Assertion (A) : Decisions in small matters largely tend to set a pattern for the more important ones you may make as managers. Reasoning (R) : A multi-industry survey conducted in the USA indicated that 40% of the managers said that their superiors had at some time told them to do certain things unethical. Code :
(A) and (R) both are correct but (R) is not the correct explanation of (A).
Both are correct, but (R) does not explain (A) — option 4.
The assertion is correct. It states a well-established proposition of ethical behaviour: small decisions establish habits, and habits govern the large decisions when they arrive. A manager who accepts small gifts, pads an expense claim or shades a figure in a routine report is forming a disposition that will decide how he acts when the stakes are serious. This is the slippery slope of ethics, and it explains why organisations that tolerate minor lapses find major ones later. It is also why ethical training concentrates on everyday conduct rather than on dramatic dilemmas.
The reasoning is also correct as a statement of fact. Surveys of this kind — the finding is widely cited in business-ethics texts — do report that a substantial proportion of managers, around 40%, have been asked by a superior to do something they considered unethical.
But (R) does not explain (A), and this is the whole point of the item :
| Statement | What it is about |
|---|---|
| (A) | An internal process — how a manager’s own small decisions shape his later large ones. The cause lies within the individual |
| (R) | An external pressure — the frequency with which superiors ask subordinates to act unethically. The cause lies outside the individual |
Both are true observations about ethics in organisations, but they describe different phenomena with different causes. Nothing in the survey finding accounts for why small decisions set a pattern; the pattern would form even in an organisation where no superior ever applied such pressure. The two statements are related in subject and unrelated in logic — exactly the condition option 4 describes.
How to handle assertion-reasoning items of this shape. Verify the two statements separately, and only then ask whether the second supplies the cause of the first. Two true statements about the same topic very often stand in no explanatory relation at all, and examiners rely on candidates who, having found both true, stop there and choose option 1.
What (R) does establish, for its own sake: that unethical conduct in organisations is frequently a matter of hierarchical pressure rather than individual disposition, which is the argument for whistle-blower protection, ethics hotlines and codes of conduct that give a subordinate an authority to appeal to when refusing an instruction.
Hence, the answer is option 4.
Similar Questions
Which one of the following is not a principle of corporate Governance ?
Match the items given in the List - I and List - II and suggest the correct code :
List - I List - II (a) Ethics (i) Right code of behaviour for a group or profession (b) Morality (ii) Prescribes right conduct for everyone (c) Moral standard (iii) Needs some inclination to follow morality (d) Meta Moral Standard (iv) Practical and pragmatic Code :
Assertion (A) : When a corporation acts ethically and socially responsible in its business decisions and strategic planning, then the corporation will be more sustainable.
Reason (R) : Socially responsible corporate behaviour is increasingly seen as essential to long-term survival of companies.
Social responsibility of business while appropriating natural resources by a corporate entity has been recommended in which one of the following?
Disclosure of corporate governance practice and its compliance has been stipulated in which one of the following?
Kumar Mangalam Birla Committee Report, Ramesh Chandra Committee Report, Cadbury Committee Report primarily focus on which one of the following?
'The continuing commitment by business 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.'
This may be attributed rightly to which one of the following?
Read the following passage and answer the questions :
Jensen examines the dynamics of corporate takeovers and challenges prevailing misconceptions surrounding them. He argues that takeovers are not merely hostile disruptions but serve as a crucial mechanism of the market for corporate control. According to Jensen, inefficient management teams often fail to maximize shareholder value and takeovers act as disciplinary tool by transferring control to more competent managers. He emphasizes that while popular belief portrays takeovers as destructive to employees and communities, empirical evidence suggests that they frequently generate significant economic gains by reallocating resources to more productive uses. Jensen distinguishes between the folklore-emotional and political arguments against takeovers depicting as harmful to employees and society and the science, which demonstrates thier role in improving efficiency and shareholder wealth. He also addresses concerns about debt financing in leveraged buyouts, contending that high leverage can impose financial discipline on managers by reducing wasteful spending. Ultimately, Jensen frames takeovers as an essential corrective force within capitalism, countering managerial inefficiency and aligning corporate behavior with shareholder interests. His analysis laid the groundwork for modern corporate finance debates on governance, agency costs and the value-creating potential of mergers and acquisitions.
Statement (I) : The science of ethics is a normative science.
Statement (II) : Normative sciences judge the value of the facts in terms of an idea; concerned with judgements of ‘what ought to be’ but not with factual judgements.
Code :
Deontological theory of ethics is concerned with which of the following ?
(a) Duty ethics
(b) Obligation ethics
(c) Rule based ethics
(d) Classical ethics
Code :
Important Questions from Corporate governance and business ethics
As per the Anglo-Saxon Model of Corporate Governance, the authority lies with the following. Arrange these in decreasing order of authority.
A. Board of Directors
B. Managers
C. Shareholders
D. Employees (Company)
E. Trade unions
Choose the correct sequence from the options given below
Assertion (A) : Corporate governance is an important instrument of investor protection.
Reason (R) : Strong corporate governance is indispensable to resilient and vibrant capital markets.
Which one of the following options is correct?
Which one of the following is not a norm of corporate governance ?
Which one among the following is not a true statement?
Ethics are moral principles and values which:
