What is the right sequence of four psychological sub-processes in ethical action given by James Rest ?
Moral sensitivity, moral focus, moral judgment, moral character
Option 1 — Moral sensitivity, moral focus, moral judgment, moral character is the keyed answer.
James Rest’s Four-Component Model describes the psychological sub-processes a person must go through to behave ethically. The sequence, as recognised in this paper, is:
| Step | Sub-process | Role |
|---|---|---|
| 1 | Moral sensitivity | Recognising that a situation has a moral dimension |
| 2 | Moral focus (motivation) | Prioritising moral values over competing ones |
| 3 | Moral judgment | Deciding which course of action is right |
| 4 | Moral character | Having the will/courage to carry out the moral action |
The action must begin with sensitivity (noticing the issue) and end with character (implementing the decision), which is why the sequence starting with moral sensitivity and ending with moral character (Option 1) is treated as correct.
Note on standard theory: Rest’s classic ordering is moral sensitivity → moral judgment → moral motivation (focus) → moral character. The keyed option places ‘focus’ before ‘judgment’; since the model is often described as a set of components rather than a strict order, the exam accepts Option 1.
Takeaway: Ethical action runs from sensitivity through to character (implementation).
Which one of the following theory of corporate governance focuses on the principal-agent conflict, where managers may prioritize their own interests over those of shareholders, thereby necessitating monitoring, incentives, and control mechanism ?
Which of the following reflect Jensen’s “Science” of takeovers ?
A. Improve shareholder wealth
B. Reallocate resources productively
C. Impose financial discipline through debt
D. Operate as hostile disruptions
E. Function as an essential corrective force in capitalism
Choose the correct answer from the options given below :
Match List - I with List - II.
| List - I (Term) | List - II (Description) |
| A. Folklore view | I. Portrayed as destructive to employees and communities |
| B. Scientific evidence | II. Generates significant economic gains by reallocating resources |
| C. Inefficient management | III. Fails to maximize shareholder value |
| D. Debt financing | IV. Imposes financial discipline by reducing wasteful spending |
Choose the correct answer from the options given below :
In the paragraph, inefficient management teams are described as those who :
Jensen emphasizes that while popular belief portrays takeovers as destructive, empirical evidence shows they :
According to the paragraph, takeovers are not merely hostile disruptions but serve as :
Whistle blowing is:
John Challenger suggested that we should consider certain things in acting more ethically in downsizing. What things he sugegsted?
A. Planning
B. Pessimism about the future of the company
C. Emotions
D. Timing
E. Stakeholder perception
Choose the correct answer from the options given below:
Utilitarianism theory of ethics refers to which one of the following ?
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 :
Corporations are controlled and directed by which one of the following?
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 among the following is not a correct statement with regard to Corporate Governance in India ?
List out from the given statements the important ethical principles that a business should follow:
a) To take the necessary action for the development of the concerned industry or business.
b) Pay taxes and discharge other obligations promptly.
c) To ensure the best utilisation of the human resources.
d) Refrain from secret kickbacks or pay-offs to customers, suppliers, administrators, etc.
e) Ensure payment of fair wages and fair treatment of employees.
Choose the correct answer from the options given below: