal or informal appraisal process. What factors need to be
taken into consideration when evaluating an employee’s performance?
[4 marks]
ANSWER:
• Job performance
• Area of responsibilities
• Attitude towards job/dedication
• Length of service
• Leadership quality

QUESTION 7
Under what circumstances is external whistle blowing permissible?
[4 marks]

ANSWER:
External whistle blowing is permissible after the following factors are satisfied:-

• A report of wrongful conduct should be made internally first through a proper line of
organization
• It must be evident that external agencies are unable or unwilling to report what is
going on
• A significant case of harm to stockholders, employees or the public is anticipated

QUESTION 8
Managers have a moral obligation to be loyal to their employers. What does loyalty mean in
this context?
[4 marks]
ANSWER:
• Loyalty means doing the job competently, obeying the legitimate orders of
supervisors, keeping proprietary information and trade secrets confidential and
avoiding conduct that conflict with a company’s rightful interests

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OUMM3203 SEP05/F/KDP-SI

QUESTION 9

Elaborate the meaning of “stars” and “dogs” in the Boston Consulting Group (BCG) planning
matrix.
[4 marks]
ANSWER:
• Stars
High cash generation and high investment needs

• Dogs
Low cash generation and low investment needs

QUESTION 10
The law is formed through a chain of processes. What are they?
[4 marks]
[Total: 40 marks]

ANSWER:
• Individual process
• Group process
• Social process
• Political process

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 OUMM3203 SEP05/F/KDP-SI

PART B

INSTRUCTIONS: There are FIVE (5) questions in Part B. Answer THREE (3) questions
only.

QUESTION 1

We are bound by the concepts of right and wrong in relation to people behaviour. Several
attempts have been made to justify this moral standards, but none works perfectly. However,
there are at least FIVE (5) major ethical theories that do have a direct relevance to this
matter.

(a) Outline those major ethical theories that could describe ethical issues in society.
[5 marks]
ANSWER:
a. Eternal Law
b. Utilitarianism
c. Universalism
d. Distributive Justice
e. Personal Liberty
(1 mark for each point )

(b) How do you use utilitarianism and universalism to describe ethical systems? What
are the advantages and disadvantages of both theories.
[15 marks]
[Total: 20 marks]
ANSWER:
• Utilitarianism
The emphasis is the outcome of a decision or action (1.5 marks)

• Universalism
The focus is the intent behind a decision or action (1.5 marks)

Utilitarianism
Advantages: The emphasis is centered around the greatest good for the greatest number.
(2 marks)

Disadvantage: No single means of determining what is the right or best act (1 mark )

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OUMM3203 SEP05/F/KDP-SI

There are some actions that are simply wrong, despite great apparent net benefits for a
huge majority, e.g killing an innocent child for the benefit of bringing happiness for the whole
of human race. (3 marks)

Universalism:

Advantages: The moral worth of an action has to depend upon the intentions of the person
making the decision or performing the act. (2 marks)

Disadvantages: No priorities and no degrees (1 mark)

Difficult to treat others as ends and not as means all the time, particularly when many serve
as means to our personal ends. (3 marks)

QUESTION 2

From the legal standpoint, the society has an established set of rules reflecting the collective
choices of members of society regarding any decision and actions that affect its welfare
which eventually is translated into law.

(a) What are the social institutions related to the law and their responsibilities.
[6 marks]
ANSWER:
• Legislatures and councils - to form the law
• Attorneys & paralegal personnel - to explain the law
• Courts and agencies - to interpret the law
• Police - to enforce the law
(1.5 marks for each point)

(b) Why must the law be consistent, universal, published, accepted and enforcable?
Elaborate.
[14 marks]
[Total: 20 marks]
ANSWER:
• Consistent - if 2 requirements contradict each other, both cannot be termed as a
law
• Universal - applicable to everyone with similar characteristics, facing the same set
of circumstances

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• Published - Put in print so that they are accessible to everyone within the society
• Accepted - If most members of the society do not voluntarily obey the law, then
they would have to be compelled to do so
• Enforced - People have to recognize that, if they disobey the law, and if it is noted
and can be proven, they will suffer some loss of convenience, time, money, freedom
or even life.
(2.8 marks for each point)

QUESTION 3

Unethical activities have been rampant in our society. Printed as well as electronic media
have been highlighting the issues quite frequently but the scenario remains disturbing.
(a) Identify some unethical activities best known to you.
[5 marks]
ANSWER:
a. Vandalism
b. Illegal business
c. Illegal logging
d. Air/River pollution
e. Corruption
f. Smuggling
(I mark each point for maximum 5 points)

(b) Suggest some corrective measures to overcome the problems.

[15 marks]
[Total: 20 marks]

ANSWER:
• Tighten/Review the existing laws
• Enact the new laws
• Impose heavier penalties
• Road show/seminar/workshop etc…
• Introduce civic subjects in school
• More tight securities by relevant agencies
• Ban the TV programs that are more sensational/criminal in nature
• Etc…..
(3 marks each point for maximum 5 points )

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OUMM3203 SEP05/F/KDP-SI

QUESTION 4

Islam is deemed universal and timeless. As such, it applies to all peoples in all places. Islam
is not a new religion but the continuation of divine revelations from the first till the last
prophet.

(a) What are the core tenets that make Islam able to provide a holistic approach in
ethics.
[6 marks]
ANSWER:
a. The unity in God
b. The unity of humankind
c. The unity of religion
(2 marks for each point)

(b) How does the “Syariah”, the most encompassing and most universal ethical
prescription, guide the Muslims in their daily activities.
[14 marks]
[Total: 20 marks]
ANSWER:
• Syariah regulates almost every aspects of relationship ranging from that which is
between the Creator and human kind, to intimate matters of interpersonal relations
• Syariah is a comprehensive legal system which regulates all aspects of society, rules
of interpretation, etc…
• Syariah regulates commerce and business activities in a wide rang of fields
• Syariah regulates the obligation of piety
(3.5 marks for each point)

QUESTION 5

Any company has a right to protect itself from fraud, loss of proprietary information and trade
secrets and from harm to its facilities, employees, customers or the public it serves.

(a) What steps should a company take to protect itself?

[5 marks]
ANSWER:
a. Have a detailed personal history of the job applicants
b. Conduct a pre-employment tests to get a reading on their level of honesty

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c. Restrict the private-life activities of those on the payroll

(2.5 marks each point for maximum 2 points)

(b) What preparations should be made prior to hiring any employees?

[15 marks]
[Total: 20 marks]
ANSWER:
• Identification of the need of the post
• Detailed job specification
• Term of service
• Advertisement
• Interview
(3 marks for each point)

THE QUESTION PAPER ENDS HERE

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