POKHARA UNIVERSITY

                                                  Semester : Spring

Level : Bachelor                                                                                Year       : 2018

Programme : BBA                                                                             Full Marks : 100

Course : Business and Society                                                         Pass Marks : 45

                                                                                                          Time           : 3hrs

Candidates are required to give their answera in their own words as far as practible.

The figure in the margin indicate full marks.

                                                             Section "A"

                                                 Very short Answer Questions                           10*2

Attempt all the questions.

1. Define the concept of Business and society.

2. How corporate promotes diversity?

3. Outline the OECD principles of corporate governance.

4. What is the provision anout CSR spending in the industrail Enterprise Act, 2073 of Nepal?

5. Explain the meaning of corporate citizenship.

6. What is mixed-blessing stakeholder?

7. What is ethical reasoning?

8. Explain the ethics audit in brief.

9. Difference between descriptive ethics and normative ethics.

10. What do you mean by governance gap?

                                                           Section "B"

                                              Descriptive Answer Questions                              6*10

Attempt any six questions.

11. Explain the relationship between business and stakeholder with suitable example.

12. Compare and constrast agency theory, transaction cost economics and stewardship theory of corporate governance. which one of these theories do you think superior? why?

13. Give the concept of whistle blowing and state its consequences to the whistle  blower, to the organization against which complain 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 the business firm are responsible with them ? Explain.

16. Define the 'sustainability'. Do you think the CSR as a mean of sustainability? Explain with suitable example.

17. How do you assess the current status of CSR and corporate governance in Nepal? Do you satisfy the current role of government to promote the CSR related activities in Nepal ? If not, make your suggestion what government should do?

 

                                                              Section "c"

                                                            Case Analysis                                            [20]

18. Read the case situation given below and answer the questions that follow;

Kanchanjanga tea Estate (KTE) is located at Ranitar in the remote hilly region of Panchthar diatrict in eastern Nepal are the foot of Mt. Kanchanjangha. The enterpris 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 orthdox tea plantation covering nearly 94 hectares of land. The land which was barely enough to sustain them is now utilized 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.

Kanchanjangha cares it business by caring its stakeholders, it has set good examples of CSR in the marketplace, workplace, community and environment. It is the first certified organic tea gerden 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) plan. HACCP is an organized procedure developd to ensure food quality through preventive measures rather than creative 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, Netherlans, 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 dont 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 seen quite happy eith KTE . Ratna Rai puts simply,"It has been 19 years i have been working in the production sector of KTE and U am absolutely satisfied with thw facilities and working environment here at akte" LIkewise, another employee of KTE , Rita dulal remarked: I have been woking for six years at KTE and I proudly say that KTE has become my new husband. After y 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 secire job. What else do I need? I a, highly grateful to KTE for its support."

It gives priority to local people, particularly the woman in its employment oppurtunities. It hass now approximately 75 % of women employee. 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 Cow Bank Project sice 2005. Under this project, KTE initially distributed 36 high yirlfing cows and a bull to the amsll 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 enhace their standard of living . Furthermore , it is also arranged that they can sell the cow dung tp KTE ( LTE 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 commited 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. Veiver (a plant that binds the soil ) is planted on both sides of the road and all farmers are soil erosion. It is a source of extra income for them. Kalo siris ( ALbezia sinesis), ASuro ( Adhatoda vesica), Bakanio ( Melia Azedarach), khirro ( Sapium Insigne ), high in nutrients, are being planted in the garden. Training program for farmers are conducted regularly to develop  their skills in IPM ( Integrated pest Management), comprosing, 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 center for education too. Every year a number of students from various countries including France, Germany, Kore, Japan, intern for months and contribute a helping hand while they acquaint themselves with the knowledge of organic agriculture and co-operate approach to a company. KTE has now established itself as an exemply " responsible business model" to create a win-win situation between and society.

Questions:

a. Who are key stakeholders of kanchanjangha Tea Estate (KTE) ? What kind of stakes do they have in KTE ? Explain.

b. Explain the responsible businesspractices of KTE towards its different stakeholders.

c. IS it relly necessary for KTE to fulfill the expectations of different stakeholders from the business perspective ? Discuss.

d. What are the main lessons that can be learnt from this case? Explain.