Published by: Dikshya
Published date: 04 Apr 2023
POKHARA UNIVERSITY
Level: Bachelor Semester-Spring Year : 2018
Programme: BBA Full Marks: 100
Course: Business and Society Pass Marks: 45
Time : 3hrs.
Candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.
Section "A"
Very Short Answer Questions
Attempt all the questions. 10×2
1. Define the concept of Business and Society.
2. How corporate promote diversity?
3. Outline the OECD principles of corporate governance.
4. What is the provision about CSR spending in the Industrial Enterprise Act, 2073 of Nepal?
5. Explain the meaning of corporate citizenship.
6. What is a mixed-blessing stakeholder?
7. What is ethical reasoning?
8. Explain the ethics audit in brief.
9. Differentiate between descriptive ethics and normative ethics.
10. What do you mean by governance gap?
Section "B"
Descriptive Answer Questions
Attempt any six questions 6×10
11. Explain the relationship between business and stakeholder with suitable examples.
12. Compare and contrast agency theory, transaction cost economics and stewardship theory of corporate governance. Which one of these theories do you think is superior? Why?
13. Give the concept of whistle blowing and state its consequences to the whistle blower, to the organisation against which a complaint is made, and to the society. Should it be encouraged in the workplace?
14. Discuss briefly the major ethical business issues in Nepal. What are your suggestions for improving ethical business practices in Nepal?
15. Explain the major stakeholders of business. How are the business firms responsible for them? Explain.
16. Define sustainability. Do you think of CSR as a means of sustainability? Explain with suitable examples.
17. How do you assess the current status of CSR and corporate governance in Nepal? Do you satisfy the current role of the government to promote the CSR related activities in Nepal? If not, make your suggestion what the government should do?
Section "C
Case Analysis
18. Read the case situation given below and answer the questions that follow: 4×5
Kanchanjangha Tea Estate (KTE) is located at Ranitar in the remote hilly region of Panchthar district in eastern Nepal at the foot of Mt. Kanchenjunga. The enterprise was launched in 1984 by the local farmers on a cooperative model. Over 100 farmers joined hands, pooled in their marginal land holdings and became owners of the first orthodox tea plantation covering nearly 94 hectares of land. The land which was barely enough to sustain them is now utilised to produce high quality organic orthodox tea of the Himalayas. It produces and sells approximately 1,00,000 "kilograms of green and black tea every year.
Kanchanjhangha cares it business by caring for its stakeholders. It has set good examples of CSR in the marketplace, workplace, community and environment. It is the first certified organic tea garden in Nepal. It is NASAA, JAS, USDA and ISO 22000 certified company. The area of the tea garden is inspected every year by the NASAA (National Association for Sustainable Agriculture, Australia) inspector to ensure its organic soil. The fertility of the soil is maintained by the innovative and the regular advice of the research team. It has also enforced Hazard Analysis and Critical Control Point (HACCP) plans. HACCP is an organized procedure developed to ensure food quality through preventive measures rather than curative ones. It analyzes the physical, chemical and biological aspects of the products and advocates the safety and quality of the products. It exports its products in different countries of the world including China, Japan, South Korea, Australia, Germany, Finland, Netherlands, Canada and USA under "Nepal Organic Tea '' brand with proven quality. The tag line of KTE reads: "People and planet before profit".
KTE has provided free housing to its employees so they don't have to worry about the shelter. It has not only saved their money for housing but also the time to reach the office or tea garden. Employees seem quite happy with KTE. Ratna Rai puts it simply, "It has been 19 years I have been working in the production sector of KTE and I am absolutely satisfied with the facilities and working environment here at KTE." Likewise, another employee of KTE, Rita Dulal, remarked: "I have been working for six years at KTE and I proudly say that KTE has become my new husband. After my husband passed away. KTE has been responsible for the education of my two children. Besides, it has provided me with a place to live, food to eat and a secure job. What else do I need? I am highly grateful to KTE for its support."
It gives priority to local people, particularly women, in its employment opportunities. It has now approximately 75 percent of women employees. KTE is also providing scholarships to the economically disadvantaged children of the local community who can, later on, join KTE as loyal and dedicated employees, KTE has also started the Cow Bank Project since 2005. Under this project. KTE initially distributed 36 high yielding cows and a ball to the small farmers in the village.
Hundreds of small farmers are now able to sell their cow's milk in the local market to earn their livelihood and enhance their standard of living, Furthermore, it is also arranged that they can sell the cow dung to KTE (KTE uses the cow dung as an organic manure for its tea farming). However, the farmers have to make an arrangement to give away the calves to KTE in case of reproduction. These calves will then further be distributed to the other farmers.
Besides, the construction of eco-houses is under progress. These houses have been proposed for two major purposes. The Tea Estate is also committed to environmental protection and optimum utilization of natural resources so that the future generations won't have to compromise on the use of these resources. Vetiver (a plant that binds the soil) is planted on both sides of the road and all farmers are also encouraged to plant Vetiver around their living quarters as it helps to control soil erosion. It is also a source of extra income for them. Kalo Siris (Albezia Sinensis), Asuro (Adhatoda Vesica), Bakaino (Melia Azedarach), Khirro (Sapium Insigne), high in nutrients, are being planted in the garden. Training programs for farmers are conducted regularly to develop their skills in IPM (Integrated Pest Management), composting, environment protection etc. All young children are educated to care for mother EARTH and their society.
Today, Kanchanjangha Tea Estate is not only a tea producing company, but a centre for education too. Every year a number of students from various countries including France, Germany, Korea, Japan intern for months and contribute a helping hand while they acquaint themselves with the knowledge of organic agriculture and cooperative approach to a company. KTE has now established itself as an exemplary "responsible business model to create a win-win situation between and society.
Questions:
a) Who are the key stakeholders of Kanchenjunga Tea Estate (KTE)? What kind of stakes do they have in KTE? Explain.
b) Explain the responsible business practices of KTE towards its different stakeholders.
c) Is it really necessary for KTE to fulfil the expectations of different stakeholders from a business perspective? Discuss.
d) What are the main lessons that can be learnt from this case? Explain.