IPCC B.ethics and Communication 36e

CA - IPCC
COURSE MATERIAL
Quality Education
beyond your imagination...
BOOK NO 2B
BUSINESS ETHICS & BUSINESS COMMUNICATION_36e
Cell: 98851 25025 / 26

Visit us @ www.mastermindsindia.com Mail: mastermindsinfo@ymail.com
Facebook Page: Masterminds For CA Youtube Channel: Masterminds For CA
1
INDEX
S.No. Chapter Name Pages
1. Business Ethics 3 72
2. Business Communication 73 165
2
CA - IPCC
COURSE MATERIAL
Quality Education
BUSINESS ETHICS _36e
Cell: 98851 25025 / 26

3
INDEX FOR BUSINESS ETHICS
No. of
No. of
application
S.No. Chapter Name Theory Pages
oriented
Questions
questions
1. The Basic Principles of Ethics
13 7 7 20
and Business Ethics
2. Corporate Governance &
20 5 21 35
Corporate Social Responsibility
3. Ethics in work place 12 3 36 46
4. Environment and Ethics 7 9 47 54
5. Ethics in Marketing and
9 11 55 63
Consumer Protection
6. Ethics in Accounting and Finance 13 2 64 - 72
Total 74 37
CHAPTER WISE ANALYSIS OF PREVIOUS EXAMINATIONS

M-09
M-10
M-11
M-12
M-13
M-14
M-15
M-16
N-09
N-10
N-11
N-12
N-13
N-14
N-15
No. Chapter/Topic Name
BASIC PRINCIPLES OF
1. ETHICS & BUSINESS 7.5 2.5 - 6 - 6.5 - - 8 4 - 2 3 9 -
ETHICS
CORPORATE
2. 5 5 7.5 4 2 4 4 6.5 4 4 2 8 4 - 8
GOVERNANCE & CSR
3. ETHICS IN WORK PLACE 7.5 7.5 - 8 14 4 9 4 8 2 8 4 4 4 4
4. ENVIRONMENT & ETHICS 2.5 - 7.5 2 4 2.5 4 2.5 - - 4 7 4 4 5
ETHICS IN MARKETING &

5. 2.5 5 - 4 - 4 4 8 4 4 7 - 4 4 4
CONSUMER PROTECTION
ETHICS IN ACCOUNTING
6. 5 - 5 4 8 - 4 - - 7 4 4 4 - 4
AND FINANCE
4
HIGHLIGHTS OF THIS MATERIAL
1. EXAMINATION TRENDS: At the beginning of each chapter we have given a table called
QUESTION - WISE ANALYSIS OF PREVIOUS EXAMINATIONS. This analysis will help you to
judge the relative importance of each question in each chapter. Based on that analysis you
can easily pay more attention on relatively more important questions.
Similarly at the beginning of the material we have included a table called CHAPTER WISE
ANALYSIS OF PREVIOUS EXAMINATIONS. This analysis will help you to judge the relative
importance of each chapter and you can pay more attention on relatively more important
chapters.
2. ONE STOP SOLUTION: All Questions in SM, PM, latest RTPs and latest MTPs have been
covered in our material alongwith previous examination questions of IPCC. Our material is
like a one stop solution. In the public exam you can expect atleast 90% of the Questions to
come from our material.
For each question we have given the reference of Study Material (SM), Practice Manual
(PM), RTPs, MTPs & previous examinations of IPCC. This will help you to assess the relative
importance of each question from examination point of view.
3. PURPOSE OF ABC ANALYSIS: All the questions are categorized into ABC which shows the
importance of the question from examination point of view. This analysis helps the
student to devote the time on the important areas at the time of exams. However, it is
advisable to read even C category questions atleast once. In other words, dont ignore C
category questions completely.
On the other hand, if you have enough time to prepare then it is recommended to
thoroughly read C category questions also. The decision to leave B category or C category
questions, is purely left to your discretion and it is advisable for you to take the decision
based on the availability of time and your caliber.
In simple words, if you have enough time and if you are capable enough then read all the
questions. Otherwise leave C category questions. If you are ready to take still more risk then
you can leave B category questions too. Everything depends upon availability of time, your
caliber and the amount of risk that you are ready to take.
4. SIGNIFICANCE OF TEXT GIVEN IN ITALICS IN SOME PLACES: The text given in italics
indicate that the matter need not be written, if that question is asked for lesser marks i.e.
as a short answer. However, if the question is asked for more number of marks then the
entire answer must be written. In simple words, in the examination, write the content
given in italics only if time and marks permit.
5. FEW QUESTIONS ARE TO BE PREPARED ON YOUR OWN: Few theory questions and
practical questions are marked as FOR STUDENTS SELF STUDY. Those questions will not
be discussed by the faculty in the classroom. Generally questions of very easy nature are
classified under this category. Students shall not get confused that all the questions given
under this category are unimportant. Some of the questions classified under this category
might be even important. We have done this to ensure that syllabus is completed in time.
6. PURPOSE OF SIMILAR QUESTIONS: At the end of each question there are some similar
questions and the purpose of giving similar questions is to make students understand the
different ways of asking the same question. For your convenience we have also given hints
for answering such similar questions in the exam.
5
7. TEST YOUR KNOWLEDGE QUESTIONS: You know that in CA examinations you cant get all
direct questions. Even if we prepare hundreds of questions there are some chances of
getting question in a new format. To face this challenge it is better for you to attempt
some new questions. We have given some new questions under the heading TEST YOUR
KNOWLEDGE to achieve this purpose.
8. QUESTIONS FOR ACADEMIC INTEREST ONLY: Questions classified under this heading are
not important from examination point of view and they are given only for your academic
knowledge and are not important from examination point of view. If time permits then it
is advisable to prepare those questions also. If time does not permit then students can
leave those questions as choice. So, it is upto you to decide based on your preparation
schedule.
Are you appearing for Group 1 alone or aiming for a rank in IPCC exams?: If you want to
attempt for Group 1 alone or aiming for a rank in IPCC exams then you shall not take risk.
So, for such kind of students it is advisable to read the full content of the material.
6
Ph: 98851 25025/26 www.mastermindsindia.com
1. THE BASIC PRINCIPLES OF ETHICS & BUSINESS ETHICS
QUESTION - WISE ANALYSIS OF PREVIOUS EXAMINATIONS
90- 90 01- 01 11- 11 M-12 31- 31 41- 41- 51 51- 61-
No. ABC
M N M N M N N-12 M -N M N
- - - TO - N M
M
1. B - - - 4 - - - - - - - - - -
2. A - - - 4 - - - - 4 - - - - -
3. A - 2 - - - 2 - 4 - - - - - -
4. B - - - - - - - - - - - - - -
5. B - - - - - - - 4 - - - 3 4 -
6. A - - - - - - - - - - - - - -
7. B - - - - - - - - 4 - 2 - - -
8. A 5 - - - - - - - - - - - - -
9. C - - - - - - - - - - - - - -
10. A 5 - - - - - - - 4 - - - - -
11. B - - - - - - - - - - - - - -
12. C - - - - - - - - - - - - - -
13. C - - - - - - - - - - - - - -
C - - - - - - - - - - - - -
14. -
C - - - - - - - - - - - - - -
15.
C - - - - - - - - - - - - -
16. -
B - - - - - - - - - - - - 2.5 -
17.
C - - - - - - - - - - - - 2.5 -
18.
B - - - - - - - - - - - - - -
19.
B - - - - - - - - - - - - - -
20.
Whether men understand it or not, they are impelled by that power behind
to become unselfish. That is the foundation of morality. It is the quintessence
of all ethics, preached in any language, or any religion, or by any prophet in
the world.
Be thou unselfish, not I, but thou that is the background of ethical
codes. Swami Vivekananda
IPCC _36e_ Business Ethics_ Basic Principles & Business Ethics ____________7
No.1 for CA/CWA & MEC/CEC MASTER MINDS
Q.No.1. Explain the meaning of the terms ethics and business ethics and also state
the requirements of business ethics. (PM) (N 07- 5M, N 10 - 4M, RTP N-15)
ETHICS
1. The word Ethics is derived from the Ancient Greek word thikos- meaning character, is
the essence of values and habits of a person or group.
2. It covers the analysis and employment of concepts such as right and wrong, good and evil,
and acting with responsibility.
3. One of the meanings is 'Ethics' are the principles of conduct governing an individual or a
group.
4. Another definition describes ethics as relating to what is good or bad and having to do with
moral duty and obligation.
BUSINESS ETHICS:
1. In a broad sense, ethics in business refers to the application of day-to-day moral and
ethical norms to business.
2. Business ethics are the principles and standards that determine acceptable conduct in
business organisation
REQUIREMENTS:
Being ethical in business requires acting with an awareness of
1. laws of the land,
2. customs and expectation of the community
3. principles of morality
4. policies of the organization and
5. General concerns such as the needs of others and fairness.
a) How the products, services and actions of a business enterprise, can affect its
stakeholders (i.e. employees, customers, suppliers, shareholders and community
society as a whole) either positively or negatively.
Similar Question
Ethics is concern for good behaviour-discuss.
Ans.: Ethics is the concern for good behaviour- doing right thing. In business, self-interest
prevails and there is always inconsistency between ethics and business. But it is a well settled
principle that ethical behaviour creates a positive reputation that expands the opportunities for
profit. Also write the 4 points under ethics side heading in the above question.
Q.No.2. Explain the Social Sins, listed by Mahatma Gandhi. (PM)

(M 07 2.25, N 10, 13-4M)
Mahatma Gandhi, Father of the nation, promoted non-violence, justice and harmony between
people of all faiths. He stressed that people follow ethical principles and listed following seven
Social Sins:
a) Politics without Principles: It deals with the political field. The Kings in Indian tradition
were only the guardian executors and servants of 'Dharma'. For Gandhi, Rama was the
symbol of a king dedicated to principles.
b) Wealth without Work: It deals with the sphere of Economics. Tolstoy and Ruskin inspired
Gandhi on the idea of bread-labor. The Bhagavad Gita also declares that he who eats
without offering sacrifice eats stolen food.
SOCIAL SINS, LISTED BY GANDHI
c) Commerce without Morality: Gandhiji developed this third maxim into the idea of
trusteeship. A businessman has to act only as a trustee of the society for whatever he has
gained from the society. Everything, finally, belongs to the society
d) Knowledge without Character: The fourth dictum deals with knowledge. Education
stands for the all-round development of the individual and his character. Gandhi's system
of basic education was the system for development of one's character.
e) Pleasure without Conscience: In this maxim, Gandhi emphasized on conscience. He
opined that our pleasure should not be at the cost of others discomfort.
f) Science without Humanity: In sixth maxim, Gandhi held that science without the thought
of the welfare of humanity is a sin. Science and humanity together pave the way for
welfare of all.
g) Worship without Sacrifice: In religion, we worship, but if we are not ready to sacrifice for
social service, worship has no value; it is a sin to worship without sacrifice.
Q.No.3. What is the difference between Morals and Ethics? Or Ethics and morals are
synonymous. Comment. Distinguish ethics from morals. (Or) How are ethics different
from morals? (Or) There is no difference between ethics and morals. Comment.
(PM) (N 07, 09, 11 - 2M, M 13 - 4M,MTP OCT15 - 5M)
Moral vs. Ethics: Following are the points of difference between Ethics and Morals:
a) The word Ethics is derived from Ancient Greek word thikos meaning character.
The word moral is derived from Latin Mos meaning custom.
b) Character is the essence of values and habits of a person or group. It severs the analysis
and employment of concepts such as right and wrong, good and evil and acting with
responsibility.
Moral is defined as relating to principles of right and wrong.
c) Character is a personal attitude, while custom is defined by a group over a period of time.
For example People have character, Societies have custom.
d) Morals are accepted from an authority (such as cultural, religious etc.)
while ethics are accepted because they follow from personally accepted principles.
e) An ethical view might be based on an idea of personal property that should not be taken
without social consent.
Moral norms can usually be expressed as general rules and statements such as always
tell the truth.
f) Morals work on smaller scale than ethics, more reliably, but by addressing human needs
for belonging and emulation, while ethics has a much wider scope.
g) Both 'ethics' and 'morals' deal with right and wrong conduct. But they are not same.
h) Ethics deals with individual character which is a personal attribute. Ethics is the response
of individual to a specific situation e.g. whether in this situation, it is ethical to state the
truth.
Morals deal with customs set by groups or some authority like religion. Morals are general
principles e.g. you should speak truth.
Similar Question:
1. Morals are general principles whereas Ethics are personal principles comment.
Ans.: give brief definition of ethics and morals and write the above answer.
Q.No.4. Write about the Nature of Ethics (PM) (For student self-study)
Ethics refers to standards of behaviour that tell us how human beings ought to act in the many
situations in which they find themselves as friends, parents, children, citizens, businesspeople,
teachers, professionals, and so on. It is helpful to identify what ethics is NOT:
Ethics is not the same as feelings. Feelings provide important information for our ethical
choices. Some people have highly developed habits that make them feel bad when they do
something wrong, but many people feel good even though they are doing something wrong.
And often our feelings will tell us it is uncomfortable to do the right thing if it is hard.
Ethics is not religion. Many people are not religious, but ethics applies to everyone. Most
religions do advocate high ethical standards but sometimes do not address all the types of
problems we face.
Ethics is not following the law. A good system of law does incorporate many ethical
standards, but Law can deviate from what is ethical. Law can be made to be a function of
power alone and designed to serve the interests of narrow groups.
Ethics is not following culturally accepted norms. Some cultures are quite ethical, but
others become corrupt or blind to certain ethical concerns. "When in Rome, do as the Romans
do" is not a satisfactory ethical standard.
Ethics is not science. Social and natural science can provide important data to help us make
better ethical choices. But science alone does not tell us what we ought to do. Science may
provide an explanation for what humans are like. But ethics provides reasons for how human
sought to act.
Note: any of the above points can be asked individually to comment or to justify.
Q.No.5.Explain the Five Sources of Ethical Standards or Explain the various sources of
Ethical Standards (Or) Write notes on the various sources of Ethical Standards. (Or)
Fairness and justice are the two different approaches of sources of ethical standards.
Correct or Incorrect justify (SM) (M 13 - 4M) (M 15 3M) (NOV-15- 4M)
The Utilitarian Approach: Some ethicists emphasize that the ethical action is the one that
provides the most good or does the least harm, The ethical corporate action, then, is the one
that produces the greatest good and does the least harm for all who are affected - customers,
employees, shareholders, the community, and the environment. The utilitarian approach deals
with consequences; it tries both to increase the good done and to reduce the harm done.
The Rights Approach (The Deontological Approach): Other philosophers and ethicists
suggest that the ethical action is the one that best protects and respects the moral rights of
those affected. This approach starts from the belief that humans have a dignity based on their
human nature per se or on their ability to choose freely what they do with their lives. It is often
said that rights imply duties-in particular, the duty to respect others' rights.
The Fairness or Justice Approach: Aristotle and other Greek philosophers have contributed
the idea that all equals should be treated equally. Today we use this idea to say that ethical
actions treat all human beings equally.
The Common Good Approach: The Greek philosophers have also contributed the notion
that life in community is a good in itself and our actions should contribute to that life. This
approach also calls attention to the common conditions that are important to the welfare of
everyone. This may be a system of Laws, effective police and fire departments, health care, a
public educational system, or even public recreational areas.
The Virtue Approach: A very ancient approach to ethics is that ethical actions ought to be
consistent with certain ideal virtues that provide for the full development of our humanity.
These virtues are dispositions and habits that enable us to act according to the highest
potential of our character and on behalf of values like truth and beauty. Honesty, courage,
compassion, generosity, tolerance, love, fidelity, integrity, fairness, self-control, and prudence
are all examples of virtues. Virtue ethics asks of any action, "What kind of person will become
if I do this?" or "Is this action consistent with my acting at my best?"
Similar Question:
1. Explain the Utilitarian Approach as the ethical Standard (PM)

Ans.: Introduction: Though we all use ethics in various aspects in our day-to-day life, the
application of it is based on the need of the situation. So we need to refer various sources, so
as to know the way by which we need to use them.
There are five major sources, by which the ethical standards are measured. One of the
sources is Utilitarian Approach
Utilitarian Approach: Refer point No. 1 of above question
Copyrights Reserved
To MASTER MINDS, Guntur
Q.No.6.Explain the fundamental principles relating to ethics. (PM) (N 10)
The fundamental principles relating to ethics may be summarized as under:

1. The Principle of Integrity: It calls upon all accounting and finance
professionals to adhere to honesty and straightforwardness while
discharging their respective professional duties.
2. The Principle of Objectivity: This principle requires accounting and
finance professionals to stick to their professional and financial judgment.
3. The Principle of Confidentiality: This principle requires practitioners of
accounting and financial management to refrain from disclosing confidential information
related to their work.
4. The Principle of Professional Competence and due care: Finance and accounting
professionals need to update their
professional skills from time to time in order
to provide competent professional services
to their clients.
5. The Principle of Professional Behaviour:
This principle requires accounting and
finance professionals to comply with
relevant laws and regulations and avoid
such actions which may result in
discrediting the profession.
Similar Question
1. What are fundamental principles on which ethical principles are framed?
Answer: refer the above answer.
Q.No.7. To pay proper attention to business ethics is certainly beneficial in the interest
of business. Describe four such benefits which may be obtained by paying attention to
business ethics. (PM) (N 08, 13 4M, N 14- 2M)
Benefits which may be obtained by paying attention to business ethics: Ethics is the
concern for good behaviour doing the right thing. In business, self interest prevails and there
is always inconsistency between ethics and business. But it is a well settled principle that
ethical behaviour creates a positive reputation that expands the opportunities for profit. The
benefits may be enumerated as follows:
1. Improved Efficiency: In the recent past ruthless exploitation of
children and workers, trust control over the market, termination of
employees based on personalities and other factors had affected
society. As a result a demand arose to place a high value on
ethics, fairness and equal rights. This resulted in framing of anti
trust laws, establishment of governmental agencies and
recognition of labour unions.
2. Easier change management: Attention to business ethics is also critical during times of
fundamental change. The apparent dilemma may be whether to be non-profit or for profit.
In such situations, often there is no clear moral compass to guide leaders about what is
right or wrong. Continuing attention to ethics in the workplace sensitises leaders and staff
or maintaining consistency in their actions.
3. Strong team work and greater productivity: On-going attention and dialogues regarding
ethical values in the workplace builds openness, integrity and a sense of community which
leads to, among the employees, a strong alignment between their values and those of the
organisation resulting in strong motivation and better performance.
4. Enhanced employee growth: Attention to ethics in the workplace helps employees face
the reality - both good and bad in the organisation and gain the confidence of dealing with
complex work situations.
5. Ethical programmes help guarantee that personnel policies are legal: A major
objective of personnel policies is to ensure ethical treatment of employees. In matters of
hiring, evaluating, disciplining, firing etc. Most organisations feel that cost of mechanisms
to ensure ethical programme may be more helpful in minimizing the costs of litigations.
6. Ethical programmes help to detect ethical issues and violations early, so that criminal
acts of omission may be avoided.
7. Ethical values help to manage values associated with quality management, strategic
planning and diversity management. In the recent past ruthless exploitation of children and
workers, trust control over the market, termination of employees based on personalities
and other factors had affected society and a demand arose to place a high value on ethics,
fairness and equal rights resulting in framing of anti-trust laws, establishment of
governmental agencies and recognition of labour unions.
Q.No.8. Define the term business ethics. State the need of ethics in business. (Or) write
a short note on business ethics. What is the need of business ethics? (Or) To maintain
social contract between society and business, the trusteeship relations are essential-
comment. Describe the role of business ethics in this reference? (Or) Company
management has responsibility only towards its shareholders.
(PM) (M 09- 5M, N 0 7 - 2.5M)
Business Ethics:
a) Ethics in business is the application of everyday

moral or ethical norms to business.
b) Business Ethics is a set of principles or reasons which
should govern the conduct of business at the
individual firm level or at the collective industry level.
c) It refers to a corporate culture of values, programs,
enforcement and leadership.
d) Being ethical in business requires acting with an awareness of how
the products and services of an organization, and the actions of its
employees, can affect its stakeholders and society as a whole and
developing codes of conduct for doing business.
Need:
a) It is a form of Applied Ethics. It examines the various aspects of
business. It keeps the business under the test of ethical rules and
principles.
b) The authority to own and use the natural resources for a
business is given by the society. So, the society has the
right to expect the organization, to keep the interest of
the society in their mind, and protect them.
c) It was after the birth of the Social Responsibility
Movement in 1960s, that Business Ethics has become a
Management discipline.
d) The interest of Ethics by the business world has increased much, recently. Many major
corporates lay emphasis on Corporate Social Responsibility. They do the business with
Morals and Ethics.
e) Now, the emphasis is on the principles, that, Profit Maximization shall not be the sole goal
of doing a business.
f) Ethical Influences on Business.
Area of Business Ethical Practice

Plant Location. No adverse impact on the environment.
Product. Control of pollution.
Purchase & Storage. No hoarding (storing) of finished goods.
Transportation. Complying with safety regulations.
Advertising. Truthful and realistic claims.
Administration. Concern for social values.
Finance. Protection and appreciation of capital.
Personal. Just and equitable treatment to employees.
Conclusion:
Being ethical in business requires acting with an awareness of
a) Laws of the land
b) Customs and expectations of the community
c) Principles of morality
d) Policies of the organization and
e) General concerns such as the needs of others and fairness
Similar Questions:
1. Explain the statement ethical behavior creates a positive reputation that expands the
opportunities for profit
Ans.: Introduction about ethical behavior: refer question no. 1(meaning a b c d points)
The products and services of an organization affect its employees, the community and
society as a whole. Business ethics also sub serves the management discipline. Business
houses may also use their financial and public influence to address social problems like
poverty, crime, equal rights, environmental problems, public health and education. A
reputation for highly ethical behavior also ensures increased sales and customer loyalty.
And refer above question (business ethics (a,b,c points) and Need of it .
2. Business ethics are the principles and standards that determine acceptable conduct in
business organizations elaborate.
Ans: Ethics in business organization relates to a corporate culture of values, leadership,
programs and enforcement. It is that set of principles or reasons which governs the
conduct of business at the individual or collective level by the application of ethical
reasoning to specific business situations and activities. In broad sense, ethics in business
refers to the application of day-to-day moral and ethical norms to business.
And refer above question (business ethics (a,b,c points) and need
Copyrights Reserved
Q.No.9. Write about Ethical Dilemmas. (PM)
ETHICAL DILEMMAS
1. Many business issues may seem straight forward and easy to
resolve by choosing the one option which appears to be the clear
choice, but in reality, one is faced with having to make a choice
from various alternatives in which more than one option seems
right resulting in an ethical dilemma.
2. Ethical dilemmas faced by managers are often highly complex
with no clear guidelines. For example, if you are a salesperson, when does offering a gift
to a customer become a bribe rather than sales promotion?
3. Codes of Ethics are the most widespread means by which companies communicate their
ethical standards to the employees or professionals. These are formalized rules and
standards that describe what is expected from them.
4. Placing value on short term gains at the detriment of long term results often ends in
disaster.
SOME GUIDELINES TO ADDRESS ETHICAL DILEMMAS ARE GIVEN BELOW:
1. Define the problem clearly.
2. How would you define the problem if you stood on the other side of the fence?
3. How did the situation arise?
4. To whom are you loyal as a person and as a member of the organisation?
5. What is your intention in making this decision?
6. How does this intention compare with the probable results?
7. Whom could your decision or action injure?
8. Can you discuss the problem with the affected parties before you make your decision?
9. Are you confident that your position will be as valid over a long period?
10. Could you disclose without any doubt your decision or action to your boss, your CEO, the
Board of Directors, your family, society as a whole?
11. What is the symbolic potential of your action if understood? If misunderstood?
12. Under what conditions would you allow exceptions to your stand?
Similar Questions:
1. An Ethical Dilemma is a situation, where the decision makers have to choose between the
right and the wrong- comment.
Ans.: Refer above Answer
Q.No.10. Why should business follow ethical practices? (Or) Stakeholders must
support the organizational ethics initiatives, because it makes good business sense in
long term comment. (Or) Formal attention to business ethics is the right thing to do
comment. (Or) In long run, only those companies which are run ethically will survive
and prosper comment. (Or) Ethics is certainly beneficial in the interest of business.
Describe such four benefits which may be obtained by paying attention to the business
ethics. (Or) Explain about importance of Ethics in Business
(N 08 - 5M, N 13 4M, J 09 - 5M)
INTRODUCTION:
Every business organization should follow ethical practices for following reasons.
1. Increase in sales and profit:
a) The ethical conduct of a business is completely based on the
selfinterest of the businessman.
b) A business enterprise can serve its customers with good and
quality products at fair prices.
c) These will definitely affect the goodwill of the company, with a
considerable increase in the sales and profit. Then, the company could reward its
shareholders, with good dividends and capital gains.
2. Reward motive:
a) It is the self-interest of the corporate or the individual, to follow the
ethical practice.
b) By following the ethical principles, one can earn the goodwill of
the society, customers, vendors, suppliers etc.
c) This could be helpful in long run. The success of Tata Steel,
Infosys etc. stand as classic examples for this.
3. Strengthening the organization: Managing Ethical Values in business
a) legitimizes actions
b) strengthens the coherence and balance of the organizations culture,
c) improves relationships between individuals and groups,
d) supports greater consistency in standards and of products, and
4. Social pressure:
a) At present, the business firms are under pressure. There are
various organizations, like the consumer forms, trade
unions, shareholders associations, and other social groups,
including NGOs, to exert this pressure.
b) This keeps the business firms away from using unethical
practices, file false claims in advertisements, profiteering
exploitation of labour etc.. Agitation in Savar Apparel industries over
minimum salary-100 units closed
5. Legal need:
a) Every land has its own law. The business organisations have to follow it. It is beyond
their self interest.
b) In case, it a businessman disobeys the law of the land and government regulations, it can
either cause damage to its prestige, or even lead to the closure of the business firm.
6. Ethics Is Consistent With Profit Motive: The Companies like Infosys Technologies,
Wipro Ltd. etc. have a good of high profits, year after year. They also have a good record
of Ethics. This proves that following Ethics can bring profit as well.
7. Image: Some organizations gain the trust and confidence of government agencies
including tax authorities. So they will be reluctant to file cases against these companies.
The employees will be proud of an organization. This will improve the moral of them. At
times, the society will support the organization too.
8. Pay Back Principle: Pure profit motive is being considered as a very
narrow approach. Social support is very much required for the prosperity
and survival of an individual or a business firm. So, it is ones
responsibility, to pay back to the society, as he gets everything from the
society. This is called Samaj- rhuna (Obligation towards the society).
9. Diversity management: Ethics management programs are useful in managing diversity.
These programs require recognizing and applying diverse values and perspectives which
are the basis of an ethics management program.
10. Employee-friendly policies: Attention to ethics ensures highly ethical policies and
procedures at workplace. These policies help to achieve the favorite goals of organization.
11. Employee growth: Attention to ethics is the workplace helps employees face reality, both
good and bad, in the organization and gain the confidence of dealing with complex work
situations.
Similar Questions:
1. Unethical Organizations are attacked by social and legal pressure Do you agree?
Comment
Ans.: Write 4, 5 points of above question.
2. Ethical organizations are rewarded by image and profit - comment
Ans: Write 1, 7 points of above question
QUESTIONS FOR ACADEMIC INTEREST
Q.No.11. Fairness and honesty are the pillars of success in the business. Comment.
MTP OCT -15 4M (M-12)
a) The success of the business depends very much on fairness and honesty in the business.
Fairness and honesty are at the heart of the business ethics and relate to the general
values of decision makers.
b) The business professionals and persons are expected to follow all applicable rules and
regulations, without causing harm to the customers, employees, clients or competitors
knowingly through deception, misrepresentation, coercion or discrimination.
c) One aspect of fairness relates to competition. Although, numerous laws have been passed
to foster competition and make monopolistic practices illegal, companies sometimes gain
control over markets by using questionable practices that harm competition.
Therefore, we may say that fairness and honesty are the pillars of success in the business.
Q.No.12. Distinguish ethics from Law. (Or) How is ethics different from Law?
(SM) (For student self-study)
1. Ethics is socially accepted, whereas law is legally accepted.

2. All laws can be ethical, but all Ethics cant be legal.
3. Ethics is developed through conviction and self-discipline.
Law is developed through social observation.
4. Some ethical practices can be enforced by law. There are
many ethical concepts, for which there are no legal
provisions, in existence.
5. What is legal may not be ethical, and vice versa.
For example:
a) Gambling is legal in some states, but not ethical (Legal but
unethical).
b) Drinking alcohol is illegal in some states. But people consider it
ethical (illegal but ethical). Overlap.
Q.No.13. State the Golden Rule of ethics. (Or) Explain the Golden Rule of ethics.
Ethics is a personal aspect. We need to adjust it with need of the

situation. But there is a common principle, for all Ethical concerns. This is
known as The Golden Rule of Ethics.
Rule: Do unto others as you would have them do unto you
Explanation: It means that, what we do to others should be as what we
want others to do to us. Or, Treat others, as you would like them to treat you. It is also called
the the Ethics of Reciprocity.
Examples:
a) I do not want my neighbor to steal my belongings. So, I should not steal his belongings.
b) You cant accept if any one tells a lie to you. So, you too, should not tell lies to anybody.
Golden Rules
Do Do Not
Be gentle Hurt any body
Be kind and helpful Hurt peoples feelings
Work hard Waste your or other peoples time
Look after property Waster or damage things
Listen to people Interrupt
Be honest Cover up the truth
APPLICATION ORIENTED QUESTIONS
Q.No.14. Answer yes or no with brief reasons

Knowledge without morality is a social sin.
No, in the technical sense, Gandhiji had labeled knowledge without character as a social sin,
though knowledge without morality is also bad.
Q.No.15. Answer yes or no with brief reasons.

Ethics and morals are synonymous
Incorrect: Both 'ethics' and 'morals' deal with right and wrong conduct. But they are not same.
Ethics deals with individual character which is a personal attribute. Ethics is the response of
individual to a specific situation e.g. whether in this situation, it is ethical to state the truth.
Morals deal with customs set by groups or some authority like religion. Morals are general
principles e.g. you should speak truth.
Q.No.16. State with reasons whether the following statements are correct or incorrect .
Trusteeship provides a means of transforming the preset capitalist order of society
into an egalitarian one.
Correct: Commerce without morality was developed into the idea of Trusteeship by Gandhiji.
A businessman has to act only as a trustee of the society for whatever he has gained from the
society. Everything, finally, belongs to the society. Hence, "Trusteeship provides a means of
transforming the present capitalist order of society into an egalitarian one."
Q.No.17. Answer whether the statement is correct or incorrect with brief reasons.
In the long run those business firms which do not respond to societys needs
favourably will survive. (N-15- 2.5)
Incorrect. Society gives business its license to exist and this can be amended or revoked at
any time if it fails to live up to societys expectations. Therefore, if a business intends to retain
its existing role and power it must respond to societys needs constructively.
Q.No.18. State with reasons whether the following statement is correct or incorrect:
Business ethics helps to promote public reputation. (N-15 2.5M)
Correct: Ethics helps to promote a strong public image. An organization that pays attention to
its ethics can portray a strong and positive image to the public. People see such organizations
as valuing people more than profit and striving to operate with the integrity and honour.
Q.No.19. State with reasons whether the following statements are correct or incorrect:
Ethics programs are not helping to manage values associated with quality
management, strategic planning and diversity management.
Incorrect: Ethics programs help identifying the preferred values and ensuring that
organizational behaviors are aligned with those values. This includes recording the values,
developing policies and procedures to align behaviors with preferred values and then training
all personnel about the policies and procedures. This overall effort is very useful for several
other programs in the workplace that require behaviors to be aligned with values, including
quality management strategic planning and diversity management. For example, total quality
management initiatives include high priority on certain operating values, e.g. trust among
stakeholders, performance, reliability, measurement and feedback.
Q.NO 20. Examine the following hypothetical situation and give a brief analytical note
on it.
Mr. XYZ is a CEO of a pharmaceutical company. His R&D department, while
experimenting with a chemical molecule, sees the possibility that the molecule may be
developed into a drug for a rare, painful, life-threatening genetic disease that afflicts
only one child in ten million. Butto develop the drug, his company may have to invest
huge sums of the shareholders money, despite the drug not having wide salability. Is
Mr. XYZ confronted by an ethical dilemma? How should he resolve the issue?
Mr. XYZ is in a situation where he has to choose between carrying on the development of a
drug for a painful and life threatening disease which afflicts one in ten million and the action of
spending huge sum of shareholders money for such development. As we can see, both are
positive and ethically right choices. As a socially responsible person he has to think in terms of
eliminating a serious illness but at the same time he must be careful in dealing with
shareholders money. This is a classic case of an ethical dilemma. Such an ethical dilemma
must be resolved by addressing the following points.
TEST YOUR KNOWLEDGE

1. Explain how businesses can promote ethical behavior?
2. What steps do you take to introduce fundamental principles in your company?
3. What are the guidelines do you follow to face ethical dilemma?
4. How can you differentiate the utilitarian approach from the common good approach?
5. According to Greek Philosophers like Aristotle, ethical actions should treat all human
beings equally. Want is the name of this method?
6. What do you know about social responsibility movement?
7. What is the reward motive for ethical organizations?
8. Any attempt to go against the legal provisions can end in penalties, and even
punishments. How can you name this motive according to ETHICS?
9. Every feeling is a part of ethics, do you agree?
10. What are the functions of compliance officer?
11. In business, very few issues are complex, and easy to resolve, can you accept this
statement.
12. Which branch of ethics involves two steps like arriving at a moral standard and regulating
the right and wrong conduct?
13. According to SEBI regulations, 2003, many nationalized banks have Ombudsman. What is
the purpose of it?
14. Which concept was developed by Mahatma Gandhi regarding ethical behavior of business
organizations?
15. One who eats without offering sacrifice, eats stolen food who gave this concept?
16. Ethics are not based on the individuals interests and ideas. Do you agree?
17. All laws can be ethical, but all ethics cant be legal. Do you accept this statement?
18. Which fundamental principle suggests all the accounting and financial professional need to
update their professional skills from time to time?
19. Normative ethics seeks to understand the nature of ethical properties and ethical
statements. Is it true statement, if not what is the right statement?
20. Your organization has been suffering from many problems. You have conducted an
investigation about the failure of your organization. The problem is that every employee at
all levels gets confusion regarding the usage of an ethical principle. How will you call this
confusion in the language of business ethics?
21. The ethical conduct of a business is completely based on the self-interest of the
businessman do you agree with this statement?
22. Code of ethics was introduced in XYZ Company. The company wants to appoint a person
from senior level of the organization. How can you call the person in the concept of
Institutionalizing Business Ethics?
Verified by: Chandrasekar Sir, Kareem Sir

Executed by: Sai ram Sir
THE END
2. CORPORATE GOVERNANCE AND CORPORATE
SOCIAL RESPONSIBILITY
9-0 90- 0-1 01- 1-1 11- 2-1 21- 3-1 31- 4-1 4-1 5-1 51- 6-1
No. ABC M N M N M N M N M N M N M N M
1. B - 2.5 - - - - - - - - - 4 - -
2. B 5 - - - - - - 4 - - - - - - 4
3. B - - - - - - - - - - - - - - -
4. B - - - - - - - - - - - - - - -
5. B - - - - - - - - 4 - - - - - -
6. B - - - - - - - - - - - 4 - - -
7. A - - - - - - - - - - - - - - -
8. B - - - - - - - - - - - - - - -
9. A - - - - - 4 - - - 4 - 4 - - -
10. B - - - - - - - - - - - 4 - - -
11. B - - - - - - - - - - - 4 - - --
12. A - 5 - - - - - 2.5 - - 2 - - - 4
13. A - - - - - - - - - - 4 - - - -
14. B - - - - - - - - - - - - - - -
15. B - - - - - - - - - - - - - - -
16. B - - - - - - - - - - - - - -
17. B - - - - - - - - - - - - - - -
18. B - - - - - - - - - - - - - - -
19. C - - - 4 - - - - - - - - - - -
20. B - - - 4 - - - - - - - - - - -
21. C - - - - - - - - - - - - - - -
22. C - - - - - - - - - - - - - - -
23. C - - - - - - - - - - - - - - -
24. C - - - - - - - - - - - - - - -
25. C - - - - - - - - - - - - - - -
To be successful, you have to have your heart in your business, and your business in
your heart. -
Thomas Watson, Sr.
Business ethics if properly understood is neither anti-business nor anti-capitalist. It is simply
articulating a cohesive set of values to guide decision making in running a business.
Q.No.1.What is meant by corporate governance? Explain the benefits of good corporate

governance. (N 04 - 4M, M 10 - 2.5 M, M 15- 4M) (PM)
MEANING:
1. Corporate governance is about promoting corporate fairness, transparency and
accountability.
IPCC _36e_ Business Ethics_ Corporate Governance & Corporate Social______21
2. It is concerned with structures and processes for decision-making, accountability, control
and behaviour at the top level of organizations.
3. It influences how the objectives of an organisation are set and achieved, how risk is
monitored and assessed and how performance is optimized.
4. The core objectives of Corporate Governance are focus, predictability, transparency,
participation, account ability, efficiency & effectiveness and stakeholder satisfaction
Corporate Governance can also be defined as the formal system of accountability and
control for ethical and socially responsible organizational decisions and use of resources.
BENEFITS OF GOOD CORPORATE GOVERNANCE:
1) Protection of investor interests and strong capital markets,

2) Studies show clear evidence that good governance is rewarded with a higher market
valuation.
3) Ensure commitment of the board in managing the company in a transparent manner.
Similar Question:
1. Explain the statement Corporate governance is about upholding corporate fairness,
transparency and accountability".
Ans.: The corporate governance encompasses the following aspects.
Managements accountability to stakeholders. The formal and informal processes by which
stakeholders influence management decisions. The power given to management and control
over managements use of power. And write above ANSWER (Introduction 1 to 4 points)
Q.No.2. what is meant by Stakeholders? Describe those stakeholders who are

affected by or can affect the organization? OR What is meant by 'Stakeholders'? Give
the list of such stakeholders.
(M 09 - 5M, N 124M, M16-4M) (PM) (For student self-study)
MEANING OF STAKEHOLDERS:
a) The traditional governance model positions management as accountable solely to
investors or shareholders.
b) But an increasing number of corporations accept that constituents other than shareholders
are affected by corporate activity, and that the corporation must therefore be answerable
and accountable to them.
c) The word stakeholders describes such constituents of an organization the individuals,
groups or other organization(s) which are affected by, or can affect the organization in
pursuit of its goals.
d) A typical list of stakeholders of a company would be employees, trade unions, customers,
shareholders and investors, suppliers, local communities, government and competitors
Q.No.3. What is meant by 'Corporate Governance'? State the major 'characteristics' of

good corporate governance. (N 07 - 5M) (PM)
CORPORATE GOVERNANCE:
a) Simply stated, 'Governance' means the process of decision making and the process by
which decisions are implemented.
b) The term corporate governance' is understood and defined in various ways. Corporate
governance can be defined as the formal system of accountability and control for ethical
and socially responsible organisational decisions and use of resources and accountability
relates to how well the content of workplace decisions is aligned with the organisations
strategic direction. Control involves the process of auditing and improving organisation
decisions and actions.
c) Good corporate governance has the following major characteristics:
i) Participatory.
ii) Consensus oriented
iii) Accountable
iv) Transparent
v) Responsive
vi) Effective and efficient
vii) Equitable and inclusive and
viii) Follows the rule of law.
SIMILAR QUESTION
1) Explain the major characteristic features of good Corporate Governance. (Or) What
do you mean by good Corporate Governance? (Or) Explain the benefits of good
Corporate Governance. (Or) A good Corporate Governance is always an asset for
the business entity comment. (Or) What are the fundamental principles of
Corporate Governance?
Q.No.4. Corporate Governance Developments Abroad OR Historical background of

Corporate Governance (For student self-study)
a) The trend of developing corporate governance guidelines and codes of best practice
began in the early 1990s in UK and Canada in response to problems in performance in
some leading organizations.
b) The Cadbury Report, 1992 in UK became a pioneering reference code for stock markets.
c) The Blue Ribbon Committee set up in the U.S. in 1998 by New York Stock Exchange and
National Association of Securities Dealers studied the effectiveness of audit committees
and provided recommendations for improvement.
d) In response to these recommendations, New York Stock Exchange and National
Association of Securities Dealers as well as other exchanges revised their listing
standards relating to audit committees.
e) In 2002 the Sarbanes Oxley Act, passed in response to major corporate scandals, is
considered to be one of the most significant.
f) The OECD (Organisation for Economic Co-operation and Development) Principles 1999
and 2004 reflect global consensus regarding the critical importance of corporate
governance.
Q.No.5. Corporate governance -Developments in India OR Historical background of

Corporate Governance in India. (M 13 4M)
1. The Confederation of Indian Industry (CII) took the lead in framing a desirable code of
corporate governance in April 1998.
2. This was followed by the recommendations of the Kumara
Mangalam Birla Committee on Corporate Governance. This
Committee was appointed by the Securities and Exchange Board of
India (SEBI).The recommendations were accepted by SEBI in
December 1999, and enshrined in Clause 49 of the Listing
Agreement of all Stock Exchanges in India.
3. In August 2002 , the Department of Company Affairs, Government of India, constituted a
nine-member committee under the chairmanship of Mr. Naresh Chandra, to examine the
Auditor- Company relationship, role of independent directors, disciplinary mechanism for
auditors committing irregularities and the CEO/CFO certification introduced by SOX.
4. SEBI having analysed disclosures made by many companies under Clause 49 constituted
a review committee under the chairmanship of Mr. N. R. Narayana Murthy. The Narayana
Murthy Committee report, 2003, suggested further improvements and in alignment with
these recommendations, the revised Clause 49 has been made effective.
Similar Question.
1) 1. Describe the historical background of Corporate Governance. (Or) Write about the
evolution of Corporate Governance. (M 13 4M) (SM)
Answer: Combine questions 4&5 to write the answer.
Q.No.6. What corporate governance measures are required to be implemented by the

Indian Companies as per clause 49 of the listing agreement? Explain in brief.
(M 08 - 5M, N 14-4M)
a) Corporate Governance measures- In general, corporate governance measures include

appointing non- executive directors, placing constraints on management power and
ownership concentration as well as ensuring proper disclosure of financial information and
executive compensation.
b) Many companies have established ethics and/or social responsibility committees on their
boards to review strategic plans assess progress and offer guidance on social
responsibilities of their business.
c) In addition to having committees and boards, some companies have adopted guidelines
governing their own policies and practices around such issues like board diversity,
independence and compensation.
d) Indian companies are required to comply with clause 49 of the listing agreement
primarily focusing on following areas:
i) Board composition and procedure
ii) Audit committee responsibilities
iii) Subsidiary companies
iv) Risk management
v) CEO/CFO certification of financial statements and internal controls
vi) Legal compliance
vii) Other disclosures
Similar question:
1) Explain the clause 49 of listing agreement. (Or) What are the provisions that are
included in the clause 49 of listing agreement? (M 08 - 5M, N 14-4M)
Answer: same as above.
Q.No.7. Explain the role played by different committees in regulating the Corporate
Governance. (M - 08) (PM)
Role of different committees in regulating corporate governance: The core roles of the various
committees in regulation of corporate governance are as follows:
1. Board of Directors: The Boards role is that of trusteeship to protect and enhances are
holders value through strategic supervision. The strategy should aim at accountability and
fulfilment of goals.
2. Audit Committee: They have to provide assurance to Board on adequacy of internal
control systems and financial disclosures.
3. Compensation Committee: The committee has to recommend to the Board
compensation terms for executive Directors and the senior most level of management
below the Executive Directors.
4. Nomination Committee: It is to recommend to the Board nominations for membership of
the Corporate Management Committee and the Board, and oversee succession to the
senior most level of management below the Executive Directors.
5. Investor Services Committee: It is to look into redressed of Shareholders and Investors
grievances, approval of transmissions, sub-division of shares, issue of duplicate shares etc.
6. Corporate Management Committee: Its primary role is strategic management of
companys businesses within Boards approved direction/framework.
7. Divisional Management Committee: It is to realize tactical and strategic objectives in
accordance with Corporate Management Committee/Board approved plan.
Similar question:
1) Committee form of organisation is greatly helpful in corporate governance.how
different committees can help to achieve it?
Answer: Refer the above Answer.
Q.No.8. Write short notes on: (i) Code of Conduct on Insider Trading (ii) APEC Business
Code of Conduct
a) In pursuance of the Securities and Exchange Board of India (Prohibition of Insider Trading)
Regulations, 1992 (duly amended), the Board has approved the Code of Conduct for
Prevention of Insider Trading. The objective of the Code is to prevent purchase and/or sale
of shares of the Company by an Insider on the basis of unpublished price sensitive
information.
b) APEC is known as the primary international organization for promoting open trade and
economic cooperation among 21 member countries. The Code, issued as a draft in 1999,
is a standard that draws significantly on a variety of other internationally recognized codes
and standards. The drafting of the Code was initiated by business leaders from companies
operating in APEC countries and is designed to supplement and support companies
existing codes of conduct
Q.No.9. What is Corporate Social Responsibility? Why it is needed in Indian Business

environment? (M 07, N 07- 5M, N 03, 11, 13- 4M, N 14 - 4M, RTP M16) MTP OCT-15 (PM)
1. The concept of Corporate Social Responsibility (CSR) focuses on the idea that beyond
making profit, a business has social obligations is the responsibility of the companies to
produce an overall positive impact on the society.
2. CSR is pursued by business to balance their economic, environmental and social
objectives while at the same time addressing stakeholders expectations and enhancing
shareholders values.
3. Stakeholders, including shareholders, analysts, regulators, labour unions, employees,
community organisations and mass media expect companies to be accountable not only
for their own performance but for the performance of their entire supply chain.
4. Issues such as peace, sustainable development, security, poverty alleviation,
environmental quality and human rights have a profound effect on business and its
environment.
5. Corporate Social Responsibility is the continuing commitment by businesses to behave
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large.
Need for social responsibility:
1. The iron law of responsibility
2. To fulfil long term self-interest
3. To establish a better public image
4. To avoid government regulation and control
5. To avoid misuse of National Resources and Economic Power
6. To convert Resistances into Resources
7. To minimize Environmental damage.
Similar question:
1. The Company should not concentrate only on its own activities Comment. (Or) The
Company should fulfil the social obligations - Comment. (Or) Describe CSR. (Or) Define
corporate social responsibility (CSR). (Or) Write short notes on the social responsibility of
business. (M 07, N 07- 5M, N 03, 11, 13- 4M, N 14-4M) (PM)
2. Corporate social responsibility is closely linked with the principles of sustainable
development comment.
Answer: Refer the above answer
Q.No.10. State the Common Corporate Social responsibility (CSR) policies for
business organizations. (N 11 - 4M) (PM)
COMMON POLICIES UNDER CSR ARE AS UNDER:

1. Commitment to diversity in hiring employees and barring discrimination;
2. Adoption of internal controls reform in the wake of Enron and other accounting scandals;
3. Management teams that view employees as assets rather than costs;
4. High performance workplaces that integrate the views of line employees into decision-
making processes;
5. Adoption of operating policies that exceed compliance with social and environmental laws;
6. Advanced resource productivity, focused on the use of natural resources in a more
productive, efficient and profitable fashion (such as recycled content and product
recycling)
7. Taking responsibility for conditions under which goods are produced directly or by contract
employees domestically or abroad.
Similar question:
1. State the strategies in the implementation of corporate social responsibility (CSR).
(Or) What are the steps of CSR implementation? (Or) how can CSR be implemented?
(Or) State the Common Corporate Social Responsibility (CSR) policies for business
organizations. (N 11 - 4M) (PM)
Q.No.11. Write a note on Social Accountability-8000 (N11 - 4M)(For student self study)
Social Accountability 8000:

1. SA 8000 is a comprehensive, global, verifiable performance
2. standard for auditing and certifying compliance with corporate responsibility.
3. The heart of the standard is the belief that all workplaces should be managed in such a
manner that basic human rights are supported and that management is prepared to accept
accountability for this.
4. SA8000 is an international standard for improving working conditions. This standard is
based.
5. On the principles of the international human rights norms as described in International
Labour Organization conventions, the United Nations Convention on the Rights of the
Child and the Universal Declaration of Human Rights.
6. The requirements of this standard apply regardless of geographic location, industry sector,
or company size.
Q.No.12. Explain the meaning of the ''Iron Law of Responsibility". State the resulting
benefits which may be acquired by achieving the long-term objectives through the
business activities. (N 09, M 16-4M) (PM)
The Iron Law of Responsibility:

1. The institution of business exists only because it performs invaluable services for society.
Society gives business its license to exist and this can be amended or revoked at any time
if it fails to live up to societys expectations.
2. Therefore, if a business intends to retain its existing social role and power, it must respond
to societys needs constructively. This is known as the Iron Law of Responsibility.
3. Businesses have been delegated economic power and have access to productive
resources of a community. They are obliged to use these resources for the common good
of society so that more wealth for its betterment may be generated.
4. Technical and creative resources are also helpful to it. A business organisation sensitive to
community needs would in its own self-interest like to have a better community within
which the business may be conducted.
This way, the resulting benefits would be:
a) Decrease in crime
b) Easier labour recruitment
c) Reduced employee absenteeism.
d) Easier access to international capital, better conditions for loans on international money
markets.
e) Dependable and preferred as supplier, exporter, importer and retailer of responsibly
manufactured components and products. This way a better society would produce a better
environment in which the business may gain long term profit maximization.
Similar question:
1. What is the need of Corporate Social Responsibility? (Or) What is Corporate Social
Responsibility? Why it is needed in Indian Business Environment? (Or) Explain the
meaning of the Iron Law of Responsibility
(M 07, N 07 - 5M, N 09 - 5M, N 12 - 2.5 M, M 14 - 2M) (PM)
Q.No.13. Examine the concept of Corporate Social Responsibility (CSR) and also
explain in brief some of the key strategies which can be used by companies while
implementing CSR policies and practices. (N 11 - 4M) (PM) (For Student-Self Study)
1. CSR Concept- Some companies have established committees that are specifically
responsible for identifying and addressing social or environmental issues, or have broadened
the scope of more traditional standing committees to include responsibility for CSR;
2. while others have strategically appointed directors on the board based on the unique
expertise and experience they bring on specific issues, who then serve as advisors to
others on the board.
3. Moreover, companies are finding that a board that is diverse in terms of gender, ethnicity
and professional experience is better equipped to grapple with emerging and complex
challenges.
Companies implement CSR by putting in place internal management systems that
generally promote:
i) Adherence to labour standards by them as well their business patterns;
ii) Respect for human rights;
iii) Protection of the local and global environment;
iv) Reducing the negative impacts of operating in conflict zones;
v) Avoiding bribery and corruption and;
vi) Consumer protection.
KEY STRATEGIES
1. Each company differs in how it implements Corporate Social Responsibility (CSR).
2. The distinction depends on such factors as the company's size, sector, culture and the
Commitment of its leadership.
3. Below are some key strategies that companies can use when implementing CSR policies
and practices in a company.
Some of the key strategies which can be used by companies when implementing CSR policies
and practices are as follows:
a) Mission, vision and values statements b) Cultural values
c) gerent structures f) Employee recognition and rewards
d) Strategic planning g) Communication, education and training
e) General accountability h) CSR reporting
Q.No.14. Benefits of Corporate Social Responsibility
BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY:

Enhanced Brand Image and Reputation: Customers are drawn to brands and companies
with good reputations. A company considered socially responsible can benefit both from its
enhanced reputation with the public as well as its reputation within the business community,
increasing a companys ability to attract capital and trading partners. Proactive CSR practices
would lead to a favourable public image resulting in various positive outcomes like consumer
and retailer loyalty, easier acceptance of new products and services, market access and
preferential allocation of investment funds.
Checks Government Regulation /Controls Regulation and control are costly to business,
both in terms of energy and money and restrict its flexibility of decision-making as failure of
businessmen to assume social responsibilities invites government to intervene and regulate or
control their activities. Businessmen have learnt that once a government control is established,
it is seldom removed even though the warranting conditions change. If these are the facts,
then the prudent course for business is to understand the limit of its power and to use that
power responsibly, giving government no opportunity to intervene. By their own socially
responsible behaviour, they can prevent government intervention.
Helps minimise Ecological Damage: The effluents of many businesses damage the
surrounding environment. By their own socially responsible behaviour, they can prevent
government intervention if they are proactive in recognising their ecological responsibility
towards society. Companies recognize that a strategy for corporate responsibility can play a
valuable role not only in meeting the challenges of globalization by mitigating risks
domestically and internationally, but also in providing benefits beyond risk management.
Improved Financial Performance: Business and investment communities have long debated
whether there is a real connection between socially responsible business practices and
positive financial performance A DePaul University study in 2002 showed that overall financial
performance of the 2001 Business Ethics Best Citizen companies was significantly better than
that of the remaining companies in the Standard and Poor (S&P) 500 Index, based on the
2001 Business Week ranking of total financial performance. The ranking was based on eight
statistical criteria, including total return, sales growth, and profit growth over the one-year and
three-year periods, as well as net profit margins and return on equity.
Reduced Operating Costs: Some CSR initiatives can reduce operating costs dramatically.
For example, many initiatives aimed at improving environmental performance, such as
reducing emissions of gases that contribute to global climate change or reducing use of
agrochemicals also lower costs. Many recycling initiatives cut waste-disposal costs and
generate income by selling recycled materials. In the human resources arena, flexible
scheduling and other work-life programs that result in reduced absenteeism and increased
retention of employees often save costs through increased productivity and reduction of hiring
and training costs.
Increased Sales and Customer Loyalty: A number of studies have suggested a large and
growing market for the products and services of companies perceived to be socially
responsible. While businesses must satisfy customers key buying criteria, such as price,
quality, availability, safety and convenience.
Increased Productivity and Quality of Work life: Efforts to improve working conditions,
lessen environmental impacts or increase employee involvement in decision-making often
lead to increased productivity and reduced error rate in a company. For example, companies
that improve working conditions and labour practices among their suppliers often experience a
decrease in merchandise that is defective or cant be sold.
Increased Ability to Attract and Retain Employees: Companies perceived to have strong
CSR commitments often find it easier to recruit and retain employees, resulting in a reduction in
turnover and associated recruitment and training costs. Even in difficult labour markets, potential
employees evaluate a companys CSR performance to determine whether it is the right fit.
For example, the corporate governance structure of ONGC Ltd. is provided below. The Corporate
Governance Structure of ONGC has been chosen to be included, as ONGC has received many
awards for best Corporate Governance practices. The structure of this company also complies
with Clause 49 requirements as provided in the SEBIs Listing Agreements.
Q.No.15. Explain the meaning of corporate citizenship.
The term corporate citizenship denotes the extent to which businesses meet the legal,
ethical, economic and voluntary responsibilities placed on them by their stakeholders.
Companies can best benefit their stakeholders by fulfilling their economic, legal, ethical, and
discretionary responsibilities.
The benefits of good corporate citizenship, include:
A stable socio-political-legal environment for business as well as enhanced competitive
advantage through better corporate reputation and brand image. improved employee
recruitment, retention and motivation, improved stakeholder relations and a more secure
environment in which to operate.
Q.No.16. State, How far a sound ethical environment in a company may be created and
corporate scandals may be avoided.
Creating an ethical environment in company: A sound ethical environment in a company

may be created and corporate scandals may be avoided by adopting the following methods:
1. Ensuring that employees are aware of their legal and ethical responsibilities: Some
ethical organizations are having policies to train and motivate employees towards ethical
behavior. To start with, such initiation should be from the top. A number of companies in India
and abroad are being known for their quality and soundness of their ethics programmes.
Companies like Raytheon, Texas Instruments, Wipro are pioneers in establishing ethical
environment among the employees enabling them to take ethical decisions.
2. Providing a communication system between the management and employees so
that anyone in the company can report fraud and mismanagement without the fear
of being reprimanded: In India, Wipro has introduced a helpline comprising of senior
members of the company, who are available for guidance on any moral, legal or ethical
issues that an employee of the company may face.
3. Ensuring fair treatment to those who act as whistle blowers: This is perhaps the most
important and sensitive issue. Fair treatment to whistle blowers is a basic necessity to
check fraud. Some acts must be appreciated and that appreciation should be extended
from within the company rather than outside
Q.No.17. Describe External Standards and Other Developments in the field of CSR
The increased interest in CSR has been accompanied by substantial growth in the number of
external standards produced for business by governmental, non-governmental, advocacy and
other types of organizations. These various standards are designed to support, measure, assist in
implementation and enhance accountability for corporate performance on CSR issues. Various
performance and reporting standards have been introduced. Some are explained below
The Global Reporting Initiative: is a reporting standard established in 1997 with the mission
of designing globally applicable guidelines for preparing enterprise-level sustainability reports
including both social and environmental indicators. The Global Reporting Initiatives (GRI)
vision is that reporting on economic, environmental, and social performance by all
organizations becomes as routine and comparable as financial reporting. GRI accomplishes
this vision by developing, continually improving, and building capacity around the use of its
Sustainability Reporting Framework.
AA1000: Launched in 1999, AA1000, based on John Ellingtons triple bottom line
(3BL)reporting is an accountability standard designed to complement the Global Reporting
Initiatives (GRI) Reporting Guidelines with the objective to improve accountability and
performance by learning through stakeholder engagement.
Social Accountability 8000: SA 8000 is a comprehensive, global, verifiable performance
standard for auditing and certifying compliance with corporate responsibility. The heart of the
standard is the belief that all workplaces should be managed in such a manner that basic
human rights are supported and that management is prepared to accept accountability for
this.SA8000 is an international standard for improving working conditions.
United Nations Global Compact: The Global Compact is a voluntary international corporate
citizenship network initiated to support the participation of both the private sector and other
social sectors to advance responsible corporate citizenship and universal social and
environmental principles to meet the challenges of globalization. The UN Global Compact was
formally launched in September 2000.
Organisation for Economic Cooperation and Development (OECD) Guidelines for
Multinational Enterprises: The guidelines were first published in 1976 and updated most
recently in June 2004. The guidelines are recommendations addressed by governments to
multinational enterprises and are voluntary principles and standards, not legally enforceable.
Governments adhering to the Guidelines encourage the companies operating within the
countries to observe the guidelines wherever they operate.
The Crux Round Table (CRT): promotes principled business leadership and the belief that
business has a crucial role in identifying and promoting sustainable and equitable solutions to
key global issues affecting the physical, social and economic environments.
The Global Sullivan Principles: Introduced in 1999, the Global Sullivan Principles expand
upon the original Sullivan Principles, as a voluntary code of conduct for companies doing
business in apartheid South Africa.
Asian-Pacific Economic Cooperation (APEC) Business Code of Conduct: APEC is known
as the primary international organization for promoting open trade and economic cooperation
among 21 member countries
Note: Any point of above question may be asked as a separate question in final examination.
Similar Questions:
1. Write a short note on social accountability 8000 (N 11 4M)
Ans: Definition of CSR Write Q. No. 9 (Definitions)
Developed by Social Accountability International (LSAI), now known as Social Accountability
Accreditation Services (SAAS)
Focus:
a) Standard for the improvement of working conditions
b) Promotes ethical and fair treatment of workers
c) Incorporates international human rights conventions
And write above question (point 3)
2. Write a brief note about ISO 14001
Origin: 1996
Focus: support environmental protection in balance with socio economic needs

Self-reported benefits:
1. Identify areas for energy reduction
2. Reduce environmental risk
3. Maintain compliance with legislation and regulation
4. Receive environmental leadership rewards
5. Prevent pollution and reduce waste
6. Improve stakeholder relations
7. Receive more favorable insurance rates
8. Gain a competitive advantage
Q.No.18. Write about CSR initiatives in India
Indian companies like Tata and Birla Groups have regularly maintained since several decades
a certain level of expenditure for social and charitable causes Though there are no Govt.
directives or legal compulsions, some progressive companies in India like SAIL, BHEL,
MMTC, and ONGC, etc., in the public sector and TISCO,
ITC, BATA, etc., in the private sector have ventured into the field of social
responsibilityreporting since 1980.Companies like Infosys, Wipro, Hero Honda and Bharti
Enterprises have taken various initiatives to promote and support the environment, education,
health, cultural harmony and welfare in the society.
Q.No.19. Explain how corporate social responsibility minimises the ecological damage
and helps in achieving long-term objectives, so that the business may gain long-
term profit maximization.
1. Corporate social responsibility and ecological damage: The business institution exists
and flourishes only because it performs invaluable services to society.
2. Society gives business its license to exist which may be revoked and amended at any time
if they do not fulfill the societys expectations. Therefore, if a business intends to retain its
existing social role and power, it must serve societys needs constructively.
3. A business organization acts in its own self-interest and uses natural resources also. The
effluents of many businesses damage the surrounding environment.
4. By their own socially responsible behavior, they can prevent government intervention if
they are proactive in recognizing their ecological responsibility towards society.
5. Companies must recognize that a strategy for corporate responsibility can play a valuable
role not only in meeting the challenges of globalization by mitigating risks domestically and
internationally, but also in providing benefits beyond risk management.
Q.No.20. Briefly explain the key developments that have taken place, in shaping the
direction of corporate social responsibility (CSR) (Or) Account for the increasing focus
on social responsibility of corporation. (Or) Explain briefly the key strategies which can
be used at the time of implementation of corporate social responsibility policies and
practices in a company. (N 10 - 4M) (SM)
1. Increased Stakeholder Activism: If the society feels that a company is

not socially responsible, then they will target it. This could be through
the actions like public demonstrations/ agitations, boycotts, shareholders
Resolutions, calling of strikes, denial of services etc.

2. Engaging Stakeholders: Involving / engaging stakeholders in decision-making process
has evolved from whether to engage stakeholders to how to engage stakeholders. Now,
the stakeholders are allowed to participate in a decision making process, just for the sake
of conversation. (dialogue for dialogues sake). This could enhance the Corporate
Democracy.
3. Codes, Standards & Indicators: Various companies have brought new and voluntary
CSR standards, guidelines and performance measurement tools, as a part of their Annual
Reports. There is a growing demand in the CSR community, to evolve standards in CSR
reporting. The UN Global Impact standards are examples for such standards.
4. CSR & Corporate Governance: In an business entity, both Corporate Governance and
CSR go side by side. A company, with better Corporate Governance, will give more
importance to CSR. The strong support of the Board and Management is required for the
effective implementation of CSR. The importance of CSR is also rising, due to the
increasing importance of CG.
5. Investors Pressure & Market-based Incentives: The socially responsible investors can
use the Shareholders Resolution Process to put pressure on the company, to adopt
socially desirable policies. They can put pressure on companies, to disclose the various
steps taken by the company, to comply CSR. Those companies, which follow and
implement CSR, are better rewarded and recognized by the stock market. Thus, launching
social welfare programs could enhance the image of the company.
6. Transparency in Reporting: There is a greater demand for transparency and reporting,
in corporate world. Willingly or unwillingly, the companies have to provide more information
on their operations and their impacts on the society, environment etc..So as to make the
companies comply with these rules related to transparency and reporting, more and more
rules are being formed. Many companies make use of the various types of audit, to
enhance the credibility of reporting.
7. Growth of the Information Technology: The rapid growth of the
Information Technology has further increased the focus on socially
responsible activities of the companies. These sudden developments
have made the speedy flow of companys CSR record information.
Both positive and negative outcomes get spread at the speed of
light.
8. Pressure to Quantify CSR ROI: Now, the companies, employees, customers etc. want
to know the returns on the investments in Corporate Social Responsibility scenario.
Companies want to determine what their CSR initiatives have accomplished so that they
can focus on scarce resources more effectively.
Q.No.21. Answer whether the statement is correct or incorrect with brief reasons:
Company management has responsibility only towards its shareholders.
Incorrect: Company management is responsible not only to the shareholders, but also to
other stakeholders i.e. people who have an interest in the conduct of the business of the
company.
These include employees, customers, vendors, the local community and even society as a
whole.
These stakeholders have certain rights with regard to how the business operates.
Copyrights Reserved
Q.No.22. Answer whether the statement is correct or incorrect with brief reason:
The Governance Model positions management as accountable solely to investors.
Or
The responsibility of the corporate management lies towards shareholders only.
Incorrect: The traditional governance model positions management as accountable not to

investors only but a growing number of corporations in the late part of the 20th century accept
that constituents like employees, trade unions, customers, suppliers along with the investors
are affected by corporate activity and therefore the corporate must be answerable to them
also. Such constituents of an organization are also called the stakeholders.
Corporate Social Responsibility is closely linked with the principles of sustainable
development.
Correct: Corporate Social Responsibility (CSR) is a concept that organizations have an obligation
to consider the interests of customers, employees, shareholders, communities and ecological
considerations in all aspects of their operations. This obligation is seen to extend beyond their
statutory obligation to comply with legislation. CSR is closely linked with the principles of
Sustainable Development, which argues that enterprises should make decisions based not only
on financial factors such as profits or dividends, but also based on the immediate and long-term
social and environmental consequences of their activities. It is an integrated combination of
policies, programs, education, and practices that extend throughout a corporations operations and
into the communities in which they operate, about how companies voluntarily manage the
business processes to produce on overall positive impact on society.
The phrase Iron Law of Responsibility means that the institution of business exists
only because it performs invaluable services towards its promoters.
Incorrect: The phrase Iron Law of Responsibility means the institution of business exists
only because it performs invaluable services for society. Society gives business its license to
exist and this can be amended or revoked at any time if it fails to live up to societys
expectations. Therefore, if a business intends to retain its existing social role and power, it
must respond to societys needs constructively rather than it performs invaluable services
towards its promoters
The institution of business exists only if it fulfils the society's expectations (or)
In the long run, those business entities which respond to society needs favourably will
survive. (Nov-15 2M)
The given statement is Correct. It is the society which bestows upon businesses the
authority to own and use land and natural resources. In return, society has the right to expect
the productive organizations, enhancing the general interest of consumers, employees and
community. Society may also expect that organizations to honor existing rights and limit their
activities within the bounds of justice. So, under this social contract between society and
business, Business ethics provide the guidance as to regulation of the behavior of business
enterprises and the minimal duties of the business professionals, including the consequences
and complications of their actions. Thus, business ethics is that set of principles or reasons
which should govern the conduct of business whether at the individual or collective level by
the application of ethical reasoning to specific business situations and activities. Thus, it can
be said that the institution of business exists only if it fulfills the societys expectations.
TEST YOUR KNOWLEDGE
1. Does an audit committee only sufficient to achieve corporate governance? Or does it need
other committees? Analyze with practical example?
2. XYZ Company is encouraging child labor and non-discrimination. By which external
standard, children can be protected?
3. Which external standard helps the users to establish a systematic stakeholder
engagement process?
4. If a business intends to retain its existing social role and power, it must respond to
societys needs constructively. Then which title will you give to this responsibility?
5. In 1991, for the purpose of corporate governance, which committee was appointed by the
London stock exchange and the accounting fraternity, in the UK?
6. To implement the best corporate governance, SEBI introduced one specific clause. What
the name of clause?
7. How many economies have been involved in APEC (Asian economic cooperation)?
8. How can you train the audit committee to protect CG?
9. ABC private ltd is always accountable to shareholders but not to remaining stakeholders.
Can this organization get survival in the long run?
10. What is difference between the principle of stewardship and the principle of trusteeship?
11. Which committee provides assurance to board, on adequacy of internal control systems
and financial disclosures?
12. To regulate the Corporate Governance, one of the committees is to realize tactical and
strategic objectives in accordance with corporate management committee/board approved
plan. What is the name of the committee?
13. LMN ltd gave an opportunity to all stakeholders to express their concerns in the business
decisions. In the perspective of CG, how can you call this feature?
14. According to clause 49, how many meetings should be conducted in a year to protect CG?
15. PQR LTD is following the clause 49. They submitted a quarterly compliance report to the
stock exchange after the fifteen days from the close of the quarter. Is there any problem to
PQR ltd regarding this issue? If problem arises, what is the cause of this problem?
16. According to section 292 (a) of the companies act, 1956, how many non-executive
members should be appointed in the audit committee to work without any bias?
17. In a business entity, both CG and CSR dont go side by side. Do you agree with this
statement? Justify your answer.
Copyrights Reserved
Verified by: Chandrasekar Sir,
To MASTER MINDS, Guntur Kareem Sir
Executed by: Sairam Sir
THE END
3. ETHICS IN WORK PLACE

S.
90- 90- 01- 11- 01- 11- 21- 21- 31- 31- 41- 41- 51- 51- 61-
No.
ABC
M N M M N N M N M N M N M N M
C - - - - - - - - - - - - - - -
1.
B - - - - - - - - - - - 4 - -
2.
B 5 - - - 4 - - 4 - - - - - - -
3.
A - - - 8 - - - - - - 4 - 4 - -
4.
A - - - 8 - - - - - - - - - 4 -
5.
B - - - - 4 - - - - - - - - - -
6.
B - - - - - - - - - - - 4 - - -
7.
C - - - - - - - - - - - - - - -
8.
A - - - 4 - - - - 8 - - - - - 4
9.
C - - - - - - - - - - - - - - -
10.
B 2.5 5 - - - - - - - - 4 - - - -
11.
A 5 - - - 4 - - 4 - - - - - - -
12.
B - - - - - - - - - - - - - - -
13.
B - - - - - - - - - - - - - -
14.
B - - - - - - - - - - - - - - -
15.
It's the action, not the fruit of the action, that's important. You have to do the right thing. It may
not be in your power, may not be in your time, that there'll be any fruit. But that doesn't mean
you stop doing the right thing. You may never know what results come from your action. But if
you do nothing, there will be no result. MAHATMA GANDHI
Q.No.1. Write a short note on work place ethics. (SM)
1) Ensuring the presence of sound values and ethics is a vital and ongoing part of good
governance in organizations and an integral part of good management practices.
2) Workplace ethics is how one applies values to work in actual decision making - a set of
right and wrong actions that directly impact the work place.
3) They are an extension of the personal standards or lack of them that is intrinsic in the
people who comprise the workplace.
4) It is about making choices that may not always feel good or seem beneficial but are the
right choices to make.
IPCC _36e_ Business Ethics_ Ethics in Work Place_______________________36
Similar Question:
1. work place ethics is the application of the values/ethics, to the decision concerning
the employees in the organization comment
Answer: Refer the above.
Q.No.2. Describe the factors which influence the ethical behavior at work in an
organization (N 14-4M) MTP sep-2015 4M(PM)
ETHICAL DECISIONS IN AN ORGANIZATION ARE INFLUENCED BY THREE KEY

FACTORS:
1) Individual moral standards: One may have great control over personal ethics outside
workplace.
2) The influence of managers and co-workers: The activities and examples set by co-
workers along with rules and policies established by the firm are critical in gaining
consistent ethical compliance in an organization.
3) The opportunity to engage in misconduct: If a company fails to provide good examples
and direction for appropriate conduct; confusion and conflict will develop and result in the
opportunity for unethical behavior.
For example if the boss or co-workers leave work early, one may be tempted to do so as well.
If one sees co-workers making personal long-distance phone calls at work and charging them
to the company, then one may be more likely to do so also.
Similar Question
1. What are the major factors influencing ethical behavior at work place? (Or) Briefly
explain the major factors that influence the ethical behavior at the work place.
Q.No.3. State some examples of ethical issues faced by an individual at the workplace.
Or
State the ethical issues which are being faced by an individual at the workplace of an
industrial organization. (M 09 - 5M, N 10, N 12 - 4M) (SM)
SOME EXAMPLES OF ETHICAL ISSUES FACED BY AN INDIVIDUAL AT THE

WORKPLACE ARE:
a) Relationship with suppliers and business partners
b) Discrimination between suppliers
c) Bribery and immoral entertainment
d) Dishonesty in making and keeping contracts
e) Relationship with customers like:
i) Unfair pricing
ii) Cheating customers
iii) Dishonest advertising
iv) Research Confidentiality
f) Relationship with employees:
i) Discrimination in hiring and treatment of employees,
ii) Lack of good behaviour with employees
g) Management of resources:
i) Misuse of organizational funds
ii) Tax evasion
Q.No.4. What do you understand by the term discrimination in employment as

sometimes found in an establishment? Explain the basic elements of discrimination.
OR State the elements which create discrimination in employment in the business
organizations. (M 11 - 8M, M 14 4M, M 15 - 4M) RTP N-15, RTP M-15 (PM)
a) The root meaning of the term discriminate is to distinguish one object from another
Employment discrimination is treating one person better than another because of their
age, gender, race, religion or other protected class of status.
b) Discrimination in employment is wrong because it violates the basic principle of equality.
c) Discrimination is to treat people differently. It is usually intended to refer to the wrongful act
of making a difference in treatment or favour on a basis other than individual merit.
ELEMENTS OF DISCRIMINATION: The elements which create discrimination may be
summarized as follows:
1) If the decision against one or more employees is taken which is not based on individual
merit, such as the ability to perform a given job, seniority or other morally legitimate
qualification.
2) If the decision has been derived solely from racial or sexual prejudice, false stereotypes
other kind of morally unjustified attitude against members of which the employee belongs.
3) If the decision has a harmful or negative impact on the interests of the employees, perhaps
costing them jobs, promotions or better pay.
4) Discrimination in employment is wrong because it violates the basic principle of justice by
differentiating between people on the basis of characteristics (race or sex) that are not
relevant to the tasks they must perform.
Similar Question
1) Write a short note on employment discrimination, in the context of work place ethics.
(Or) What do you mean by employment discrimination? Explain the elements and
effects of employment discrimination. (Or) What are the constitutional provisions in
India to prevent employment discrimination? (Or) State the elements which create
discrimination in employment in the business organizations.
(M 11 - 8M, M 14 4M, M 15 - 4M) (PM)
Q.No.5. List the commonly recognised employment discrimination practices.

(M 11- 8M)(NOV-15 4m) (SM)
DISCRIMINATION IS QUITE COMMON IN VARIOUS EMPLOYMENT PRACTICES WHICH

ARE STATED UNDER:
1) RECRUITMENT PRACTICES:
a) Firms that rely solely on the word-of-mouth referrals of present employees to recruit
new workers tend to recruit only from those racial and sexual groups that are already
represented in their labour force.
b) When desirable job positions are only advertised in media that are not used by
minorities or women or are classified as for men only, recruitment would also tend to
be discriminatory.
2) SCREENING PRACTICES:
a) Job qualifications are discriminatory when they are not relevant to the job to be
performed (e.g., requiring a high school diploma or a credential for an essentially
manual task.).
b) Job interviews are discriminatory if the interviewer routinely disqualifies certain class of
people - for example assumptions about occupations suitable for women or the
propriety of putting women in "male "environments.
3) PROMOTION PRACTICES:
a) Promotion, job progression, and transfer practices are discriminatory when employers
place males on job tracks separate from those open to women and minorities.
b) When promotions relay on the subjective recommendations of immediate supervisors.
4) CONDITIONS OF EMPLOYMENT: Many times wages and salaries are discriminatory to
the extent that equal wages and salaries are not given to people who are doing essentially
the same work.
5) DISMISSAL: Firing an employee on the basis of his or her race or sex is a clear form of
discrimination.
Q.No.6 Write a note on harassment at workplace. (N 10 - 4M) (PM)
Harassment is tormenting by subjecting to constant interference or intimidation.

1) Meaning:
a) Harassment means tormenting or disturbing, by subjecting to constant interference or
intimidation- pressure / threat. All acts and conducts, which create a hostile or
offensive working environment, amounts to harassment.
b) Harassment can be done by superiors, colleagues or subordinates.
c) The reasons could be many, like jealousy, hatred to persons of particular caste / group/
ideology etc., sadistic pleasure bias and so on.
2) Harassments can be in many forms:
a) Using abusive language.
b) Insulting before others. Copyrights Reserved
c) Intentionally denying leave.
d) Constantly finding fault with the work of an employee.
e) Pressurizing for extra work and extra working hours.
f) Giving some urgent work in the evening, just before leaving the office.
g) Sexual harassment.
3) Employers Responsibility:
Fair working atmosphere: The employer is responsible for
ensuring a fair working atmosphere. So, it should be free of
harassments.
a) Prohibition of sexual harassment: Sexual harassment
is prohibited. For all the sexual harassments, engaged in
by the employees, the employer held responsible. This is
regardless of:
i) Whether the employer knows or had known that the harassment was occurring.
ii) Whether it was forbidden by the employer.
b) Redressal system: A good Redressal System and Complaint Mechanism should be
established in the working place. This could help in reducing harassment. Employee
counseling also will help.
c) Making compliant with appropriate authorities: The employer should make a
compliant with the appropriate authorities if such conduct, that amount to the offence
under Indian Penal Code (IPC) etc. occurs.
d) Appropriate disciplinary action: The employer should initiate immediate and
appropriate disciplinary actions, if such conduct amounts to misconduct in
employment, as defined by the relevant Service Rules.
Similar Question
1) Write a short note on Harassment, in the context of work place ethics
Q.No.7. Explain the concept of Sexual harassment in relation to work place

(N 11- 4M) (PM)
CONCEPT OF SEXUAL HARASSMENT:

a) Sexual harassment is a situation in which an employee is coerced into giving into another
employee's sexual demands by the threat of losing some significant job benefit, such as a
promotion, raise, or even the job.
b) This kind of degrading coercion exerted on employees who are vulnerable and
defenceless inflicts great psychological harm on the employee, violates the employees
most basic right to freedom and dignity and is an unjust misuse of the unequal power that
an employer can exercise over the employee.
c) Sexual harassment is prohibited, and an employer is held responsible for all sexual
harassment engaged in by employees.
Similar Question
1) Write a short note on Sexual Harassment, in the context of work place ethics. What are
its consequences? (Or) What do you mean by sexual harassment? What are its
consequences? (Or) Explain the concept of sexual harassment in relation to work
place.
Q.No.8. What are the basic reasons for ethical dilemmas in work place? Give examples
of ethical issues, faced by individuals in the work place.
As Ethical principles are common, Ethical dilemmas are also common in work places.
The ethical issues arise due to the following reasons / conflicts.
1) Course of Study: In between his relations and the responsibilities at the
work place, an individual has to make choices among the alternatives. When
there are no clear guidelines, he has to fall in ethical Dilemma. The individual
does not know which alternative to be selected.
2) Hierarchy:
i) This is when an individual identifies that there is a conflict between the values of
individuals and those of his superiors.
ii) For example, an employee, who believes it as unethical to steal the secrets of the
company, is forced to do so, by his superior.
Some examples of unethical issues faced by an individual in the workplace are: (PM)
1) Relationships with suppliers and business partners
a) Bribery and immoral entertainment;
b) Discrimination between suppliers;
c) Dishonesty in making and keeping contracts.
2) Relationship with customers:
a) Unfair pricing;
b) Cheating customers;
c) Dishonest advertising;
d) Research confidentiality
3) Relationship with employees: Discrimination in hiring and treatment of employees
unequal treatment
4) Management of resources:
a) use of organizational funds: b) Tax evasion
Q.No.9. Explain in brief the measures to ensure ethics in the Work place. (or)
State in brief the guidelines for managing ethics and to prevent the need for whistle-
blowing in the work place.
(PM) (M 07 - 5M, M 11- 4M, M 13- 8M, M 16-4M) (MTP SEP 2015-5M), (RTP NOV-15)
MANAGING ETHICS AND PREVENTING WHISTLE-BLOWING:

1) The focus on core values and sound ethics, the hall mark of ethical management, is being
recognized as an important way to ensure the long term effectiveness of governance
structures and procedures and to avoid the need for whistle blowing.
2) Employers, who understand the importance of work place ethics, provide their work force
with an effective framework and guiding principles of identity and address ethical issues as
they arise
THE GUIDELINES FOR MANAGING ETHICS AND TO AVOID THE NEED FOR WHISTLE-
BLOWING IN THE WORK PLACE MAY BE SUMMARIZED AS FOLLOWS:-
1) Codes of Conduct and Ethics: A code of ethics specifies the ethical rules of operation in
an organization. Codes of conduct specify actions in the workplace and codes of ethics are
general guides to decisions about those actions, Examples of topics typically addressed by
codes of conduct include: preferred style of dress, avoiding illegal drugs, following
instructions of superiors, being reliable and prompt, maintaining confidentiality, not
accepting personal gifts and so on
2) Establish Open Communication: Instead of just creating and distributing an ethics policy,
it is important that take the time to explain the reasons for the policy and review the
guidelines and conduct formal or informal training to further sensitise employees to
potential ethical issues. Many of the ethical problems arising in a business are not clear-
cut, but involve "grey areas," where the proper course of action may be ambiguous and
uncertain.
3) Make ethics decisions in groups, and make these decisions public. This usually
produces better quality decisions by including diverse interests and perspectives, and
increases the credibility of the decision process and outcome by reducing suspicion of
unfair bias.

4) Integrate ethics management with other management practices. When developing
the values statement during strategic planning, include ethical values preferred in the
workplace.
5) Use of cross-functional teams when developing and implementing the ethics
management program. Its vital that the organizations employees feel a sense of
participation and ownership in the program if they are to adhere to its ethical values.
6) Appointing an ombudsperson: The ombudsperson is responsible to help coordinate
development of the policies and procedures to institutionalise moral values in the
workplace. This establishes a point of contact where employees can go to ask questions in
confidence about the work situations they confront and seek advice.
7) Creating an atmosphere of trust is also critical in encouraging employees to report
ethical violations they observe This function might best be provided by an outside
consultant, e.g., lawyer, clergyperson, counsellor etc. Or, provide a tip box in which
personnel can report suspected unethical activities, and do so safely on an anonymous
basis.
8) Regularly update policies and procedures to produce behaviours preferred from the
code of conduct, job descriptions, performance appraisal forms, management-by-
objectives expectations, standard forms, checklists, budget report formats, and other
relevant control instruments to ensure conformance to the code of conduct.. For example,
we are most familiar with the value of social responsibility. To instil behaviours aligned with
this value, organizations often institute policies such as recycling waste, donating to
charities or paying employees to participate in community events.
9) Include a grievance policy for employees to use to resolve disagreements with
supervisors and staff.
10) Set an example from the top: Executives and managers not only need to endorse strict
standards of conduct, but should also ensure that they follow it themselves. They must
stressto employees that dishonest or unethical conduct will not be tolerated,.
Similar Question
1. Explain a few guidelines for managing ethics in the work place. (Or) How can be the
ethical principles managed at the work place. (Or) Explain in brief, the measure to
ensure ethics in the work place. (Or) State in brief the guidelines for managing ethics
and to prevent the need for whistle - blowing in the work place.
Q.No.10. Explain the importance of Ombudsperson in the workplace?
1) The ombudsperson is responsible to help and coordinate development of the policies and
procedures to institutionalise moral values in the workplace.
2) This establishes a point of contact where employees can go, to ask questions in
confidence about the work situations they confront and seek advice
Copyrights Reserved

Q.No.11. Outline the importance of ethical behavior at the work place. (Or) How
important is ethical behavior at the work place. (Or) Explain the importance of ethical
behavior at the work place.(Or)Ethical behavior is not essential to work environment at
the work place - comment. (N 09 - 5M, M 09 - 2.5 M, M 14 4M) (PM)
Workplace ethics denotes how one applies values to work while indulging in actual decision
making process a set of right and wrong actions that directly impact the workplace.
An employer/enterprise should take steps to create a work environment, where the employees
have a clear and common understanding, of what is right and what is wrong. They should feel
free to discuss and ask questions about ethical issues. If there is any violation, they should
report it too. In case, if such a work environment is not created, then the following problems
could arise:
1) Risk of employees making unethical decisions.
2) If they lack an effective/adequate internal forum, the employees may develop a tendency
to report violations to those regulatory authorities, who are outside the Organizations.
3) Inability to recruit and retain efficient people.
4) Loss of competitive advantage in market place.
5) Loss of reputation and good will in the public.
6) Higher exposure to legal disputes, in Courts of Law.
In case, if such a work environment is created, then the following benefits could arise:
Increase Employee Loyalty Recognition for good work

Fair wages & benefits foster family climate
Fair/consistent treatment
Similar question: Due to lack of workplace ethics, what problems will arise in an
organization?
Ans.: refer the above answer.
Q.No.12. How can we classify the ethical issues faced by an individual in the work
place? (Or) An employ has to face multiple ethical issues in a work place comment.
(Or) Describe the various aspects that control / regulate the ethical behavior in a
working place. (Or) Explain the factors that influence ethical behavior of an employee.
(Or) List out some examples of various ethical issues faced in a work place. (Or) State
some examples of ethical issues faced by an individual at the work place.
(M 09 - 5M, N 10, N 12 - 4M) (SM)
Ethical issues are quite common for an employee in our place. They are of various types.
They could be classified as follows:
1) Relationship with Business Associates:
a) Ethical behavior within a business involves:
i) Keeping company secrets, meeting obligations and
responsibilities.
ii) Avoid undue pressure, which may force others to act unethically.
b) The behavior of business enterprises towards customers, suppliers and others in their
work place may generate ethical concerns.
For example, a company will benefit more, by treating its customers fairly and equitably.
The customer should also perceive that they are treated fairly by that company.
c) The managers can influence the employees action, due to their positional authorities.
Employees may be forced to engage in activities, that they may personally view as
unethical.
2) Conflict of Interest:
a) A Conflict of Interest arises, when a person has to choose
whether to advance his / her own personal interest or those of
the organization.
b) For Example, bribe is a conflict of interest, as an individual,
who accept it, can benefit, at the expense of the organization
or the society.
c) Conflict of interests need not be financial always.
d) To avoid the conflict of interest, the employees must be able to separate their personal
and financial interests from their business dealings.
e) Sam Walton, the late founder of Wall - Mart, had prohibited the company buyers, from
accepting even a cup of coffee, from the suppliers.
3) Fairness and Honesty: (PM)

a) Fairness and Honesty forms the heart of business ethics.
b) The business enterprises are expected to follow all applicable
laws and regulations, and avoid harming customers, clients,
employees or competitors, knowingly through deception,
misrepresentation, coercion or discrimination.
c) Some aspects of Fairness and Honesty include the disclosure of
negative side effects, caused by product use. It also includes avoiding illegal
monopolistic practices.
4) Communication: (PM)
a) False and misleading advertising, as well as deceptive
personal selling tactics, could damage the interest of the
consumer. This can lead to the failure of the business. So,
communication is a key area, where ethical concerns may
arise.
b) Truthful disclosures on product safety and quality are
important, for the customers.
For example, in case of food items, medicine, health drinks etc., these parameters are
to be truthful and complete.
c) Product labeling is another area related to communication, which can raise ethical concern.
For example, it is mandatory to cigarette manufactures to indicate clearly on the
packing, that smoking cigarette is harmful to the smokers health.
Copyrights Reserved

Fairness and honesty are the pillars of success in business.
Correct: The success of the business depends very much on fairness and honesty in the
business. Fairness and honesty are at the heart of the business ethics and relate to the
general values of decision makers. At a minimum, business professionals and persons are
expected to follows all applicable laws and regulation. Even then, they are expected not to
harm customers, employees, clients or competitors knowingly through deception,
misrepresentation, coercion or discrimination. One aspect of fairness and honesty is related to
disclosure of potential harm caused by product use. For example, Mitsubishi Motors, a
Japanese automaker, faced criminal charges and negative publicity after executives admitted
that the company had systematically covered up customer complaints about tens of thousands
of defective automobiles over a 20 year period in order to avoid expensive and embarrassing
product recalls.
Another aspect of fairness relates to competition. Although numerous laws have been passed
to foster competition and make monopolistic practices illegal, companies sometimes gain
control over markets by using questionable practices that harm competition. Rivals of
Microsoft, for example, accused the software giant of using unfair and monopolistic practices
to maintain market dominance with its Internet Explorer browser.
These aforesaid examples show that fairness and honesty pay in the long run; they secure the
stability of the business and overall reputation in the business world. Therefore we may say
that fairness and honesty are the pillars of success in the business.
Promotion policies based on individual merit and not purely on the basis of seniority is
discriminatory.
Incorrect: Discrimination is action based on prejudice resulting in unfair treatment of people.

To discriminate socially is to make a distinction between people on the basis of class or
category without regard to individual merit. Examples of such discrimination include racial,
religious or gender-based discrimination. Distinctions between people which are based just on
individual merit (such as personal achievements, skill or ability) are generally not considered
socially discriminatory. So seniority alone cannot be the deciding factor for promotion, if the
senior person is not fit for the job.
Ethical behaviour is not essential to working environment at the workplace. Or Explain
the importance of ethical behaviour at the workplace. OR What problems may arise at
work place when ethical behaviour is not adopted?
Incorrect Every organization, whether a business or a government agency, is first and

foremost a human society. In all these setups, ethical behaviour is essential to working
environment. If an employer does not take steps to create a working environment where the
employees have a clear, common understanding of what is right and wrong, and feel free to
discuss and ask questions about ethical issues and report violations, some significant
problems may arise namely:
i) Increased risk of employees making unethical decisions.
ii) Increased tendency of employees to report violations to outside regulatory authorities
(whistle blowing) because they lack an adequate internal forum.
iii) Inability to recruit and retain top people.

iv) Diminished reputation in the industry and the community.
v) Significant legal exposure and loss of competitive advantage in the market place.
Therefore ethical behaviour is essential to working environment at the workplace.
TEST YOUR KNOWLEDGE

1. You are the head of HR department. You are going to recruit some people in your
organization. What steps do you take to avoid discrimination?
2. Now days, sexual harassment is spoiling the image of many organizations. And it leads to
collapse of organizations. As the head of department, what measures do you take to
prevent sexual harassment in your organization?
3. Although an organization doesnt follow workplace ethics, it has ability to recruit and retain
efficient people. Do you agree or not?
4. What steps do you take in your organization to avoid harassment?
5. Mr. Raju is working in ABC ltd company as a chartered accountant. Is there any significant
role of the management and co-workers on Rajus ethical behavior?
6. You are the CEO of XYZ company. Your employees often do mistakes. You always have
tolerance and their mistakes were forgiven. In fact, is it correct strategy? If not, what is
realistic strategy?
7. In ABC Company, HR selected an employee on the basis of Caste but not merit. How can
you name this?
8. If the job qualifications are not relevant to the job to be performed, then they are
discriminatory. What is the name of this kind of discrimination?
9. You are working in an organization as an employee. Your colleague (woman employee)
has been suffering from Commenting; unwelcoming touching, requests/demands for
sexual favors etc. what is the name of this harassment?

Copyrights Reserved Kareem Sir
To MASTER MINDS, Guntur Executed by: Sai ram Sir
THE END

4. ENVIRONMENT AND ETHICS

90- 9-0 01- 0-1 11- 1-1 21- 2-1 M-13 41- 41 51- 5-1 61-
No. ABC M N M N M N M N TO
N-13 M -N M N M
1. A - - - - - - - 2.5 - - - 4 - 5
2. A - - - - - - - - - - - - 4 -
3. B - - - - - - - - - - - - - -
4. A - - - - - - - - - - - - - -
5. A - - - - - - - - - - - - - -
6. B - - - - - - - - - 4 - - - -
7. A - - - - - - - - - - - - - -
8. B - - - - - - - - - - - - - -
9. B - - - - - - - - - - - - - -
10. C - - - - - - - - - - - - - -
11. C - - - - - - - - - - - - - -
12. C - - - - - - - - - - - - - -
13. C - - - - - - - - - - - - - -
14. C - - - - - - - - - - 2 - - -
15. C 2.5 - 2.5 - - - - - - - - - - -
16. C - - - - - - - - - - - - - -
Once the last tree is cut and the last river poisoned, you will find you cannot eat your
money."(Proverb)
Q.No.1. What is meant by Sustainable Development? State the special responsibilities

of the industries that are based on natural resources. How the adoption of Green
Accounting System helps in avoiding policy decisions which are non-sustainable for
the country?
OR
The industries that are based on natural resources, like minerals, timber, fiber and
foodstuffs, have some special responsibility for making "environment-friendly
products". Examine this statement and also explain in brief the concept of Green
Accounting System. (M 07 - 5M, N 12 - 2.5 M, M 15 4M, M 16-5M) (PM)
SUSTAINABLE DEVELOPMENT:
a) Literally sustainable development refers to maintaining development over time.
b) It may be defined as development that meets the needs of the present without
compromising the ability of future generations to meet their own needs. A nation or society
should satisfy its requirements social, economic and others without jeopardizing the
interests of future generations.
SPECIAL RESPONSIBILITIES OF INDUSTRIES BASED ON NATURAL RESOURCES:
Industries that are based on natural resources, like minerals, timber, fibre, and foodstuffs etc.
have a special responsibility for:
1. Adopting practices that have built-in environmental consideration.
2. Introducing processes that minimize the use of natural resources and energy, reduce
waste, and prevent pollution.
IPCC _36e_ Business Ethics_ Environment and Ethics____________________47
3. Making products that are environment-friendly, with minimum adverse impact on people
and ecosystem.
GREEN ACCOUNTING SYSTEM: (M 10 - 5M, N 14 - 2M, MTP SEP - 15)
1. Conventional accounts may result in policy decisions which are non-sustainable for the
country.
2. Green accounting on the other hand is, focused on addressing such deficiencies in
conventional accounts with respect to environment.
3. If the environmental costs are properly reflected in the prices paid for goods and services
then companies and ultimately the consumer would adjust market behaviour in a way that
would reduce damage to environment, pollution and waste production.
4. Such measures would facilitate the approach of polluter pays principle.
5. Removing subsidies that encourage environmental damage is another measure.
Similar Question
1) Explain the concept of sustainable development. (Or) What do you mean by
sustainable development? What are its features? (Or) What is meant by sustainable
development? State the special responsibilities of the industries that are based on
natural resources.
Q.No.2. Write about main forms of Pollution and Resource Depletion

(N 07 - 5M, N 08 - 2.5M, N-15 4M)
POLLUTION refers to the undesirable and unintended contamination of the environment by

the manufacture or use of commodities.
RESOURCE DEPLETION refers to the consumption of finite or scarce resources. In a certain
sense, pollution is also a type of resource depletion because contamination of air, water, or
land diminishes their beneficial qualities.
AIR POLLUTION: Air pollution has increased exponentially as industrialization expanded. The
most prevalent forms of air pollution are the gases and particulates spewed out by autos and
industrial processes, which affect the quality of the air we breathe. One of the worst industrial
disasters of all time occurred in Union Carbides plant in Bhopal on the night of December
3,1984. The accidental release of methyl-isolate in the congested, low-income district of Old
Bhopal killed 3,000 people and left many thousand more with chronic disabilities leading to
premature deaths.
GLOBAL WARMING: Greenhouse gases - carbon dioxide, nitrous oxide, methane, and
chlorofluorocarbons, occur naturally in the atmosphere to absorb and hold heat from the sun,
preventing it from escaping back into space, to keep the earth's temperature about
33Cwarmer than it would otherwise be, so that life can evolve and flourish. Bodies of water
such as lakes and oceans will warm, and this will dramatically shift the geographical
distribution of fish and other marine species and increase the frequency and magnitude of
droughts. The increase in levels of greenhouse gases would require reducing current
emissions of greenhouse gases by 60 to 70 percent-an amount that would seriously damage
the economies of both developed and developing nations.
OZONE DEPLETION: A layer of ozone in the lower stratosphere screens all life on earth from
harmful ultraviolet radiation. This ozone layer, however, is destroyed by CFC gases, which
have been used in aerosol cans, refrigerators, air conditioners, industrial solvents, and
industrial foam blow

ACID RAIN: Like global warming, acid rain is a threat to the environment that is closely related
to the combustion of fossil fuels (oil, coal, and natural gas), which are heavily used by utilities
to produce electricity. Burning fossil fuels, particularly coal containing high levels of sulphur,
releases large quantities of sulphur oxides and nitrogen oxides into the atmosphere. When
these gases are carried into the air, they combine with water vapor in clouds to form nitric acid
and sulphuric acid. These acids are then carried down in rain, which often falls hundreds of
miles away from the original sources of the oxides raising the acidity of the water sources.
WATER POLLUTION: Although water is essential to human life as well as to industrial growth
and development, the worlds per capita supplies of water are shrinking and are now 30
percent smaller than 25years ago. A number of factors have contributed to this. An increase in
population and economic activity particularly in urban areas, has resulted in increased
demands for water. To meet these demands, water is being increasingly diverted from
agricultural irrigation to provide water for cities.
LAND POLLUTION: Solid Wastes: Each year people living in cities produce tons of solid
wastes every year. City garbage dumps are significant sources of pollution, containing toxic
substances such as cadmium (from rechargeable batteries), mercury, lead (from car batteries
and TV picture tubes), vanadium, copper, zinc.
DEPLETION OF FOSSIL FUELS: Fossil fuels depletion at an exponentially rising rate results in
the loss of forest habitats. Combined with the effects of pollution it has led to the extinction of a
phenomenal number of species and the danger of many existing species disappearing forever.
Q.No.3. Write a note on ecological ethics. (PM) (MTP-OCT-15)
ECOLOGICAL ETHICS:
1. The problem of pollution and other environmental issues can best be framed in terms of
our duty to recognize and preserve the ecological systems within which we live.
2. An ecological system is an interrelated and interdependent set of organisms and
environments, such as a lake, in which the fish depend on small aquatic organisms, which
in turn live off decaying plant and fish waste products.
3. Since the various parts of an ecological system are interrelated, the activities of one of its
parts will affect all other parts.
4. Business and all social firms are parts of a larger ecological system.
5. Business firms depend on the natural environment for their energy, material resources,
waste disposal and that environment in turn is affected by the commercial activities of
business firms. Unless business recognize the interrelationship and interdependencies of
the ecological systems within which they operate and unless they ensure that their
activities will not seriously injure these systems one cannot hope to deal with the problem
of pollution.
6. Ecological ethics is based on the idea that the environment should be protected not only
for the sake of human being but also for its own sake.
7. The issue of environmental ethics goes beyond the problem relating to protection of
environment or nature in terms of pollution, resource utilization or waste disposal.
8. It is the issue of exploitive human nature and attitudes that should be addressed in a
rational way. Problems like global warming, ozone depletion and disposal of hazardous
waste that concern the entire world. They require international cooperation and have to be
tackled at the global level.
Similar Question
1) Business is a part of the ecological system - Elaborate.

Q.No.4. What is meant by Environmental ethics? How does its non-adoption lead to
3 Ps Viz., Polluter Pays and Principles? Explain.
(MTP-OCT-15, RTP NOV-15, RTP - 16) (N 07 - 5M) (PM)
1. Ecological ethics is based on the idea that the environment should be protected not only
for the sake of human beings but also for its own sake.
2. The issue of environmental ethics goes beyond the problems relating to protection of
environment or nature in terms of pollution, resource utilization or waste disposal.
3. Business and Industry are closely linked with environment and resource utilization.
4. Production process and strategy for eco-friendly technologies throughout the product life
cycle and minimization of waste play major role in protection the environment and
conservation of resources.
5. Business, Industry and multinational corporations have to recognize environmental
management as the priority area and a key determinant to sustainable development.
6. Sound management of wastes is among the major environmental issues for maintaining
the quality of Earths environment and achieving sustainable development.
7. Price signal will also influence behaviour to avoid exploitation or excessive utilization of
natural resources. Such measures would facilitate the approach of Polluter Pays
Principle. Removing subsidies that encourage environmental damage is another
measure.
Similar Question
1) Write a short note on Environmental Ethics. (Or) Explain the concept of
Environmental Ethics (Or) What is meant by environmental ethics? (Or) How does
Environmental Ethics non adoption leads to 3 PS viz., polluter, pay and principles.
Explain.
Q.No.5. Write a short note on ozone layer depletion. (Or) Depletion of ozone layer will
have adverse effects on human beings and not on vegetation - comment.
(PM) (N 07 - 5M, M 08 - 2.5M)
The Earth has some specific features, with which life is made possible on this planet. One
among such provision is that of the Ozone layer.
1. Ozone Layer:
a) The Sun rays have dangerous radiations like Ultra-
Violet (UV) and Infra-Red (IR) rays. They could cause
skin cancer and other diseases.
b) A layer of Ozone is present in the lower stratosphere.
This filters the sunrays and prevents Ultra Violet rays and
Infra red rays from reaching the surface of the earth.
c) This layer is destroyed by the CFC gases. These
gases are used in Refrigerators, Air-Conditioners, Industrial Solvents etc..
2. Ozone Layer Depletion: When released into the atmosphere, the CFC
gases rises. In 7 to 10 years these gases reach the Stratosphere. This
destroys the Ozone molecules. This process will continue for 75 to 130
years. All these time, it will breakdown additional Ozone molecules.
3. Effects:
a) Depletion of Ozone layer allows UV rays and IR rays to reach the
Earth.
b) This raises the rate of skin cancer cases, through out the world.
c) About 75% of the major crops of the world are sensitive to UV rays. All these crops will
be damaged.
4. Measures:
a) The Montreal Protocol was signed in 1987. This provides measures to stop the use of
Ozone Depletion Substances.
b) India has signed this Protocol.
Q.No.6. What do you understand by the term Acid Rain? How does it adversely affect
the environment? (For student self study) (N 07- 5M, M 14 4M) (SM)
1. Like a Global Warming, Acid Rain is a threat to the environment that is closely related
a) To the combustion of fossil fuels (oil, coal and natural gases) which are heavily used by
b) Utilities to produce electricity.
2. Burning fossil fuels, particularly coal containing high levels of sulphur, releases large quantities
of sulphur oxides and nitrogen oxides into the atmosphere. When these gases are carried into
the air, they combine with water vapour in clouds to form nitric acid and sulphuric acid.
3. These acids are then carried down in rain, which often falls hundreds of miles away from
the original sources of the oxides raising the acidity of the water sources. It also soaks into
soils and falls directly on trees and other vegetations.
4. Numerous studies have shown that many fish populations and other aquatic organisms
are unable to survive in lakes and rivers that have become highly acidic due to acid rain.
5. Other studies have shown that acid rain directly damages forests and indirectly destroys
the wildlife and species that depend on forests for food and breeding.
6. Acidic rain water can also contaminate drinking water.
7. Acid rain can corrode and damage buildings, statues and other objects, particularly those
made of iron, lime stone and marble thereby causing great threat to life and property over
a long period of time.
QUESTIONS FOR ACEDEMIC INTEREST
Q.No.7. Outline the importance of conservation of natural resources. (Or) How does the
adoption of green accounting system help in avoiding policy decisions which are non
sustainable for the country? (M 07 - 5M) (SM)
Natural Resources are the life supporting elements, provided

by the nature. But we need to consider the ways by which we
exploit and used them.
The Chipko movement in India is a proof of peoples concern
about balance in ecosystem when in 1973 they embraced the
trees to prevent their felling by the government.
Few decades ago, the corporate world, the industry or others
engaged in the use of natural resources or environmental
services were mainly concerned with good business in economic sense. Concern for
environment and resource depletion was not on their agenda; if conservation of resources was
required it was with a motive of mere economic gains or profits.
1. Meaning:
a) Conservation refers to the saving or rationing of natural resources.
b) Conservation looks primarily at the future. It limits the present consumption. Thus, the
resources are saved for the future.
c) Pollution Consumes the purity of air, water and land Pollution Control Conserves
them, for the future.
d) So, conservation is the only way, by which the availability of natural resources are
ensured for the future usage.
2. Awareness:
a) Earlier, the main aim of the Business Enterprises was to use the economic sources, in
the best possible manner. Now, there is an increased awareness in Conserving the
ecological resources.
b) There are some factors, which could help in achieving this objective. They are:
i) Awareness of social responsibility.
ii) Need to adopt Ethical values.
iii) More statutory requirements towards pollution control.
iv) Encouraging Environment friendly production procedures etc.,
Similar question: Conservation looks primarily to the future comment

Conservation looks primarily at the future: Refer above question
Q.No.8. What are the Developments in India regarding environmental ethics
The Chipko movement in India is a proof of peoples concern about balance in ecosystem
when in 1973 they embraced the trees to prevent their felling by the government. In India
especially the big cities are having the problem of air pollution on account of concentration of
industries and power plants. Also the automobiles are proving to be the greatest challenge for
abatement of air pollution.
In pursuant to the Stockholm Conference, India passed the Air (Control and Prevention of
Pollution) Act 1981, the Factories Act, 1948 as amended by the Act of 1987 contains
provisions for preventing pollution.
Under the Motor Vehicles Act, 1988 and Rules framed there under stringent measures are
stipulated to prevent air pollution, earlier also air-pollution measures were enacted through:
1. The Factories Act, 1948.
2. The Industries (Development and Regulation) Act, 1951.
3. Mines and Minerals (Regulation and Development) Act, 1957.
Q.No.9. Answer whether the statement is correct or incorrect with brief reasons.
There is no economic growth without ecological costs.
Correct. Economic growth has to be environmentally sustainable. There is no economic

growth without ecological costs. Industrialization and rapid development have affected the
environment. Everybody should realize that such development is related to environmental
damage and resource depletion. Therefore, an element of resource regeneration and positive
approach to environment has to be incorporated in development programs. Sustainable
development refers to maintaining development over time. Sustainable development is
development that meets the needs of the present without comprising the ability of future
generations to meet their own needs. A nation or society should satisfy its social, economic
and other requirement without jeopardizing the interest of future generations. High economic
growth means high rate of extraction, transformation and utilization of non-renewable
resources. Therefore it is suggested that economic growth has to be environmentally
sustainable because it is sure that there is no economic growth without ecological cost
Q.No.10. State with reason whether the following statement is correct or incorrect:
Creation of proper ethical environment requires a proper understanding of the reasons
which lead to an unethical behavior.
Correct: A creation of a proper ethical environment requires a proper understanding of the

reasons which lead to an unethical behavior. The reasons may be summarized as follows:
a) Emphasis on short term results
b) Ignoring small unethical issues
c) Economic Cycles
d) Change in accounting rules.
Q.No.11. State with reason whether the following statement is correct or incorrect:
A nation should satisfy its social and economic requirements without damaging the
interest of future generations.
Correct: An element of resource regeneration and positive approach to environment has to be

incorporated in developmental programmes. Sustainable development is necessary because it
meets the needs of the present without compromising the ability of future generations to meet
their own needs.
Depletion of Ozone layer will have adverse effect on human beings and not on
vegetation.
Incorrect: Ozone depletion results in the increase of ultraviolet rays. Experts believe that this
could cause several hundred thousands of new cases of skin cancer and could also lead to
considerable destruction of 75% of the worlds major crops that are sensitive to ultraviolet light.
Water pollution is also a kind of resource depletion.
Correct: Water pollution is also a kind of resource depletion because contamination of air,
water or land diminishes their beneficial qualities. Oceanographers have found traces of
plutonium, cesium and other radioactive materials in seawater that have apparently leaked
from the sealed drums in which radioactive wastes are disposed. An increase in population
and economic activity in urban area has also resulted in increased demands of water. The
ground water is also shrinking because of the decreasing rainfall and wastage of water.
Business does not sub-serve environmental ethics. (N 08 - 2.5M, N 14 -2M) (PM)
Incorrect: Previously the business concerns were mainly concerned with only good business
in economic sense. The conservation of natural resources was a motive of more economic
gains. But now due to awareness of social responsibility and ethical norms the motive of
business is not only concerned with business interest of the shareholders but also a general
concern for the community. Now the business houses have realized that environmental ethics
make good business sense if quality, ethics and environmental standards are maintained. Eco
Friendly Business Practices.
Copyrights Reserved
A good environmental practice improves corporate performance (M 09, 10 2.5M) (PM)
Correct: Environmental considerations have become a part of corporate strategy, which

means incorporating environmental issues in the process of developing a product, in new
investments and in the organizational set up. A good environmental practice improves
corporate performance. In many industries it has been found that environmental friendly
practices have resulted in more saving; for example the process of recycling the waste. Thus
environmental considerations play a key role in corporate strategy. Markets of new millennium
will be able to create wealth if they respond to the challenges of sustainable development, as
unsustainable products will become obsolete.
Q.No.16. State with reason whether the following statement is correct or incorrect.
Business and industry are closely linked with environment and resource utilization.
Correct: Business and industry are closely linked with environment and resource utilization.
Production process and strategy for eco-friendly technologies throughout the product life cycle
and minimization of waste play a major role in the protection of the environment and
conservation of resources. Business, industry and multinational corporations have to
recognize environmental management as the priority area and a key determinant to
sustainable development.
TEST YOUR KNOWLEDGE

1. SSA factory was started in your town one year ago. It is not following eco-friendly
practices. It creates a lot of air pollution and water pollution. How can you solve this
problem as a responsible citizen?
2. How can you introduce the concept of Sustainable development in your organization?
3. Which environmental standard protects environment?
4. Acid rain damages buildings, statues and other objects. But it doesnt damage Iron,
Limestone and Marble severely. Do you agree with this statement?
5. The companies, which follow ecofriendly business practices, are eligible for carbon credits.
Then who grants carbon credits?
6. which report recognized the concept that economic growth has to be environmentally
sustainable
7. Everybody in this world has to satisfy his/her present needs, without affecting the interests
of future generations. What is the name of this development?
8. LMN Company created undesirable and unintended contamination of the environment with
its activities. How can you call this undesirable contamination?
9. What is the effect of green accounting system on organization and environment?
10. Conservation looks primarily at the present. Do you agree with this statement?

Kareem Sir
THE END

5. ETHICS IN MARKETING AND CONSUMER PROTECTION

90- 90- 01- 01- 11- 11- 21- 21- 31- 31- 41- 41 5 51 61-
No. ABC
M N M N M N M N M N M -N M 1 -N M
1. C - - - - - - - - - - - - - - -
2. B 2.5 - - - - - - - 4 - 3 - - - -
3. A - 5 - - - - - - - - - - - 4 -
4. C - - - - - - - - - - - - - - -
5. C - - - - - 4 - - - 4 - - - - -
6. B - - - - - - - - - - - - 4 - -
7. B - - - 4 - - - 4 - - 4 - - - 4
8. C - - - - - - - - - - - - 4 - -
9. A 2.5 - - - - - - - 4 - 4 - - - -
10. C - - - - - - - - - - - - - - -
11. C - - - - - - - - - - - - - - -
12. C - - - - - - - - - - - - - - -
13. C - - - - - - - - - - - - - - -
14. C - - - - - - - - - - - - - - -
15. B - - - - - - - - - - - - - - -
16. C - - - - - - - - - - - - - - -
17. C - - - - - - - - - - - - - - -
18. C - - - - - - - - - - - - - - -
19. B - - - - - - - - - - - - - - -
20. B - - - - - - - - - - - - - - -
The golden rule for every business man is this: put yourself in your customers place
- Orison Sweet Marden
Q.No.1. Describe the relationship between Ethics and Marketing (SM)
1. The task of marketers is to influence the behaviour of customers.

2. To accomplish this goal, marketers have a variety of tools at their disposal.
3. Broadly speaking, these tools include the design of a product, the price at which it is
offered, the message used to describe it, and the place in which it is made available Ethics
are standards of moral conduct.
4. To act in an ethical fashion is to conform to an accepted standard of moral behaviour.
Marketing executives face the challenge of balancing their own best interests in the form of
recognition, pay, and promotion, with the best interests of consumers, their organizations,
and society into a workable guide for their daily activities.
5. In any situation they must be able to distinguish what is ethical from what is unethical and
act accordingly, regardless of the possible consequences.
Similar Question
1) Outline the relationship between ethics and marketing. What are the ethical
dilemmas in todays marketing scenario? (Or) Marketing practices may not need
ethical principles to be applied on it comment.
Answer: Refer Above.
IPCC _36e_ Business Ethics_ Ethics in Marketing and Consumer Protection___55

Q.No.2. Explain the extent to which it is possible to observe ethical behaviour in
marketing. Also explain in brief the merits and demerits of the above.
(MTP OCT-15) (M 07, 08 - 2.5M, N 09 - 5M) (PM)
MERITS AND DEMERITS OF ETHICAL BEHAVIOR IN MARKETING:

1. Market is flooded with duplicate goods having fake labels for selling drugs, food stuffs,
consumables like agarbathis, suparis etc. followed by misleading advertisements.
2. This results in disrepute for the products of good companies even though such fake goods
are small in quantities.
3. Setting high ethical standard and enforcing them reverses the position. If government
notices such depletion of ethical standard, rigid regulations are brought in and are never
withdrawn.
4. Marketing executives enjoy great amount of social power in influencing the society. They
also are the emblems for the organization. Once the virtues are lost it is difficult to regain
the social power, influence and image.
Similar question
1) What are the reasons for showing ethical behaviour in marketing? (Or) Why should
we behave ethically in marketing? (Or) Ethical marketing is healthy marketing
comment. (Or) Ethics are necessary in marketing to build brand image only
comment. (Or) Ethical behaviour in marketing is necessary to avoid government
intervention / regulation discuss.
Q.No.3. Explain the pragmatic reasons for maintaining ethical behaviour in marketing
through marketing executives. OR
What reasons force a marketing executive to adopt ethical practices in marketing?
Explain. (MTP-SEP-2015 NOV-15 4M)
PRAGMATIC REASONS FOR MAINTAINING ETHICAL BEHAVIOUR: Marketing executives

should practice ethical bahaviour because it is morally correct.
To maintain ethical behaviour in marketing, the following positive reasons may be useful to the
marketing executives:
1. To reverse declining public confidence in marketing: Sometime misleading package
labels, false claim in advertisement, phony list prices, infringement of trademarks pervert
the market trends and such behaviour damages the marketers reputation.
2. To avoid increase in government regulation: Business apathy, resistance, or token
responses to unethical behaviour increase the probability of more governmental
regulation. The governmental limitations may also result from managements failure to live
up to its ethical responsibilities.
3. To retain power granted by society: Marketing executives wield a great deal of social
power as they influence markets and speak out on economic issues. However, there is a
responsibility tied to that power. If marketers do not use their power in a socially
acceptable manner, that power will be lost in the long run.
4. To protect the image of the organisation: Buyers often form an impression of an entire
organisation based on their contact with one person. That person represents the marketing
function. Sometimes a single sales clerk may pervert the market opinion in relation to that
company which he represents. Therefore, the ethical behaviour in marketing may be
strengthened only through the behaviour of the marketing executives.
Q.No.4. What is Competition? Write about competition law and policy?
A broad definition of Competition is a situation in a market in which firms or sellers

independently strike for the buyers patronage in order to achieve a particular business
objective, for example profit, sales or market share A pre-requisite for a good competition
is trade.
Competition Policy and Law: The Competition Policy is regarded as genus, of which, the
Competition Law is specie. Competition Law provides necessary powers to the commission to
enforce and implement the Competition Policy. The central economic goal of the Competition
Policy is the preservation and promotion of the competitive process.
Q.No.5. Write about Competition Act, 2002 (M 07 - 2.5M, N 11, 13 - 4M) (PM)
The Competition Act, 2002 intends to provide, keeping in view of the economic development
of the country, for the establishment of a Commission to prevent practices having adverse
effect on competition, to promote and sustain competition in markets, to protect the interests of
consumers and to ensure freedom of trade carried on by other participants in markets, in
India, and for matters connected therewith or incidental thereto.
PARAMETERS OF COMPETITION LAW
1. Prohibition of certain agreements, which are considered to be anti-competitive in nature.
Such agreements [namely tie in arrangements, exclusive dealings (supply and
distribution), refusal to deal and resale price maintenance] shall be presumed as anti-
competitive if they cause or likely to cause an appreciable adverse effect on competition
within India
2. Abuse of dominant position by imposing unfair or discriminatory conditions or limiting and
restricting production of goods or services or indulging in practices resulting in denial of
market excess or through in any other mode are prohibited.
3. Regulation of combinations which cause or likely to cause an appreciable adverse effect
on competition within the relevant market in India is also considered to be void.
Similar Question
1) What are the initiatives, which have been taken in the Indian context, towards
maintaining and promoting healthy competition? (Or) Bring out the objectives of
the competition act, 2002. (Or) Enumerate the role of the competition act, 2002 in
promoting healthy competition in Indian markets. (Or) Competition act, 2002
protects the interest of consumers elaborate. (Or) Which are the parameters,
which are applicable in relation to competition law in India?
Q.No.6. Definition of Consumer (For student self-study)
Consumer - [Section 2(f), Competition Act, 2002] : "Consumer" means any person who
1. Buys any goods for a consideration which has been paid or promised or partly paid and
partly promised, or under any system of deferred payment and includes any user of such
goods other than the person who buys such goods for consideration paid or promised or
partly paid or partly promised, or under any system of deferred payment when such use is
made with the approval of such person, whether such purchase of goods is for resale or
for any commercial purpose or for personal use;

Ph:98851 25025/26 www.mastermindsindia.com
2. Hires or avails of any services for a consideration which has been paid or promised or partly
paid and partly promised, or under any system of deferred payment and includes any
beneficiary of such services other than the person who hires or avails of the services for
consideration paid or promised, or partly paid and partly promised, or under any system of
deferred payment, when such services are availed of with the approval of the first-mentioned
person whether such hiring or availing of services is for any commercial purpose or for
personal use; It is noteworthy that the definition of consumer is substantially the same has
given to the expression under Section 2(d) of the consumer protection Act, 1986. The
difference is that under clause in the Competition Act, it uses the words whether such
purchase of goods is for the resale of for any commercial purpose or for personal use in
places of the words but does not include a person who obtains such goods for resale of for
any commercial purpose, as in the Consumer Protection Act. Likewise, in clause the words
used in the Competition Act are whether such hiring or availing of services is for any
commercial purpose or for personal use in place of the words but does not include a person
who avails of such services for any commercial purpose as in the Consumer Protection Act.
Thus, the interpretation of consumer in the Consumer Protection Act will be the same as in
Competition Act. In the latter, consumer will also include a person who purchases goods for
resale or for any commercial purpose or for personal use.
Q.No.7. State the objectives of the Central Consumer Protection Council in India.
or
What are the objects of the Central Consumer Protection Council in relation to protection
of rights of the consumers? (PM) (N 10, 12 - 4M, M 14 4M, M 16 - 4M, RTP M-16)
The Central Consumer Protection Council: The objects of the Central Council shall be to
promote and protect the rights of the consumers such as,-
1. The right to be protected against the marketing of goods and services which are
hazardous to life and property;
2. The right to be informed about the quality, quantity, potency, purity, standard and price of
goods{or services, as the case may be} so as to protect the consumer against unfair trade
practices;
3. The right to be assured, wherever possible, access to a variety of goods, and services at
competitive prices;
4. The right to be heard and to be assured that consumers interest will receive due
consideration at appropriate terms;
5. The right to seek redressed against unfair trade practices {or restrictive trade practices} or
unscrupulous exploitation of consumers; and
6. The right to consumer education.
a) The State Consumer Protection Council: The objects of every State shall be to
promote within the State the rights of the consumers laid down in point (a) to (f)
mentioned above.
b) The District Consumer Protection Council: The objects of every District Council shall
be to promote within the State the rights of the consumers laid down in point (a) to (f)
mentioned above.
Q.No.8. What are the United Nations guidelines themes on consumer protection?
Enumerate also the consumer therein rights enshrined.
(M 15 4M) (PM) (For student self-study)
The UN Guidelines call upon governments to develop, strengthen and maintain a strong
consumer policy, and provide for enhanced protection of consumers by enunciating various
steps and measures around eight themes (UNCTAD, 2001). These eight themes are:

1) Physical safety 5) Redress
2) Economic interests 6) Education and information
3) Standards 7) Specific areas concerning health
4) Essential goods and services 8) Sustainable consumption
The Guidelines have implicitly recognized eight consumer rights, which were made explicit in
the Charter of Consumer International as follows:
Right to basic needs
Right to information
Right to safety Right to consumer education
Right to choice Right to representation
Right to redress Right to healthy environment
These eight consumer rights can be used as the touchstones for assessing the consumer
welfare implications of competition policy and law, and to see how they help or hinder the
promotion of these rights.
Q.No.9. Distinguish between consumer interest and public interest. (or) Consumer and
public interest are both synonymous - comment.
MTP SEP-15 (M 07, 09 - 2.5M, M 13 - 4M, M 14 3M) (PM)
Often consumer interest and public interest are considered synonymous. But they are not and
need to be distinguished. In the name of public interest, many governmental policies are
formulated which are either anti-competitive in nature or which manifest themselves in anti-
competitive behavior. If the consumer is at the fulcrum, consumer interest and consumer
welfare should have primacy in all governmental policy formulations.
Particulars Consumer Interest Public Interest

Areas, which benefit the Areas in which the society as a
1. Meaning Consumers as a whole, whole has some interest is called
constitute Consumer Interest. Public Interest.
Consumer is a member of a broad Society refers to the collection of
2. Interested class of people who purchase, use, sub-systems, e.g. consumers,
Class maintain and dispose of products manufacturers, distributors, input
and services. suppliers, service providers, etc.
Consumer Interest is restricted in Public Interest is wider in scope
3. Scope
scope. than Consumer Interest.
Consumers are affected by pricing Public Interest reflects the morals
4. Factors policies, quality of goods & services during period and the established
and various trade practice. interest of the society.
Government Policy decisions which Government Policy decisions which
are intended to benefit the are intended to benefit the society
5. Focus
consumers, constitute Consumer as a whole, constitute Public Interest.
Interest.
Formulation of Competition Act, Maintaining law and order, providing
Regulation of Consumer Protection for the Defense of the country etc..
6. Examples
Councils, Consumer Courts/
Adalats, etc.

Q.No.10. Answer Correct or Incorrect

Ethics are necessary in marketing to build Brand image only.
No, the ethics are necessary in marketing not only to build image, but ethics are necessary for
sustainable development of business, and ultimately for transparency and good corporate
governance in the country.

Ethical behavior in marketing is necessary to avoid Government intervention/
regulation.
Correct: Business apathy, resistance or token responses to unethical behaviour simply

increase the probability of more Governmental regulation. Indeed, most of the Governmental
limitations on marketing are the results of managements failure to live up to its ethical
responsibilities at one time or other. However, once some form of government control has
been introduced, it is rarely removed. So, business enterprises in their own interest must
behave ethically in marketing.
Q.No.12. Consumer interest and Public interest are synonymous.

Or
Differentiate between 'consumer interest' and 'public interest'.
Incorrect: Apparently it seems that public interest and consumer interest are synonymous, but
it is not so. They may be differentiated as under:
i) In the name of public interest, many Governmental policies are formulated which manifest
themselves in anti-competitive behaviour. If the consumer is at the fulcrum, consumer
interest and welfare should have primacy in all governmental policy formulations.
ii) Consumer is a member of a broad class of people who purchase, use, maintain and
dispose of products and services. They are being affected by pricing policy, financing
practice, quality of goods, services and trade practices. They are clearly distinguished from
manufacturers who produce goods for wholesalers, retailers who sell goods in public
interest. Public interest is something in which the society as a whole has some interest,
and is seen as an externality to competitive markets. There is also a justifiable
apprehension that in the name of public interest, Governmental policies may be fashioned
and introduced which may not be in the ultimate interest of the consumers. In fact in such
situations, there is the possibility that a conflict could arise between public interest and
consumer interest.

Consumer purchases goods and health services for personal purposes only.
Incorrect: The consumer does not purchase goods and health services for personal purposes
only, because on certain occasions various items are purchased for public welfare and
development of the society as a whole. Further, under the Competition Act, 2002, a consumer
is also one who may purchase goods for commercial purposes also.
Copyrights Reserved
IPCC _36e _ Business Ethics_ Ethics in Marketing and Consumer Protection___60

Competition Act, 2002 protects the interest of consumers.
Correct: The Competition Act, 2002 intends to protect the interests of consumers by
establishing a commission to prevent practices having adverse effect on competition and to
promote and sustain competition in markets. The commission is empowered to prohibit certain
agreements which are considered as anti-competitive in nature, abuse of dominant position
and regulation of combinations likely to cause appreciable adverse effect on competition.
Q.No.15. A retailer was purchasing goods regularly from XYZ Ltd. for the purpose of
resale. There were defects in the goods in one of the purchase lot and as a result the
retailer suffered loss of his share in competition. The retailer sued the said company for
this reason. The company contended that the goods were purchased for the purpose of
resale and therefore, not bound. Is it a valid contention? Explain clearly the provisions
of the Competition Act, f in this regard
The problem as asked in the question is based on the provisions of Section 2(f) of the
Competition Act, 2002. The Section provides that consumer means any person who buys
any goods for a consideration which has been paid or promised or partly paid or partly
promised or under any system of deferred payment and includes any user of such goods other
than the person who buys such goods for consideration paid or promised or partly paid or
partly promised or under any system of deferred payment when such use is made with the
approval of such person whether such purchase of goods is for resale or for any commercial
purpose or for personal use. Hence Section 2(f) of the Competition Act, 2002 provides that
whether purchase of goods is for resale or for any commercial purpose or for personal use,
the purchaser is a consumer. Thus consumer will also include a person who purchases goods
for re-sale. Therefore the contention of XYZ Ltd. is not valid and not tenable.

Consumer for personal use and consumer for commercial use are synonymous.
Incorrect: It seems that the definitions of consumer under Competition Act, 2002 and under
Consumer Protection Act, 1986 are substantially the same. But there is difference between the
two and that difference is that under clause (1) of Section 2(f) in Competition Act, the words used
are whether such purchase of goods is for the resale of for any commercial purpose or for
personal use in place of the words but does not include a person who obtains such goods for
resale of for any commercial purpose as in the Consumer Protection Act. Likewise in clause (ii)
the words used in the Competition Act are Whether such hiring or availing of services is for any
commercial purpose or for personal use in place of the words but does not include a person who
avails of such services for any commercial purpose as in the Consumer Protection Act. Thus in
case of Competition Act the word consumer includes both consumer for personal use and for
commercial use but it is not so in the case of the Consumer Protection Act

Ethics are necessary in marketing because
a) To avoid intervention by the Government
b) To get recognition from the society
c) To build brand image
d) (a) & (b) only
[Hints: The Correct option is (d)] Copyrights Reserved


Q.No.18. What is the object behind the enactment of the Competition of Act, 2002?
India, and for matters connected therewith or incidental thereto].
Q.No.19. ABC Ltd. has been the leading scientific equipment manufacturing company in
South India. But it suddenly finds that certain companies from North India that do not
have anywhere near its own kind of clout in their own turfs, are trying to enter the south
Indian market. But because of its superior clout, ABC Ltd coerces them to enter into
agreement with itself such that they do not sell at prices above that of its own products.
Please comment on the legality of such agreements. Conversely, if ABC Ltd were to
enter into agreements with distributors such that the distributors are prevented from
marketing the products of the North Indian companies, would that be illegal?
The Competition Act, 2002 intends to provide, keeping in view of the economic development of the
country, for the establishment of a Commission to prevent practices having adverse effect on
competition, to promote and sustain competition in markets, to protect the interests of consumers
and to ensure freedom of trade carried on by other participants in markets, in India, and for
matters connected therewith or incidental thereto. The Act deals with the following:
1. Prohibition of certain agreements, which are considered to be anti-competitive in nature.
Such agreements [namely tie in arrangements, exclusive dealings (supply and distribution),
refusal to deal and resale price maintenance] shall be presumed as anticompetitive if they
cause or are likely to cause an appreciable adverse effect on competition within India.
2. Abuse of dominant position by imposing unfair or discriminatory conditions or limiting
and restricting production of goods or services or indulging in practices resulting in denial
of market access or through in any other mode are prohibited.
3. Regulation of combinations which cause or likely to cause an appreciable adverse effect on
competition within the relevant market in India. In light of the above points, any agreement that
ABC Ltd. may enter into with its competitors from North India to tie-up the price at a certain
level is prohibited. Such agreements would also amount to abuse of dominant position.
Q.No.20. Kalam Ltd. has been the leading scientific equipment manufacturing company
in South India. But it suddenly finds that certain companies from North India that do not
have anywhere near its own kind of clout in their own turfs, are trying to enter the south
Indian market. But because of its superior clout, Kalam Ltd coerces them to enter into
agreement with itself such that they do not sell at prices above that of its own products.
Please comment on the legality of such agreements. Conversely, if Kalam Ltd were to
enter into agreements with distributors such that the distributors are prevented from
marketing the products of the North Indian companies, would that be illegal?
India, and for matters connected therewith or incidental thereto.
THE ACT DEALS WITH THE FOLLOWING:
a) Prohibition of certain agreements, which are considered to be anti-competitive in nature.
Such agreements [namely tie in arrangements, exclusive dealings (supply and
distribution), refusal to deal and resale price maintenance] shall be presumed as anti-
competitive if they cause or are likely to cause an appreciable adverse effect on
competition within India.
b) Abuse of dominant position by imposing unfair or discriminatory conditions or limiting
and restricting production of goods or services or indulging in practices resulting in denial
of market access or through in any other mode are prohibited.
c) Regulation of combinations which cause or likely to cause an appreciable adverse effect
on competition within the relevant market in India.In light of the above points, any
agreement that Kalam Ltd. may enter into with its competitors from North India to tie-up the
price at a certain level is prohibited. Such agreements would also amount to abuse of
dominant position.
Conversely, agreements with distributors preventing the latter from distributing the goods
of its competitors would also be illegal since they would restrict market access and can be
deemed anti-competitive.
TEST YOUR KNOWLEDGE
1. You are running a retail shop. Recently you purchased some products for business
purpose from a famous company. But the quality of those products is not up to mark. How
can you fight against the company?
2. Under the Consumer protection act 1986, Consumer includes a person who purchases
goods for resale or for any commercial purpose or for personal use. Do you agree?
3. LMN Company is trying to influence the behavior of the customer. How can you call this
entire influencing process?
4. Public interest is the part of consumer interest. Do you agree?
5. Competition act 2002 and consumer protection act 1986 had given same concept
regarding the definition of consumer. Do you agree with this statement?
6. Can Every business enterprises construct a two column list of all possible ethical and
unethical practices?
7. Which should be prohibited, according to Indian completion act, 2002, (section 3)?
8. To which states, the competition Act, 2002 doesnt applicable?

Kareem Sir
THE END

Ph : 98851 25025/26 www.mastermindsindia.com
6. ETHICS IN ACCOUNTING AND FINANCE
N-09 N-12
90- TO 01 11- 11 21- TO 31 41- 41- 51- 51- 61-
No. ABC
M M- -N M -N M M- -N M N M N M
10 13
1. C - - - - - - - - - - - - -
2. B - - - - - - - - - - - - -
3. B - - - - - - - - - - - - -
4. C - - - - - - - - - - - - -
5. A - - - - - - - - 4 - 4 - -
6. A 5 - - - - - - 3 - - - - -
7. A - - - - - - - - - - - - -
8. C - - - - - - - - - - - - -
9. C - - - - - - - - - - - - -
10. A - - - - - - - - - - - - -
11. B - - - - - - - - - - - - -
12. A - 5 - - - - - - - 4 - - 4
13. B - - - - - - - - - - - - -
14. C - - - - - - - - - - - - -
15. C - - - - - - - - - - - - -
Success in business requires training and discipline and hard work. But if youre not
frightened by these things, the opportunities are just as great today as they ever were.
- David Rockefeller
Q.No.1. What are the fundamental principles of ethics applicable to the persons of
finance and accounting profession? (RTP M-16)
PRINCIPLES OF ETHICS: The fundamental principles relating to ethics as applicable to

accounting and finance professionals are as follows:
1. The principle of integrity: Integrity means veracity. The principle requires all accounting
and finance personnel to be honest and straight-forward in discharging their respective
professional duties.
2. The principle of objectivity: The principle requires accounting and financial professionals
to stick to their professional and financial judgment without bias, conflicting interests, or
under influence of others.
3. The principle of confidentiality: The principle requires accounting and financial
professionals to refrain from disclosing confidential information related to their work.
4. The principle of professional competence and due care: The financial and accounting
professional need to update their professional skill in the modern competitive environment.
5. The principle of professional behavior: The principle requires accounting and financial
professional to comply with relevant laws and regulations and avoid such action which
may result into discrediting the profession. Copyrights Reserved
MASTER MINDS, Guntur
To
IPCC _36e_ Business Ethics_ Ethics in Accounting and Finance_____________64

Q.No.2. State, how far a sound ethical environment in a company may be created and
corporate scandals may be avoided. (For student self-study) MTP OCT-15
Creating an ethical environment in company: A sound ethical environment in a company

may be created and corporate scandals may be avoided by adopting the following methods:
1. Ensuring that employees are aware of their legal and ethical responsibilities.
a) Some ethical organisations are having policies to train and motivate employees
towards ethical behaviour. To start with, such initiation should be from the top.
b) A number of companies in India and abroad are being known for their quality and
soundness of their ethics programmes.
c) Companies like Raytheon, Texas Instruments, Wipro are pioneers in establishing
ethical environment among the employees enabling them to take ethical decisions.
2. Providing a communication system between the management and employees. so that
anyone in the company can report fraud and mismanagement without the fear of being
reprimanded: In India, Wipro has introduced a helpline comprising of senior members of
the company, who are available for guidance on any moral, legal or ethical issues that an
employee of the company may face.
3. Ensuring fair treatment to those who act as whistle blowers: This is perhaps the most
important and sensitive issue. Fair treatment to whistle blowers is a basic necessity to
check fraud. Some acts must be appreciated and that appreciation should be extended
from within the company rather than outside.
Q.No.3. State the pressures which are faced by the finance and accounting
professionals in an organization in the compliance of fundamental principles of ethics.
(MTP Sep-15)
PRESSURES FACED BY FINANCE AND ACCOUNTING PROFESSIONALS:

1. The finance and accounting professionals are supposed to support the legitimate and
ethical objectives established by the employer.
2. As they are having responsibilities to an employing organization, may be under pressure to
act or behave in ways that could directly or indirectly threaten compliance with the
fundamental principles.
3. Such pressures may be explicit or implicit which may come from supervisor, manager,
director or another individuals.
Such pressures which are being faced by finance and accounting professionals may be
stated as follows:
a) To act contrary to Law or Regulation
b) To act contrary to technical a professional standards.
c) To facilitate unethical or illegal earnings management strategies.
d) Lie to, or otherwise intentionally mislead other, in particular the auditors of the employing
organization or Regulators.
e) To issue or otherwise be associated with, a financial or non-financial report that materially
misrepresents the facts, including statements, in connection with. For example:
i) The financial statements
ii) Tax compliance
iii) Legal compliance, or
iv) Reports required by securities regulators.

Q.No.4. Explain the importance of ethics for a finance and accounting professional.
(For student self-study)
1. Finance and Accounts is perhaps the only business function which accepts responsibility
to act in public interest. Hence, a finance and accounting professionals responsibility is
not restricted to satisfy the needs of any particular individual or organisation.
2. While acting in public interest, it becomes imperative that the finance and accounting
professional adheres to certain basic ethics in order to achieve his objective. Until recently,
various surveys conducted globally had ranked finance and accounting professionals very
high in terms of professional ethics.
3. However, various accounting scandals witnessed during the past few years have put a
serious question mark on the role of the finance and accounting professional in providing
the right information for decision making both within and outside their respective
organizations.
4. As these finance and accounting professionals are in public practice, they should take
reasonable steps to identify circumstance.
Similar Question
1. Outline the importance of ethics for finance and accounting professional. (Or) Why
should the accounting and financial professional follow ethical principles? (PM)
Q.No.5. Write about various threats posed by the environment.

(M 14 4M, M 15 4M) (PM)
The dynamic environment in which businesses operate today may usher a broad range of
circumstances because of which compliance with the abovementioned fundamental principles
may potentially be threatened. Such threats may be classified as follows:
a) SELF-INTEREST THREATS, which may occur as a result of the financial or other
interests of a finance and accounting professional or of an immediate or close family
member;
b) SELF-REVIEW THREATS, which may occur when a previous judgment needs to be
revaluated by the finance and accounting professional responsible for that judgment;
c) ADVOCACY THREATS occur when a professional promotes a position or opinion to the
point that subsequent objectivity may be compromised;
d) FAMILIARITY THREATS occur when a finance and accounting professional has close
relationships in the work environment and such relationships impair his selfless attitude
towards work.
e) INTIMIDATION THREATS occur when a professional may be prohibited from acting
objectively by threats, actual or perceived.
Similar Question
1) What are the various threats, which can be faced by a finance and accounting
professional, while working as an auditor, consultant or an employee in an
organisation? (or) What kinds of threats could finance and accounting employee
expect, while working as an auditor, consultant or an employee in an organization?
The finance and accounting professional has to work under severe pressures of
various threats. elaborate.
Answer: Refer The Above.

Q.No.6. Explain the reasons for unethical behaviour among finance and accounting
professionals. (RTP NOV-15) (M 09 - 5M, N 13 3M) (PM)
The reasons which lead to unethical behaviour are as follows:

1. Emphasis on short term results. This is one of the primary reasons which has led to the
downfall of many companies like Enron and Worldcom.
2. Ignoring small unethical issues. It is a known fact that most of the compromises we
make are small but however they lead us into committing large infractions. And ignoring
minor lapses, lead to bigger and more huge mistakes.
3. Economic cycles. In good times, companies are relaxed in their accounting procedures
or disclosures, as there is a pervasive feel-good effect. But when times of hardship follow,
then the hit taken by them is almost fatal, as was proved in the Enron case. So companies
need to watch out for economic cycles and be vigilant in good times as well as bad.
4. Accounting rules. In the era of globalization and massive cross border flow of capital,
accounting rules are changing faster than ever before. The rules have become more
complex and it is difficult to identify deviations from these complex set of requirements.
The complexity of these principles and rules and the difficulty associated with identifying
abuse are reasons which may promote unethical behaviour.
Similar Question
1) What are the general reasons for unethical behaviour in the context of accounts and
finance. (Or) Describe various reasons which could lead one, to be unethical. (Or)
Explain the reasons for unethical behaviour among finance and accounting
professionals. (Or) Window dressing of financial statements will not be useful in
the long run - comment
Answer: Refer the Above Answer
Q.No.7. Self-interest threats may occur as a result of financial or other interests of

finance and accounting professional. Give three examples each of such threats when
the accounting professional is working as-
(i) An auditor or consultant
(ii) An employee in a company. (PM) (M 08-5M)
Self Interest Threats: Auditors: Employees:

1. Self-interest threats for finance and accounting professionals working as consultants or
auditors are given below:
a) A financial interest in a client or jointly holding a financial interest with a client.
b) Undue dependence on total fees from a client,
c) Having a close business relationship with a client.
d) Concern about the possibility of losing a client,
e) Potential employment with a client.
f) Contingent fees relating to an assurance engagement.
2. Self-interest threats for finance and accounting professionals working as an employee are
given below:
a) Financial interests, loans and guarantees in the company in which the professional is
working.
b) Incentive compensation arrangements.
c) Inappropriate personal use of corporate assets.
d) Concern over employment security.
e) Commercial pressure from outside the employing organization.
Similar Question
1) Give examples for self-interest threats, which can be faced by a finance and
accounting professional, while working as (A) auditor or consultant and (B)
employee in a company.
Q.No.8. Give some examples for self-review threats, which can be faced by finance and
accounting professional while working as (A) an auditor or consultant and (B) an
employee in a company. (SM) (For student self-study)
1. An Auditor or Consultant:
a) Discovery of a significant error during a re-evaluation of the professionals work.
b) Reporting on the operation of the financial systems designed
and implemented by the professional himself.
c) A member of the assurance team being, or having recently
been, employed by the client in a position to exert direct and
significant influence over the subject matter of the
engagement.
2. Employee in A Company
a) Such threats occur when business decisions or data is subjected to review.
Justification is required to be given by the same professional, who was responsible for
such decisions or preparing the data.
b) The professional may be under pressure from his seniors to compromise with his moral
professional and legal obligations.
c) He may be asked to act contrary to technical/professional standards and regulations.
The professional may be required to justify the decision/data that he himself created.
Q.No.9. Give some examples of advocacy threats which can be faced by a finance and
accounting professional while working as (A) an auditor or consultant and (B)
employee in a company. (For Student self-study) (SM)
a) Promoting shares in a listed entity, when that entry is a
Consultancy or a Financial Statement Audit Client.
b) Acting as an advocate, on behalf of an assurance client, in
litigation or disputes with third parties.
2. Working as Employee:
a) Making false and misleading statements on the companys position, when furthering
legitimate goals and objective of their employers.
b) But, if such statements are neither false nor misleading, then such actions generally do
not create an Advocacy Threat.
Copyrights Reserved

Q.No.10. Give some examples for familiarity threats, which can be faced by a finance
and accounting professional while working as (A) an auditor or consultant and (B)
employee in a company. (SM) (For student self-study)
a) A member of the engagement team, who have a close immediate family relationship
with a director/officer of the client.
b) A former director/officer of the client being a partner of the audit firm.
c) Accepting gifts or preferential treatment from a client.
d) Long association of senior personal with a client.
2. Working as Employee:
a) Possible benefit to a close family member from the influence exercised by the
professional on business decisions and financial reporting.
b) Long association with business contacts, influencing business decisions.
c) Acceptance of gifts or preferential treatment, unless the value is clearly insignificant.
Q.No.11. Give some examples for intimidation (fear/pressure) threats which can be
faced by a finance and accounting professional, while working as (A) an auditor or
consultant and (B) employee in a company. (SM) (For student self-study)
a) Being threatened with dismissal or replacement.
b) Being threatened with litigation.
c) Being pressured to reduce the scope and extend of the work done,
inappropriately, to reduce fees.
2. Employee:
a) Threat of dismissal / replacement of the Finance and Accounting
Professional or a close / immediate family member. This could be
over a disagreement about the application of an accounting
principle. It could also be the way in which the financial information
is to be reported for external use, as well as decision making
purposes.
b) The attempt of the boss to influence the professionals decision.
Q.No.12. Finance and accounting professionals working as employees in an

organisation have to face various threats which make it difficult for them to comply with
fundamental principles relating to ethics. Explain the safeguards in the work
environment which may be created by a business enterprise to overcome such threats.
(N 07 - 5M, M 10 - 5M, N 14 - 4M, M16-4M) (PM)
SAFEGUARDS IN THE WORK ENVIRONMENT: SAFEGUARDS AGAINST THREATS

FACED BY PROFESSIONAL SHALL BE TO
i) Ensure an ethical environment,
ii) Increase the likelihood of identifying or deterring unethical behaviour and
iii) Eliminate or reduce threats to acceptable level.

SAFEGUARDS CREATED BY THE PROFESSION, LEGISLATION OR REGULATION ARE
AS FOLLOWS:
i) Educational, training and experience requirements for entry into the profession.
ii) Continuing professional development requirements
iii) Corporate governance regulations
iv) Professional standards
v) Professional or regulatory monitoring and disciplinary procedures.
vi) External review by a legally empowered third party of the reports, returns, communications
or information produced by concerned professionals.
THE FOLLOWING SAFEGUARDS MAY BE CREATED BY A BUSINESS ENTERPRISE IN
THE WORK ENVIRONMENT:
i) The employing organisations systems or corporate oversight or other oversight structures.
ii) The employing organisation's ethics and conduct programmes.
iii) Recruitment procedures in the employing organisation emphasizing the importance of
employing high calibre competent staff
iv) Strong internal controls
v) Appropriate disciplinary process
vi) Leadership that stresses the importance of ethical behaviour and expectation that
employees will act in an ethical manner.
vii) Policies and procedures to implement and monitor the quality of employee performance.
viii) Timely communication of the employing organisation's policies and procedures, including
any changes to them, to all employees and appropriate training and education on such
policies and procedures.
Similar Question
1) What are the various safeguards, which have to be adopted by finance and
accounting professional, to counter/overcome threats. (Or) The finance and
accounting professional has to follow some safeguards to keep himself safe of
threats. comment. (Or) Finance and accounting professional working as an
employee in an organization have to face various threats which make it difficult for
them to comply with fundamental principles relating to ethics. (Or) Explain the
safeguards in the work environment which may be created by a business enterprise
to overcome such threats. (Or) Explain the various safeguards that should be
adopted for overcoming threats faced by an accounting and finance professional.
Answer: Refer the Above.
Q.No.13 Explain briefly the matters to be considered and the steps that may be taken by
a Finance and Accounting professional when he is required to resolve an ethical
conflict in the application of Fundamental principles. (M 07- 5M) (PM)
1. CONFLICT RESOLUTION: While evaluating compliance with the fundamental principles,

a finance and accounting professional may be required to resolve a conflict on the
application of fundamental principles. The following need to be considered, either
individually or together with others, during a conflict resolution process:
a) Relevant facts
b) Ethical issues involved
c) Fundamental principles related to the matter in question
d) Established internal proceedings and
e) Alternative course of action
2. Having considered these issues, the professional should determine the appropriate course
of action that is consistent with the fundamental principles identified.
3. The professional should weigh the consequences of each possible course of action. If the
matter remains unresolved, the professional should consult other appropriate persons
within the firm or employing organization for help in obtaining resolution.
4. During times where a matter involves a conflict with or within an organization, the finance
and accounting professional should also consider consulting those charged with
governance of the organic station, such as the Board of Directors.
5. It may be in the best interests of the professional to document the substance of the issues
and details of any discussions held or decisions taken, concerning that issue.
6. If a significant conflict cannot be resolved, a professional may also obtain professional
advice from the relevant professional body or legal advisors and thereby obtain guidance
on ethical issues without breaching confidentiality.
7. If, after adopting all strategies, the ethical conflict still remains unresolved, a professional
should try to disassociate from the matter causing the conflict or even from the
organization, if need be.
Similar Question
1) Discuss briefly, the ethical conflict resolution, in the context of finance and
accounting. (Or) Just like any other conflicts, ethical conflicts also could be
resolved discuss. (Or) Explain briefly the matters to be considered and the steps
that may be taken by a finance and accounting professional when he is required to
resolve an ethical conflict in the application of fundamental principles.
Window-dressing of financial statements will not be useful in the long run.
Correct: In window-dressing, efforts are made to show a 'good balance sheet' by manipulating
accounting entries. This can help companies to boost their market image and obtain further
capital from the market for some time. Window dressing is on the assumption that next year
performance will be better and accounts will be regularized next year. Window dressing can
go on for 2 or 3 years but not more. It will lead to the downfall of the company in a few years.
Ensuring fair treatment to whistle blowers will help in creating good ethical accounting
environment in a business enterprise.
Correct: A whistle blower is an employee/person who reports fraud, mismanagement or

unethical practices to the appropriate levels of management. Fair treatment and appreciation
of whistle blowers is necessary to check fraud. This will help in creating good accounting
environment in a business enterprise.
Copyrights Reserved
TEST YOUR KNOWLEDGE
1. You are a qualified charted accountant, working as auditor in a well-known company. You
have taken a gift from your client. Then, you are going to face a threat in nearby future.
What is the name of the threat? And how can you overcome it?
2. Long association with clients helps to grow in accounting and financial profession as a
financial and accounting professional, do you agree? Justify your answer.
3. Acting as an advocate, on behalf of an assurance client, in litigation or disputes with third
parties. What is the name of this threat faced by accounting professional?
4. Discovery of a significant error during a re-evaluation of the professionals work. What is
the name of this threat?
5. Mr. y, a chartered accountant has long associations with clients, which lead to some
amount of threats. How can you name this threat?
6. Mr. Manoharan is in a situation, that he is not in a position to comply with the principles of
integrity, objectivity, confidentiality etc., then which will arise from the above mentioned situation?
7. According to which fundamental principle, Financial and Accounting Professionals should
comply with the relevant laws and regulations?
8. Mr. Prabhakar, acting as an advocate, on behalf of an assurance client, in litigation or
disputes with third parties. Which kind of threat does Prabhakar face in future?
Miss. Rajani, a well-known accounting professional is facing a commercial pressure from
outside the employing organization. How can you call this threat?
9. Mr. Raghavendra always accepts costly gifts and preferential treatment from a client. What
kind of threat, does Raghavendra face in future?
10. A senior chartered accountant forced junior CA by physical violence to engage in unethical
behavior. How can you name this threat?
11. You are a chartered accountant; you have been suffering from a conflict. You wanted to
follow conflict resolution process. You have followed entire conflict resolution process. Still,
you have conflict of interest. Then what is your final decision?

Copyrights Reserved
THE END

CA - IPCC
COURSE MATERIAL
Quality Education
BUSINESS COMMUNICATION_36e
Cell: 98851 25025 / 26

73
INDEX FOR BUSINESS COMMUNICATION
No. of
S. No. of Theory application
Chapter Name Pages
No. Questions oriented
Questions
1. Essential of Communication 30 4 75 100
2. Interpersonal Communication skills 10 6 101 109
3. Group Dynamics 13 1 110 119
4. Communicating Corporation Culture,
9 2 120 126
Change and Innovative Spirits
5. Communication Ethics 8 3 127 133
6. Communication in Business
20 - 134 147
Environment
7. Basic understanding of Legal Deeds
27 - 148 165
and Documents
Total 117 16
CHAPTER WISE ANALYSIS OF PREVIOUS EXAMINATIONS

M-09
M-10
M-11
M-12
M-13
M-14
M-15
M-16
N-09
N-10
N-11
N-12
N-13
N-14
N-15
No. Chapter/Topic Name
ESSENTIALS OF
1. 5 5 - 8 12 12 9 9 4 4 9 13 5 9 4
COMMUNICATION
INTERPERSONAL
2. 5 - 5 4 8 4 4 4 4 - 4 - 4 8 4
COMMINICATION SKILLS
3. GROUP DYNAMICS - - - - 8 8 - 4 - 4 - 4 4 4 -
4. CORPORATE CULTURE - - - 4 - - - - 4 5 4 4 4 - -
COMMUNICATION
5. - - - - - 5 4 - 5 - - - 4 - 4
ETHICS
COMMUNICATION IN
6. BUSINESS 5 10 5 4 - - - - - 4 4 - 4 4 4
ENVIRONMENT
7. LEGAL DEEDS 10 5 10 8 - - 8 8 8 - 4 4 - - 5
74
1. ESSENTIALS OF COMMUNICATION
90- 9-0 01- 0-1 11- 1-1 21- 2-1 31- 3-1 41- 41- 5-1 51- 6-1
No. ABC N N N N N
M M M M M M N M N M
1. B - - - - - - - - - - - - - - -
2. A 5 - - - - - - - - 4 - - - - -
3. A - - - - - - - - - - - - - - -
4. A - - - - - - - - - - - - - - -
5. B - 5 - - - - - 4 - 4 - - - - -
6. A - - - - - - - - - - - - - - -
7. B - - - - - - - - - - - - - - -
8. B - - - - - - - - - - 4 - 5 - -
9. A - - - - - 4 - 5 - - - - - - -
10. B - - - - - - - - - - 4 - - - -
11. B - - - - - - - - - - - - - - -
12. C - - - - - - - - - - - - - - -
13. A - - - 4 4 - - - 4 - 5 - - - -
14. A - - - - - - - - - - - - - - -
15. B - - - - - - - - - - - - - - -
16. A - - - - - - - - - - - - - - -
17. B - - - - - - - - - - - - - 5 -
18. B - - - - - - - - - - - - - - -
19. B - - - - - - - - - - - - - - -
20. B - - - - - - - - - - - - - - -
21. A - - - - - - - - - - - - - - 4
22. B - - - - - - - - - - - - - - --
23. A - - - - - - - - - - - - - 2 -
24. A - - - - 4 4 - - - - - 4 - - -
25. B - - - - - - - - - - - - - - -
26. A - - - - - - - - - - - - - - -
27. B - - - - - - - - - - - 4 - - -
28. B - - - - - - - - - - - - - - -
29. B - - - - - - - - - - - - - - -
30. B - - - - - - - - - - - - - - -
31. A - - - - - - - - - - - 5 - 4 -
32. A - - - - - - - - - - - - - - -
33. A - - - - - - - - - - - - - - -
34. B - - - - - - - - - - - - - - -
35. B - - - - - - - - - - - - - 2 -
Q.No.1. Explain the importance of business communication.
INTRODUCTION
Communication is a two-way process in which there is an exchange of ideas or thoughts
linking the sender and receiver towards a mutually accepted direction or goal.(pm). In general,
it is a means of connecting people or places.
IPCC _36e_ B.C._ Essentials of Communication _______________________ 75
a) There is no doubt that Communication is so fundamental that without it no organization can
exist and function effectively towards achieving its objectives.
b) Communication is the principal means by which members of an organization work together. It
helps to bind them together, enabling them to react to and influence each other.
c) No manager can be effective in his job unless he is able to communicate. It is, therefore, apt to
call communication the life-blood of an organization.
d) As Sir John Harvey-Jones says, communication is the single most essential skill.
e) Professional and result-oriented organizations are always looking for managers who can
communicate persuasively and competently.
f) It has been pointed out that about nine tenths of a managers time is spent in communicating,
one way or the other. It lies at the very heart of management.
g) Powerful concepts in management such as participation, empowerment and involvement
revolve around communication.
Q.No.2. Define the term Communication. Explain the factors which are responsible for
the growing importance of communication of an organization. (OR)
Importance of communication is increasing day-by-day in the business
organizations. State the reasons for this increasing importance.
(RTP- N15,N05 2M, M 09 -5 M, N 13 4M, MTP-OCT15 , PM)
INTRODUCTION AND MEANING:

Communication is a two-way process in which there is an exchange of
ideas or thoughts linking the sender and receiver towards a mutually
accepted direction or goal.(pm). In general, it is a means of connecting
people or places.
Communication is the fundamental element of the organization to
function effectively in achieving the objectives.
IMPORTANCE OF COMMUNICATION AND FACTORS RESPOINSIBLE FOR THE
IMPORTANCE OF COMMUNICATION
The importance of communication in the industrial organization has increased immensely in
these days. The following factors are responsible for the growing importance of
communication:
a) Growth in the size and multiple locations of organizations: Most
of the organizations are growing larger and larger in size. The people
are working in the country and abroad, of these organizations.
Keeping in touch, sending directions across and getting feedback is
possible only when communication lines are kept working effectively.
b) Growth of trade unions: Over the last so many decades, trade
unions have been growing strong. No management can be successful without taking the
trade unions into confidence. Effective communication will create relationship between the
management and the workers.
c) Growing importance of human relations: Workers in an
organization are not like machines. They have their own hopes and
aspirations. Management has to recognize them and should work with
the spirit of integration so that human relations may be maintained.
This may only be achieved through effective communication.
d) Public relations: Every organization has a social responsibility
towards customers, government, suppliers and the public at large.
Communication is the only way an organization can project a positive
image of itself.
e) Advances in behavioral sciences: Modern management is deeply influenced by exciting
discoveries made in behavioral sciences like psychology, sociology, transactional analysis
etc.
All of them throw light on suitable aspects of human nature and help in developing a
positive attitude towards life and building up meaningful relationship. This is possible only
through communication.
f) Technological advancement: The world is changing very fast, owing to scientific and
technological advancements. These advancements deeply affect not only the methods of
work but also the compositions of groups. In such a situation, proper communication
between superiors and subordinates becomes very necessary.
Similar Questions:
1. Communication is the process of sharing of information- comment. (2M)
Ans: Write introduction of above question
Q.No.3. what are the benefits of effective communication?(SM) (For Student Self-study )
THE FOLLOWING DIAGRAM SHOWS THE BENEFITS OF EFFECTIVE COMMUNICATION
Quicker
Problem Solving Stronger
Improved
Stakeholder Decision
Response Making
Enhanced
EFFECTIVE Increased
Professional
COMMUNICATION Productivity
Image
Clearer Steadier
Promotional Work Flow
Materials Stronger
Business
Relationships
The benefits of effective Communication
1. QUICKER PROBLEM SOLVING: Information is the life blood of communication. Where

there is effective communication system, there is availability of reliable and accurate
information. With help of this information, managers and executives will take quick
decisions without any delay.
2. STRONGER DECISION MAKING: Right decision in right time leads to survival and
success of organization. Effective communication helps to achieve it.
3. INCREASED PRODUCTIVITY: By sharing ideas and views among individuals of
organization, employees are able to achieve fruitful result in their work areas.
4. STEADIER WORK FLOW: Consistency in performance is possible through only effective
communication. Majority of the obstacles are overcome through implementation of
effective communication throughout the organization.
5. STRONGER BUSINESS RELATIONS: Positive and supportive environment among
employees are mandatory among individuals. With effective communication, every
executive can maintain strong business relations with the people within the organization
and outside the organization.

6. ENHANCED PROFESSIONAL IMAGE: The executives with effective communication,
improves the professional image of the organization.
7. IMPROVED STAKEHOLDER RESPONSE: stakeholders are the pillars of organisation.
Every stakeholder plays a vital role in their concern area. With effective communication,
the response of various stakeholders will be increased.
Similar Question:
Write any four benefits of effective communication?(2M)
Ans: write any four points of above question.
Q.No.4. Explain clearly the process of Communication? PM (N 03 - 7M, M 08)
PROCESS OF COMMUNICATION: Communication is a two-way process in which there is an

exchange of ideas or thoughts linking the sender and receiver towards a mutually accepted
direction or goal consisting of 7 elements which are as under:
1. Sender: The process of communication begins with a sender, the
person who has an idea and desires to exchange it.
2. Encoding: The sender puts his/her ideas or facts into words,
symbols, pictures or gestures that the receiver can understand.
3. Message: A message refers to what is being communicated. It may
be verbal or nonverbal.
4. Channel: Channel is the medium through which
message is transmitted to the sender.
Channel may be in oral or written forms.
5. Receiver: It is any person who notices and attaches
some meaning to a message.
6. Decoding: The receiver translates the words and
symbols used in the message into ideas and interpret it
to attain its meaning.
7. Feedback: Ultimately receiver reacts or responds to
the communication sent by the sender. It could be
based on clear interpretation of the symbols sent or
misunderstanding or misinterpretation of the symbols
sent.
Similar Question:
1. What is communication? Elucidate the process of communication.
Ans: Write introduction and definitions of 1st question and refer above Answer.
2. Write the difference between Encoding and Decoding (2M)
th
Ans:Write introduction, 2nd and 6 points of above question.
Q.No.5. What is formal communication? Explain in brief its major advantages. OR

Explain clearly the advantages of a formal communication
(PM) (N 08, 09 - 5M, N 12 4M, N 13-4M)
The word channel means the position or point through which the communication passes. We
can divide the channels of communication into two categories:
a) Formal
b) Informal
FORMAL COMMUNICATION: A formal communication flows along prescribed channels
which all organizational members desirous of communicating with one another are obliged to
follow.
Every organisation has a built-in hierarchical system that can be compared to a pyramid. It
can, therefore, be understood that communication normally flows from top- downwards. But it
is not always so. Communication in an organisation is multidimensional or multidirectional.
ADVANTAGES OF FORMAL COMMUNICATION:

a) The formal channels account for most of the effectiveness of communication. As has been
said earlier, great care has to be taken in sending across any letter or report through the
proper formal channel.
b) Formal channels cover an everwidening distance as organizations grow. Through them, it
is easier to reach out to the branches of an organisation spread far and wide.
c) The formal channels, because of their tendency to filter information, keep the higher level
managers from getting bogged down.
d) Formal channels of communication consolidate the organisation and satisfy the people in
managerial position.
Similar Question:
1. Major part of organizational communication passes through formal channels-discuss
Ans: Write introduction and advantages of above ANSWER.
Finally draw diagram of above ANSWER.
Q.No.6 Explain the various forms of formal communication?

(RTP M 15) PM (M 03 - 7M)
A formal communication flows along prescribed channels which all organizational members
desirous of communicating with one another are obliged to follow. Every organization has
built-in hierarchical system, communication in an organization is multidirectional. On the basis
of various directions in which communications are sent, we can classify formal communication
in these forms:
a) Downward Copyrights Reserved
b) Upward To MASTER MINDS, Guntur

c) Horizontal or Lateral
d) Diagonal or Cross wise
Communication generally flows from top to bottom.
Downward communication means communication from superior to subordinate in the
hierarchical system of the organization. It includes orders and instructions.
CEO
Vice President Vice President

Marketing Operations
Manager Manager Manager Manager Manager Manager

Advertising Sales Distribution Materials Quality Production
Management Control Control
Upward and Horizontal Diagonal

Downward Communication Communication
Communication
In upward communication, message flows from the subordinate to superior in the form of
request, reports, instructions complaints and suggestions.
Communication between co-workers with different areas of responsibility is called horizontal
(lateral) communication. Communication among the functional managers of a company is
the best example of horizontal communication.
Diagonal communication means communication among the various Department/employees
of the organization without any hierarchical system in case of emergency.
Q.No.7. Write about informal communication (SM)
a) Side by side with the formal communication there exists on a much larger scale, an
informal channel of communication or a secondary network of information.
b) Its source lies in mans compulsive instinct to communicate or talk out whatever he feels
and thinks with his fellow beings and throw all norms to the winds.
c) The rumour mill is always working in any organisation. The larger the organization, the
more active the rumour mill.
d) It has come to be called the grapevine in management literature. Quite often, it also
contains some useful information. That is why, it cannot be altogether ignored.
Q.No.8. Explain clearly the meaning of the term Grapevine as applicable to

Communication? What are the factors that lead to grapevine communication?
PM (M 08 - 5M, M 14 4M, M 15 5M)
GRAPEVINE APPLICABLE TO COMMUNICATION: Communication may be oral or written for

direct contact. It may be informal also. The Grapevine is one of the recognized channels of
informal communication.
FACTORS LEADING TO GRAPEVINE PHENOMENON:
a) Lack of sense of direction: Feeling of uncertainty or lack of sense of
direction when the organisation is passing through a difficult phase.

b) Lack of self confidence: Feeling of inadequacy or lack of self confidence on the part of
the employees, leading to the formation of groups.
c) Feeling of insecurity: Formation of a favored group by manager, giving other employees a
feeling of insecurity or isolation.
Q.No.9 How many types of Grapevine Chains have been identified? How do they
function? PM (N 11 - 4M, N 12 5M)
GRAPEVINE CHAINS: Specialists, in this field, have identified four types of grapevine chains:
1. Single strand Chain: In this type of chain A tells something to B
who tells to C. This type of chain is least accurate in passing on the
information or message.
2. Gossip Chain: In it a person seeks out and tells everyone the
information he has obtained. This chain is often used, when
information or message regarding an interesting but non-job-related nature is being
conveyed.
3. Probability Chain: In it individuals are different to the persons, to whom they are passing
some information. This chain is found when the information is somewhat interesting but
not really significant.
4. Cluster Chain: In this type of chain A tells something to a few selected individuals and
then these individuals inform a selected individual. In fact cluster chain is the dominant
grapevine pattern in an organization. Most informal communication flows through this
chain. Cluster Chain, which acts as liaison and spreads information with the greatest
speed.
Similar Question : Briefly explain the Grapevine Chains propounded by the experts in
relation to informal way Of communicatrion.
Answer: Refer above
Q.No.10. What are the merits and demerits of grape-vine form of Communication?
(PM) (M14 4M)
MERITS OF THE GRAPEVINE PHENOMENON:

a) Speedy transmission: It transmits information very speedily. A rumor spreads like wild
fire.
b) Feedback value: The managers or top bosses of an organisation get the feedback
regarding their policies, decisions, memos etc.
c) Support to other channels: It is a supplementary or parallel channel of communication.
d) Psychological satisfaction: It gives immense psychological satisfaction to the workers
and strengthens their solidarity.
IPCC _36 e_ B.C._ Essentials of Communication _______________________ 81
DEMERITS OF THE GRAPEVINE PHENOMENON:
a) It is less credible. It cannot always be taken seriously.
b) It does not always carry the complete information.
c) It often distorts the picture or often misinforms.
Q.No.11. What are the different means or media of communication?

(For student self - study)
Communication involves the imparting or interchanging thoughts, opinions or information

among people by speech, writing, or signs. People communicate in different ways.
All communication cannot be of the same type and cannot flow through the same means.
Much depends on who sends a message to whom and for what purpose. It must also be
understood that human being has at his command a number of means of communication.
Media / Means of Communication
Verbal Non Verbal
Oral Written Sign Language Body Language
Visual Signs Audio Signs
Q.No.12. Define Verbal Communication. Write about different types of Verbal

Communication?
The word verbal means connected with words and the use of words. Human beings are the
only organisms, which are gifted with language, which uses words. In the process of
communication, we use a common set of symbols, between the sender and the receiver.
Words are the most accurate and powerful symbols. That is why, it is observed that, all
serious or formal communication takes place in words. Verbal Communication may be in oral
or written form.
ORAL COMMUNICATION:
a) Communication employing speech is known as Oral Communication.
b) This form of verbal communication is the spoken word, either face-to-face or through
phone, voice chat video conferencing or any other medium.
c) Various forms of informal communications such as the grapevine or informal rumor mill,
and formal communications such as the lectures, conferences are forms of oral
communication.
WRITTEN COMMUNICATION:
a) Communication in written form is called Written Communication.
b) It includes traditional pen and paper letters and documents, typed electronic documents, e-
mails, text chats, SMS and anything else conveyed through written symbols such as
language. This type of communication is indispensable for formal business
communications and issuing legal instructions.
Q.No.13. Elaborate merits and limitations of oral communications?

(PM)(N 04- 5M, N 10 - 4M, M 11 - 4M, M 13 4M, M 14 5M)
ORAL COMMUNICATION: According to a research, an average

manager in general spends only 9% of his/her time in writing, 16% in
reading, 30% in speaking and 45% in listening, as shown in the
following figure Oral communication is characterized by seven Cs
Candidness, Clarity, Completeness, Conciseness, Concreteness,
Correctness, and Courtesy.
SOME OF THE MERITS OF ORAL COMMUNICATION ARE AS

UNDER:
a) Saves time and money;
b) Immediate feedback;
c) Saves paper work;
d) An effective tool for exhortation;
e) Builds a healthy climate;
f) Best tool during emergency.
SOME OF THE LIMITATIONS OF ORAL COMMUNICATION ARE:
i) Greater chances of misunderstanding;
ii) Bad speaker;
iii) Ineffective for lengthy communication;
iv) Lower retention rate;
v) No legal validity;
vi) Difficult to fix responsibility.
Similar Questions:
1. Which type of communication helps to promote friendly relations between the parties
communicating with each other? Discuss. And also write its advantages.
Ans: Write introduction and advantages of above question.
2. What is oral communication?
Q.No.14. What principles would you keep in mind in oral communication? OR What
important factors should be considered to make oral communication effective? (PM)
FACTORS TO BE CONSIDERED FOR ORAL EFFECTIVE COMMUNICATION: Oral

communication, which is face-to-face communication with others, has its own benefits.
The only shortcoming of oral communication is that it is spontaneous and if one communicates
incorrectly, the message will not get understood. It is primarily due to this reason one needs to
develop effective oral communication skills as a message, if not understood at appropriate
time, can lead to disaster.
In order to provide a fair and candid exchange of ideas, the following factors to be considered
to make the oral communication effective:
a) Consider the objective
b) Think about the interest level of the receiver
c) Be sincere
d) Use simple language, familiar words
e) Be brief and precise
f) Avoid vagueness and generalities
g) Give full facts
h) Assume nothing
i) Use polite words and tone
j) Cut out insulting message
k) Say something interesting and pleasing to the recipient
l) Allow time to respond
To make the oral communication effective, the speaker should converse slowly with proper
semantic pauses to enable the listener receive and register in mind whatever is said by the
speaker and there should be a due correlation between the pace of speaking and the rate of
listening.
Q.No.15. Explain the principles of Written Communication? (Or) What are the basic
elements of written communication (SM)
Effective writing in the workplace is an essential skill. The rules are basically the same for
any type of writing; however, there are some special issues which arise in the business
context.
SOME OF THESE BASIC ELEMENTS ARE:
1. Know Your Audience: The key to effective business writing is knowing your audience.
2. Outlines are an invaluable aid to writing a lengthy report or memo. Remember, time is in
short supply for most business professionals.
3. Decide what details must be included in the report or memo.
Look for graphic elements to add to your presentation, With the advent of modern word
processing programs such as Microsoft Word and Corel WordPerfect, it is easy to include
spread sheets, graphs and colorful clip art to your report, thereby making your work
memorable and convincing.
4. After you have decided what the message is that you are trying to convey, work on saying
it in Concise language.
5. Be brief, whenever possible.
6. Avoid using vague words when a more precise word will do.
7. Avoid wordiness and unnecessary jargon.
8. Strive for clarity in your writing and avoid vagueness (unless there is good reason to
be vague).
9. Punctuation and Grammatical Errors: Many grammatical and/or punctuation errors are
due simply to insufficient proofreading of the document. Some errors stem not from lack of
proofreading, but from simple grammatical mistakes. The most common mistakes include
misuse of apostrophes, misuse of commas, incomplete sentences, ending a sentence with
a preposition and so on.
Copyrights Reserved
Q.No.16. Elaborate advantages and limitations of oral and written communication? (PM)
Oral Communication Written Communication

Advantages Advantages
More personal and informal Better for complex and difficult subjects,
facts and opinions
Makes immediate impact Better for keeping records of messages
exchanged
Provides opportunity for interaction and Provides opportunity to refer back
Feedback
Helps us to correct ourselves (our messages Can be read at receivers convenience or
according to the feedback and non-verbal Pleasure
cues received from the listener)
Better for conveying feelings and emotions Can be revised before transmitting
Can be circulated
Limitations Limitations
Demands ability to think coherently as you Never know if the message is ever read
Speak
A word once uttered cannot be taken back Impersonal and remote
Hard to control voice pitch and tone, Immediate feedback is not available for
especially under stress, excitement or anger correction on the spot
Very difficult to be conscious of our body Reader is not helped by non-verbal cues
Language that contribute to the total message
Q.No.17. State reasons for selecting the oral mode of communication instead of the
written mode of communication. N15 - 5M (For student self study)
Oral Communication is a face to face communication with others. Oral communication is

characterized by seven Cs Candidness, Clarity, Completeness, Conciseness,
Concreteness, Correctness, and Courtesy. These act as principles for selecting the mode
of oral communication. In addition to above seven principles it has its own benefits as under:
a) More personal and informal.
b) It should be Make immediate impact.
c) Provides opportunity for interaction and feedback.
d) Helps us to correct ourselves (our message according to the feedback and non-verbal
cues received from the listener).
e) Better for conveying feelings and emotions.
f) More effective because one can understand the message better by observing facial
expressions, eye contact, tone of voice, gestures, postures etc of the sender.
It is said that it does not matter what you say, what matters is how you say it. Your way of
saying includes your choice of words, your confidence and sincerity.
Copyrights Reserved
Q.No.18. Explain Interdepartmental Communication? What are the problems involved in it?
(SM) (For student self study)
INTRODUCTION:
a) The word department comes from the French word departir, which means to separate.
Communication between departments is essential to collaborate and achieve the
objectives of the organization.
b) Departments in an organization are like rooms in a house. Departments divide and create
barriers. But without their cooperation it would be virtually impossible for an organization to
function. (SM 13.8)
c) Departmentation is sub dividing of organizational activities into various recognized units within
the organization. It is essential to co-ordinate and achieves the objectives of the organization.
PROBLEMS IN INTER-DEPARTMENTAL COMMUNICATION:
Some of the frequently overlooked problems are
a) Unnecessary conflict Copyrights Reserved
b) Poor performance To MASTER MINDS, Guntur

c) Time delays
d) Decisions, which are taken through cross wise communication.
MAJOR PROBLEMS IN DEPARTMENTAL COMMUNICATION:

a) Departments are physically separated: In each corporate environment, there exists
organizational hierarchy, which creates barriers and restricts natural communication within
the department.
b) Departments perform separate functions: The main barrier is the difference in priorities; the
first priority for department X may be the last priority for department Y.
Territory battles usually occur because departments fight over scarce resources, prestige,
or such other factors. (SM 13.9) Irrespective of who wins, the organizational welfare must
be given the prime importance.
Q.No.19. It is non verbal cues embedded in each message that may make the two
identical messages so radically different from each other. So, then, what exactly is
Non - Verbal Communication?
Very broadly, Non-Verbal Communication is all those messages, those are expressed by other
than linguistic [letter pronounced by means of tongue] means. Communication researchers
have found that, non - verbal signals have more impact in conveying the meaning, than that of
the verbal content. In fact, non - verbal behaviour is so important to effective business
communication, which many companies are now trying to train their employees to understand
it. Non - verbal signals can completely alter the message, with which you communicate.

Components of Non-verbal Communication
Kinesics Para language Proxemics Chronemics Mode of

Dress etc.
Study of body The way we say Study of how physical Study of how
language what we say space is used we use time
Space language
On scientific analysis, it has been found that, the different aspects of communication account
for the percentages, as stated below (55-38-07):
Body movements, Gestures 55%,
Voice tone, inflection etc., 38%
Verbal Communication 7%
Q.No.20. Write about Non-Verbal Communication media of body language / Kinesics?

(For Student Self-study)
It must be noted, though it is known to almost all, that all our bodily movements, gestures,
postures etc., are guided by our feelings and thought processes. The nodding of our head,
blinking of our eyes, waving of our hands, shrugging of our shoulders etc., are expressions of
our thought and feelings.
All these movements are the signals that our body sends out to communicate. That is why this
area of study has been called body language.
Just as language uses sets of symbols to convey meaning, our body, consciously as well as
unconsciously, conveys messages, attitudes, moods, status relationships etc. Nervousness,
anger, fear, scorn, determination, horror, sympathy, pity, lack of understanding,
disinterestedness, and resentment can be much better expressed through the body language
than through words.
Similar Question:
1. Our bodily movements like gestures, postures etc., are guided by our feelings and
thoughts do you agree? Discuss.
Ans: Refer the above answer
Q.No.21.Write about Non-Verbal Communication media of Para Language / Para

linguistics? (N 02 - 3M, M 16- 4M)
Paralanguage is similar to verbal (oral) communication but actually non-Verbal

Communication. Para means like. Hence paralanguage is like language. It is non - verbal
because it does not consist of words. Paralanguage involves the how of a speakers voice or
the way in which he speaks.
VOICE: Voice is the first signal, which we receive or use. Everybody
knows about the importance of voice. It tells us so much about the
speakers sex, background and education. There are different kinds of
voices - clear, musical, pleasant, unpleasant and so on.
a) Pitch Variation: Most of us introduce wide variations in pitch, while
speaking. These variations are necessary, to catch the listeners attention.
b) Speaking speed: We do not, and should not, always speak at a high speed. Speaking fast
is not is what we mean by fluency. We speak at different speeds, on different occasions and
while conveying different parts of a message.
c) Pause: The speaking speed is also accompanied by pauses. We cannot and should not,
go on speaking without gap. But the pauses have to be at the right moments. Incorrect use
of pauses can create problems. A pause can be highly effective, in emphasising the
upcoming subject and in gaining the listeners attention. Too frequent pauses will,
however, spoil the speech.
d) Volume variation: Our speech should be loud enough to be audible to the audience. The
loudness of our voice should be adjusted, according to the size of the audience. The larger the
audience is, the higher the volume. But, depending upon the different parts of the message,
we should monitor the volume of our speech. Volume variation puts life into our speaking.
e) Nonfluencies: Utterances like Oh!, Au!, Umm, you know, ok etc. are known as non-
fluencies.
f) Word Stress: It is very important to speak certain words properly in communication. By
putting stress or emphasis on a word we can change the meaning. As an example, let us
look at the following:
i) Have you seen my new book? Have you seen my new book?
ii) Have you seen my new book? Have you seen my new book?
Q.No.22. What is Chronemics (time language)? (For student self study) (PM)
It is the study of how we use time to communicate. The meaning of time differs around the
world. While some are preoccupied with time, others waste it regularly. While some people
function better in the morning, others perform better at night. Punctuality is an important factor
in time communication. Misunderstandings or disagreements involving time can create
communication and relationship problems.
Q.No. 23. Is it possible to judge the relationship between two individuals, by observing
the physical distance between them? (Or) what we can make of space to
communicate? State the uses of it.(Or)write about Proxemics. NOV15 - 2M
Proxemics refers to the space that exists between us when we talk or relate to each other as well
the way we organize space around us. We can also call it space language. The following four
space zones indicate the type of communication and the relationship of the source and receiver:
Intimate Physical contact to 18 inches.
Personal 18 inches to 4 feet.
Social 4 to 12 feet
Public-12 feet to as far as we can see or hear.
Q.No.24. Explain the main barriers to communication?

(PM)(N 05 - 5M, M 11, N 11 - 4M, N 14 - 4M)
A communication of the message is successful only when both the sender and the receiver
perceive it in the same manner. Quite often, there is miscommunication due to one barrier or
the other. Barriers or problems can arise at any stage of the communication process.
It is very important to understand the causes of communication breakdown.
a) NOISE: Noise refers to the distracting element that breaks the concentration of the sender
or receiver and prevents him/her from paying attention to the content of the message.
Distraction (noise) can be either physical or psychological. Noise can lead to
miscommunication and measures must be taken to overcome it.
b) SEMANTIC BARRIERS: Semantic refers to the study of meanings of words and signs.
SEMANTIC BARRIER OCCURS DUE TO:
i) Sender and receiver interpret same words in different manner.
ii) Words carry different nuances, shades and flavors to the sender and receiver.
iii) Faulty translation.
iv) Poor expression power or ability.
c) CULTURAL BARRIERS: We live in a globalized world and may encounter individuals of
different races, religions and nationalities. The same category of words, phrases, symbols,
actions, colours mean different things to people of different cultural background e.g. in the
United States of America, people like to be called by their first name, while in Britain and to
a large extent also in India, people like to be addressed by their surname.
d) EMOTIONS: Emotions play a very vital role in our life. Both encoding and decoding of
messages are influenced by our emotions. A message received when we are emotionally
charged up will have a different meaning for us than when we are calm and composed.
e) STATUS CONSCIOUSNESS: Subordinates are either too conscious of their low status or
too afraid of being snubbed. At the same time, many executives keep distance from their
juniors thinking that consulting subordinates is something below their dignity.
f) POOR LISTENING: Poor listening may lead to serious communication problems. Too
many people are interested in talking and mostly talking about themselves. Poor listening
accounts for incomplete information and also for poor retention.
Q.No.25. Explain the term Semantic Problems as the source contributing towards
noise factor . (PM)
SEMANTIC BARRIERS TO THE COMMUNICATION:

1) Semantics is the systematic study of meaning.That is why the problems arising from
expression or transmission of meaning in communication are called semantic problems.
2) Oral or written communication is based on words. And words, limited in number, may be
used in unlimited ways. The meaning is in the mind of the sender and also in that of the
receiver. But it is not always necessary for the meaning in the mind of the sender to be the
same as in the mind of receiver.
3) Much, therefore, depends on how the sender encodes his message. The sender has to
take care that the receiver does not misconstrue his message, and gets the intended
meaning.
4) Quite often it does not happen in this way. That leads to semantic problems. It can be
ensured only if we aim at clarity, simplicity and brevity so that the receiver gets the
intended meaning.
Similar Question:
What do you understand by the Semantic Barriers to the communication?
Answer: Refer Above
Copyrights Reserved
Q.No.26. Explain how is NOISE A barrier to effective communication.
(PM) (For student self study)
NOISE AS BARRIER TO COMMUNICATION:

1) Noise is the first and foremost barrier to communication. It means interference that occurs
in a signal and prevents you from hearing sounds properly. In a factory the continuous
noise made by machines makes oral communication difficult. In the same way, same
technical problems in a public address system or a static in a telephone or television cable
will distort the sound signal and affect communication. Adverse weather conditions or
some fault in the ultramodern telecommunications systems may also spoil the effect.
2) Further, the sender may resort to ambiguous or confusing signals. The receiver may mess
up the message owing to inattention or may spoil decoding because of wrong or
unexpected interpretation.
3) The receivers prejudices may also come in the way of his understanding the message in
the right spirit. Thus the communication is always likely to affected by noise that stands
for so many things.
SOME OF THE FACTORS CONTRIBUTING TOWARDS NOISE FACTORS ARE AS
FOLLOWS:
a) Poor Listening: A last moment communication with deadline may put too much pressure
on the receiver and may result in resentment.
b) In appropriate Channel: Poor choice of channel of communication can also be
contributory to them in understanding of the message.
c) Network breakdown: Some time staff may forget to forward a letter or there may be
professional jealousy resulting in closed channel.
Q.No.27. What are Socio-Psychological Barriers to effective communication? Explain.

(For student self study)
SOCIO-PSYCHOLOGICAL BARRIERS-
1) The attitudes and opinions, place in society and status consciousness arising from ones
position in the hierarchical structure of the organization, ones relations with peers, seniors,
juniors and family background all these deeply affect ones ability to communicate both
as a sender and receiver.
2) Status consciousness is widely known to be a serious communication barrier in
organizations. It leads to psychological distancing which further leads to breakdown of
communication or miscommunication.
3) Often it is seen that a man high up in an organization builds up a wall around himself. This
restricts participation of the less powerful in decision making. In the same way ones family
background formulates ones attitude and communication skills.
4) Frame of reference is another barrier to clear communication. Every individual has a
unique frame of reference formed by a combination of his experiences, education, culture,
attitude and many other elements, resulting in biases and different experiences in a
communication situation.
Q.No.28. Explain the different parts of a business letter? (M 04 - 10M)
LISTED BELOW ARE THE PARTS OF A BUSINESS LETTER:

1. HEADING: The heading, also called letterhead, contains the name of the organisation
and its address. It is usually given at the top centre or top right side of the paper. It is also
usual to give the telephone, fax and telegraphic address in the heading, as shown below.
ABC LIMITED
Regd. Office: 15, Brodipet, Guntur - 522002
Phone: 6132757, Fax : 6132767
E-mail: abclimited@rediffmail.com, website: www.abclimited.org
2. REFERENCE NUMBER: Every business letters usually carries a reference number, to
which the receiver may refer in all future correspondence. It serves the purpose of quick
reference and linking up the chain of letters going out of the organisation or identifying the
memos issued by a department within the organisation.
The reference number may be like this: 42/PD/32
In this Ref. No. 42 stands for the number given to the department, PD is a code for the
personnel department and 32 is the number allotted to the person addressed.
3. DATE: The date of the letter is of crucial importance. It is usually written on the right hand
side, parallel to the reference number as shown below:
42/PD/32 May 1st, 2015
Abbreviated forms of the date, such as 1.5.2007, should be avoided, as they do not leave
a good impression on the mind of the receiver.
When the address of the organization is combined with the date, the following format should
be used:
15, Brodipet, Guntur May 1st, 2015
4. INSIDE ADDRESS: It contains the name and address of the organisation or the individual
to whom the letter is being sent. It should be written as below.
ABC limited,
15, Brodipet,
Guntur,
Andhra Pradesh.
MODE OF ADDRESS:
a) Addressing individuals
If the letter is being sent to an individual we have to be sure about the prefixing of the
addressee.
i) Mr. or Shri' is used for addressing a man.
ii) Miss is used for an unmarried woman.
iii) Mrs. or Shrimati is used for a married woman.
iv) Ms is used for a woman, whose marital status is not known. Most women now
prefer the use of `Ms'.
v) Messrs' is a plural for Mr. and is used while addressing a partnership firm. It can
best be used when the name of the firm contains personal name or names as:.
Messrs Shyam Bros.
Messrs Makhan Shyam Sons
Messrs K. Shyam & Co.
Messrs Sankar and Sankar
vi) Titles/ranks such as Colonel, Professor, Doctor, Reverend etc., are used as
follows.
Col. M.S.Das

Capt. R. N. Singh
Prof. B. L. Arora
Dr. R. N. Ghosh
Rev. T.L. Rita
Padmashri R. S. Lugani (not Padmashri Mr. R.S. Lugani)
Maj. Gen. D. K. Palit
Flt. Lt. Manish Bansal
Maj. Gen. (Miss S. Rawat)
Dr. (Miss} S. Gupta
b) Addressing by designation
When a particular person is addressed by designation, Mr. or Messrs. (in case of a
limited company) is not used:
The Personnel Manager,
Sankar & Co.
The Secretary,
Youth Sports club
5. ATTENTION LINE: When the writer sends his letter to a particular official in an
organisation he may use the phrase For the attention of below the inside address and
above the Salutation and underlines it. For example,
ABC Limited,
15, Brodipet, Guntur.
For the attention of Shri D. K. Singh
Other typical forms of this reference are as follows:
Attn. of D. K. Singh, General Manager
For Ms. R. Desai, Public Relations Officer
Copyrights Reserved
Attention: K. P. Sankar, Vice President
Attention: B. K. Sood, Sales Manager
6. SALUTATION: Salutation is the greeting of the addressee. We may choose the salutation
on the basis of our familiarity with the reader and the formality of the situation. The
commonly used salutations are given below:
a) Sir
b) Madam
c) Dear Sir/Dear Madam
d) Dear Mr. Sankar
e) Dear Ms. Singh
f) Dear Sirs
g) Your Excellency (while addressing the Ambassador or High Commissioner of a foreign
country)
h) Gentlemen - used when a circular is sent to many addresses including an individual,
firm, society, company etc. Now-a-days, Dear Sir/Madam is also freely used in
circulars.
Punctuation of Salutation: When indented paragraphs are used in the letter, it is
customary to end the salutation with a comma.
For example,
Dear Ms. Rita,
Thank you for your letter ..
When the paragraphs are not indented, the comma at the end of the salutation is omitted.
Dear Ms. Rita
Thank you for your letter
7. SUBJECT LINE: Many writers use subject lines to enable the reader to quickly identify the
subject of correspondence. It tells what the correspondence is about. In addition, it
contains any specific identifying material, which is supposed to be helpful date of previous
letter, invoice number, order number or the central point of the letter. It is placed just below
the line of salutation. It usually begins at the left margin, although it may be placed in the
centre or indented (if the paragraphs are indented).
The subject line may be worded in a number of ways. Given below are a few representative
samples:
Given below are a representative samples:
Copyrights Reserved
Sub: Loan facilities for To MASTER MINDS, Guntur
Ref: Your enquiry of December 16
8. BODY OF THE LETTER: The body of the letter carries its message or content. It is
generally divided into three or four paragraphs, each having its own function. The first
paragraph links up the correspondence and establishes rapport with the reader. The
second paragraph may be called the main paragraph that contains the subject proper. If
need be, the point of the second or main paragraph is elaborated or further developed
upon in the third paragraph. The fourth or final paragraph brings the letter to a goodwill
ending, leaving the door open for further business. When a letter goes beyond one page,
we should mark the following page/pages for quick identification.
9. FORMAL CLOSE: The formal close of the letter must match the salutation as shown
below:
Salutation Closing
Dear Sir
Dear Madam Yours faithfully
Sir
Dear Mr. Raju
Yours sincerely
Dear Tina
If the salutation does not name the recipient, formal close is yours faithfully. If the
salutation names the recipient the formal close is Yours sincerely. Yours begins with a
capital Y, but faithfully and sincerely begin with small letters. Again, there should not be
an apostrophe mark.
10. SIGNATURE BLOCK/SLOT: There is a fixed space for the signature of the writer. Just as
the signature is important, so is its place in the layout of the letter. Conventionally the
signature, that is handwritten and contains the writers name, status, department, company
etc., appears just below the complementary close. As far as possible it should be legible.
But what is most important is that the name of the signatory should be
written/typed/printed in parentheses below the signature.
Given below are a few examples of the format
i) when the individual signs in his own right.
(Sankar)
ii) when the individual signs in his capacity as
(Sankar) Sales Manager
Sales Manager.
IPCC _36e_ B.C. _ Essentials of Communication _______________________ 93

iii) For the Sankar Associates when the individual signs in his representative
. capacity.
(Sankar)
Partner
iv) For Sankar Associates when the individual signs in his representative
capacity.
(Sankar)
Managing Trustee
v) For J.D.Singh when the individual signs pursuant to a power of
attorney
(Sankar)
Attorney Holder
vi) For Bunty (Minor) when the individual indicates guardian
responsibility
(Sankar)
Local Guardian
vii) Sankar Associates when the subordinates signs a routine letter

For Sankar
viii) P.P.iw per Pro Sankar when an individual signs with
Sankar Associates the authority of another individual.
Manager
ix) For Sankar Associates It is not necessary to sign in a format like
Sd/- this that is meant for executing a deed.
Sankar However, there is nothing wrong in signing it.
11. ENCLOSURES (ENCL): Very often a letter carries along with it some important papers
such as proof of date of death, copies of certificates and testimonials. Price list, invoice,
receipts, Cheque/Draft bill/cash memo, copies of required pages of passport, photo
identity card etc. The writer is well advised to make mention of these papers at the bottom
left margin as shown below :
i) Enclosures : Three
ii) Encl: (i)
(ii)
(iii) ..
iii) Enclosed etc.
12. POSTSCRIPT: Postscript or P.S. is written, if the writer has forgotten to mention
something important in the letter.
Generally a writer is not supposed to forget any important item. But some important
information may come in when the letter has been written. In such a case the writer is
supposed to write the postscript very carefully and precisely or, in other words, to give the
additional information in as few words as possible.
13. CC OR CARBON COPY NOTATION: Often copies of a letter are supposed to be sent to
some other people directly or indirectly concerned with the matter/subject. In such cases the
names of the persons to whom copies are sent should be written/typed adjacent to the left
margin like this:
CC: Mr. Y.V.Ravi
Copies to Mr. Y.V.Ravi and Mr, P.D. Paul
CC: Managing director, General manager and departmental managers.
14. REFERENCE INITIALS: Many organisations continue to follow the practice of putting
typed initials of the person who dictates the letter and those of the one who types it. These
initials are useful for office checking. They can be typed adjacent to the left margin in the
end like this:
PKS/CB
Copyrights Reserved
PKS : CB To MASTER MINDS, Guntur
PKS - CB
PKS are the initials of the person who has dictated the letter and CB of the person who
typed it.
Q.No.29. Explain the different Layouts of Letters? (For Student Self Study)
LAYOUTS OF LETTERS
A letter is the most important form of Written Communication. It is, therefore, supposed to
have an attractive or impressive layout. As has been well said, a letters appearance is the
part of its message. That is why most reputed companies choose the best quality stationery
and send out carefully drafted letters.
Standard formats for business letter are Full-Block, Modified block, and Semi-block. You can
use whichever your company or audience prefers.
1. FULL-BLOCK: Each line begins flush with left margin
Company letterhead
Name and address already printed
Telegram, cable, telex, telephones, fax
Ref. No.
Date
Name
Inside Address
Attention line
Salutation:
Subject line ___________________________
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Closing/Subscription
Signature
Signatory's typed name
Signatory's position in the company

Company name
Encl
Copyrights Reserved
P.S.
C.C.
Ref. Initials
2. MODIFIED BLOCK: Date and closing signature aligned at the right
Company letterhead
Ref. No.
Date
Name
Inside Address
Attention line
Salutation:
Subject line (optional)
Signature
Signatory's position in the Company
Company name
Encl
P.S.
C.C.
Ref. Initials
3. SEMI-BLOCK OR INDENTED FORM: Each paragraph is indented five spaces as an
added signal for a new paragraph.
Company letterhead
Ref. No.
Date
Name and address of Receiver
For the attention of.
Salutation
Subject heading-not obligatory, but often used
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
IPCC _36e_ B.C. _ Essentials of Communication _______________________ 96
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Signature
Signatory's position in the Company
Company name
Encl
P.S.
C.C.
Ref. Initials
Q.No.30. How do you plan business messages? (For student self study)
Planning Business Messages:

1. Purpose:
a) Determine whether the purpose of your message is to inform,
persuade, or collaborate.
b) Identify the specific behavior you hope to induce in the audience.
c) Make sure that your purpose is worthwhile and realistic.
2. Audience: Before composing the speech, letter memo or report, think about the recipient
of your speech / document and the effect of the message on the recipient.
3. Main Idea:
a) Stimulate your creativity with brainstorming techniques.
b) Identify a hook", which will motivate the audience to respond to your message in the
way you intend
c) Evaluate whether the main idea is realistic given the length limitations imposed on the
message.
d) Collect any necessary information
4. Channel and Medium:
a) If your purpose is to collaborate, give an informal, relatively unstructured oral
presentation to a small group.
b) If you are celebrating an important public occasion, give a prepared speech to a large
audience.
c) If you need a permanent record, if the message is complex, or if immediate feedback is
unimportant, prepare a written message.
i) Send a letter, if your message is relatively simple and the audience is from outside the
company.
ii) Send a memo, if your message is relatively simple and the audience is from inside the
company.
iii) Write a report, if your message is objective and complex.
d) If you need to communication quickly, overcome time zone differences, or personally
reach a widely dispersed audience, choose electronic communication.
i) Use voice mail, if your message is short and clear.
ii) Use teleconferencing for informational meetings.
iii) Use videotape for sending motivational messages to a large number of people.
iv) Use fax machines to overcome time-zone barriers.
v) Use E-mail for speed, lower cost and increased access to other employees.
vi) Use computer conferencing to focus attention of ideas instead of status
Q.No.31. You have been assigned the job of composing business messages. What
check-list would you prepare for organising the message? OR Prepare the detailed
checklist for composing business message in an organization?
(PM)(N15 - 4M, N 07- 5M, N 14 - 5M)
CHECKLIST FOR COMPOSING BUSINESS MESSAGES

A) ORGANIZATION:
1. Recognize good organisation:
a) Recognize good organization.
b) Subject and purpose are clear.
c) Information is directly related to subject and purpose.
d) Ideas are grouped and presented logically.
e) All necessary information is included.
2. Achieve good organization through outlining.
a) Decide what to say.
(i) Main idea (ii) Major points (iii) Evidence
b) Organize the message to respond to the audience's probable
reaction.
i) Use the direct approach, when your audience will be neutral,
pleased, interested, or eager.
ii) Use the indirect approach when your audience will be
displeased, uninterested, or unwilling.
3. Choose the appropriate organization plan.
a) Short messages:
i) Direct request
ii) Routine, good-news, and goodwill message
iii) Bad-news message Copy Rights Reserved
iv) Persuasive message. To MASTER MINDS, Guntur

b) Longer messages:
i) Informational pattern ii) Analytical pattern
B) Formulation
1. Compose your first draft.
a) Get ideas down as quickly as you can.
b) Rearrange, delete, and add ideas without losing sight of your purpose.
2. Vary the style to create a tone that suits the occasion.
a) Establish your relationship with your audience.
i) Use the appropriate level of formality.
ii) Avoid being overly familiar, using inappropriate humor, including obvious flattery,
sounding preachy, bragging, and trying to be something youre not.
b) Extend your audience-centered approach by using the you attitude.
c) Emphasize the positive aspects of your message.
d) Establish your credibility to gain the audiences confidences.
e) Make your tone a polite one.
f) Use the style that your company prefers.
Q.No.32. Not reacting to a particular situation without getting involved in the problem
solving process indicates a type of communication? Comment Or Silence is a form of
communication comment.
The absence of paralinguistic and verbal cues also serves important communicative functions.
Silence is more eloquent than words is not a meaningless adage, it contains in it the essence
of generations of experience.
Q.No.33. What do you mean by artificial communication? OR many things communicate

about yourself passively -comment
It is well known that we react to people on the basis of their appearance. The use of personal
adornment like clothing, accessories, makeup, hairstyle etc. provides important nonverbal
cues about ones age, social and economic status, educational level, personality etc.
Q.No.34.How silence will act as a means of communication? OR silence can

communicate a lot of things-comment
The absence of paralinguistic and verbal cues also serves important communicative functions.
Silence is more eloquent than words is not a meaningless adage, it contains in it the essence
of generations of experience. Silence for example, can allow one to organize ones thoughts. It
is not unusual to come across a situation in which nothing can express ones response so
effectively as silence. Silence can effectively communicate a number of response- respect,
fear, resentment, lack of interest are some responses that can be effectively communicated
through silence.
Q.No.35. How we use touch sends many messages about us comment. OR HAPTICS
( N15-2M )
1. Haptics: It is communication through touch. .

2. In this we communicate with others by showing the amount of Touch we do (or) finding
acceptable is at least in part culturally conditioned
3. This language reveals our perceptions of status, our attitudes and sometimes our needs.

TEST YOUR KNOWLEDGE
1. In a multinational company, there are problems arising from expression or transmission of
meaning in communication. What name do you give to those kinds of problems? Give
three practical examples.
2. If you join a company as a chartered accountant, what kind of communication do you
follow to influence your subordinates? Support your answer with any two practical
examples.
3. In your company, you decided to develop human relations. How is it possible? What kind
of steps do you implement to achieve it?
4. Your subordinate is very passive you are going to motivate him. Which kind of
communication do you prefer?
5. One superior always blames the subordinate for unpleasant news. In which
communication, this kind of problem does arise?
6. Through informal channel, information can be transmitted very fast. Then, in which
situation, can you follow grapevine to use above mentioned advantage?
7. You are going to prepare a written document? Which steps do you take for effective
communication?
8. Which channel comes spontaneously and naturally to communicate?
9. Can you differentiate the gossip chain from cluster chain? If yes, support your answer with
any two practical examples.
10. Which element of non-verbal communication involves How of a speakers voice or the
way in which he speaks?
11. Mr. Vijaya Sai, a general manager, used hook, which will motivate the audience to
respond to his message. Give some practical examples about above mentioned hook?
Verified by: Kareem Sir, Chandra sekar Sir,

Copyrights Reserved Executed by: Sai ram Sir
THE END

2. INTER PERSONAL COMMUNICATION SKILLS

90- 90- 01- 01- 11- 11- 21- 21- 31- 31- 41- 41- 51- 51- 61-
No. ABC N N N N N N
M M M M M M N M M
1. A - - - 4 - - - - - - 4 - - 4 -
2. A - - 5 - - - - - - - - - - - 4
3. A 5 - - - - 4 - - 4 - - - - - -
4. A - - - - - - - - - - - - - 4 -
5. A - - - - - - - - - - - - - - -
6. A - - - - - - - - 4 - - - - - -
7. A - - - - - - - - - - - - - - -
8. B - - - - - - - - - - - - 4 - -
9. B - - - - - - - - - - - - - - -
10. B - - - - - - - - - - - - - - -
11. B - - - - - - - - - - - - - - -
12. B - - - - - - - - - - - - - - -
13. B - - - - - - - - - - - - - - -
14. B - - - - - - - - - - - - - - -
15. B - - - - - - - - - - - - - - -
16. B - - - - - - - - - - - - - - -
The most powerful agent of growth and transformation is something much more basic
than any technique: a change of heart- john well wood.
INTRODUCTION
"People skills" or interpersonal skills are an essential ingredient for success in any career.
These skills create a positive communication climate in which people feel valued. The key
factors to building a positive environment in all areas of ones life are interpersonal
communication, active listening, critical thinking and emotional intelligence, which during a
conflict focus on solving problems.
Q.No.1. What are the Principles of Interpersonal Communication? (PM)

(N 10, M 14 - 4M, N 15-4M)
Interpersonal communication is the process of exchanging messages between people whose

lives mutually influence one another in unique ways in relation to social and cultural norms.
THE FOLLOWING PRINCIPLES ARE KEY TO INTERPERSONAL COMMUNICATION:
Interpersonal communication is inescapable: We cannot keep ourselves away from
communication. The very attempt not to communicate, communicates something. Not only through
words but also through the tone of voice and gestures, postures, facial expressions etc, we
constantly communicate to others.
Interpersonal communication is irreversible: It is rightly said that a word uttered once can not
be taken back.
Interpersonal communication is complicated: No form of communication is simple due to the
number of variables involved; even simple requests can be extremely complex.
INTERPERSONAL COMMUNICATION IS CONTEXTUAL: Communication does not take place in
isolation. They are context specific:
IPCC _36e_ B.C._ Interpersonal Communication Skills __________________101

Psychological context: It refers to who the communicators are and what they bring to the
interaction? Their needs, desires, values, personality etc all form the psychological context.
Relational context: This is concerning the nature of interaction and reactions and the way it all
affects the communication process.
Situational context: Refers to social concept of communication viz. an interaction that takes place
in a classroom will be very different from one that takes place in a board room.
Environmental context: It is all about the surroundings in which communication takes place e.g.
Furniture location, noise level, temperature, season, time of day etc. are all examples of elements
in the environmental context.
Cultural context: Includes all the learned behaviors and rules that affect the interaction. If one
comes from a culture where it is considered rude to establish long, direct eye contact, one will out
of politeness avoid eye contact. If the other person comes from a culture where long direct eye
contact signals trustworthiness, then we have a basis for misunderstanding.
Similar Question:
1. Explain the following principles of interpersonal communication.
a) inevitable b) highly complicated
Ans: Write 1st and 3rd question of above answer
Q.No.2. Explain the Functions of Interpersonal Communication?

(RTP- N15 ,M 10 - 5M, M 16-4M) (PM)
FUNCTIONS OF INTERPERSONAL COMMUNICATION:

1. GAINING INFORMATION:
a) One reason to engage in interpersonal communication is to gain
knowledge about another individual.
b) We attempt to gain information about others, so that we can interact
with them more effectively.
2. BUILDING UNDERSTANDING:
a) Interpersonal Communication helps us to understand better
about what someone says, in a given context. Words can mean
different things, depending on how they are being said or in what
context they are said.
b) Content Messages refers to the surface level meaning of a
message. Relationship messages refer to how a message is
said.
c) Both are sent simultaneously, but each affects the meaning assigned to the
communication and helps us to understand each other better.
3. ESTABLISHING IDENTITY:
a) We also engage in interpersonal communication, to establish an identity.
b) This is based on our relationship and the image towards people around us.
4. INTERPERSONAL NEEDS:
a) We also engage in interpersonal Communication, to express interpersonal needs.
b) William Schutz has identified three such needs: Inclusion, Control, and Affection.
i) Inclusion is the need to establish identity with others.
ii) Control is the need to exercise leadership and prove one's abilities.
iii) Affection is the need to develop relationships with people. Groups are an excellent
way to make friends and establish relationships.
Similar Questions:
1. What you mean by the function of gaining information in interpersonal communication.
Ans: Write1st point of above Answer
Q.No.3. What is meant by Active Listening? State the importance of Active listening in the
business communication skills? What are the guidelines for Active Listening?
(MTP SEP-15-5M ,M 09 - 5M, M 13 4M, N 11 - 4M) (PM)
Most of us assume that listening is a natural trait, but practically very few of us listen properly.
What we regularly do is-we hear but do not listen. Hearing is through ears
and listening is by mind. Listening happens when we understand and
message as intended by sender. Therefore, every employer and worker
needs a listening ear.
IMPORTANCE OF ACTIVE LISTENING: Active listening is important for
several reasons.
a) It aids the organization to carry out its mission.
b) It helps individuals to develop in their careers.
c) It provides information about important happenings in the
organization.
d) It assists them in doing their own jobs well.
e) It also helps to build strong personal relationships.
GUIDELINES FOR IMPROVING ACTIVE LISTENING:.
a) Look at the person and suspend other things you are doing in order to
understand the other persons concerns, intentions.
b) Be interested in what the other person is saying. If you just cant make
yourself interested, you will lose important information, so try taking
notes. Doing so will keep your body and mind active.
c) Listen to the tone of voice and inflection; look at gestures and body
language these may carry an unspoken message.
d) Restate what the person said. Restating their meaning is a way for you to
make
e) sure you understand the person clearly.
f) Ask questions once in a while to clarify the meaning. Doing so will
keep you alert and let the other person know that you have been listening and are
interested in getting all the facts and ramifications.
g) Be aware of your own feelings and opinions.
Similar question:
1. Explain the concept of Active Listening and specify the guidelines OR give some tips for
effective active listening.
Ans: Refer above.

Q.No.4. What is meant by 'Critical thinking'? How shall you develop critical thinking?
Or
Discuss the qualities of a critical thinker. (MTP-SEP15-5M, N15-4M )
CRITICAL THINKING: Critical thinking is the discipline of rigorously and skillfully using information,
experience, observation and reasoning to guide one's decisions, actions and beliefs.
Critical thinking refers to the act of questioning of every step of the thinking process
E.g: Have you considered all the facts? Have you tested your assumptions? Is your reasoning
sound? Can you be sure your judgment is unbiased? Is your thinking process logical, rational and
complete?
Developing Critical thinking: To develop as a critical thinker, one must be motivated to develop
the following attributes:
a) Open-minded: Readiness to accept and explore alternative approaches and ideas.
b) Well informed: Knowledge of the facts and what is happening on all fronts.
c) Experimental: Thinking through 'what if scenarios to create probable options and then test the
theories to determine what will work and what will not be acceptable.
d) Contextual: Keeping in mind the appropriate context in the course of analyses. Apply factors
of analysis is that are relevant or appropriate.
e) Reserved in making conclusion: Knowledge of when, a conclusion is a 'fact' and when it is
not only true conclusions support decisions.
Q.No.5. Why is the 'critical thinking' important part of success and wisdom? What steps are
required to make it effective in a business organisation?
Critical thinking is the discipline of rigorously and skillfully using information, experience,
observation and reasoning to guide our decisions, actions and beliefs.
1. Cause and effect analysis: ability to separate the motive or reason for an action or event
(the cause) from the result or outcome (the effect)
2. Classify and sequence: you must be able to group items or sort them according to similar
characteristics
3. Compare and contrast: you must be able to determine how things are similar and how
they are different.
4. Infer: you must be skilled in reasoning and extending logic to come up with plausible
options or outcomes.
5. Evaluation of various alternatives: ability to determine sound criteria for making choices
and decisions.
6. Critical observation: you must be skilled in attending to the details of what actually
happened.
7. Predict : you must be able to finding and analyze trends, and extend these to make
sensible predictions about the future
8. Rationalization: Apply law of reason to judge and determine merits of an argument.
9. Decide priorities: you must be able to determine the importance of an
event or situation and put it in the correct perspective.
10. Summarize: you must be able to distill a brief report of what happened or
what you have learned.
11. Synthesize: you must be able to identify new possible outcome by using
pieces of information that you already know.

Similar Question:
1. Briefly explain about the steps involved in critical thinking
Ans: Refer above.
Q.No.6. Define Critical Thinking? What are its purposes? (M13 4M) (PM)
Meaning: Critical Thinking is the discipline of rigorously and skillfully using

information, experience, observation and reasoning, to guide ones
decisions, actions and beliefs.
Questioning: Critical Thinking refers to the act of questioning every step of
the thinking process.
For Eg.:
a) Have you considered all the facts?
b) Have you stated your assumptions? Copyrights Reserved

c) Is your reasoning sound?
d) Are you sure that your judgment is unbiased?
e) Is your thinking process logical, rational and complete?
Such rigorous, logical questioning is known as Socratic Questioning. The Greek Scholar,
Socrates is considered to be the founder of Critical Thinking.
Purpose: Critical Thinking helps in-
a) Bringing discipline to your thinking processes,
b) Making good judgments, choices and decisions.
Q.No.7. Discuss the Qualities of a critical thinker? (For student self study) (MTP)
QUALITIES OF A CRITICAL THINKER: To develop as a Critical Thinker, one must be

motivated to develop the following attributes.
a) Open-minded- that is, willing to accept and explore alternative approaches and ideas.
b) Well-informed - Know the facts and what is happening on all fronts.
c) Experimental - Think through "what if" scenarios. This could create probable options and
then test the theories to determine what will work and what won't.
d) Contextual - Keeps in mind, the appropriate context, when thinking things through. Apply
factors of analysis, which are relevant or appropriate.
e) Reserved in Making Conclusions - Know when a conclusion is "fact" and when it is not.
Only true conclusions support decisions.
Q.No.8. What is meant by Emotional Intelligence and Emotional Quotient?

(PM) (M 07 - 5M, M 15- 4M)
Emotional Intelligence: Emotional intelligence refers to the capacity to recognizing your own
feelings and those of others, for motivating yourself, and for managing emotions well in
yourself and in your relationships.

Emotional quotient: inventory is designed to measure a nature of constructs related to
emotional intelligence. EQ is the ability to make and deeper connections at three levels: with
ourselves (personal mastery), with another person (one-to-one) and within groups/teams. Our
EQ or emotional intelligence is the capacity for effectively recognizing and managing our own
emotions and those of others.
Q.No.9. What are the competencies (Personal and social) associated with emotional
intelligence? (MTP 16)
1. PERSONAL COMPETENCIES ASSOCIATED WITH EMOTIONAL INTELLIGENCE:

a) SELF - AWARENESS
i) Emotional self-awareness: Reading your own emotions and
recognizing their impact; using gut sense to guide decisions.
ii) Accurate self-assessment: Knowing your strengths and
weaknesses.
iii) Self-confidence: A sound sense of your self-worth and
capabilities.
b) SELF MANAGEMENT
i) Emotional self-control: Keeping disruptive emotions and
impulses under control.
ii) Transparency: Displaying honesty and integrity; trustworthiness.
iii) Adaptability: Flexibility in adapting to changing situations or overcoming
obstacles.
iv) Achievement: The drive to improve performance to meet inner standards of
excellence
v) Initiative: Readiness to act and seize opportunities.
vi) Optimism: Seeing the upside in events.
2. SOCIAL COMPETENCE, INCLUDING:
a) Social Awareness:
i) Empathy: sensing others emotions, understanding their
perspective and taking active interest in their concerns.
ii) Organizational awareness: reading the currents, decision
networks, and politics at the organizational level.
iii) Service: recognizing and meeting follower, client, or customer
needs.
b) Relationship Management:
i) Using awareness of one's own emotions and the emotions of others to manage
relationships to a successful outcome.
ii) This result in leadership, influencing people, develops subordinates, build team
spirit and capacity to lead and manage change.
Similar Question:
Give a brief note about social awareness and relationship management.
Ans: Write social competence of above question.
Copyrights Reserved

QUESTIONS FOR ACADEMIC INTEREST ONLY
Q.No.10. What is Interpersonal Communication? Explain the significance of

Interpersonal Communication Skills?
INTRODUCTION AND MEANING : "People skills" or interpersonal skills

are an essential ingredient for success in any career. These skills create
a positive communication climate in which people feel valued. The key
factors to building a positive environment in all areas of ones life are
interpersonal communication, active listening, critical thinking and
emotional intelligence, which during a conflict focus on solving problems.
Creating a positive environment is very essential for the success of any
organisation. There are four key factors, which help in building a positive environment. They
are:
a) Interpersonal Communication.
b) Active Listening.
c) Critical Thinking.
d) Emotional Intelligence
Among these all, the Interpersonal Communication Skills play a vital role.
INTERPERSONAL SKILLS:
a) Interpersonal Skills are also known as Soft Skills / People Skills.
b) They are the skills to understand people - their problems, needs and
feelings.
c) Interpersonal Skills constitute the ability to communicate effectively
with people.
d) It is the skill, by which the managers are able to get along with people and communicate
with them.
e) This skill enables the manager to get the best out of them, to develop them, to build
effective team work, resolve conflicts and so on.
f) Interpersonal Skills are essential ingredients for a successful career.
g) They are essential ingredients for creating a positive communication climate.
IN INTERPERSONAL COMMUNICATION, THERE ARE:
a) A few participants involved.
b) There is close physical proximity among the people involved.
c) Many sensory channels.
d) Immediate feedback.
Prevents biasing your judgment about the other person.
Similar Question:
1. Interpersonal Skills are essential ingredients for a successful career.-Discuss.
Ans: Refer meaning and interpersonal skills of above question.
Copyrights Reserved

IPCC _36e_ B.C. _ Interpersonal Communication Skills __________________107
Q.No.11. Listening is helpful in interpersonal communication skills-comment
Effective or active listening is a very important skill to enhance interpersonal communication.

Listening helps to build strong personal relationships. The process of communication
completes when the message as intended by the sender is understood by the receiver. Most
assume that listening is natural trait, but practically very few of us listen properly. One needs
to give the communicator of the message sufficient attention and make an effort to understand
his viewpoint.
Q.No.12. Some Guidelines for active listening.
GUIDELINES FOR ACTIVE LISTENING:

1. Look at the person and suspend other things you are doing. Otherwise, your brain will be
distracted from its main goal - understanding the other person's concerns, intentions.
2. Be interested in what the person is saying. If you just can't make yourself interested, you
will lose important information, so try taking notes.
3. Listen to the tone of voice and inflections;
4. look at gestures and body language - these may carry an unspoken message.
5. Restate what the person said. Restating their meaning is a way for you to make sure you
understand the person clearly.
6. Ask questions once in a while to clarify meaning. Doing so will keep you alert and let the
other person know you have been listening and are interested in getting all the facts and
ramifications.
7. Be aware of your own feelings and opinions. They may cloud your perception of what is
being said.Being aware of your own preconceptions is a type of critical thinking that
prevents biasing your judgment about the other person.
Q.No.13. What are the tips for improving inter-personal skills in a business organization?
(MTP-OCT-15 )
TIPS FOR IMPROVING INTERPERSONAL SKILLS: Lines of communication must be open

between people who rely on one another to get work done. Poor interpersonal communication
skills, which include active listening, result in low productivity simply because one does not
have the tools needed to influence, persuade and negotiate which are necessary for
workplace success. To get this success the following tips are suggested:
1. Congruency in communication elements: Since communication is shared meaning,
words must send the same message as the other interpersonal communication dynamics
body language, facial expression, posture, movement, tone of voice to help emphasize
the truth, sincerity and reliability of the communication. A consistent message ensures
effective communication.
2. Listening effectively: Effective or active listening is very important skill to enhance
interpersonal communication. Listening helps to build strong personal relationships. The
process of communication completes when the message as intended by the sender is
understood by the receiver. Most of the persons assume that listening is natural trait, but
practically very few of us listen properly. One needs to give the communicator of the
message sufficient attention and make an effort to understand his view point.
Q.No.14. Understanding is the foundation for any relationship. Do you agree? Justify
your answer?
Interpersonal communication helps us to understand better about what someone says, Words
can mean different things. Understanding comes from empathy, which is an important skill
every manager needs to possess to be successful in interpersonal relations.
Q.No.15. Hearing is through ears and listening is by mind.- elaborate with suitable
examples?
Active Listening: - Most of us assume that listening is a natural trait, but practically very few of
us listen properly. What we regularly do is-we hear but do not listen. Hearing is through ears
and listening is by mind. Listening happens when we understand and message as intended by
sender. Many managers are so used to helping people solve problems that their first cause of
action is transforming solutions and giving advice instead of listening with full attention
directed towards understanding what the co-worker or staff member needs
Q.No.16. Individual emotions often exercise pressure in the achievement of goals.

Comment. And how do you overcome your emotions with personal competence.
Emotions play important role in mans life. having emotions is not bad but one should know
how to channelize those emotions and use them for productive purposes otherwise they.
exercise pressure on the person in the achievement of the goals
TEST YOUR KNOWLEDGE

1. Differentiate your personal competence from social competence with your recent
experience.
2. Which context of interpersonal communication deals with Psycho-Social aspect of
communication?
3. Once a word goes out of your month, you can never swallow it back. Justify this
statement with your recent experience.
4. Listening & Hearing are one and the same? Comment
5. How can you know that your subordinates have listening ability or not?
6. EQ influence human beings than IQ discuss with suitable examples.
7. Which helps to keep disruptive emotions and impulses under control?
8. Explain cultural context of interpersonal communication with suitable examples?
Verified by: Kareem Sir, Chandra sekar Sir,

Copyrights Reserved
THE END
IPCC _36e _ B.C._ Interpersonal Communication Skills __________________109

3. GROUP DYNAMICS
M-09 1-1 11- 2-1 21- 3-1 31- 4-1 4-1 5-1 51- 6-1
No. Chapter / Topic Name TO M N M N M N M N M N M
N-10
1. B - - 4 - - - 4 - - - - -
2. A - 4 - - - - - - - - 4 -
3. A - - - - 4 - - - - 4 - -
4. A - - - - - - - - - - - -
5. A - - - - - - - - 4 - - -
6. B - - - - - - - - - - - -
7. B - - - - - - - - - - - -
8. B - 4 - - - - - - - - - -
9. A - - - - - - - - - - - -
10. B - - - - - - - - - - - -
11. A - - - - - - - - - - - -
12. B - - - - - - - - - - - -
13. B - - - - - - - - - - - -
14. A - - - - - - - - - - - -
Bill Gates says I have always loved the competitive forces in this business. You know I
certainly have meetings where I spur people on by saying, hey, we can do better than
this. How come we are not out ahead on that? thats what keeps my job one of the
most interesting in the world.
Q.No.1. What is a Group? What are the Characteristics or features of group?

(PM) (N 11, N 13 - 4M)
A group is a collection of people. The fact that a number of people are present in a particular
space does not mean that a group exists. It is not a random collection of independent
individuals it is composed of individuals who interact verbally and non-verbally, occupy
certain roles with respect to one another, and cooperate to accomplish a definite goal.
A group can thus be defined as an aggregate of people, from two up to an unspecified but
not too large a number, who associate together in face-to-face relationships over a period of
time.
Mainly two types of groups are present in organizations:
Formal Groups created by deliberate sanction of management to meet certain official
requirement and Informal Groups that are created because of the operation of the social and
psychological factors at the work place.
CHARACTERISTICS OR FEATURES OF GROUPS
Group goals every group establishes its own group goals, which provide
motivation for their existence.
Group structure is based on the roles to be performed and member
positions.
Group Patterns of communication is the pattern of message flow in a
group.
Group Norms are the informed rules of interaction in a group.
Group climate is the emotional atmosphere of a group based on
a) Bonding and trust among members
IPCC _36e_ B. C. Group Dynamics __________________________________110
b) Participative spirit
c) Openness
d) High performance goals.
Similar Question:
1. Give a brief note on features of group.
Group is a collection of individuals, the members accept a common task, become
interdependent in their performance, and interact with one another to promote its
accomplishment. In an organisation, the members of a group.
Ans: Refer any 4 features of above.
Q.No.2. what do you understand by group dynamics? What are the Characteristics of
Group Personality? (PM) (M 01 - 4M, M 07 - 5M, M 11 - 4M,N15-4M)
GROUP DYNAMICS:
a) Group dynamics is a system of behaviors and psychological process
occurring within a social group (intragroup dynamics), or between
social groups (intergroup dynamics).
b) It is the study of the interaction and interrelationships among the
members of a group.
c) It involves the study of the forces, which are operating within a group.
Every individual has a personality of his/her own. Similarly, a group develops its personality,
over a period of time. Group personality is characterized by the following features:
1. Spirit of conformity:
a) It is very important that the members of the group have to achieve a spirit of
conformity. This is very important because, the group must gain recognition and
respect from others.
b) Our beliefs, opinions, and actions are influenced more by group opinions.
c) If the members conform to the standards of their group, they feel happier.
2. Respect for group values:
a) Each group is distinct or unique. They are different from other groups.
b) The difference is made by the values and ideals, that they maintain.
c) In order to deal effectively with a group, we must understand its values.
d) This could guide us, in foreseeing its programs and actions.
3. Resistance to change:
a) The group may bring about its own changes.
b) These changes could be either by the dictation of its leader or by mutual agreement.
c) The members of the group may or may not accept the changes.
d) The degree to which the group members resist change serves as an important index of
its personality. It helps us in dealing with it efficiently.
4. Collective power:
a) The groups are always powerful than the individuals.
b) That is why individuals may find it difficult to speak out their
thoughts in groups.
5. Group Prejudice: Just as hardly any individual is free from prejudice, groups have their
own clearly evident prejudices. It is a different matter that the individual members may not
admit their prejudiced attitude to others race, religion, nationality etc. But the fact is that
the individuals prejudices get further intensified while coming in contact with other
members of the group holding similar prejudices.
Similar question:
1. Group Dynamics is the study of the interaction and interrelationships among the members
of a group.-Do you agree?
Ans: Refer introduction part of the above.
Q.No.3. Describe types of groups in organization. Or State the types of groups in an

organization which play an important role in solving the difficult problems in an
organization. (PM) (N 12 - 4M) (M 15 4M)
1. Self directed teams:

a) In an organisation, the authority of making the decisions is with the Autonomous and
Self Regulated Groups of Employees.
b) The members in these groups are given utmost freedom.
2. Quality Circles:
a) Quality circle has been defined "as a group of workers, from the same
area, who usually meet for an hour each week, to discuss their quality
problems, investigate causes, recommend solutions and take corrective
actions when authority is in their purview".
b) In other words quality circle is a small group to perform voluntarily quality control
activities within their work areas.
3. Committees: Committees are of various types:
a) Standing committee : Permanent in nature and highly empowered
b) Advisory committee : Comprises experts in particular fields
c) Adhoc committee : Set up for a particular purpose and after the goal is achieved
it is dissolved.
4. Task force: It is like a committee, but it is usually temporary. Task force has wide power to
take action. Task force groups are very important in government organizations, to tackle
specific administrative problems.
Similar Question:
1. What is the difference between self-directed teams and task force
Ans: Refer 1st and 4th points of above.
Q.No.4. What do you understand by Group conflicts? How shall these be managed
effectively? Explain (PM) (N 07 - 5M, RTP - 16)
1. MEANING: Conflict is an express struggle between atleast two inter-

dependent parties, who perceive inconsistent goals, scarce resources,
and interference from the other party in achieving their goals.
2. ASPECTS: There are two aspects in relation to conflict
a) Expression: The two sides must communicate/express about the
problem for there to be conflict.
b) Perception: Conflict involves perceptions, i.e. the two sides may only perceive that
their goals, resources, and interference are inconsistent with each other.
c) Managing conflicts: The climate in which conflict is managed is important. It is essential
to plan communications to foster a supportive climate, marked by emphasis on:
i) Presenting ideas or options
ii) Problem orientation- focusing attention the task
iii) Spontaneity - Communicating openly and honestly
iv) Empathy - understanding another person's thoughts.
v) Equality- asking for opinion s
vi) Willing to listen to the ideas of others.
Successfully managed conflicts can be constructive and can strengthen relationships in an
organisation.
Q.No.5 Explain Consensus Building? (PM)(N 14- 4M, RTP - N15 )
CONSENSUS BUILDING: Consensus means overwhelming agreement. Most consensus

building efforts set out to achieve unanimity.
The key indicator of whether or not a consensus has been reached is that everyone agrees
with the final proposal and it is important that consensus be the product of a good-faith effort
to meet the interests of all stakeholders.
Thus, consensus requires that someone frame a proposal after listening carefully to
everyone's interests. Before the parties in a consensus building process come together,
mediators (or facilitators) can play an important part in helping to identify the right participants,
assist them in setting an agenda and clarifying the ground rules by which they will operate,
and persuading noncompliant parties to participate.
THE FOLLOWING TECHNIQUES CAN BE HELPFUL IN THIS PROCESS:
1. Problem Solving Approach:
a) A problem solving and constructive orientation should be
maintained.
b) Even when there exist strong differences, every participant
should express his concern or disagreement in a constructive
manner.
c) Personal antagonism and back-biting should be avoided.
2. Active Listening:
a) All those who are involved in the process of consensus building, should actively listen
to others.
b) This will help to ensure that communications are being received as intended.
3. Maximum Transparency:
a) The groups mandate, its agenda and ground rules, the list of participants, the interests
they represent, the proposals under consideration, the decision rules and other
important items should be open to scrutiny by all the stakeholders.
b) This is necessary to make the consensus building process transparent.
4. Strive to invent options for mutual gain: The goals of a consensus building process ought
to be to create as much value as possible and to ensure that whatever value is created be
divided in ways that take account of all relevant considerations. The key to creating value is to
invent options for mutual gain.
5. Disagree Without Being Disagreeable-Participants in every consensus building process
should be instructed to "disagree without being disagreeable." This dictum should probably
be included in the group's written ground rules.
Q.No.6 What is meant by Negotiation? Name the various steps which can be
identified in the process of negotiation from start to the completion of the process.
When two or more persons meet together and talk/ discuss on any business or non-business
matter, it is known as negotiation. When same persons discuss specific proposals in order to
come to a mutually accepted solutions; whether it is with an employer, family member or
business partner. It can be said that negotiation is a common way of settling things in
business.
STEPS IN THE NEGOTIATION PROCESS
a) Preparing
b) Arguing
c) Signaling
Copyrights Reserved
d) Packaging
e) Bargaining
f) Closing and arguing
Q.No.7 Explain the concept of Negotiation. What are its techniques ?
Negotiation: Negotiation occurs when two or more parties either individuals or groups discuss
specific proposals in order to find a mutually acceptable agreement. Whether it is with an
employer, family member or business associate, we all negotiate for things each day like
higher salary, letter service or solving a dispute with a co worker or family member Negotiation
is a common way of settling conflicts in business. When handled skillfully, negotiation can
improve the position of one or even both but when poorly handled; it can leave a problem still
unsolved and perhaps worse than before.
TECHNIQUES FOR NEGOTIATION:
a) Spiraling agreements: Begin by reaching a minimums agreement even though it is not
related to the objectives and build, hit by hit, on this first agreement.
b) Changing of position: Formulate the proposals in a different way, without changing the
final result.
c) Gathering information: Ask for information from the other party to clarify their position
d) Making the cake bigger: Offer alternatives that may be agreeable to the other party,
without changing the terms.
e) Commitments: Formalize agreements orally and in writing before ending the negotiation.
Q.No.8. What are the steps in Negotiation Process? (PM)(N 08 - 5M, M 11 - 4M)
THE NEGOTIATION PROCESS CONSISTS OF THE FOLLOWING STEPS:

1. Preparing: The negotiator must get prepared before the actual negotiations begin.
Preparation involves:
a) Set the objective of negotiation and the limits within which to negotiate.
b) Identify the real issues.
c) Select the parties to be involved.
Copyrights Reserved
d) Assess the relative strength of the two parties.
e) Prepare a checklist and collect necessary data.
2. Arguing: In this phase of the negotiation process, both the parties attempt to build a case
for their respective stands. Each party seeks to forcefully inform the
other party, of the logic and strength of his/her stand. In case the
opposing parties take diametrically opposite positions and become
hostile, negotiation may fail. Therefore, both the sides must listen and
understand each others positions to narrow down the differences and
come to a common ground.
3. Signaling: After some amount of arguing, the two parties become aware of the deadlock
and want to break it. They give verbal or non-verbal clues to the possibility of adjustment.
Both the parties should remain alert to the clues.
4. Proposing: Proposals help to advance negotiations by overcoming arguments which
cannot be negotiated. Therefore, proposing is a decisive phase in the negotiation process.
5. Packaging: The proposals, which appeared in the previous phase, are considered and
compared to suggest some solution for consideration of the opponent. The priorities and
inhibitions of the opponent are identified and reviewed. The possibilities of concessions
that might follow are signaled.
6. Bargaining: In this phase, the party, which wants to offer concessions,
decides what it requires in exchange. When the opponent agrees to its
conditions, reciprocal proposals are presented.
7. Closing: In the final phase, agreement is made and the bargaining
comes to an end. The agreement is put into writing to ensure its implementation.
Q.No.9. Explain different strategies for Negotiation.
VARIOUS ALTERNATE APPROACHES TO NEGOTIATION ARE GIVEN BELOW:

1. Win-lose Strategy:
a) In this strategy, each party attempts to grab maximum gain and impose maximum loss
on the other party.
b) It is a zero sum game because one partys gain counter balances the other partys loss.
2. Lose-lose Strategy:
a) In this approach, the conflict causes such damage that both the parties feel losers.
b) Nobody wants to lose but the parties may seek revenge because the negotiating
partner is blocking them.
c) For example, when a customer feels cheated, she may tell others, causing loss of
future business to the seller.
3. Compromise:
a) It is better to compromise than to continue fight and create possibility of a lose-lose situation.
b) When parties fight for a scarce resource, compromise may be the best option.
c) For example, each of the two executives needs a full-time secretary. They may have to
compromise and share one secretary due to budget constraints.
4. Win-win Strategy:
a) In this approach, both the parties feel that they have gained.
b) The gain of one party is not achieved at the cost of the other.
c) It is a collaborative approach that focuses on the ends rather than on the means.
d) Joint problem solving is used to arrive at an agreement that will benefit both the sides.
Q.No.10. What are the basic rules of negotiation? (For Student Self-study) (PM)
1. Analyze the interest of the parties: This is important to understand the perceptions, the style
of negotiation, and the interests of and principles of the counterparts, as well as ones own.
2. Plan the negotiation, and determine:
Copyrights Reserved
a) What are the expectations from the negotiation?
b) What re the terms of the negotiation?
c) What are the non-negotiable terms and what can be modified?
d) What is the minimum that a agreement can be reached on?
e) What is the negotiation strategy?
f) What are the most important interests of the other parties?
g) How does one interact with or manage people?
3. Select the appropriate negotiation technique from among the following:
a) Spiraling agreements: Begin by reaching a minimum agreement even though it is not
related to the objectives, and build, bit by bit, on this first agreement.
b) Changing of position: Formulate the proposals in a different way, without changing
the final result.
c) Gathering information: Ask for information from the other party to clarify their
position.
d) Making the cake bigger: Offer alternatives that may be agreeable to the other party,
without changing the terms.
e) Commitments: Formalize agreements orally and in writing before ending the
negotiation.
4. Negotiate: Be sensitive and quick to adapt to changing situations, but dont lose sight of
the objective. Some aspects that could interfere with the negotiation are:
a) Personal positions and interests Psychological and emotional aspects of the persons
(place, placement of chairs, body language, gestures, etc)
b) Difficulties in communication (differences in languages, different meanings of the same
words, etc.
Q.No.11. Explain the concept of influencing and Persuasion skills.
INTRODUCTION: Many situations arise where you need to influence the behavior or attitudes
of managers, superiors, colleagues, customers, clients, suppliers and subordinates. Often, you
either do not have or do not wish to use position power. You have to rely on influencing others
through assertiveness, negotiation and empowering skills. Influence is a respectable way to
change other peoples actions
INFLUENCE IS MUCH WIDER IN DEPTH AND DIMENSION IT IS:
a) A process not an action
b) A set of skills - including body language, listening, building rapport, planning, probing and
explaining.
c) A set of attitudes including confidence, trust, patience and belief in win-win outcomes
d) It is getting people to do things because they want to.
e) It requires one to be other focused rather than self focused
f) It enables proactive leadership (SM)
Persuasion is one dimension of influence. It is a direct communication when benefits are
stated in a reasoned arguments and competent views dealt with in a respectful manner.
a) Honour and Respect: These are communicated in various ways You can respect
peoples time by being sensitive about the timing of your communication.
b) Understanding the other persons Frame of Reference: Each of us have a unique
personality but one can get to know a great deal about the other person by approaching
things from their point of reference, asking questionings and listening.
c) Technique of persuasion: Emotional word pictures (EWPs). These can simultaneously
communicate with a persons heart and mind, to convey understanding and emotional feelings.
In order to appeal to anyones motivation to act, we must know these two biggest motivators.
The first is: the desire for gain.
The other is: fear of loss.
In any communication you must examine your argument and analyse which desires or fears
you are appealing to. This will help you plan the communication suitably.
Q.NO.12 What is Negotiation? Explain the nature of Negotiation. (PM)
Whenever there is a trouble or a conflict, there should be a process, by which the problem
should be cleared. Negotiation could be one such.
MEANING:
a) Negotiation is the process, in which two or more parties work together,
to arrive at a mutually acceptable resolution for one or more issues.
b) It is a two-way process, in which both sides participate actively in
taking decisions.
c) Negotiation is a give-and-take or both bargaining process.
d) When conducted properly, both sides feel satisfied, about the outcome and are committed
to achieve the same.
NATURE OF NEGOTIATION: The distinguishing features of negotiation are as follows :

a) There are atleast two parties in any negotiation.
b) Both the parties have predetermined goals.
c) Both of them are interested in an agreement.
d) Both the parties are willing to modify their positions.
e) There is some incompatibility between their goals.
f) There is discussion between the interdependent parties.
g) Negotiation is required when a single party cannot resolve the matter.
h) Negotiation can take place only when both the parties are willing to meet and discuss the issue.
Similar Questions:
1. Negotiation is the process, in which two or more parties work together, to arrive at a
mutually acceptable resolution for one or more issues discuss with suitable examples
Ans: Refer meaning and examples of above question.

Q.NO.13. Write about Team Role and Groupthink. (For Student Self - study)
Team Roles: Members of a team can play various roles, which fall into three categories:.
Members who assume
1) Self oriented roles are motivated mainly to fulfill personal needs,
2) Members who assume team-maintenance roles recognize that each individual brings
valuable assets, knowledge, and skills to the team. They are willing to exchange information,
examine issues, and work through conflicts that arise and, to help everyone work well together,
3) Those members who assume task-facilitating roles, to help solve problems or make
decisions.
Group think is the tendency of group members to seek agreement solely for agreement's sake. A
group gripped by groupthink fails to be creative, explore alternative solutions, problems, or
concerns in an effort to present a united or cohesive front to outsiders. Group members must
question themselves and their actions to ensure high-quality decision making .

Q.No.14. Once the process of consensus building has begun, mediators try to assist
the parties in their efforts to generate a creative resolution of differences". Examine this
statement and also state in brief the process which should be followed by mediators to
resolve the differences between the parties (PM)
The process it should be followed by the mediators to resolve the differences between the
parties Efforts which help to generate a creative resolution are :
a) Problem-solving orientation: It is important to be constructive and maintain a problem
solving orientation, even in the face of strong differences and personal antagonism. It is in
every participant's best interest to behave in a fashion, they would like others to follow.
Concerns or disagreement should be expressed in an unconditionally constructive
manner.
b) Engage in active listening: Participants in every consensus building process should be
encouraged (indeed, instructed, if necessary) to engage in what is known as active
listening.
c) Disagree without being disagreeable : Participants in every consensus building process
should be instructed to "disagree without being disagreeable."
d) Strive for the greatest degree of transparency possible:To the greatest extent
possible, consensus building processes should be transparent. That is, the group's
mandate, its agenda and ground rules, the list of participants and the groups or interests
they are representing, the proposals they are considering, the decision rules they have
adopted,their finances, and their final report should, at an appropriate time, be open to
scrutiny by anyone affected by the group's recommendations.
e) Strive to invent options for mutual gain: The goals of a consensus building process
ought to be to create as much value as possible and to ensure that whatever value is
created be divided in ways that take account of all relevant considerations. The key to
creatingvalue is to invent options for mutual gain.
Copyrights Reserved

TEST YOUR KNOWLEDGE

1. The management of conflicts should be in constructive manner but not in destructive
manner do you agree? If is justify your answer with a practical example.
2. What is the role of active listening in the achievement of consensus building? Many executives
feel that it is difficult to accomplish? As a professional, Do you accept this statement?
3. The approach of Win-Win is not suitable in all circumstances Do you accept? If yes,
justify your answer.
4. A member in the group is performing to fulfill his personal need and tend to contribute little
to the success of team? This member belongs to which group?
5. Win-lose strategy is mandatory in some cases Do you accept? justify with a practical
example.
6. I command and expect compliance. What is the name of this leadership style?
7. In order to accomplish task effectively, what kind of thinking a group should possess?
8. Understanding other persons frame of reference is called?
9. Trade union officials are negotiating salary hike with you. You are unable to give salary
hike at present condition. How can you overcome this situation?
10. In which strategy of Negotiation, both the parties feel that they have gained?
11. Which Strategy of Negotiation focuses on the ends rather than on the means?
Copyrights Reserved
Verified by: Kareem Sir, Chandra Sekar Sir
THE END

4. COMMUNICATING CORPORATE CULTURE, CHANGE
& INNOVATIVE SPIRITS
90- 01- 01- M-11 31- 31- 41- 41- 51- 51- 61-
No. ABC N TO N N
M M N-12 M M N M M
1. C - - - - 4 - 4 - - - -
2. B - - - - - - - - - - -
3. B - - - - - - - - - - -
4. A - - - - - - - - 4 - -
5. A - - - - - - - - -
6. B - - 4 - - 4 - - - - -
7. B - - - - - - - - - - -
8. B - - - - - - - - - - -
9. B - - - - - - - 4 - - -
10. B - - - - - - - - - - -
11. B - - - - - - - - - - -
-
The real source of wealth and capital in this new era is not material things. it is the
human mind, the human spirit, the human imagination, and our faith in the future.
-Steve Forbes
Q.No.1. Define Corporate Culture. State its main elements?OR Elements which can be
used to influence the organisation culture. (PM) (M 13-4M, M 14-4M,MTP-SEP15)
Corporate Culture: Corporate Culture is described as the personality of an organization, or

simply as how things are done around here. It guides how employees think, act, and feel.
Corporate culture is a broad term used to define the unique personality or character of an
organization, and includes such elements as core values and beliefs, corporate ethics, and
rules of behavioral norms that are shared by people and groups in an organization and that
control the way they interact with each other and with stakeholders outside the organization.
Strong / Weak Cultures: A strong culture is said to exist where the staffs response to
change and innovation is high because of their alignment to organizational values- people do
things because they believe it is the right thing to do.
Weak Culture: where there is little alignment with organizational values, and control must be
exercised through extensive procedures and bureaucracy.
THE MAIN ELEMENTS OF CORPORATE CULTURE ARE AS FOLLOWS:
The Paradigm: What the organization is about; what it does; its mission;
its values.
a) Control Systems: The processes in place to monitor what is going on.
b) Organizational Structures: Reporting lines, hierarchies, and the way
that work flows through the business.
c) Power Structures: Who makes the decisions and how power is distributed across the
organization.
d) Symbols: These include the logos and designs, but would extend to symbols of power,
such as car parking spaces and executive washrooms!
IPCC _36e_ B.C._ Corporate Culture_________________________________120

e) Rituals and Routines: Management meetings, board reports and so on may become
more habitual than necessary.
f) Stories and Myths: build up about people and events, and convey a message about what
is valued within the organization.
Communicating the corporate culture effectively is paramount. For example, at General
Electric (GE), corporate values are so important to the company, that Jack Welch, the former
legendary CEO of the company, had them inscribed and distributed to all GE employees at
every level of the company.
Similar Question:
1. What is corporate culture? State the elements of it.
Ans: Write introduction and the main elements of above question.
Q.No.2. Explain the concept of Organisational change. (PM)
MEANING:
1. The organizations do change, in both large and small levels.
2. The larger changes means a fundamental and radical reorientation is
the way the organization operates.
3. They are like - a change in mission, restructuring operations, new
technologies, mergers, major collaborations, new programs such as
Total Quality Management, re-engineering, etc.
4. The smaller changes are like adding a new person, modifying a program, etc
5. The concept of organizational change is in regard to organization-wide change, and not
smaller changes.
ORGANISATIONAL CHANGE IS CHARACTERISED BY THE FOLLOWING FEATURES:
1. Organisational change is a conscious and deliberate attempt, to alter the status quo.
2. It results from stimuli from both inside and outside the organisation.
3. It is designed to improve the functioning and performance of the organisation.
4. It is proactive in nature as it is initiated by the management of the organisation.
Q.No.3. Why is an Organisation wide change difficult to accomplish? (PM)
It is a common human tendency to resist change.

Typically, there are strong resistances to change.
1. People are afraid of the unknown.
2. Many people think things are fine and don't understand the need for change.
3. Many are inherently cynical about change.
4. Many doubt there are effective means to accomplish major organizational change.
5. Often, there are conflicting goals in the organization, e.g., to increase
resources to accomplish the change yet concurrently cut costs to remain viable.
6. Organization-wide change often goes against the very values held dear by members in the
organization, that is, the change may go against how members believe things should be done.
Similar question:
1. What are the characteristics of change? Why does the human tendency resist change?
Ans: Write second and third questions.
Q.No.4. What is the reasons for resisting the change? (M 15 4M)
People generally resist organisational change. Sometimes there may be an attempt to change
a system, belief or value, which has been successful in the past. Then the Resistance is
particularly strong.
Resistance to change may occur in several forms. It may be active resistance, in which the
people object to change or refuse to cooperate with the change. A less subtle form of resistance
arises, when the change is not implemented.
ORGANISATIONAL CHANGE IS RESISTED DUE TO SEVERAL REASONS:
1. Fear of Personal Loss:

a) People are likely to resist change, when they perceive that change will cause a
personal loss to them.
b) Such loss may be risk to income, security, freedom, friendship, authority, pride and
satisfaction, status and good working conditions.
c) The greater the expected loss, the stronger will be the resistance to change.
2. Uncertainty:
a) People are generally afraid of the unknown.
b) Ambiguous or uncertain situations trigger anxiety and fear.
c) Present situation is known and certain, whereas the new situation, that is to make
clear, is unknown and uncertain.
3. Failure to Understand the Need for Change:
a) People, who do not understand the need for change, often
oppose change.
b) Some are inherently cynical about change.
c) They doubt the feasibility of change.
d) They feel status quo is working well and change is not
needed.
4. Habit: The habits developed by an individual are difficult to change.
5. Bad timing: As the old saying goes, Timing is everything. Heaping too much change on
employees over a short period of time can cause resistance. If change is not implemented
at the right time or with the right level of tact or empathy, it usually wont work.
6. An individuals predisposition toward change:
a) Differences exist in peoples overall tolerance for change. Some people enjoy change
because it provides them with an opportunity to learn new things and grow personally
and professionally.
b) Others abhor (hate) change because they prefer a set routine- these are usually the
people who become suspicious of change and are more likely to resist.
7. Economic factors: Individuals resist change if it is likely to decrease their income or
sources of earnings.
8. Selective Information Processing: Individuals process information selectively to make it
compatible with their perceptions.
Similar question:
1. Fear of personal loss and uncertainty lead to resistance to change Comment
Ans: Write first and second point of above question.
Q.No.5. What are the reasons for acceptance of change? (PM)(N 10, N 13 - 4M)
After understanding that why people resist change, it becomes easier to design strategies, that
can help to reduce such resistance. People are likely to accept and welcome change, when
they believe that the change will yield a personal gain to them and offer other benefits.
1. PERSONAL GAIN: People may gain from change in the following ways:
a) Increase in income b) Better security of job
c) Grater authority d) Higher Status/prestige
e) Improvement in working conditions f) Reduction in time and efforts
g) Better interpersonal relations h) Self-satisfaction
2. OTHER BENEFITS
a) Respect for the source of change b) Involvement in the change process
c) Offers a new challenge d) Less boredom
e) Opportunity for input f) Feeling the need for change
g) Better future h) Perception that the change is necessary
Q.No.6. What are the role of communication in organsational change?

(PM)(N 10, N 13- 4M)
1) Communication is probably the most important skill that people need to have in order to be
effective managers.
2) It is probably the most taken for granted, and the area least addressed by developing
managers.
3) In situations of instability, or change, or ambiguity, communication becomes even more
important.
Poor communication around change issues can:
1) Destroy commitment to an organization
2) Irrevocably damage employee morale
3) Generate huge resistance to change
4) Result in hostility.
5) Lead to performance problems
Communication can be simply described as Creating Understanding. In periods of change
(as in "normal" times), the manager must not only pass information to employees, but also
ensure that it is understood correctly.
communication must be two-way in manner, where the manager may be communicating to
employees, but is also soliciting comments from employees about their level of understanding,
and comfort around potential changes.
THERE ARE FOUR DECISIONS THAT MANAGERS MUST MAKE AROUND
COMMUNICATION IN CHANGE SITUATIONS:
1) TO WHOM
2) WHAT
3) WHEN
4) HOW

To whom: The basic rule is that communication should take place directly between the
manager and employees when employees NEED TO KNOW OR WANT TO KNOW. In other
words, except for situations that involve confidential information, even those people who are
indirectly affected would like to know what is going on, and how it may affect them.
What: In changed situations, it is good to communicate as much information about the change
as is available. While this sounds simple, sometimes judgment will have to be exercised
regarding confidential information, and information, which is based on speculation or rumour.
When: In general, communicate as early as possible about change, but do not assume that
once you have done this that the job is over. Communication should occur in anticipation of
change, during the implementation, and after to assess its value to employees. Do it early, do
it often!
How: Decision regarding the mode of communication i.e whether to use oral or written Should
be carefully chosen by the change manager to coomunicate effectively.
Thus, the main role of the change manager is to work towards reducing the resistance towards
change, and increasing the enthusiasm and level of commitment for the change.
Q.No.7. Explain the concept of Innovation.
Innovation implies to doing new things or doing the existing things in new ways. It may occur
in several forms, such as:
1. Introduction of a new product/service or new quality of an existing
product/ service.
2. Introduction of a new method of production or distribution.
3. Opening up of a new market.
4. Locating a new source of raw materials.
5. Procuring finance from a new source or in a new form.
6. New form of organisation of industry.
Types of innovation
1. Product innovation: it consists of changes in product attributes with a change in how the
product is noticed by consumers.
2. Process innovation: It consists of changes regarding the product or the service
production process. It does not necessary have an impact on the final product but
produces benefits in the production.
Q.No.8. How to build an innovative organization? (N14 4M) (PM)
The concept of innovation is quite diverse, depending mainly on its application. Innovation is
the successful exploitation of new ideas. Among the different possibilities to innovate, those
related to product or process innovations are known as technological innovations. Other types
of innovations can relate to new markets and new business models.
THE KEY ELEMENTS IN THE INNOVATION FRAMEWORK ARE:
a) Accessibility: The major organizational challenge is to make everyone, particularly the

workers as active participants in the work process. The innovative enterprise ensures everyone
is accessible to each other at all levels within the organization.
b) Recognize and reward innovation: One of the more radical steps an organization or
manager can take is to make innovation a requirement of the job.
c) Develop company programs that encourage innovation: Some companies allow their
employees to take sabbaticals to work in a new environment or teach in a college. By placing
employees in different environments, they can meet new people, come across new ideas and
hopefully generate their own novel approaches.
d) Foster informal communication: The paperwork involved in proposing or even pursuing a
project can be a major roadblock to innovation. Employees often feel stifled when asked to fully
justify ideas; they may be working on a hunch.
e) Information: The right kind of information is called innoinformation. This type of information is
critical to the vitality of the enterprises. Innoinformation consists of the plans, vision, goals and
all the new ideas affecting the enterprises. The innovative enterprise is looking forward
continuously changing and adapting to the needs of the customer.
f) Framework: The innovative enterprise must constantly adapt, create and innovate. Information
and communication are the wind that sails the innovative enterprise towards its destination.
Information and communication pose difficult challenges for most businesses. The difficulty lies
in balancing the flow of information between providing too much or too little information.
Similar questions:
1. Explain the Role of the Innovation?
2. What are the pre-requisites for fostering innovative spirits? Explain the key
elements in the Innovation Framework.
3. What kind of framework is essential to develop innovative organization?
Q.No.9.What qualities should a sustainable innovation organization possess?
A SUSTAINABLE INNOVATION ORGANISATION SHOULD HAVE:

a) Vision and strategy for innovation
b) Culture supporting innovation
c) Processes, practices and systems supporting innovation
d) Top management team leading to innovation.
e) Effective cross-financial teams.
f) Empowered employees driving innovation.
g) Finding the right balance between bureaucracy and chaos.
Q.No.10. What is strong / weak culture?
A strong culture is said to exist where the staffs response to change and innovate is high
because of their alignment to organizational values people do things because they believe it
is the right thing to do. Conversely, there is Weak Culture where is little alignment with
organizational values, and control must be exercised through extensive procedures and
bureaucracy
Q.No.11. What is meant by resistance to change?
No matter whether a change is of major proportions or is objectively rather small, the change
manager must anticipate that people in the organization are going to find reasons to resist
changes. It is a basic tenet of human behaviour that any belief or value that has been
previously successful in meeting needs will resist change.
TEST YOUR KNOWLEDGE
1. Which is termed as the Unique Personality of an Organization?

2. Some people are likely to resist change, when they perceive that change will cause a
personal loss to them. Did you face this kind of experience? Explain.
3. Some times ineffective communication creates a lot of damage to employee morale. Can
you give any 5 guidelines to have effective communication to boost moral of employees?
4. You want to make modification in your department. how can you get acceptance from your
subordinates?
5. In your organization, top level management requested you to act as change agent. Do you
agree? If yes, what steps do you take as a change agent for implanting change?
6. Balance between bureaucracy and chaos is essential to achieve innovation discuss
with one practical example.
7. Your company has been suffering from lack of innovation. How can you make your
company as innovative share your ideas.
8. How can you develop idea banks? List out some organizations which follow idea banks.
Copyrights Reserved
Verified by: Kareem Sir, Chandra Sekar Sir
THE END

5. COMMUNICATION ETHICS
M-09
No. ABC TO N-11 M-12 N-12 M-13 N-13 M-14 N -14 M-15 N-15 M-16
M-11
1. C - 5 - - - - - - - - -
2. A - - - - - - - - - - -
3. B - - - - - - - - - - -
4. A - - - - - - - - - - 4
5. A - - - - - - - - 4 - -
6. A - - - - 5 - - - - - -
7. B - - - - - - - - - - -
8. B - - - - - 4 - - - - -
9. B - - - - - - - - - - -
10. B - - - - - - - - - - -
11. B - - - - - - - - - - -
Because instant information has to be given, it becomes necessary to resort to
guesswork, rumours, and suppositions to fill in the voids, and none of them will ever be
rectified, they will stay on the readers memory. How many hasty, immature, superficial,
and misleading judgments are expressed every day, confusing readers, without any
verification? The press can both stimulate public opinion and miseducate it. Thus, we may
see terrorists turned into heroes or secret matters pertaining to ones nations defense
publicly revealed, or we may witness shameless intrusions on the privacy of well-known
people under the slogan: everyone is entitled to know everything
Alexander Solzhenitsyn. (SM)
Q.No.1. What do you understand by Ethical Communication? What are its elements.
According to the National communication Association, ethical communication is

fundamental to responsible thinking, decision making and the development of relationship and
communities within and across contexts, cultures, channels and media. Ethical communication
enhances human worth and dignity by fostering truthfulness, fairness, responsibility, personal
integrity and respect for self and others. While unethical communication threatens the quality
of all communication and consequently the well-being of individuals and the society in which
we live.
In nutshell ethical communicators have a well developed sense of social responsibility.
An ethical communication is one which:

1) includes all relevant information
2) is true in every sense and is not deceptive in any way.
3) is accurate and sincere. Avoids language that manipulates,
discriminates or
4) exaggerates.
5) does not hide negative information behind an optimistic
attitude .
6) does not state opinions as facts.
7) portrays graphic data fairly.
IPCC _36e_ B.C. _ Communication Ethics_____________________________127

Q.No.2.Outline the importance/significance of Ethical Communication. (PM)
(For Student Self Study)
INTRODUCTION: Communication has always been of critical importance to the success of

companies and corporate reputation is one of a companys most valuable and enduring
assets. It plays a central role in the achievement of key business objectives such as creating
shareholder value, attracting, and retaining and motivating high quality people.
1. Primacy:
a) Ethical Communication is fundamental to responsible thinking, decision making.
b) It is also the basis for the development of relationships and communities, within and
across contexts, cultures, channels, and media.
2. Survival & Growth:
a) The basic business objective is of creating consumer preference for products and
services.
b) Ethical Communication helps in achieving this objective effectively.
3. Dignity:
a) Ethical Communication enhances human worth and dignity.
b) It fosters truthfulness, fairness, responsibility, personal integrity, and respect for self
and others.
4. Corporate Image:
a) When an organisation communicates internally, it shapes the
values of its employees.
b) When it communicates externally, it influences the perception of all
other Stakeholders.
5. Shareholder Value:
a) Ethical Communication promotes long-term business success and
profit.
b) Thus, it enhances shareholder value.
c) If the cost of being ethical outweighs the benefits, ethical choices
would no longer be possible.
6. Quality of People:
a) Ethical Communication is a must for attracting, retaining and motivating high quality
people.
b) Competent people are likely to search for organizations, which maintain high ethical
standards.
7. Long Term Integrity:
a) Ethical Communication involves certain actions in three basic areas
i) Cultural ii) Policy iii) Personal
b) Ethical organizations are created and sustained by individuals of personal integrity,
operating in a culture of principle, and governed by conscientious policies.
Similar Question:
1. Ethical communication improves corporate image and share holders value- comment
Ans: Refer 4th and 5th point of above question.
2. Give a brief note on organization values and Communication Ethics.

Q.NO.3. Write Short Notes On:

(a) Advantages of Ethical Communication
(b)Organization Values MTP OCT-15-4M
a) ADVANTAGES OF ETHICAL COMMUNICATION:

i) Ethical communication promotes long-term business success and profit. However,
improving profits isn't reason enough to be ethical, as soon as the cost of being ethical
outweighed the benefits, ethical choices would no longer be possible.
ii) One advantage of ethics long-term integrity.
iii) Surveys report that all employees want to work for organizations with high ethical
standards.
iv) Competent people are likely to search for organizations that maintain high ethical
standards. When competent people migrate toward ethical firms, everyone benefits
because both competence and ethics are perpetuated.
b) ORGANIZATION VALUES:
i) Values are the principles and ideas that people or organizations strongly believe in and
consider important.
ii) When people are in doubt about decisions, they frequently rely on deep-seated values
to help them make the right choice.
iii) In organizations, reliance on shared values makes setting goals easier in the face of
the competing ideas, desires, and objectives of individual employees.
iv) One can get a good idea about the values of an organization by examining its vision
and mission statement.
v) These statements are short descriptions of the purpose of organizations and the
directions they try to take to achieve success.
vi) Many organizations post their vision and mission statements in several places so that
employees know what the organization values are.
Q.No.4.What are the Factors Influencing Ethical Communication. (M 16-4M) (SM)
FACTORS INFLUENCING ETHICAL COMMUNICATION

1) Every Communication Decision has some Ethical Aspect to it, Acknowledged or
Not.
There are countless complexities involved in the communication process, but
communicators initially face three simple choices: to speak, to listen, or to remain silent.
Each choice implies an ethical decision.
In a message the sender chooses to disclose information, motives, or feelings to others.
That choice inevitably involves an ethical element. Clearly, some messages should not be
sent, such as those involving "insider information." To do so gives certain people an unfair
advantage in the marketplace. But should one share a rumour about an organizational
change with a colleague? Such actions are commonplace and appear to be less
objectionable than insider trading.
The timing and mode of communication add another layer of complexity to the ethical
dimension.
Remaining silent might seem like the safest way to avoid ethical dilemmas. But even here
there is no safe haven. Remaining silent in the face of unlawful behavior or a potentially
harmful situation presents a serious ethical decision. Silence signals consent or perhaps
tacit agreement,
2) The Ethical Nature of Communication must be Considered within the Context of
Who, What, When, and Where.
Suppose fellow employees discussed a project they were working on. This may seem
perfectly ethical on the surface. After all, such discussions actually foster effective
interdepartmental relationships; a worthy goal indeed. The problem may be that the
discussion took place in a crowded restaurant and a competitor overheard the
conversation. When the employees are confronted, they may reply, "What did we say that
was wrong? We were not talking to a competitor." But this is, of course, the wrong
question. The issue does not concern what was said or even who they were talking to. The
ethical issue revolves around where the conversation took place. Herein lies the
complexity of ethical issues-evaluations must be made on more than one dimension.
Ethical communicators are not concerned with just who or what or where or when, but with
all four dimensions simultaneously.
Q.No.5. Explain Ethical dilemmas in Communication. (PM)(M 15 4M)
An ethical dilemma is a complex situation that often involves an apparent mental conflict between
moral imperatives, in which to obey one would result in transgressing another.
Managers frequently confront tough business decisions that involve ethical issues. Sometimes
the ethical choice is also the profit maximizing choice.
But some of the toughest decisions involve situations where the manager has to choose between
profit maximization or ethical conduct.
SOME OF THE ETHICAL DILEMMAS FACED WHILE COMMUNICATING ARE:
a) Secrecy: Secrets are kept for both honorable and dishonorable reasons; Here then lies the
challenge for the manager to determine when secrets are justifiable and when they are not.
b) Whistle-blowing: Any employee who goes public with information about corporate abuses
or negligence is known as a whistle-blower.
c) Leaks: A leak is like anonymous whistle- blowing; one distinction being the propriety of the
leak; namely, that the person who leaks information cannot be cross-examined. This often
casts doubt on the credibility of the claim.
d) Rumour and gossip: Rumours and gossip seem to be an inevitable part of everyday
corporate life. Even though rumours and gossip often travel through the same networks, there
is a distinction between the terms. Rumours tend to focus on events and information, whereas
gossip focuses on people.
e) Lying: A lie is a false statement intended to deceive. Of all the ethical dilemmas discussed
thus far, lying would appear to be the least morally perplexing. Most would agree that "one
ought not to lie."
f) Euphemisms: By definition, a euphemism is using a less offensive expression instead of one
that might cause distress. For example using the expression "passed away" instead "died" is
one of the more common examples. This usage is understandable. However, people frequently
use these terms to obscure the truth. For example a purchasing agent has a far easier time
accepting a "consideration fee" than a "bribe."
g) Ambiguity: Ambiguity, like secrecy, can be used for ethical or unethical purposes Language
itself is made up of various words that carry values. So by using words in certain ways ,one
can influence others behaviour and expectations .
Similar Questions:
1. Rumors and lies lead to ethical dilemmas comment
Ans: Refer the concerned points in the above answer.

Q.No.6. Suggest guidelines to handle communication ethics dilemmas

(M13-5M,MTP-SEP15-4M)
GUIDELINES TO HANDLE COMMUNICATION ETHICS DILEMMAS:

a) Maintain candor: Candor refers to truthfulness, honesty, frankness and
one should stick to these elements while communicating with others.
b) Keep message accurate: At the time of relaying information from one
source to another, communicate the original message as accurately as
possible.
c) Secrecy: One has to maintain secrecy and confidence in communication. So one should
not divulge such information to others
d) Ensure timeliness of communication: The timing of messages can be critical. Delay in
sending messages can be assumed unethical.
e) Avoid deception: Ethical communicators are always vigilant in their quest to avoid
deception, fabrication, intentional distortion or withholding of information in their
communication.
f) Confront unethical behaviour: One must confront an unethical behaviour in order to
ensure a consistent ethical view point.
Q.No.7. Explain the Meaning of Communication Ethics. (N11- 5M)
1. Ethical Behavior means the decisions taken and their impacts on

the people related to it and the society. Ethical communication
means communicating with a sense of responsibility, towards the
society.
2. Ethical communication enhances human worth and dignity by
fostering truthfulness, fairness, responsibility, personal integrity and respect for self and
others. One advantage of ethics is long-term integrity.
3. According to the National communication Association, ethical communication is
fundamental to responsible thinking, decision making and the development of relationship
and communities within and across contexts, cultures, channels and media. (PM)
To take the decisions, due thought has to be given about their impact on the stakeholder, the
organisation and the society, as a whole.
There are essentially two types of communication undertaken by an

organisation:
Internal : It shapes the values of the employees of an organization.
External : It influences the perception of the external public.
Ethics play a crucial role in communication.
The word ethics comprises the whole image of human conduct, with regard to an
organization. It includes:
1. Colleagues 2. Staff and workers
3. Shareholders 4. Customers
5. The industrial community 6. The government
7. The environment and even 8. The nation and its interest

Q.No.8. Outline the guidelines of National Communication Association (NCA), in the
context of Ethical Communication.
The National Communication Association (NCA) states that, Ethical Communication

enhances human worth and dignity by fostering truthfulness, fairness, responsibility, personal
integrity, and respect for self and others. The following are the rules for Ethical
communication -
1. Truthfulness, accuracy, honesty, and reason are essential to the integrity of
communication.
2. Advocate freedom of expression, diversity of perspective, and tolerance of dissent to
achieve the informed and responsible decision making fundamental to a civil society.
3. Strive to understand and respect other communicators, before evaluating and responding
to their messages.
4. Access to communication resources and opportunities are necessary to fulfill human
potential contribute to the well-being of families, communities, and society.
5. Commit to the courageous expression of personal conviction in the pursuit of fairness and justice.
6. Advocate sharing information, opinions, and feelings when facing significant choices while
also respecting privacy and confidentiality.
7. Accept responsibility for the short-term and long term consequences for our own
communication and expect the same of others.
Q.No.9. Rumors and gossips are synonymous
Rumors & Gossips are unavoidable elements. Gossips focus on people and Rumors focus on
events.
Q.No.10. Lying breaks down the trust between individuals.
Lies are false statement which are use to deceive in business. lies are often used to avoid
pressure but it ultimately breaks the trust between individuals and also between individuals
and organisations ,which is a cornerstone for business relations.
Q.No.11.Discuss whistle blowing.
Any employee who goes public with information about corporate abuses or negligence is
known as a whistle-blower. Corporations and managers legitimately expect employee loyalty.
Greed, jealousy, and revenge motivate some whistle-blowers. Some are simply misinformed.
Some confuse public interest with private interest. Certainly the community has a right to know
about corporate practices that are potentially hazardous, yet courting the whistle-blower too
aggressively can be problematic.
Copyrights Reserved

TEST YOUR KNOWLEDGE

1. Which is the crucial factor to influence ethical communication? Why? Support your
argument with suitable example.
2. As a CEO of medium scale organization, how can you improve corporate image and
shareholder value?
3. For what purpose, do you suggest external communication in your organization?
4. Which Communicators act in good faith, and do not mislead or receive people for personal
reasons?
5. What do you mean by communicating with a sense of responsibility?
6. Which plays a Crucial role in Communication?
7. Silence may appear to be the safest way to avoid ethical concept. Is it right in all
circumstances? Justify your answer.
8. Organizations deep rooted values should be reflected in which statements of an
organization?
9. Which may appear to be the safest way to avoid ethical conflict?
10. Which focuses on people & which focuses on events?
11. Which are used deliberately to hide the truth an unethical acts?
12. Which right does every organization has to protect sensitive information?
13. Who is a Whistleblower and what is Whistle blowing policy?
Verified by: Chandra Sekar Sir,

Copyrights Reserved
THE END

6. COMMUNICATION IN BUSINESS ENVIRONMENT
TOPIC - WISE ANALYSIS OF PREVIOUS EXAMINATIONS
M-
M-11 N 16
M- N- M- N- N- M- N- M-
Chapter/Topic Name ABC TO -15
09 09 10 10 13 14 14 15
M-13
NOTICE A - 5 5 4 - - 4 - - - -
AGENDA B - - - - - - - - - - 4
MEETINGS A - 5 - - - 4 - - - 4 -
CIRCULAR TO EMPLOYEES B 5 - - - - - - - - - -
CHAIRMAN SPEECH B - - - - - - - - - - -
PRESS RELEASE B - - - - - - - - 4 - -
CORPORATE
ANNOUNCEMENTS BY C - - - - - - - - - - -
STOCK EXCHANGES
LETTERS A - - - - - - - - - - -
RESOLUTIONS B - - - - - - - - - - -
NOTICE OF STATUTORY C - - - - - - - - - - -
MEETING
Q.No.1.Draft a notice for ABCs Annual General Meeting with four ordinary businesses.
(M 07 5M)
NOTICE OF ANNUAL GENERAL MEETING: ABC Ltd.

Notice is hereby given that the 15th Annual General Meeting of the members of ABC will be
held on Monday the 15th day of September 2006 at the registered office of the Company
. at 10 a.m. to transact the following business:
Ordinary Business:
a) To Receive, consider and adopt the Audited Balance sheet of the company as on 31st
March, 2006 and the Profit and Loss account for the year ended on that date and Auditors
and directors reports thereon.
b) To declare dividend for the year ended 31st March, 2006
c) To appoint a director in place of Mr. ..
d) To appoint Statutory Auditors of the Company.
NOTE: A member entitled to attend and vote is entitled to appoint a proxy to attend and vote
instead of himself and proxy need not be a member of the company.
For and on behalf of the Board of Directors
Registered Office
Q.No.2. ABC Ltd. wants to hold its Annual General Meeting on 15th December, 2008 to
discuss the matters relating to ordinary business. Draft a notice along with notes in
brief for calling annual general meeting of its shareholders. (N 08 5M,M 16- 4M)
NOTICE:
Notice is hereby given that the 3rd annual general meeting of the ABC Ltd. will be held on
Friday, the 15th of December, 2008, at the registered office of the company at 123, tower
complex, Lucknow Distt. Lucknow (U.P.) at 11.00 a.m. to transact the following ordinary
business:
1. To receive, consider and adopt the audited balance sheet of the company as on 31st
march 2008 and the profit and loss account for the year ended on the date, auditors and
directors reports there on.
2. To declare dividend for the year ending 31st March 2008.
3. To appoint a director in place of Mr. A.V. Kamath, Who retires by rotation and being
eligible, offers himself for re-appointment.
4. To appoint a director in place of Mr. J.K. Smith, Who retires by rotation and being eligible,
offers himself for reappointment.
5. To appoint statutory auditors of the company and fix their remuneration.
Regd. Office
123, Tower complex For and on behalf of Board of Directors.
Dist. Lucknow (U.P.)
Sd/-
Dated: Oct. 15, 2008 Chairman of the meeting
Notes:
a) All member entitled to attend and vote, is entitled to appoint a proxy to attend and vote
instead of himself and the proxy need not be a member of the company.
b) The register of members and the share transfer books of the company will remain closed
from 7th day of December 2008 to 15th day of December 2008, both days inclusive.
c) Members are requested to notify immediately change of address, if any, to the companys
registered office. While communicating to the company, please quote folio number.
d) Shareholders desirous of answering any information concerning the accounts and
operations of the company are requested to address their questions to the companys
head office, so as to reach at least 5 day before the date of the meeting so that information
may be made available at the meeting to the best extent possible.
Q.No.3. Draft a notice of Annual General Meeting with a special business.

(M 03, 05, 07 - 10M)
AGM NOTICE
Notice is hereby given that, the 11th Annual General Meeting, of the Members of ABC Ltd., will
be held on Thursday, the 16th day of September, 2007, at the Registered Office of the
company, at Plot Nos. 16, Harsha Complex, Ameerpet, Hyderabad, at 10 A.M., to transact the
following business ___
ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Balance Sheet of the company, as on 31st
March, 2006, and the Profit & Loss Account for the year ended on that date, and the
Auditors and Directors Reports thereon.
2. To declare dividend for the year ending on 31st March, 2007.
3. To appoint a Director in place of Mr. , who retires by rotation and being
4. To appoint a Director in place of Mr. , who retires by rotation and being
5. To appoint Statutory Auditors of the company and fix their remuneration.
SPECIAL BUSINESS: To consider and, if thought fit, to pass with or without modification(s),
the following resolution as an ordinary resolution:
Resolved that, pursuant to the provisions of Sections 203, 197 and other applicable
provisions, if any, of the Companies Act, 2013, the consent of the Company be and is hereby
accorded to the re-appointment of and remuneration payable to Mr. K. Sharath Prasad as
Managing Director, for a period of five years, w.e.f. 1st July, 2007, on the following terms and
conditions:
Copy Rights Reserved
1. Salary: Rs. 1,50,000 per month
2. Perquisites:
a) Medical reimbursement: Expenses incurred for self and family, subject to a ceiling of
one month salary in a year or three months salary over a period of three years.
b) Leave travel concession for self and family once in a year, in accordance with the
Rules of the Company.
c) Club fee: Fees of clubs, subject to a maximum of two clubs, provided that no life
membership or admission fee will be allowed.
d) Personal accident insurance: Premium not to exceed Rs. 10,000.
e) Companys contribution towards pension/superannuation fund, as per Rules of the

Company, for the time being in force, but such contribution, together with P.F., shall
not exceed 25% of the salary or such other increased amount, provided that the same
is not taxable, under the Income-tax Act, 1961.
f) Companys contribution towards P.F., as per the rules of the company, for the time
being in force, but not exceeding 10% of the salary.
g) Gratuity, not exceeding half months salary for each completed year, subject to a
ceiling of Rs. 20 lakhs.
h) Free use of the telephone at residence, but personal long distance calls shall be billed
by the company.
i) Free use of companys car with driver, for the business of the company.
j) Earned / privilege Leave: One months leave, with full pay and allowances for every
11 months of service, subject to the condition, that leave accumulated but not availed
of will not be allowed to be encashed.
Regd. Office: For and on behalf of Board of Directors
16, Harsha Complex
Ameerpet,
Hyderabad Chairman of the Meeting
Notes:
a) A member, entitled to attend and vote, is entitled to appoint a proxy to attend and vote,
instead of himself and the proxy need not be a member of the company.
b) Explanatory statement, relating to special business, is annexed to this Notice, as required
Under Section 102, of the Companies Act, 2013.
c) The Register of members and the Share Transfer Books of the Company will remain closed
from 7th day of September, 2006 to 15th day of September, 2006, inclusive of both days.
d) Members are requested to notify immediately the change of address, if any, to companys
Registered Office. While communicating to the company, please quote the folio number.
Shareholders desirous of obtaining any information concerning the accounts and operations of
the company are requested to address their questions to the companys Head office, so as to
reach at least 5 days before the date of the meeting so that the information may be made
available at the meeting to the best extent possible.
Q.No.4. Board of Directors of Prakash Traders Private Limited proposes to convene an

Extraordinary General Meeting for changing the name of the company to Prakash
International Private Limited. Draft the notice for calling the Extraordinary General
Meeting of the Members. (RTP M - 14) (PM, M 08 5M, MTP)
Notice for Extraordinary General Meeting of the Members

Notice is hereby given that extraordinary General Meeting of the members of Prakash Traders
Private Limited will be held on Monday , the day of 2008, at the registered office of the
company at.Mumbai at..P.M. to transact the following business.
Special Business: To consider and if thought fit, to pass with or without modification the
following resolution as special resolution.
RESOLVED THAT, subject to the approval of the Central Government under section 13 of the
Companies Act, 2013, the name of the company be and is changed from Prakash Traders
Private Limited to Prakash International Private Limited and that consequent to this change
clause I of the Memorandum and Article .. Of the Articles of Association of the company be
altered accordingly.
By order of the Board of Directors of Prakash Traders Private Limited
Secretary
Place:
Date:
Q.No.5. As a secretary of AB forgings Ltd., draft a notice of a board of directors meeting

to consider any five items as agenda of the meeting, to be held on November 15, 2008 at
the registered office of the Company at Mysore. (N 08 5M)
NOTICE OF A BOARD MEETING
AB forgings Limited
Ph. No- Saiyaji Road
Fax - Mysore 32
Ref. No. October 10, 2008
(Notice regarding meeting of director)
Dear Sir/ Madam
This is to inform you that a meeting of the board of director will be held on November 15, 2008
at the registered office of the company, 281 Saiyaji Road, Mysore- 32 at 11. 30 AM to consider
the following:
1. To approve the minutes of the last meeting
2. To consider matters arising out of the minutes.
3. To consider and pass the statement of accounts for payment
4. To approve transfer of shares
5. To sanction an interim dividend @ 10% (tax free) on the equity shares of Rs 10/- each. Rs
8/- per shares paid up
6. To consider any other matter with the permission of the chairperson and
7. To fix the date and time of the next meeting.
Your faithfully
Date: (Ajay Garg)

Q.No.6. Draft a notice for calling the meeting of the Board of Directors of a company.
In this meeting, following transactions have to be proposed :-
i) Mr. X to be co-opted as an Additional Director
ii) Decision to be taken to buy-back companys equity shares
Notice: Meeting of Board of Directors:

Notice is hereby given that meeting of the Board of Directors of the company will be held at
the registered office on.ata.m./p.m. to transact the following:
Agenda
1. Confirmation of the minutes of the previous Board Meeting held on..to.
2. Discussion of the progress in business.
3. Co-option of Mr. RS/ X as an Additional Director of the company.
4. Buy back of 10% of the equity shares of the company.
5. Any other matter with the permission of the chair.
Place:. By Order of the Board of Directors

Date:...
Similar Question : Draft a notice for calling the Board of Directors meeting of M/s. MN Limited
where Mr. RS is co-opted as an Additional Director and also to consider buy-back of
companys equity shares to an extent of 10%, of issued share capital.
Q.No.7. MNP Limited was incorporated in September, 2010. Now the company wants to
hold its first meeting of the Board of Directors. Draft a notice of the said meeting along
with agenda. (N 10 4M)
NOTICE OF THE FIRST MEETING OF THE BOARD OF DIRECTORS

MNP Limited
Date:
To,
(Director)
Dear Sir / Madam,
This is to inform you that the first meeting of the Board of Directors will be held at the
Registered Office of the company on 15th September, 2010 at 3 p.m. to transact the business
as per the enclosed agenda.
You are requested to please attend the meeting.
Yours faithfully,
Secretary
For and on behalf of the Board of Directors
Copyrights Reserved
Place:.
Date:..
AGENDA
1. Election of the Chairman of the Meeting.
2. To produce the Certificate of incorporation, the memorandum and the Articles of
Association.
3. Election of the Chairman of the Company.
4. Appointment of Managing Director
5. Appointment of Secretary
6. Appointment of Auditors
7. Appointment of Bankers and approval of the opening of a Bank Account and its operation
8. Adoption of the companys seal.
9. Approval of the statement of preliminary expenses by the promoters and adoption of the
preliminary contracts and underwriting contracts.
10. Any of the business with the permission of the chairman.
Q.No.8. Fifth Annual General Meeting of the shareholders of Devrishi Limited was held
on 20 August, 2014 at its registered office at Mumbai. 55 shareholders attended the
meeting in person and 6 shareholders in proxy. Several ordinary businesses regarding
adoption of audited balance sheet, declaration of dividend, appointment and re-
appointment of directors and auditors were transacted at the meeting. Draft the minutes
of the fifth Annual General Meeting of the shareholders of Devrishi Limited.
MINUTES OF THE 5TH ANNUAL GENERAL MEETING
FIFTH ANNUAL GENERAL MEETING HELD AT

PLACE: 25TH DEVRISHI APARTMENT, ANDHERI EAST, MUMBAI
DATE: 20TH AUGUST, 2014
TIME: AT 11 A. M.
Present
1. Shri Devrishi M. D. in the chair Copy Rights Reserved
2. Shri X Director. To MASTER MINDS, Guntur

3. Shri Y Director.
4. Shri Z Director.
5. Shri T Director.
6. Shri R Director.
7. Shri Alok, representative of Alok and Co. Chartered Accountants.
8. Shri S., Secretary of the company.
55 shareholders attended the meeting in person and 6 shareholders in proxy.
1. Notice: The notice convening the meeting was read by the Secretary of the company.
2. Directors Report and Accounts: With the consent of the members present, the Directors
Report and Accounts having already been circulated to the members were taken as read.
3. Auditors Report: The Auditors Report was read
4. Adoption of Directors Report, etc.: The Chairman then invited queries from the
members present, on Directors report, Accounts and Auditors and auditors Report, but
there was no query. Thereafter, the Chairman proposed the following resolution which was
seconded by some of the members namely..
Resolved that the Directors Report, audited Balance Sheet as on 31st March, 2014 and
Profit and Loss Account for the year ended 31st March, 2014 and Auditors Report thereon
be and the same are hereby received, considered and adopted. Carried unanimously.
5. Dividend:
Proposed by Shri Devrishi M.D
Seconded by Shri X and Y Directors
Resolved that the Dividend as recommended by the Board of Directors for the year ended
31st March, 2014 at the rate of Rs. 5/- per share on the equity share capital of the
company, subject to deduction of tax at source be and is hereby declared for payment to
those shareholders whose names appeared on the Register of Members as on
. 2014.
Carried unanimously
6. Directors:
Proposed by ..
Seconded by .
Resolved that Shri Y who retires by rotation and is eligible for re-appointment to and is
hereby re-appointed a director of the company.
Carried unanimously.
7. Auditors:
Proposed by X Director of the Company.
Seconded by A and B Shareholders of the Company.
Resolved that M/s Alok and Company Chartered Accountants, be and are hereby
appointed Auditors of the Company to hold office from the conclusion of this meeting until
the conclusion of the next Annual General Meeting at a remuneration of Rs. 50,000/-
Carried unanimously.
The meeting closed with a vote of thanks to the Chair.
Dated: 2nd Sepember,2014
Sd/-
Chairman
Q.No.9. Third Annual General Meeting of ABC Limited was held on 28th September,
2007.Several business was transacted at the meeting including the adoption of annual
accounts for the year ended 31st March, 2007. The meeting was attended by 30
members in person and 5 members in proxy. Draft the minutes of the Annual General
meeting indicating how shall the adoption of accounts being one of the business
transacted at' the meeting, be recorded. (N 07 5M, N 13 4M)
Minutes of 3rd Annual General Meeting of the shareholders of ABC Ltd held at 4 p.m. on 28th
September, 2007.
Present
1. 5 members in proxy.
2. .................. Director
3. ...................Chartered Accountant
4. ...................Secretary.
Mr. ..................., Chairman took the chair, in accordance with articles of the company. The
quorum being present, chairman called the meeting to order. The notice convening the
meeting was read by the Secretary. The auditors report was read by the Secretary.
Adoption of Accounts
The Chairman then invited queries from the members present on Directors report, accounts
and auditor and auditors, report, but there was no query. Thereafter, the Chairmen proposed
the following resolution which was recoded by...............

Resolved that the Directors' Report audited balance sheet as on 31st March, 2007 and profit
and loss account for the year ended 31st March, 2007 and auditors report thereon be the
same are hereby received, considered and adopted.
Carried unanimously
The meeting conducted ended with a vote of thanks to the Chair.
Sd/-
Chairman
Dated .2007
Q.NO.10.The general meeting of PQR Limited was held on 20th January, 2010 at its
registered office at Kolkata. As a secretary of the company, draft the minutes of the
general meeting of the shareholders of the company.
Minutes of the general meeting

Minutes of the proceeding of the general meeting of PQR Limited held on 20th January 2010
at 11.00 a.m. at the Registered Office of the company at Bada bazaar Kolkata.
Mr. A Chairman
Mr. B Director
Mr. C Director
Mr. C Director
Mr. D Secretary
and 120 members and 30 proxies.
The secretary read the notice convening the meeting.
The Chairman welcomed the members and reviewed the activities of the company since its
incorporation.
The chairman informed the members that a list of members of the company has been placed
on the table for the inspection of members.
With the permission of the members, the chairman took as read the Statutory Report. It was
moved that the Statutory Report sent to the members with the notice of the meeting be
approved. Accordingly, it was resolved that the Statutory Report be and is hereby approved.
All the pre-incorporation and provisional contracts were approved by the members of the
company.
The meeting was ended with a vote of thanks by the members and chairman declared the
meeting closed.
Date Secretary Chairman
Q.No.11. Draft a circular for employees insisting on punctuality. (M 09 5M)
CIRCULAR
Draft a circular for employees insisting on punctuality.
Specimen Circular
Jaipee Electronics Ltd.
Civil Lines, Kanpur. Copyrights Reserved
Circular No: To MASTER MINDS, Guntur

Date

To all employees
Recent surprise checks have revealed that there is considerable late coming and in some
cases, even the standard instructions for ensuring punctual attendance are not followed. All
employees are requested to strictly adhere to the arrival, departure and lunch timing of the
office. Tendency to move around in the corridors and canteen would also be viewed seriously.
Cooperation of all employees is solicited.
Sd/-
J.P.Dutta
Manager H.R
Q.No.12. Draft a simple Chairmans Speech. (For Students Self Study)
TATA METALIKS LIMITED

Dear Shareholders,
The year just ended was one of mixed results for the Indian economy. It experienced a decline
in economic growth compared to previous year. The monsoon failure hampered agricultures
performance and brought down its growth considerably thereby adversely impacting the
overall GDP position. Against these odds, the Indian industry grew by more than 6%, double
the growth in the previous year while exports grew by more than 20%. These sectors continue
to show encouraging performance.
Integrated steel plants and secondary producers are amidst resurgence, exhibiting excellent
performance largely driven by buoyant market conditions. Your company registered a
milestone by achieving record sales and profit. This was accomplished through commendable
improvement in productivity and upgrade of technology. Several initiatives such as total
productive maintenance and total operational performance coupled with excellent marketing
efforts went a long way in ensuring that Tata Metaliks pig iron continued to be an attractive
product in the market. The efforts have contributed in Tata Metaliks being ranked 21st amongst
Wealth creating companies by a popular business magazine of India.
In keeping with sustainability considerations of a one-product company, your company has
considered several strategic proposals, revisited the merger and acquisition option with going
concerns in similar businesses and downstream integration to become a supplier of choice for
all customers while enhancing shareholders value.
Tata Metaliks has served as a good corporate citizen, concentrating on community and rural
development in the Kharagpur belt. Lack of industrialization and investment inflow in this belt,
though, are cause of concern. I am confident the State Government, considering the potential
of the belt, will take meaningful policy decisions to make it an attractive destination for
corporate and entrepreneurs, in the not too distant future. I take this opportunity to thank you
for your confidence in Tata Metaliks and thank the management, the union, all the employees
and stakeholders for the commendable achievements of the year.
MUKHERJEE
(Chairman)
Kolkata,
10th May, 2008
Q.No.13. what is a press release? What are the guidelines for drafting a press release?
(RTP M 13) (M15-4M)
PRESS RELEASES
A press release is information about an organizations activities, views, version, which are
newsworthy and sent to the press and other media. The press release should contain
worthwhile material, which has some news value and not a trivial matter. It should be timely
and accurate.
GUIDELINES FOR DRAFTING PRESS RELEASE:
a) The press release should be written in a journalistic style. It should provide facts or
information of interest to the readers and should attempt to cover all aspects of a specific
subject.
b) There should not be any loose ends.
c) It should be on a subject which is recent or in news.
d) The release should not be generally lengthy.
e) It should be concise and to the point. It has not much place for subsidiary or background
material.
f) The release is a piece of clear writing without any ambiguity, without any effort towards
color or ornamentation.
g) The introduction or lead should be in a summary format as it is a news story. The relative
value of the various ingredients of the subjects in the press release is weighted and
evaluated and the most pertinent of them are included in the lead.
h) The releases should have a consistent format.
i) Generally, the name of the organization from where the release emanates is given on the
top. The date and place are indicted on the top right side.
j) The release should have a title and a sub-title also, if necessary. It should have a suitable
introductory paragraph. In the case of releases from non-official organization, it is
desirable also to mention the designation of the person issuing the release and his
telephone number.
Q.No.14. What are different types of press releases?
PRESS RELEASES:
a) The term press release refers to news released to the public through media in the form of
press conferences written in a journalistic style.
b) It should provide facts or information of interest to the readers and should cover all aspects
of a specific subject.
The press releases covering news in the case of the government are mainly of four types-
press notes, handouts, press communiqus and unofficial stories or unofficial hand-outs.
1. Press Notes:
a) Press notes are reasonably informal in character
b) They are issued on important matters, e.g., raising or lowering of tariff rates, etc
c) The press note carries the name of the ministry/department and the place and date at
the bottom left-hand corner. Heading or sub-heading is given in press notes.
2. Hand Outs:
a) The second category is hand-outs. They are issued on a variety of subjects and on
day-to-day activities of the ministry/department, VIP speeches, questions and answers
in parliament, etc
b) The hand-out is also less formal type of release and not issued under the
governments formal authority.
c) It bears the name of the PIB (Press Information Bureau) of other releasing agency on
the top without any mention of the ministry/department to which the release pertains.
d) The place and date are indicated on top at right-hand side.
e) One of the most important common categories of handouts relate to the speeches of
ministers or other high officials.
f) The speech when released to the press in the form of handout is summarized and
properly edited.
g) Formal introduction and concluding remarks are omitted and redundant and repetitive
material taken out. A proper title and sub-title are given.
h) The important aspects which are to be stressed are included in the beginning
paragraph or in the lead. The full text of the speech is not released unless the subject
is of very great importance.
While covering inaugural and other functions where VIPs make speeches, the press
release should stress on the significance of the function and try to spell out in concrete
terms the gains to the community rather than reproducing the speech. For instance, the
opening of a new branch of a bank or of power house at a particular place should be an
opportunity to the communicator to bring out in the press release the specific gains which
would accrue to the people of that area rather than only spotlighting on the dignitary and
his speech.
The speech of the Prime Minister or of a very important dignitary at formal occasions or at
important gatherings is generally released in full to ensure correct reporting. The full text is
also helpful to the editors and column writers. It is also utilized for reference purposes in
the future.
3. Press Communiques:
a) The third type is press communiqus and they are issued when some important
government decisions or announcements are made such as cabinet appointments,
conclusion of the foreign dignitaries visits, international agreement, etc.
b) The press communiqu is formal in character. It carries the name of the ministry or
department, the place and the date at the bottom left-hand corner of the release.
c) Generally, the press is expected to reproduce the press communiqu without any
substantial change. No heading or subheading is given on press communiqus.
4. Unofficial Hand Outs:
a) Lastly, unofficial hand-outs are issued on a subject where the government would not
like to assume official responsibility in the matter but feels that there may be positive
advantages in making information public unofficially.
b) These hand-outs are supplements to oral briefings. They are given across the table to
press correspondents and no general release is made. The unofficial hand-out does
not have the imprint of the PIB (Press Information Bureau) or of other releasing
agencies. The data and place are indicated at the bottom left-hand corner.
Similar Question: Define the term press release.
Answer: The term press release in its narrower sense is used for releases covering news. The
press release contains worthwhile material which has some news value. It is not only
unnecessary expenditure but also damages the reputation of the concerned publicity /
information department if the release is on a very trivial matter.
Similar Question: Explain press notes.
Answer: Press notes are less formal in character. They are issued on important matters, e.g.,
raising or lowering of tariff rates, etc. The press note also carries the name of the
ministry/department and the place and date at the bottom left-hand corner. Heading or sub-
heading is given in press notes.
Copyrights Reserved

Q.NO.15. Draft a press release with respect to Simplified Existing scheme by a further
period of one month to defunct companies?
Model Press Release

Press Note No 04/2005 Released by the Ministry of Corporate Affairs. F. No.
17/78/2001/CL.VGovernment of India Ministry of Corporate Affairs Press note 04/2005
30th July 2005
Subject: Simplified Exit Scheme, 2005- Extension of scheme by a further period of one month
1. In order to give an opportunity to defunct companies desirous of getting their names struck
off from the Register of Companies under the Companies Act, 2013 through a simplified
procedure, the Central Government (Ministry of Corporate Affairs) had introduced a
scheme namely, the Simplified Exit Scheme, 2005 (SES, 2005) vide General Circular
2/2005 dated 28.1.2005. The Scheme was effective from 1st February, 2005 and was to
come to an end on 31st July, 2005.
2. On account of difficulties experienced due to adverse weather conditions in different parts of
the country, it has been decided to extend the scheme by a further period of one month up to
31.8.2005, to afford further opportunity to defunct companies to avail the benefits of the
scheme.
3. Copy of this Press Note has also been placed on the Web page of the Ministry of
Company Affairs
Q.No.16. Draft a Model Press Release Regards to dress code for CA s.

(For Students Self Study)
Dress code for CAs by August end 2006 as appeared in business newspaper:
A dress code for practicing CAs will be out by August end, with the Institute of Chartered
Accountants of India giving finishing touches to the recommendatory proposal to give its
professionals a corporate look and don a new brand identity.
ICAI President, TN Manoharan said the proposal would not be mandatory. It will be more of a
recommendation, though we expect it to be followed by professionals, Mr. Manoharan said.
He said the code would not be for day-to-day affairs, but for events like business meetings and
other official representations and engagements. Mr. Manoharan clarified the code would be
applicable only to professionals working in individual or partnership capacity. "Those who are
employed with firms are not bound to follow, as they will be acting as per the requirements and
stipulations of the firm they work for, he added. A formal dress code, he said, could be a full-
sleeve shirt, tie and shoe.
Q.No.17. Corporate announcements by stock exchanges - Illustrations
1. The Sirpur Paper Mills Ltd has informed the Exchange that the production on all machines
and normal functioning at the mill at Sirpur Kaghaznagar has re-started on August 06,
2006. Insurance claim has been lodged with necessary authorities.
2. Rama Newsprint And Papers Ltd has informed the Exchange that ICICI Bank Ltd (ICICI)
has withdrawn nomination of Shri Nagesh Pinge as its Nominee Director on the Board of
Directors of the Company w.e.f. August 2,2006 and has appointed Ms. Neeta Mukerji as
its Nominee Director on the Board of the Company w.e.f. August 2,2006.
3. Satyam Computer Services Ltd has informed the Exchange regarding a press release
dated August 07, 2006, titled Satyam Partners with Planview, Inc.. The details of the
press release shall be available on the NSE website (http://www.nseindia.com) under:
Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate
Announcements
4. Wipro Ltd has informed the Exchange that the Board of Directors vide their Circular
resolution effective August 04, 2006 resolved to issue and allot 29520 equity shares of
Rs.2/- each pursuant to exercise of the stock options by the eligible employees under the
Wipro Employee Stock Options Plans i.e., WESOP 1999 and WESOP 2000.
5. Board Meetings Announced
Company : FLEX INDUSTRIES LTD.
NSE Symbol : FLEX
Board Meeting Date : 17-AUG-2006
Purpose : Audited Accounts/ Others
Details : To consider and approve the Audited Annual Accounts for the
financial year ended March 31,2006 and to fix the day, date and
time of the AGM of the Company.
Q.No.18. Mr. X issued a cheque to Mr. Y for the payment on the account of purchase of
the goods. Due to certain exigency in the business, X withdraws certain amount from
his bank account. In order to avoid the dishonor of the cheque, he decides to stop the
payment of cheque. Write a letter requesting the Bank to stop payment of a cheque.
(RTP Nov 13)
Letter requesting to stop payment of a cheque

The Manager,
Bank of India,
Delhi 17th June, 2013
Reg: Stop Payment of cheque No. ------- dated -------- for ----------- favouring Y
Dear Sir,
Please stop the payment of the cheque no.---------------- dated --------------------- for the Rs--------
--------- favouring Y.
Please acknowledge the receipt of the letter.
Yours faithfully,
X
(customer)
Q.No.19. Draft a letter informing the customer that his cheque has been dishonoured.
-----------Bank Ltd
----------Branch,
New Delhi
To,
-------- Date
Regarding: Dishonour of cheque no.-------drawn on ----------, dated--------
Dear Sir,
We inform you that your above cheque due to insufficient fund in your account was not clear
and was received back by us. The cheque has been sent to you by registered post dated ------
--- at your residential address.
Sd/-
Manager of the Bank

Q.NO.20. Write a letter to bank requesting to provide statements of salary accounts of

three months i.e from1st January of 2014 to 31st march 2014. (RTP M 15 )
To,
The Manager,
Axis Bank,
Delhi
Reg: Statement of Salary A/C no from 1st of January, 2014 to 31st of March, 2014
Dear Sir,
As you aware that I, have been maintaining a salary account with your esteemed
organization for the last ten years and also all our family deposits are with this branch.
I, am in need of statement of my salary accounts of the above mentioned period.
I, hereby request you to provide the statement at an earliest.
Thanking you.
Yours faithfully,
(Mr. X)
(Customer)
Verified by: Venkanna Sir, Pavan Sir,

Kareem sir
THE END

7. BASIC UNDERSTANDING OF LEGAL DEEDS AND DOCUMENTS
M-
CB 90
-
90
-
01 0
- -1 11 21 2
- -1
31 3
- -1
41
-
41 51
-
51 6
1
-
Chapter/Topic Name A M N M N TO M N M N M
-
N M
-
N M
N-11
PARTNERSHIP DEED A 5 5 - 4 - - 4 - - - - - - -
POWER OF ATTORNEY A - - - - - - 4 - - - 4 - - -
LEASE DEED A - - 5 - - - - 8 - - - - - -
AFFIDAVIT B - - - - - - - - - - - - - -
INDEMNITY BOND 5
(SHARES, DIVIDEND A 5 - - - - 4 - - - - - - -
WARRANT)
GIFT DEED A - - - 4 - - - - - 4 - - - -
MOA C - - - - - - - - - - - - - -
AOA C - - - - - - - - - - - - - -
ANNUAL REPORT B - - 5 - - - - - - - - - - -
DEED OF GUARANTEE C - - - - - - - - - - - - - -
DEED OF MORTGAGE C - - - - - - - - - - - - - -
TRUST DEED C - - - - - - - - - - - - - -
Legal drafting is of great importance to a person for entering into various types of agreements
with different parties and in executing various types of documents in favour of the other.
This Legal drafting is a technical writing used by lawyers, judges, legislators and others in law
to express legal analysis and legal rights, privileges, functions, status and duties.
Drafting is of importance for the three reasons:
a) For obtaining legal consultations
Copyrights Reserved
b) For carrying out documentation To MASTER MINDS, Guntur
c) For interpretation of the documents
Q.No.1. Discuss how legal drafting has been categorized.
LEGAL DRAFTING HAS BEEN CATEGORIZED INTO THREE FORMS:

DOCUMENT: Generally understood, a document is a paper or other material thing giving
information, proof or evidence of anything. The Law defines document in a more technical
form. For example,
a) Section 3 of the Indian Evidence Act, 1872 states that document means any matter
expressed or described upon any substance by means of letters, figures or marks or by
more than one of those means, intended to be used, or which may be used, for the
purpose of recording that matter.
b) Section 3(18) of the General Clauses Act, 1897 states that the term document shall
include any matter written, expressed or described upon any substance by means of
letters, figures or marks, or by more than one of those means which is intended to be
used, or which may be used, for the purpose of recording this matter.
IPCC _36e _B.C._ Legal Deeds_____________________________________148

From above it can be concluded that Document is something on which things are written,
printed or inscribed, and which gives information, any written thing capable of being evidence.
Any legible information which is set down in a lasting form would be a document. Document
includes electronic document.
ACADEMIC INTEREST:
A Contract in writing is a document. Words printed, Lithographed or photographed are
documents. An inscription on a metal plate or stone is also a document. All deeds are
documents, but all documents need not be deeds.
INSTRUMENT:
a) In common usage, 'instrument' means a formal legal document, which creates or confirms
a right or records a fact.
b) It is a formal writing of any kind, such as an agreement deed, charter or record, drawn up
and executed in a technical form.
c) It also means a formal legal document having legal effect, either as creating liability or as
affording evidence of it.
d) Section 2(14) of the Indian Stamp Act, 1899 states that instrument includes every
document by which any right or liability is or purports to be created, transferred, extended,
extinguished or recorded.
For e.g., A deed of conveyance, stock certificates, bonds, coupons, notes, cheques, deeds,
will, award, record, charter, etc
DEED: The Legal Glossary defined deed as instrument in writing (or other legible
representation or words on parchment or paper) purporting to effect some legal disposition.
Simply stated, deeds are instruments though all instruments may not be deeds. However, in
India no distinction seems to be made between instruments and deeds.
In ascertaining the legal effect of a transaction the Court seeks in the first instance to
determine the intention of the parties and when ambiguous expressions are used, the court
may normally adopt that determination which upholds the deed, if the parties thereto have
acted on the assumption of its validity. The deed has to be read as a whole and, if possible,
effect should be given to all parts thereof.
Deeds may be regarding (a) transactions of immovable properties; (b) transactions of movable
properties; (c) business dealings or commercial transaction. For the purposes of our study,
drafting of the following documents is relevant:
a) Partnership deed
b) Power of attorney
c) Lease deed
Copyrights Reserved
d) Affidavit To MASTER MINDS, Guntur
e) Indemnity bond
f) Gift deed
g) Memorandum and Articles of Association of a company
Q.No.2. Elaborate various parts of a deed.
PARTS OF A DEED:
1. Nature of the deed: Describe the nature of deed. For example, THIS DEED OF
PARTNERSHIP CONSTITUTION. (Should be in capital letters)
2. Description of time, date & place: THIS DEED OF PARTNERSHIP CONSTITUTION is
made on 14th day of April, 2012.
IPCC _36e _B.C._ Legal Deeds _____________________________________149
Date & Place:
a) Date in the context of deed is the date on which deed has been executed
b) If a deed is undated, deed is valid subject to burden of proof
c) Date should be written in words and in figures
d) The place is the territorial and legal jurisdiction
e) An illustration of this part is as follows:-
THIS DEED of Lease made at Gurgaon on the First day of June, two thousand eight
(01.06.2008).
3. Description of parties :
a) Names of the Parties should be clearly described.
b) Describe the party with Name of (N/O), Daughter of (D/O), Age of (A/O), Resident of
(R/O) etc.
c) Separate To address with AND
d) Assign each party with the first party, the second party and so on ..(The First party,
The Second party)
e) While describing the parties always transferor should be mentioned first and the
transferee comes in the last.
4. Recitals: Recitals clause is the brief description of the deed. It should be drafted in
paragraph. It should be started with WHERE AS. (Should be in capital letters)
5. Testatum: This is the full description of the deed i.e. Terms & Conditions. It should be
started with NOW THIS DEED IS WITNESSETH (to take notice of) AS FOLLOWS.
(Should be in capital letters)
6. Testimonium clause: At the beginning of this clause, we should write as IN WITNESSTH
WHERE OF the said parties have hereby and here above agreed as on _____
7. Signature & Witness: Finally, deed should be signed by the parties to the deed and the
witnesses.
8. Other parts of deed: Consideration & receipts, Description of property, Exceptions &
Reservations, Covenants & Undertakings (The parties aforesaid hereto hereby mutually
agree with each other as follows).
Q.No.3. State various components which are required to draft a partnership deed.
PM (N 08 5M, N 12 4M)
COMPONENTS OF THE PARTNERSHIP DEED: A Partnership Deed is divided into different

paragraphs. Each paragraph deals with relevant and related information in simple and
intelligible language. If a particular part is not applicable in a particular case that part is omitted
from the document. The important components in general are as following:-
a) Heading of the document
b) Date and place of execution of the document
c) Names & description of Parties
d) Recitals
e) Terms and condition
f) Special rules
g) Jurisdiction
h) Signature of the parties
i) Signature of the witnesses
The Deed must be executed on a stamp paper of prescribed value. The copy of the deed must
be sent to the Registrar of Partnership Firms along with the prescribed form duly completed for
issue of acknowledgement by the Registrar of Firms. All subsequent changes must be notified
to the Registrar.
VARIOUS OPERATIVE CLAUSES OF A PARTNERSHIP CONSTITUTION DEED ARE: Date
of commencement, Business-its nature/ Name/ Place of business, Duration of partnership,
Capital contribution, Interest on capital, Rights, duties and obligations of partners,
Remuneration to partners, Sharing of profits and losses, Bank account and its operation,
Borrowings, To provide for eventualities like death, disability or retirement of any partner, To
provide for nomination, Arbitration in case of dispute, Execution of the deed.
Q.No.4. Draft a partnership constitution deed.
PARTNERSHIP CONSTITUTION DEED
THIS DEED OF PARTNERSHIP CONSTITUTION is made on 14th day of April, 2012 at Guntur
between A. Roja, D/o A. Rama Rao, Age of 28 years, Resident of flat no. 41, 4th line,
Broidipet, GUNTUR (hereinafter called The First Party) AND B. Saroja, D/O B. Devendra, Age
of 29 years, Resident of flat no.51, 5th line, Arundelpet, GUNTUR (hereinafter called The
Second Party).
WHERE AS the said parties Roja and Saroja, have hereby agreed to carry on milk business
as partnership business under the name of R & S Co
WHERE AS the said parties have agreed as follows
NOW THIS DEED IS WITNESSETH AS FOLLOWS
a) The Name of the Partnership Firm is R & S co.
b) The business of the firm is purchasing, processing and selling of milk.
c) The duration of the firm is 5 years from the date of the agreement.
d) Capitals of the partners are Roja Rs.5,00,000 & Saroja Rs.5,00,000.
e) Profit & Loss starting ratio is 2:3 between Roja and Saroja.
f) All partners are working partners. And each partner is entitled to salary of Rs. 30,000 P.M.
g) Interest on advances will be given at the rate 6% p.a.
h) Interest on drawings will be given @10% p.a.
Except as prescribed above, the rights & duties of partners are as same as that are prescribed
in Indian Partnership Act, 1932.
Arbitration Clause: If any dispute which is arising among these partners regarding this
agreement shall be referred to A. Kishore Kumar (lawyer of high court) and the same shall be
judged and awarded according to the provisions of Arbitration and Conciliation Act, 1996.
IN WITNESSTH WERE OF the said parties have hereby and here above agreed as on 14th
day of April, 2012
Witnesses: Parties:
Sd/- Sd/-
Q.No.5. Draft a partnership admission deed. (CS J 06 10M, CS D 09 8M)
PARTNERSHIP ADMISSION DEED

THIS DEED OF PARTNERSHIP ADMISSION is made on 16th day of April, 2012 at Guntur
between A.Roja, D/o A.Ramarao, Age of 38 years (hereinafter called THE FIRST PARTY)
AND B.Saroja, D/o. Subba Rao, Age of 39 years (hereinafter called THE SECOND PARTY)
AND R.Ramu, S/o Jaydev, Age of 35 years (hereinafter called THE THIRD PARTY).
WHERE AS the Said Roja, Saroja (hereinafter called THE EXISTING PARTNERS) have been
carrying on milk business on Partnership basis under the name of R & S co. since 5 years
WHERE AS the Said party Ramu (hereinafter called THE NEW PARTY) has been carrying on
milk business under the name of Ramu & co since 3 years.
WHERE AS the Said party Ramu (hereinafter called THE NEW PARTY) is willing to join with
the existing parties and the existing parties given consent for the same.
WHERE AS all parties agreed as follows.
NOW THIS DEED WITNESSETH AS FOLLOWS

This deed is supplement to the deed which was made on 14-04-07 among existing partners
except as amended by this agreement.
1. The new profit sharing ratio among Roja, Saroja, and Ramu is 1:2:3.
2. The new partner Ramu is sleeping partner and do not take part in business.
3. The new capitals contribution required is Roja 5 Lakhs, Saroja 5 Lakhs and Ramu 5
Lakhs.
4. The existing partners are bound to pay Rs.10 lakhs p.a. as guaranteed profit irrespective
of losses of the firm to the new partner.
5. The legal expenses, registration expenses are paid by the firm in consequent of change in
the constitution.
Arbitration clause: If any dispute which will arise among partners regarding this deed shall
be referred to Mr.kiran Kumar (lawyer of high court) and the same shall be judged and
awarded according to the provisions of Arbitration and Conciliation Act, 1996.
IN WITNESSETH WHERE OF the said parties have hereby and here above agreed as on 16th
day of April, 2012
Witnesses: Parties:
Sd/- Sd/-
Q.No.6. Draft a partnership retirement deed.
PARTNERSHIP RETIREMENT DEED
THIS DEED OF PARTNERSHIP RETIREMENT is made on 16th day of April, 2012 at

GUNTUR, between A.Roja, D/O. A.Rama Rao, Age of 28 years (hereinafter called The First
Party) and B. Saroja D/O. B. Subba Rao, Age of 27 years (hereinafter called THE SECOND
PARTY) AND R.Ramu, S/O. Devagan, Age of 30 years (hereinafter called as THE THIRD
PARTY).
WHERE AS the said Roja, Saroja and Ramu have been carrying on business under the name
of R & S Co since 5 years
WHERE AS the said Saroja (hereinafter called as THE RETIRING PARTNER) is willing to
retire from the firm and said Roja and Ramu (hereinafter called as THE CONTINUING
PARTNERS) consented the same.
WHERE AS all the parties have agreed as follows:
NOW THIS DEED WITNESSETH AS FOLLOWS.
This deed is supplement to the deed which were made on 14-04-07 & 16-04-10 among
existing parties except as amended by this.
1. Saroja will retire from the partnership with effect from 17-04-12.
2. Public notice in consequent of retiring of Saroja shall be given by the firm on 18-04-12.
3. Revaluation of assets, liabilities and claims shall be made by the auditor of the firm Mr. K.
Kishore, a Practicing Chartered Accountant, and in the presence of all partners.
4. The agreed settlement to retiring partner shall be paid in cash within 10 days of this deed.
5. Remaining Partners Roja and Ramu continue the business under the same name.
6. The new profit & sharing ratio of Ramu and Roja is 1:1.
7. The new agreed capital contributions are Ramu Rs.5 lakhs & Roja Rs. 5 lakhs.
8. The continuing partners Ramu and Roja release Saroja of all debts
9. Legal expenses, Registration fee and Stamp Duty of firm, in consequence of reconstitution
of firm, shall be borne by the firm.
Arbitration clause: If any disputes which will arise among partner regarding this shall be
referred to Mr. Kiran Kumar (lawyer of high court) and the same shall be judged and awarded
according to the provisions of Arbitration and Conciliation Act, 1996.
day of April, 2012
Witnesses: Parties:
Sd/- Sd/-
Q.No.7. Draft a partnership reconstitution deed.
PARTNERSHIP RECONSTITUTION DEED

THIS DEED OF PARTNERSHIP RECONSTITUTION is made on 17th day of April, 2012 at
GUNTUR between A.Roja, D/O. A.Rama Rao, Age of 28 years (hereinafter called The First
Party) and B. Saroja D/O. B. Subba Rao, Age of 27 years (hereinafter called THE SECOND
PARTY) AND A. Aravind, S/o Late A. Ramu, Age of 21 years, R/o Srinivas Nagar, GUNTUR
(Being legal heirs of deceased partner Ramu)(hereinafter called THE THIRD PARTY)
WHERE AS the Said Roja, Saroja and deceased partner Ramu had been carrying on
partnership business under the name of R & S Co since 5 years
WHERE AS the Said partner Ramu has died on 12th day of April 2012, and the said Roja,
Saroja (hereinafter called THE REMAINING PARTNERS) decided to settle the account of
deceased partner Ramu to A. Aravind (hereinafter called THE LEGAL HEIR OF DECEASED
PARTNER)
WHERE AS the said parties have ahead as follows
NOW THIS DEED WITNESSETH AS FOLLOWS.
This deed is supplement to the deed which were made on 14-04-07 & 16-04-10 among
existing parties except as amended by this.
1. Assets, liabilities and claims shall be revalued in the consequence of death of the partner
Ramu by the auditor of the firm Mr. K. Kishore, a Practicing Chartered Accountant, and in
the presence of all partners including the legal heir of deceased partner.
2. The agreed settlement to retiring partner shall be paid in cash within 10 days of this deed.
3. Remaining Partners Roja and Saroja continue the business under the same name.
4. The new profit & sharing ratio of Roja and Saroja is 1:1.
5. The new agreed capital contributions are Saroja Rs.5 lakhs & Roja Rs. 5 lakhs.
6. Legal expenses, Registration fee and Stamp Duty of firm, in consequence of reconstitution
of firm, shall be borne by the firm.
day of April, 2012
Witnesses: Parties:
Sd/- Sd/-
Q.No.8. Draft a partnership dissolution deed.
PARTNERSHIP DISSOLUTION DEED

THIS DEED OF PARTNERSHIP DISSOLUTION is made on 16th day of April, 2012 at GUNTUR,
between A.Roja, D/O. A.Rama Rao, Age of 28 years (hereinafter called The First Party) and B.
Saroja D/O. B. Subba Rao, Age of 27 years (hereinafter called THE SECOND PARTY) AND
R.Ramu, S/O. Devagan, Age of 30 years (hereinafter called as THE THIRD PARTY).
WHERE AS the said Roja, Saroja and Ramu carrying the milk business under the name of
R & S Co
WHERE AS the said parties have agreed as follows
NOW THIS DEED WITNESSETH AS FOLLOWS:
1. Revaluation of assets, liabilities and claims shall be made by the auditor of the firm Mr. K.
Kishore, a practicing chartered accountant, and in the presence of all partners.
2. The partners shall settle their accounts and share surplus or loss if any in their profit
sharing ratio.
3. Notice effecting dissolution of firm shall be given 17-4-2012.
4. The provisions of partnership agreements would be deemed to be applied & continued till
the completion of unfinished contracts of the firm and completion of proceedings of
dissolution.
5. Costs, expenses of dissolution shall be borne among partners in equal ratio.
6. The inability of any partner towards loss of dissolution shall be shared among remaining
partners in the profit sharing ratio.
day of April, 2012
Witnesses: Parties:
Sd/- Sd/-
Q.No.9. A partnership firm was constituted by A, B and C partners, carrying on the

business of shoe manufacturing. Later on, Nickson Shoe Manufacturing Co. Limited
proposed to purchase the business of the firm to the partners of the firm. The partners
unanimously consented to it and agreed to dissolve the firm. Draft a Partnership
Dissolution Deed in this respect. (M 09 5M, CS D 05 5M, CS J 13 10M)
PARTNERSHIP DISSOLUTION DEED

THIS DEED OF DISSOLUTION executed on this day of 10th May 2009 between
1. A S/o P, aged 32 years R/o Meerut
2. B S/o Q, aged 35 years R/o Meerut
3. C D/o R, aged 30 years R/o Meerut
The aforesaid partners have agreed, by mutual consent, to constitute a new firm, by selling all
the assets and liabilities of the firm to Nickson Shoe Manufacturing Co. Ltd. registered under
Indian Companies Act, 2013.
The terms and conditions are hereby agreed to as follows:
1. The firm stands dissolved from 10th of May 2009.
2. From this date the assets and liabilities of the firm shall vest with Nickson Shoe
Manufacturing Co. Ltd.
3. The partners are released from all obligations w.e.f. 15th May 2009. All partners agree to
notify the dissolution to the various authorities.
Signed
.
(A, S/o P)

(B, S/o Q)

(C, D/o R)
Q.No.10. Explain power of attorney. What are the hints for drafting a power of attorney?
(Or) What are the ingredients that are necessary to prepare power of attorney?
(CS D 09 3M)
POWER OF ATTORNEY
The law relating to power of attorney falls within the law of agency. A power of attorney is a
written instrument empowering a specified person or persons to act for and in the name of
person executing it. The instruments of power of attorney are classified into the following two
categories:
SPECIFIC POWER OF ATTORNEY: A specific power of attorney is given for a particular
specific act for instance for appearance before Tax authorities or before Registrar of
Companies for presenting documents for incorporation of a company or before a Sub-
Registrar for registration of documents etc. (It is also called as special/particular power of
attorney)
GENERAL POWER OF ATTORNEY:
a) A power of attorney executed for the purpose of generally representing another person, or
for performing more than one act, is called a General power of attorney.
b) Covering all the acts relating to the execution of the deed. Presenting the same for
registration, admitting execution thereof etc. can be executed and attested before a Notary
Public or a First Class Magistrate.
c) When an irrevocable power of attorney, having the element of agency coupled with
interest covered under section 202 of the Indian Contract Act, 1872, is registered with the
registration authorities, the stamp duty payable is as that of a sale/conveyance.
DRAFTING HINTS FOR A POWER OF ATTORNEY:
a) A power of attorney is usually drafted in the first person. It is a unilateral document. It
begins either as- KNOW ALL MEN BY THESE PRESENTS THAT I, ETC. Or BY THIS
POWER OF ATTORNEY, I, ETC.
b) Generally, the operative words making the appointment are introduced directly without any
recitals. If recitals become necessary, they should be added after words KNOW ALL MEN
BY THESE PRESENTS thus THAT WHEREAS etc. and after recitals the operative part
is introduced thus Now I, the said AB, etc., hereby appoint, etc., or
c) The deed may be drafted with the heading THIS POWER OF ATTORNEY is made on
the, etc., then adding the recitals, the operative part is introduced thus NOW THIS DEED
WITNESSES THAT I APPOINT, ETC.
d) The powers conferred on the attorney should be specifically stated after the appointment,
preferably, in separate paragraphs. Sometimes after giving specific powers a general
clause empowering the attorney to do all such lawful acts, as the attorney should think
reasonable is added, but this is not ordinarily necessary, as according to authorities such a
clause does not extend or widen the authority.
e) A power of attorney should contain the following-
i) Title
ii) Date and place
iii) Full name, fathers name, age, address of person who is giving power of attorney (donor)
iv) Full name, fathers name, age, address of person in whose name power of attorney is
given (donee)
v) Whether general or special power of attorney
vi) Acts for which the power is conferred on holder of P/A
vii) Power of attorney should be to do anything in and with own name and signature of
donee by the authority of the donor of power
Signature of Donor and Donee.
Q.No.11. Draft a Power of Attorney by subscribers of Memorandum of Association of the

Company authorizing a Chartered Accountant to appear before the Registrar of Companies
to do the needful for the purpose of incorporation of the company. PM (M 07 5M)
General Power of Attorney: KNOW WE ALL MEN BY THIS PRESENT we do hereby appoint
and constituteson of(hereinafter called chartered Accountant who has
subscribed his signature hereunder in token of identification) presently residingas our
lawful Chartered Accountant in our name and on our behalf do it any one or all the following
acts, deeds, things namely
1. To give all particulars necessary for incorporation of company.
2. To give affidavit to the Registrar of Company for the purpose of incorporation.
3. To do needful acts necessary for incorporation of the company
4. He is authorized to include promissory notes letter of declaration and indemnity for the
purpose of incorporation.
5. To receive documents on behalf of the members of the company.
6. To sign forms, documents and papers required for the purpose of incorporation of the
company.
Dated .at this .. Day of . (address)
Specimen signature of the Chartered Accountant above named
Notary Public
Q.No.12. M/s. Assure Investments, a firm of partners A and B, appoint and authorize Mr.
X giving powers to sell and sign transfer deeds for transfer of shares and debentures
by executing an instrument of the "Power of Attorney". Draft such instrument of the
"Power of Attorney" of the firm. (PM ) (N 12 4M)
Power of Attorney to execute a deed for the transfer of shares & debentures:-
BY THIS POWER OF ATTORNEY, M/s. Assure Investments (full details), the firm hereby
appoints Mr. X (full details) as Attorney of the firm, to act in his name and on his behalf and to
do or execute all or any of the acts or things relating to transfer of shares and debentures, that
is to say :
1. To receive from(Full details), the transferee the sum of Rs.(Rupees...
only) being the price agreed to be paid to the firm by the said transferee for the purchase
of (full description of shares and debentures) under an agreement datedand to
give proper receipt and discharge for the same.
2. To execute a transfer deed of the said shares and debentures
3. To present the said transfer deed for registration before the proper registration authority, to
admit the execution thereof, to do all acts, deeds and things which may be necessary for
registering the said transfer deed.
4. To execute or to do all acts, things or deeds or assurance for the completion of the transfer
of the said shares and debentures.
AND, the firm DO HEREBY AGREE to ratify all acts, things, deeds or proceedings lawfully
done by the said Attorney on behalf of the firm and in the name of the firm by virtue of this
power of attorney and the same shall be binding on firm in full force or effect.
IN WITNESS WHEREOF the firm have executed this power at ..this..day
of..20.
Witness: 1 _______ Signature

2 _______ (Executant)
Q.NO.13 Draft a 'Power of Attorney' by an assessee authorizing a professional to

appear before the Income Tax Authorities in respect of the pending taxation matter.
(PM)
Power of Attorney to appear before Income Tax Authorities

I, .S/o.., R/o.and partner of the firm M/s..with registered office
at, do hereby appoint Mr., S/o., R/oas attorney of the firm
above named and authorize him for the purpose hereinafter mentioned :
1. That the said attorney shall appoint an advocate of his choice and hand him over the
judgement of the tribunal of Income Tax and instruct him to file the appeal against the
order, for the Assessment Year ..
2. That the said attorney shall execute Vakalatnama to the Advocate appointed by him and
shall sign all the related papers under the supervision of the advocate.
3. That specimen signature of the said attorney is given below of this deed.
4. The said attorney shall generally do all other lawful acts necessary for the conduct of the
said case.
I hereby declare that the acts done by the said attorney in connection with the work given to
him shall be deemed to have been done by me and shall be binding on the firm and its
partners.
IN WITNESS WHEREOF I have signed this power of attorney in the presence of the following
witnesses:
WITNESSES:
1
Copyrights Reserved
2

Q.No.14. The Board of Directors of RSP Limited agrees with X to hire his (X's) flat at
NOIDA on lease for ten years @ Rs 20,000 per month for marketing office of the
company. You are a senior executive of the Board and the board asks you to prepare
the lease deed for the agreement. Draft a lease deed. (PM) (M 10 5M)
LEASE DEED
This Lease is made on this the day of 01 March 2010, between, X s/o Y, aged about 45 years,
residing at Noida (hereinafter called the LESSOR); which expression shall, whenever the
context so requires or admits mean and include his heirs, executors, Administrators and
permitted assignees of the one part; AND RSP Limited, Noida and herein after called the
LESSEE
WHEREAS, the lessor is the absolute owner of the property Noida (more fully described in the
schedule hereunder and hereinafter referred to as Schedule Property)
AND WHEREAS, the Lessee is desirous of taking on lease the Schedule property for a period
of 10 years and , whereas, the Lessor is agreeable for the same.
NOW THEREFORE THIS DEED WITNESSED that in pursuance of aforesaid agreement and in
consideration of the rent hereinafter contained, the Lessor hereby demises by way of lease who
Lessee the Schedule Property for a period of from today, on the following terms and conditions:
1. That the lessee has undertaken to pay the lessor a monthly rent of Rs 20,000/- (Rupees
twenty thousand only) for the Scheduled Property on or before the 10 day of the following
calendar month, and 10 months rent of Rs 2.00 lac only deposit by the lessee on the date
of execution of this lease; the receipt where of the lessor hereby acknowledges and
agrees to repay the same without interest at the time of vacating the Scheduled Property,
after deducting for damages, if any.
2. The lease shall commence from the 1st April 2010 and shall be in force for a period of 10
years.
3. The lessee shall use the Scheduled Property only for official purpose and shall not assign
or sublease or use the Scheduled Premises for any unlawful purposes or alter the
Scheduled Property without the consent of the lessor in writing.
4. During the lease period, the lessee shall pay the electricity and water charges to the
respective departments promptly and obviate disconnection at any time.
5. The lessee shall permit the lessor or his agents, to enter the Scheduled Property at all
reasonable times for the purpose of periodical inspection.
SCHEDULE:
1500 Squares of house bearing No. 56 at Noida measuring
East to West 50
North to South 30 and bounded on: East by: Road, West by: Road, North by: Plot No. 55,
South by: Plot No. 57.
In witness whereof the parties hereto have their respective hands and seals to this Agreement
on the day, month, year first written above
WITNESS
1. LESSOR
2. LESSEE Copyrights Reserved

Q.No.15. Draft a lease deed for giving a building on lease. (M 13 - 8M)
LEASE DEED
THIS DEED OF LEASE is made on 17th day of April, 2012 at GUNTUR between R. Ramu, S/o
Ravi, Age of 29 years, R/o Srinivas Nagar, Guntur (hereinafter called THE LESSOR) (this
expression shall include legal heirs, successors and official assignees) AND S. Ramu, S/o
Kanaka Rao, age of 29 years, Resident of 4th line, Broidipet, Guntur (hereinafter called THE
LESSEE) (this expression shall include legal heirs , successors and official assignees).
WHERE AS LESSOR is the absolute and unconditional owner of the property (hereinafter
called THE SCHEDULED PROPERTY)
WHERE AS THE LESSEE is willing to take the scheduled property on lease and the lesser
consented the same.
WHERE AS the both the parties have agreed as follows
NOW THE DEED WITNESSETH AS FOLLOWS:
1. The rent of lease is Rs.50,000 p.m.
2. The duration of the deed lease is three years from the date of agreement
3. Lessee is agreed to pay 6 months lease rent in advance.
4. The rent of lease shall we paid for previous month by the 5th of the following month.
5. The municipal taxes, water taxes, electricity bill all other utility bills and any other payment
claims in that scheduled property shall be borne by the Lessor during the lease period,
6. Delayed payment of rent shall attract 15% interest.
7. If any loss is caused to the scheduled property due to negligence of lessee during lease
period shall be borne by lessee and Lessor is entitled to claim such loss from lessee.
8. The purpose of lease is for maintaining a junior college and hostel for that college.
9. The lease agreement shall be cancelled at the option of Lessor on happening of any of the
following conditions
a) Nonpayment of room rent for consecutives three months.
b) Use of leased property for the purpose other than specified purposes.
c) Severe damage to the leased property.
10. Scheduled property:
15,000 sq. ft. white colored 3 stared building bounded as under
East by James womens college
West by Master Minds
North by I nox multiplex
South by Two town police station
day of April, 2012
Witnesses: Parties:
Sd/- Sd/-
Copyrights Reserved

Q.No.16. What you understand by lease deed? Draft a lease deed assuming
necessary facts.
Lease Deed: Section 105 of the Transfer of Property Act, 1882 defines the term Lease. It is a
transfer of enjoyment of immovable property by one person called the lesser to another
person called the lessee in consideration of a premium which means a price paid or promised
or rent which may be periodical payment of money, share of crops or rendering of services. In
order to constitute the valid lease, there must be a transfer of right to enjoyment of immovable
property though delivery of possession of the property is not a condition preceded for
operation of a lease. The terms of lease including the period of lease, amount of rent etc. are
contained in a leased agreement or deed duly executed and signed by both the lesser and
lessee. The model form of lease deed is given below:
LEASE OF LAND FOR LIMITED PERIOD
THIS DEED OF LEASE of land made on..day of..between
.S/o..R/o..(hereinafter called the lessor) and . S/o..
R/o.. (herein after called the lessee)
Whereas both the lessor and the lessee agree to the following terms and conditions:
1) That the lessor agrees to lease out the land located in .............. to the lessee with
effect from.for a period of .. years on payment of monthly rent
ofRs..payable on the fifth day of each month in advance.
2) That the lessee agrees to take the aforesaid piece of land on lease. He shall pay the rent
hereby reserved in the manner hereinbefore stated.
3) That the responsibility to pay all rates, taxes and charges which are payable or may so
become at a future date in respect with the leased land, shall rest upon the lessor.
4) That the lessee shall deliver the peaceful vacant possession of the leased land to the
lessor at the termination of the period of lease.
5) Lessee intending to vacate the leased land at an early date, shall give notice to the lessor
to vacate the leased land at the expiry of the period stated in the notice.
6) Default in payment of rent for four consecutive months shall entitle the lessor to enter upon
the said land and determine the lease.
IN WITNESS WHEREOF, the lessor and the lessee have signed this deed on the day and
year first above stated.
Witness. Lessor
Witness. Lessee
Q.No.17. What is an Affidavit? and Draft its model format.
Meaning: An affidavit is a written statement used mainly to support certain applications and in
some circumstances as evidence in court proceedings. A person who makes the affidavit is
called the Deponent and must swear or affirm that the contents are true before a person who
has the authority to administer oaths in respects of the particular kind of affidavit.
I................................................ son of ...................................... aged ............................ years,

residing at ............................................................................................................, hereby
declare an oath as follows:
.....................................................................................................................................................
.....................................................................................................................................................
...............................................................Sworn on this ..................the day
of..................................................................................
Date:.. Signature
Place:.
Q.No.18. Draft an affidavit for not having a Marriage Certificate. (RTP N14)
AFFIDAVIT
I, .................S/o.............R/o..............................do hereby solemnly affirm and declare an oath
as under:
That the marriage between......(name of spouses with details) solemnized with the Hindu
rituals on.......... at-------(Name of place) .That due to inadvertence, I did not register my
marriage with the concerned department and not having marriage certificate.
Date:.. Signature
Place:. Deponent
Q.No.19. P wanted to file an ITR of its company, but due to incompletion of audit, he
wanted the extension of time to submit the same. He wrote an application to Income
Tax Officer for the extension of time for the filing of an ITR. Draft an affidavit supporting
the application before the Income tax officer for grant of extension of time to submit
ITR. (RTP Nov 13)
AFFIDAVIT
I, P S/o--------------Aged----------R/o--------- hereby declare on oath as follows:
1. That the return of Income tax of my company was to be filed by the----------- (Date).
2. That the notice under the Income Tax Act has been served requiring the company to file its
return of income by the --------- (Date).
3. That the accounts of the company are closed on 31st March every year and they are
under the audit.
4. That since the audit is in progress and has not been completed till now----------- (Date), I
had made an application for extension of time in your office and I was made to understand
that the extension of time will be allowed till ----------- (Date).
I, P, the deponent do hereby verify that the above stated contents are true to the best of my
knowledge and belief.
Date:.. Signature
Place:. (P)
.
Q.No.20. What is an Indemnity Bond? Supply a format for Indemnity Bond.
Meaning of contract of indemnity [Sec 124 of the Indian Contract Act, 1872]: A contract
by which one party promises to save the other from loss caused to him by the conduct of the
promisor himself, or by the conduct of any other person, is called a "contract of indemnity".
A person who gives the indemnity is called indemnifier and a person for whom protection is
given is called the indemnity holder.
Name of the Assessee:
P.A.N. No. Assessment Year:
I. ................... son/ wife/ daughter of ............................ Resident of ........... do hereby agree to
indemnify the Government of India for any loss that may occur on giving credit for the Certified
Photostat copies of the TDS Certificates/ ................................./.............................../
...................... for a sum of Rs........ being ... % of my share in the total TDS of Rs. ................ of
.......................................... I further declare that the credit for consolidated TDS Certificate was
not claimed in the hands of the Association of
Persons.............................
Date: Signature:
Place:
Q.No.21. Mr. A has not received a dividend warrant of Rs 1,500 for 150 shares of XYZ
Ltd. Draft an indemnity bond, to be given to the company for seeing release of
Dividend. (PM)(M 07 5M, M 12 4M, M 16-5M, RTP N15 RTP M16)
INDEMNITY BOND
Mr. A S/o .. resident do hereby agree to indemnify the XYZ
Ltd. for any loss that may occur for seeking release of dividend for 150 shares of Rs 1500. I
further declare that personally I have not received the dividend warrant in question.
Date: Mr. A
Place:
Signature
Q.No.22. Draft the specimen of a bond for a loan repayable in installments. (RTP M 14)
This Bond is made on the -----------day of ----------between ----------(details of party to be called

as debtor) and ----------(details of the other party to be called as creditor).
Whereas the debtor has this day borrowed a sum of Rupees-------------(Rs.)only from
the creditor with the condition to repay the same with interest at the rate of ---------- percent per
annum by monthly installments. The debtor has agreed to pay the same.
Whereas in case of default in the payment of any consecutive installments, the penalty shall
be levied with double rate of interest on the remaining unpaid amount.
Signature of Debtor Signature of Creditor
Witnesses:
1.
2.
Q.No.23. SVA Limited dispatched Bonus Share Certificate to Mr.R.R did not receive the
Bonus Share Certificate as it was lost in the transit. R applied to the company to issue
the Bonus share certificate in duplicate. SVA Limited asked Mr. R to submit an
Indemnity Bond so that Bonus Share Certificate in duplicate may be issued to him.
Draft an Indemnity Bond to be given by R to the company for seeking release of Bonus
Share Certificate in duplicate. (PM) (M 09 5M)
INDEMNITY BOND
Mr. R S/o X resident of Mumbai do hereby agree to indemnify the SVA Limited for any loss
that may occur for seeking release of Bonus Share Certificate in duplicate of 50 equity shares
of Rs.10 each fully paid. I further declare that personally I have not received the Bonus Share
Certificate issued by the company for which the company is claiming that it has already been
dispatched.
Date Signature
Place: Mumbai (Mr. R)
Q.No.24. Write a short note on Gift deed
GIFT DEED
LAW RELATING TO GIFTS:
1. It is provided in the Transfer of Property Act, 1882 and Indian Succession Act, 1925.
2. Gift is defined as the transfer of certain movable or immovable property made voluntarily
and without consideration by one person called the donor to another called the donee and
accepted by or on behalf of the donee.
3. A gift to be valid must be accepted by the donee during the life time of the donor.
4. For gifting of immovable property registration is must and that of movable property it is
optional.
Q.No.25. X desires to gift his flat to Y. Draft a gift deed. (RTP M13) (N 10 4M)
This Deed of Gift is made at----- (city) on this ------ day of ----- 2010 between X and Y an Indian
inhabitant residing at flat No. ------ Floor, -------- Coop. Housing Society Ltd. ----(city)
hereinafter called "THE DONOR" of the ONE PART and ------ also an Indian inhabitant of------
(city), residing at flat no. ------- floor --------- Coop. Housing Society Ltd. -------(city), hereinafter
called" THE DONEE" of the OTHER PART.
WHEREAS the Donee Y is the ------- ( Relative) of Donor X .
AND WHEREAS the Donor is the member of ------- society which is duly registered under the
Maharashtra Coop. Societies Act 1960, (hereinafter referred to as the said society). The
donor has five fully paid up shares of the said society. The donor has acquired a flat No. ------
on the ----- floor and measuring ------ sq. meters. In the building known as "---- (hereinafter
referred to as the "said building") situate at ------ (City), (hereinafter referred to as "the said
flat") more particularly described in the Schedule hereunder written "said society").
WHEREAS the Donor has full right title and interest in the said shares/flat more particularly
described in the Schedule hereunder written.
AND WHEREAS the Donor desires to gift his right, title and interest in the said shares/flat in
the said building of the said society more particularly described in the Schedule hereunder
written to the Donee hereto.
NOW THIS DEED OF GIFT WITNESSETH AS FOLLOWS:
The donor out of natural love and affection for the Donee, hereby transfers by way of gift his
right, title and interest in the said shares and the said flat more particularly described in the
Schedule hereunder written to the Donee absolutely forever.
The Donee accepts the gift and agrees to hold the right, title and interest of the donor in the
said shares/flat in the said building of the said society more particularly described in the
Schedule hereunder written of the said flat from the Donor.
Schedule of property above referred to:
IN WITNESS WHEREOF the parties hereto have hereunder set and subscribed their
respective hands on the day and the year first herein above written.
SIGNED AND DELIVERED
By the within named "Donor"
In the presence of ---------

1) ------------
2) --------------
SIGNED AND DELIVERED
Copyrights Reserved
By the within named "Donee" To MASTER MINDS, Guntur

In the presence of
1) -----------
2) -----------
Q.No.26. Draft MOA of a Company.
MEMORANDUM OF ASSOCIATION
MEMORANDUM OF ASSOCIATION OF PRIVATE LIMITED
(Company Limited by Shares) (Incorporated under the Companies Act, 2013)
1. The Name of Company is ..PRIVATE
LIMITED.
2. The Registered office of the Company will be situated in the State of
3. The objects for which the Company is established are : A) MAIN OBJECTS TO BE
PURSUED BY THE COMPANY ON ITS INCORPORATION ARE:
a) To carry on the business as ...
.
.....
b) To carry on all or any of the business on matters relating to research, development and
application of....................................................................................................................
..........................................................................................................................................
Objects incidental or ancillary to the attainment of the main objects:
a) To buy, sell, export and deal in all works, plant, machinery and materials commonly
dealt in by persons engaged in the above lines of business and also manufacture,
experiment with and render marketable all products residual and by products obtained
incidental to any of the business carried on by the Company.
b) To establish and maintain any agencies in India or any part of the world for the
business of the Company or for the sale of any materials or things for the time being at
the disposal of the company for sale.
c) To advertise and adopt means of making known the business activities of the
Company or any articles or goods by issue of circulars, books and pamphlets and price
list and conducting of competitions, exhibitions, demonstrations and giving of prizes
and rewards.
d) To draw, accept, make, endorse, discount and negotiate promissory notes, cheques,
hundies, bills of exchange, commercial or mercantile instruments connected with the
business of the company subject to the provisions of Banking Regulation Act, 1949.
e) To borrow or raise money with or without security or to receive money on deposit at
interest or otherwise in such manner as the company may think fit.
f) To engage workers, laborers, staff, clerks, accountants, Technicians, Engineers,
Architects, and Consultants etc. for the carrying out of the objects of the company.
g) To open account or accounts with any individual, firm or company or with any bank or
banks and to pay into and withdraw money from such account or accounts.
h) To pay all costs, charges and expenses, incurred in connection with incorporation of
the company.
i)
To let on lease or otherwise deal with the whole or any part of the property of the
company
4. The liability of the members is limited.
5. The authorized share capital of the company is Rs Divided into
equity shares of Rs each to be
issued and held on such terms and conditions as the Board of Directors may decide with
powers to consolidate, sub-divide, reduce, increase or change the conditions of issue or
type of share from time to time. We, the several persons whose names, addresses and
descriptions are subscribed hereunder are desirous of being formed into a company, in
pursuance of this Memorandum of Association and we respectively agree to take the
number of shares in the capital of the Company set opposite to our respective names.
6. SI.No. Names, Address and Occupations of the subscribers No. of shares Taken by each
Subscriber Signature of the Subscriber Names, Address Description and Occupations of
witness
Dated ..This Day of .at
Q.No.27. State the contents that are required for drafting an Annual Report of a
Company. (M 10 5M)
ANNUAL REPORT OF A COMPANY

Section 136 of the Companies Act, 2013 requires that a copy of every financial statement
(including the consolidated financial statement , auditors report along with the annexure, or
attachment thereto) which is to be laid before the annual general meeting of the company
shall be sent, not less than 21 days before the meeting, to every member of the company,
every trustee for the debenture holders and all other persons who are so entitled.
The following are the main contents are required for drafting an annual report of a company.
a) Company information
b) Organization structure
c) Leadership team
d) Technology
e) International operations
f) Corporate social responsibility
g) Directors report
h) Independent and consolidated financials statement
i) Graphs Independent financials
Copyrights Reserved Verified by: Venkanna Sir, Pavan Sir,

THE END

IPCC B.ethics and Communication 36e

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

IPCC B.ethics and Communication 36e

Hochgeladen von

Copyright:

Verfügbare Formate

CA - IPCC

Cell: 98851 25025 / 26

BUSINESS ETHICS _36e

Cell: 98851 25025 / 26

CHAPTER WISE ANALYSIS OF PREVIOUS EXAMINATIONS

3. ETHICS IN WORK PLACE 7.5 7.5 - 8 14 4 9 4 8 2 8 4 4 4 4

4. ENVIRONMENT & ETHICS 2.5 - 7.5 2 4 2.5 4 2.5 - - 4 7 4 4 5

ETHICS IN MARKETING &

Q.No.2. Explain the Social Sins, listed by Mahatma Gandhi. (PM)

1. Explain the Utilitarian Approach as the ethical Standard (PM)

Q.No.6.Explain the fundamental principles relating to ethics. (PM) (N 10)

The fundamental principles relating to ethics may be summarized as under:

a) Ethics in business is the application of everyday

Area of Business Ethical Practice

QUESTIONS FOR ACADEMIC INTEREST

1. Ethics is socially accepted, whereas law is legally accepted.

Ethics is a personal aspect. We need to adjust it with need of the

APPLICATION ORIENTED QUESTIONS

Q.No.14. Answer yes or no with brief reasons

Q.No.15. Answer yes or no with brief reasons.

TEST YOUR KNOWLEDGE

Verified by: Chandrasekar Sir, Kareem Sir

Q.No.1.What is meant by corporate governance? Explain the benefits of good corporate

1) Protection of investor interests and strong capital markets,

Q.No.2. what is meant by Stakeholders? Describe those stakeholders who are

Q.No.3. What is meant by 'Corporate Governance'? State the major 'characteristics' of

Q.No.4. Corporate Governance Developments Abroad OR Historical background of

Q.No.5. Corporate governance -Developments in India OR Historical background of

Q.No.6. What corporate governance measures are required to be implemented by the

a) Corporate Governance measures- In general, corporate governance measures include

Q.No.9. What is Corporate Social Responsibility? Why it is needed in Indian Business

COMMON POLICIES UNDER CSR ARE AS UNDER:

Social Accountability 8000:

The Iron Law of Responsibility:

Q.No.14. Benefits of Corporate Social Responsibility

BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY:

Q.No.15. Explain the meaning of corporate citizenship.

QUESTIONS FOR ACADEMIC INTEREST

Creating an ethical environment in company: A sound ethical environment in a company

Focus: support environmental protection in balance with socio economic needs

Q.No.18. Write about CSR initiatives in India

1. Increased Stakeholder Activism: If the society feels that a company is

IPCC _36e_ Business Ethics_ Corporate Governance & Corporate Social______32

APPLICATION ORIENTED QUESTIONS

Incorrect: The traditional governance model positions management as accountable not to

3. ETHICS IN WORK PLACE

Q.No.1. Write a short note on work place ethics. (SM)

ETHICAL DECISIONS IN AN ORGANIZATION ARE INFLUENCED BY THREE KEY

SOME EXAMPLES OF ETHICAL ISSUES FACED BY AN INDIVIDUAL AT THE

Q.No.4. What do you understand by the term discrimination in employment as

Q.No.5. List the commonly recognised employment discrimination practices.

DISCRIMINATION IS QUITE COMMON IN VARIOUS EMPLOYMENT PRACTICES WHICH

Q.No.6 Write a note on harassment at workplace. (N 10 - 4M) (PM)

Harassment is tormenting by subjecting to constant interference or intimidation.

Q.No.7. Explain the concept of Sexual harassment in relation to work place

CONCEPT OF SEXUAL HARASSMENT:

MANAGING ETHICS AND PREVENTING WHISTLE-BLOWING:

IPCC _36e_ Business Ethics_ Ethics in Work Place_______________________41

Q.No.10. Explain the importance of Ombudsperson in the workplace?

IPCC _36e_ Business Ethics_ Ethics in Work Place_______________________42

Increase Employee Loyalty Recognition for good work

3) Fairness and Honesty: (PM)

IPCC _36e_ Business Ethics_ Ethics in Work Place_______________________44

Incorrect: Discrimination is action based on prejudice resulting in unfair treatment of people.