ICSI Previous Year Question papers Governance Business Ethics and Sustainability

ICSI Previous Year Question papers

CS Professional Programme Module IV

Governance Business Ethics and Sustainability

June 2012

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
PART — A
(Answer Question No.1 which is compulsory and any two of the rest from this part.)
1. (a) “Corporate governance extends beyond corporate law. Its fundamental objective is not
mere fulfilment of the requirements of law, but in ensuring commitment of the Board
of directors in managing the company in a transparent manner for maximising stakeholders’
value.” In the light of this statement, discuss the various factors which add greater value
through good governance.      (10 marks)
(b) State, with reasons in brief, whether the following statements are true or false :
(i) As per clause 49 of the listing agreement, the Chairman of the audit committee
shall be an independent director.
(ii) Global Corporate Governance Forum was founded by the World Bank.
(iii) A company is required to file the shareholding pattern with the stock exchange on a quarterly basis.
(iv) Filing of CSR e-form is mandatory for all the listed companies.
(v) Mutual funds are institutional investors.            (2 marks each)

2. (a) Write short notes on any three of the following :
(i) Price sensitive information
(ii) Corporate governance in public sector undertakings
(iii) Corporate Communication Officers (CCOs)
(iv) National Foundation for Corporate Governance.         (3 marks each)
(b) “Companies are not entirely free to decide on how they shall handle their risks.” Discuss
this statement in the light of clause 49 of the listing agreement.          (6 marks)
Governance, Business Ethics and Sustainability

3. (a) “Within the broader concept of corporate social responsibility (CSR), the concept of
triple bottom line (TBL) is gaining recognition.” Discuss the need to apply the concept
of TBL.          (5 marks)
(b) Describe briefly the need and advantages of committee management. Name the
committees which are to be constituted for good corporate governance.         (5 marks)
(c) Prepare a Board note on ‘internal control’ highlighting the elements of sound internal
control system for a company.         (5 marks)
4. (a) Organisation for Economic Co-operation and Development (OECD) defines corporate
governance as — “a system by which business corporations are directed and controlled.”
In the light of this statement, enumerate the principles of corporate governance as evolved
by OECD.            (6 marks)
(b) Discuss briefly any three of the following :
(i) Evidence of corporate governance from Arthashastra
(ii) Related party transactions
(iii) Sarbanes-Oxley Act, 2002
(iv) Chief Executive Officer (CEO).              (3 marks each)
PART — B
(Answer ANY TWO questions from this part.)
5. (a) “Companies displaying a clear commitment to ethical conduct consistently outperform
companies that do not display ethical conduct.” Discuss this statement highlighting the
advantages of business ethics.          (6 marks)
(b) Discuss briefly any three of the following :
(i) Ethics audit
(ii) Activity analysis
(iii) Ethics in human resources
(iv) Enlightened egoism.               (3 marks each)

6. (a) You are the Company Secretary of Great Fortunes Ltd. Prepare a Board note on the
role of Board of directors in ethical decision-making.             (5 marks)
(b) “Stakeholder analysis is the identification of a project’s/activity’s key stakeholders, an
assessment of their interests and the ways in which these interests affect project’s riskiness
and viability.” Elaborate the statement.        (5 marks)
(c) Elaborate the factors that indicate the success of an ethics programme.        (5 marks)

7. (a) “An organisation’s structure is a significant factor to the study of business ethics.”
Comment.     (5 marks)
(b) Discuss briefly the Caux Round Table (CRT) and its principles of business.  (5 marks)
(c) Explain the concept of ‘whistle blower’.    (5 marks)
PART — C

8. Attempt any four of the following :
(i) “It is not possible to adopt a policy of not having any chemical or any other hazardous
industries merely because they pose hazards or risks to the community.” Discuss this
statement in the light of Supreme Court decisions. (5 marks)
(ii) “The areas of improvement listed in the ‘Preamble’ of the International Labour
Organisation (ILO) in 1919 remain relevant even today.” Discuss and state these areas. (5 marks)
(iii) Discuss the quantitative methods used to assess the sustainability.    (5 marks)
(iv) Narrate briefly the relationship between corporate sustainability and corporate social
responsibility.   (5 marks)
(v) “The reporting organisation should identify its stakeholders and explain in its sustainability
reporting how it has responded to their reasonable expectations and interests.” Elucidate
this statement by considering stakeholders’ inclusiveness. (5 marks)

Leave a Comment