MMPC 020 Solved Guess Paper 2026 for Business Ethics and CSR (MBA and MBA Banking and Finance)

Sample 1: Teleological and Deontological Ethical Theories

Question: Critically examine the traditional ethical theories, teleological (consequentialist) and deontological systems, with examples in the context of managerial decision-making.

Meaning: Teleological theories base moral judgement on the consequences of actions, whereas deontological theories base moral judgement on a sense of duty and responsibility. Teleos means consequence or purpose and deont means duty, so in deontology the means take priority over the ends.

Teleological (consequentialist) theories

1. Egoism: Linked to Plato and later Adam Smith, it holds that self-interest, through the invisible hand, produces morally desirable outcomes. Some scholars treat it as a hybrid theory.
2. Utilitarianism: Founded by Jeremy Bentham and John Stuart Mill on the pleasure-pain principle. Bentham stressed the quantity of pleasure and Mill its quality, both aiming at the greatest good of the greatest number through cost-benefit analysis.
3. Distributive justice: John Rawls equated justice with fairness using the veil of ignorance and the difference principle, which justifies affirmative action such as crèches and paid maternity leave.

Deontological theories

1. Kant's categorical imperative: Immanuel Kant held that goodwill, not consequences, decides rightness: do unto others as you would like others to do unto you.
2. Religion: All major religions teach that the means matter more than the ends.
3. Aristotle's virtue ethics: In the Nicomachean Ethics, ethical conduct is a habit, and regular practice builds ethical memory much like an athlete's muscle memory.

Conclusion: Teleological theories judge actions by their results and deontological theories by duty. Managers use both, from utilitarian cost-benefit analysis to Kantian universal principles, while staying aware of each one's limits.

Sample 2: Stakeholders as Strong Drivers of CSR

Question: Explain how stakeholders have emerged as strong drivers of Corporate Social Responsibility (CSR).

Meaning: The stakeholder view holds that the purpose of a firm is tied to the interests of every individual and group it affects, positively or negatively, so a corporation should be managed for the benefit of its stakeholders. As business expanded, customers, suppliers, owners, employees, communities, media, government, civil society and even the environment became strong drivers of CSR.

1. Customers and ethical consumerism: Buyers now judge production processes, working conditions and wages, not just the product, and this consumer sovereignty pushes firms towards responsibility.
2. Consumer boycotts: Boycotts over apartheid-era South Africa pushed Barclays to exit, and the 1960s boycott of Dow Chemical's napalm made Dow stop producing it.
3. Ethical branding: Ben and Jerry's, The Body Shop, Innocent Drinks and the 1997 Toyota Prius built brands on ethical values.
4. Government: The state encourages CSR through endorsement, exhortation and partnership; the UK even created a Minister for CSR under Tony Blair.
5. Civil society organisations: CSOs act as the Third Force, campaigning on human rights, pollution and exploitation.
6. Shareholders and employees: Shareholder activism, including Robert Monks' Universal Owner idea, and employee activism such as the Google walkouts push firms towards responsible conduct.

Conclusion: Customers, government, CSOs, shareholders and employees have together moved firms from a shareholder focus to a stakeholder focus, where value is created for every group the business affects.

Sample 3: Phases and Models of CSR in India

Question: Discuss the different phases of development of CSR in India. Briefly explain the models of CSR operating in India.

Phases of development: The growth of CSR in India is usually divided into four phases.

1. Phase 1 (1850 to 1914), charity and philanthropy: Driven by culture, religion and traditions such as dan, seva and zakat. Merchants funded temples, famine and epidemic relief, and industrial families like the Tatas and Birlas built schools and hospitals.
2. Phase 2 (1914 to 1960), social development: Shaped by the independence struggle and Gandhi's theory of trusteeship, with trusts backing the abolition of untouchability, women's empowerment and rural development.
3. Phase 3 (1960 to 1980), mixed economy: A period of state-led development, public enterprises, the Licence Raj and heavy regulation, after which expectations shifted back to the private sector.
4. Phase 4 (1980s onwards), philanthropic-business interface: Firms began treating CSR as a sustainable strategy with a multi-stakeholder approach, helped by the 1990s liberalisation that linked India to global markets.

Models of CSR: A TERI report (Kumar and others, 2001) identifies four models operating in India.

1. Ethical model: Based on Gandhian trusteeship, where surplus wealth is held in trust for the greater good to build a more equal society.
2. Statist model: Rooted in Nehru's socialist, mixed-economy vision, where state ownership and labour laws govern corporate responsibility; most PSUs follow it.
3. Liberal model: Proposed by Milton Friedman, it says the social responsibility of business is to increase profits while obeying law and ethical custom.
4. Stakeholder model: Proposed by R. Edward Freeman, it says a company should be run for stakeholder welfare, which makes it more resilient over the long term.

Conclusion: CSR in India grew from charity into a strategic business function across four phases and now works through four models, reflecting an old tradition of giving updated by liberalisation and law.

Sample 4: Global and Public Sector Guidelines to Promote CSR

Question: What are the global guidelines to promote CSR practice? Also discuss the guidelines issued by the government for public sector enterprises.

Meaning: Companies today can draw on several globally recognised guidelines, frameworks, principles and tools that give detailed direction on CSR.

Major global guidelines

1. UN Guiding Principles on Business and Human Rights (2011): Built on the duty of states to protect human rights, and applicable to all states and enterprises regardless of size or sector.
2. UN Global Compact: The world's largest corporate citizenship initiative, with 10 principles across human rights, labour, environment and anti-corruption.
3. ILO Tripartite Declaration: Guides multinational and national enterprises on social policy and responsible workplace practices.
4. OECD Guidelines for Multinational Enterprises (1976): Among the earliest CSR frameworks, also aimed at improving the investment climate.
5. National Voluntary Guidelines: India's NVGs on the social, environmental and economic responsibilities of business apply to every business, whatever its size, sector or location.

Guidelines for public sector enterprises

1. Moral responsibility: As part of the state, every PSE has a moral duty to meet social obligations, subject to its financial health.
2. DPE guidelines, 2010: The Department of Public Enterprises asked CPSEs to integrate social and environmental concerns into their business plans and introduced the triple bottom line idea.
3. Revised guidelines, 2013: Effective 1 April 2013, each CPSE makes a Board-approved budget allocation, and unlike 2010 the rules also cover internal stakeholders, especially employees.

Conclusion: The UN Guiding Principles, UNGC, ILO, OECD and India's NVGs, together with the DPE guidelines for CPSEs, form a complete structure that pushes CSR practice towards accountability and sustainability.

Sample 5: CSR Reporting Process, Tools and Techniques

Question: What is the process of CSR reporting? Discuss the different reporting tools and techniques used for CSR and sustainability reporting.

Meaning: Disclosure is the first step a company takes to show commitment to sustainability, because you cannot manage what you cannot measure. A report tells stakeholders about the firm's social, economic and environmental performance and adds to brand value.

Process of CSR reporting (pre-report checklist)

1. Objective: Decide whether the report is a legal requirement under the Companies Act, 2013 and the BRR format, or voluntary.
2. Resources and ownership: Allocate resources and give one person or a small cross-functional team responsibility for the report.
3. Target groups: Identify key stakeholders and talk to them about what they expect to see disclosed.
4. Method: Choose existing standards such as the UN Global Compact, GRI guidelines, AA1000 and ISO 26000.

Reporting tools and techniques

1. Frameworks: GRI, the SIGMA project, DPSIR, Carbon Disclosure Project, WBCSD, GHG Protocol and the SEBI framework.
2. Standards: AA1000, SA8000, ISO 14001, ISO 9001, OHSAS 18001 and ISO 26000, grouped as voluntary or private standards.
3. Ratings and indices: KLD, EIRIS, SAM, Asian Sustainability Rating, Dow Jones Sustainability Index, MSCI ESG, FTSE4Good and Bloomberg ESG scores.

Disclosures usually cover five areas: environment, labour practices and decent work, society, human rights and product responsibility. Philips uses integrated reporting, JK Group follows ISO 26000 and Mahindra reports on GRI.

Conclusion: CSR reporting moves through objective, resources, target groups and method, then uses frameworks, standards and indices like GRI, ISO 26000 and DJSI to disclose performance across five key areas.