MBA 1st Year Social Cultural and Competitive Environment Very Short Model Question Answer
Q.13. Write a brief note on arguments against business ethics.
Or Explain arguments against busines ethics.
Ans. Arguments Against Business Ethics
The various arguments against business ethics are as follows:
1. The pursuit of profit will itself ensure socially responsible behaviour in perfectly competitive markets
2. Managers are loyal agents and they should pursue the interests of their firms and should ignore ethical considerations.
3. It is sufficient if business firms obey law.
Arguments for Expecting Ethical Behaviour from Business Concerns
1. Business Cannot survive unless moral standards exist in business concerns and outside.
2. Ethical concerns are consistent with profits of businesses.
3. Analogy to prisoners’ dilemma reveals that in repeated interactions, cooperation is a better solution while ethical behaviour is the best solution.
4. Most people value ethical behaviour and punish businessmen and organisations that are not ethical. In organisation where people feel there is no fair play, there is more absenteeism, avoidance of work and lack of respect. In organisations where people feel there is fair play, there is enthusiasm, cooperation and trust.
Q.14. Write a brief note on ‘Role of business ethics in business’.
Ans. Role of Business Ethics in Business: Business is not new to today’ s generation. With faster technology, they have been prevalent since ancient ages in varied forms, but even in those times they followed a particular method of trading whether it had to deal with a customer, or write something relating to business, a particular set of rules pertaining to do’s and don’ts was and even still today is followed in bigger companies. Business ethics is the most important thing to be learnt in and organization, especially when you are dealing with new clients or even the older clients. A moral business always consists of businss ethics, the way you deal with your customer or clients, it bring you more business for your decency of manner in which you serve them.
Handling a huge business is not a small job, and it is not very easy too, there are different opinions and results based on the output of the organization. It is here that the role of business ethics arise, the proper implementation and execution of the functions set in business ethics code of the organization will lessen the disagreements thereby paving way for a more powerful functioning and utilization of the resources. Business ethics are directly connected to economic status of the company. The value based roles that individuals play in an organization is highly dependent on the business ethics that are instilled in them.
The business management students are taught on the basis of business ethics that will help them to deal with different types of situations, and individuals in this highly competitive business world. Learning business ethics helps to avoid unethical means of gaining popularity or earning money, the right things need to be done for the right results. Business ethics helps to follow a particular business trait and follow the path of righteousness which will get good respect and recognition for the organization. The topics of business ethics are highly developed in recent years and there are lots of research being done in this field for setting up the best practices in a business venture.
Business ethics is a sensible behaviour in which an individual adheres to business standards, it helps in their daily dealings with customers or clients or colleagues in a fair way. Different businesses may have different rules and ethics to be followed. They are diverse in nature as the number of businesses involved, the set rules by the companies become their very own business ethics to be followed and may not be changed at whatever given circumstances. It’s a proven fact that a particular thing can run or ruin your business and proper execution of business ethics will surely give good results by having a proper reputation for your business in the industry. Good business ethics brings in good behaviour and that leads to more sales and highly appreciative clients and customers so that they should become a part of any business moral commitment. Business ethics stay in organisation for longer period of time as much till the time the company is in existence. So to build up the reputation and go on with the legacy, it is important to follow them religiously.
MBA 1st Year Social Cultural and Competitive Environment Very Short Model Question Answer Paper
Q.15. What benefits does Porter’s five forces analysis provide?
Ans. Five forces analysis helps organizations to understand the factors affecting profitability in a specific industry, and can help to inform decisions relating to: whether to enter a specific industry; whether to increase capacity in a specific industry and developing competitive strategies
| S.No | Actions to take/Do’s | Actions to avoid / Don’ts |
| 1. | Use this model where there are at least three Competitors in the market. | Avoid using the model for an individual firm, it is designed for use on an industry basis. |
| 2. | Consider the impact that government has or may have on the industry. | |
| 3. | Consider the industry lifecycle stage- earlier stages will be more turbulent. | |
| 4. | Consider the dymanic/changing Characteristics of the industry. |