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Business Ethics and Corporate Governance (BS425) SECTION A (Compulsory, 40 Marks)

The document describes an ethical dilemma faced by the general manager of Miracle Electronics Company. Mr. Mabasa, the information and communication department manager, has several concerning behaviors: [1] He is romantically involved with suppliers to get discounts, some of whom are married; [2] He replaced two technicians who were fired for theft with his nephews; [3] Assembly line workers supplement their low pay by receiving commissions from private suppliers they engage with Mr. Mabasa's knowledge. The CEO asks the general manager to design a plan to deal with this situation while avoiding government regulators. As general manager, ethical factors like fair treatment of all stakeholders and adherence to business best practices must be considered in structuring a response

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Kudakwashe Stewart Pate
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302 views2 pages

Business Ethics and Corporate Governance (BS425) SECTION A (Compulsory, 40 Marks)

The document describes an ethical dilemma faced by the general manager of Miracle Electronics Company. Mr. Mabasa, the information and communication department manager, has several concerning behaviors: [1] He is romantically involved with suppliers to get discounts, some of whom are married; [2] He replaced two technicians who were fired for theft with his nephews; [3] Assembly line workers supplement their low pay by receiving commissions from private suppliers they engage with Mr. Mabasa's knowledge. The CEO asks the general manager to design a plan to deal with this situation while avoiding government regulators. As general manager, ethical factors like fair treatment of all stakeholders and adherence to business best practices must be considered in structuring a response

Uploaded by

Kudakwashe Stewart Pate
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business Ethics and Corporate Governance (BS425 )

SECTION A (Compulsory, 40 Marks)

QUESTION 1

You are the general manager of Miracle Electronics Company in Harare. The
following information has been brought to your attention about the conduct of
Mr. Mabasa, the charming and hardworking Information and Communication
department manager of your company.

He is romantically involved with ladies from the company’s major accessories


suppliers, some of whom are married. The company’s profits have increased by
a remarkable 35% since he began these relationships because he frequently gets
discounts on the materials from these suppliers.

He has dismissed 2 technicians for theft and replaced them with his nephews
who are recent graduates from Harare Institute of Technology.

The assembly line workers who are badly remunerated have engaged their own
private suppliers to provide some of the scarce but most critical accessories to
the company and for their effort get 10% commission from them. Mr Mabasa is
aware of this practice but condones them as a way of offsetting the miserable
remuneration that his subordinates are getting. Accordingly, staff turnover in his
technical department is the lowest in the company.

Task

The Miracle Electronics CEO asks you, as the General Manager, to design a
plan that will work in dealing with this matter. He supplies you with some
information that includes dismissing the whole team from the department but at
the same time keeping government regulators out of the way.

According to your knowledge, employees have a right to be treated fairly


without bias and on the basis of their ability to perform a specific job. If any lay
off is necessary, it must be carried out with dignity and compassion.

a) What ethical dilemmas are involved in this situation? (10 Marks)


b) What ethical factors would you consider in structuring a plan that would
be as fair as possible to all stakeholders involved? (20 Marks)
c) As an ethical professional, which business best practices would you refer
to justify your decision on this situation? (10 Marks)
SECTION B (Answer any three questions from this section)

QUESTION 2

Explain the following myths that are popular in business ethics:

a) ‘Unethical conduct is not serious’. (5 Marks)


b) ‘Nice guys/girls come second’. (5 Marks)
c) ‘Dog eat dog’ (5 Marks)
d) ‘When in Rome do as the Romans do’ (5 Marks)

QUESTION 3

a) Explain the ways in which corporates are controlled highlighting the


major responsibilities of Corporate Governance bodies in organizations.
(12 Marks)
b) Explain the expected outcomes of the above responsibilities.
(8 Marks)

Question 4

With reference to practical examples, justify why it is necessary for


organizations to respect Occupational Health and Safety regulations.

(20 Marks)

Question 5

‘The knowledge of ethics can be a salvation to most social and business


problems’. Discuss. (20 Marks)

END OF QUESTION PAPER

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