Consists of 2 Markers Paper-Business Ethics and Corporate Governance Course- M.com (FA) Bibliography www.google.com

1. BUSINESS ETHICS AND CORPORATE GOVERNANCE
Question Paper Questions Page 1
BUSINESS ETHICS AND
CORPORATE GOVERNANCE

2. BUSINESS ETHICS AND CORPORATE GOVERNANCE
Question Paper Questions Page 2
1. Malfeasance-Intentional conduct that is wrongful or unlawful, especially by officials or
public employees. Malfeasance is at a higher level of wrongdoing than nonfeasance
(failure to act where there was a duty to act) or misfeasance (conduct that is lawful but
inappropriate).
2. Independent Director -An independent director, in corporate governance, refers to a
member of a board of directors who does not have a material relationship with a
company and is neither part of its executive team nor involved in the day-to-day
operations of the company.
3. Due diligence -Due diligence is an investigation of a business or person prior to signing
a contract, or an act with a certain standard of care. It can be a legal obligation, but the
term will more commonly apply to voluntary investigations
4. Climate Change -Climate change also called as global warming refers to the rise in
average surface temperatures on earth. It is any significant long term change in the
expected patterns of average weather of a region over a significant period of time.
5. Professional Management -Professional Management refers to the seasoned approach
in administering the organization. In such organizations the top management positions
and even the lower management position are held by professional people. They have the
professional qualifications, administrative &technical skills and also the good amount of
experience in managing business affairs.
6. Agency cost -An agency cost is a type of internal company expense, which comes from
the actions of an agent acting on behalf of a principal. Agency costs typically arise in the
wake of core inefficiencies, dissatisfactions, and disruptions, such as conflicts of interest
between shareholders and management.
7. Asymmetric information-Asymmetric information is, just as the term suggests,
unequal, disproportionate, or lopsided information. It is typically used in reference to
some type of business deal or financial arrangement where one party possesses more, or
more detailed, information than the other.

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8. Moral Dilemma-Moral dilemmas are situations in which the decision-maker must
consider two or more moral values or duties but can only honour one of them; thus, the
individual will violate at least one important moral concern, regardless of the decision.
9. Whistle blower-A whistleblower is a person, who could be an employee of a company,
or a government agency, disclosing information to the public or some higher authority
about any wrongdoing, which could be in the form of fraud, corruption, etc.
10. Selective perception-Selective perception is a psychological phenomenon related to our
tendency to reject and accept certain types of information. Specifically, we have a
proclivity to favour information that interests us (e.g., information that supports our
worldview) and avoids information that causes emotional discomfort (e.g., information
that contradicts our worldview). Selective perception increases the risk of the occurrence
of unethical decision making. All ethical decision-making processes.
11. Ethics v/s Value
Ethics refers to a system of moral
principles
Values are associated with the
thought process, a person’s sense of
what is wrong and what is right.
Ethics aligns with a professional
setup
Values are associated with personal
aspects of a person
Ethics has 3 major areas of study –
Meta-Ethics, Normative Ethics, and
Applied Ethics.
Different types of values are moral
values, social values, aesthetic values,
religious values, political values.
Ethics will be consistent within a
professional setup but would vary
between different organisations or
institutions.
Values vary from person to person, it
need not be consistent.
12. Cognitivism -Cognitivism is a study which focuses on mental processes, including how
people perceive, think, remember, learn, solve problems and direct their attention to one
stimulus rather than another. or

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Cognitivism refers to a class of learning theories that are based on some sort of rational
information processing model of the human mind.
13. Hostile takeover-A hostile takeover is the acquisition of one company (called the target
company) by another (called the acquirer) that is accomplished by going directly to the
company's shareholders or fighting to replace management to get
the acquisition approved.
14. Security Audit -Security audit is a systematic evaluation of the security of a company's
information system by measuring how well it conforms to a set of established
criteria...A security audit is the high-level description of the many ways organizations
can test and assess their overall security posture, including cyber security.
15. Distributive Justice- Distributive justice refers to the extent to which society's
institutions ensure that benefits and burdens are distributed among society's members in
ways that are fair and just.
16. Accounting Frauds-Accounting fraud is the intentional manipulation of financial
statements to create a false appearance of corporate financial health. Furthermore, it
involves an employee, accountant, or the organization itself misleading investors and
shareholders. A company can falsify its financial statements by overstating its revenue,
not recording expenses, and misstating assets and liabilities.
17. Ethical hacker's v/s Elite hackers-Elite hackers avoid deliberately destroying
information or otherwise damaging the computer system they have exploited whereas
ethical hacker is a person who hacks into a computer network in order to test or evaluate
security, rather than with malicious or criminal intent.
18. Whistle Blowing-Whistle blowing means calling attention to wrongdoing that is
occurring within an organization.
19. Product liability-It is the legal liability a manufacturer or trader incurs for producing or
selling faulty product. It is one in which manufacturers, distributors, suppliers, retailers,

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and others who make products available to the public are held responsible for the injuries
those products cause.
20. Piracy -Piracy is the practice of downloading and distributing copyrighted content
digitally without permission piracy is the illegal copying of software.
21. Cyber crime-Cybercrime is criminal activity that either targets or uses a computer, a
computer network or a networked device. Cybercrime aims to damage computers for
reasons other than profit. These could be political or personal.
22. Importance of Ethics-Credibility with the Employees, Better Decision Making,
Corresponds to Basic Human Needs, Protection of Society:
23. Important Cyber Crime-Phishing Scams, Website Spoofing, Ransom ware , Malware
24. Collectivism in HRM-Collectivism is the opposite of individualism - a preference for
being part of a group. In employment relations, a process of combining into unions or
staff associations for the purpose of negotiation with management.
25. Hacking in Bank Account -In this context of this article, hacking is the act of gaining
unauthorized access to a device, network, or account.
26. Social issues in Advertising
 Moral concerns about advertising of harmful products—Tobacco, Alcohol etc.
 Too much advertising on children is considered a matter of great concern.
 Objection to occasion of exposure when children are present with the adults.
 Objection to advertising strategy of excessive repetition of the Ad.
27. Tax Evasion-Tax evasion can be defined as any criminal activity or any offence of
dishonesty punishable by civil penalties that is intended to reduce the taxation incidence,
and depends on economic and tax structures, types of income, and social attitudes

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28. Infringement of Rights-The encroachment, breach, or violation of a right, law,
regulation, or contract. The term is most frequently used in reference to the invasion
of rights secured by Copyright, patent, or trademark.
29. Reputation Quotient - Corporate reputation that was created specifically to capture the
perceptions of any corporate stakeholder group such as consumers, investors, employees,
or key influencers.
30. Insider trading -Insider trading involves trading in a public company's stock by
someone who has non-public, material information about that stock for any reason.
Insider trading can be either illegal or legal depending on when the insider makes the
trade. It is illegal when the material information is still non-public, and this sort of
insider trading comes with harsh consequences.
31. Sanctions -Sanctions, in law and legal definition, are penalties or other means of
enforcement used to provide incentives for obedience with the law, or with rules and
regulations.
32. CSR INDEX-National and international index have been created to assess companies
against a corporate social responsibility framework. Inclusion on an index in this guide is
based on level of performance with respect to sustainability.