Business Studies
The human resources function
Understanding ethical and professional behaviour
The meaning of ethical behaviour
ethical behaviour means that businesses have the responsibility to use moral codes
that guide them to make the choice between right and wrong.
Examples of ethical behaviour
The business operates within the law and other restrictions.
Businesses ensure that the environment is not polluted during their production
process.
Businesses do not engage in illegal business practices such as price-fixing.
Businesses do not make use of child labour.
Examples of unethical behaviour
Deliberately falsifying information on tax returns.
Classifying an employee as a contractor to reduce payroll taxes and avoiding other
compulsory deductions.
Engaging in price-fixing to force smaller competitors out of business.
Using bait and switch or false advertising tactics to lure customers in or convince
them to buy a product.
The meaning of professional behaviour
Although professionalism is closely linked to ethics, it is a broader concept than
ethics. It includes issues such as appearance, communication, responsibility,
knowledge, skills, etc.
Examples of Professional behaviour
Using polite language with colleagues and clients.
Treating all colleagues and clients the same.
Taking responsibility for your actions, for example, admitting your mistakes.
Exercising reasonable work morale and self-motivation.
Examples of Unprofessional behaviour
Giving some people special favours.
Overstating the number of hours worked.
Being unprepared for assignments or tasks.
Creating false impressions and providing misleading information.
, The differences between ethical and professional behaviour
Application of the King Code principles
The meaning
The King Code was developed by the former Judge of the High Court, Mervyn King
and by the King Commission.
The King Code aims to set a code for ethical and effective leadership by the board
of directors.
The application of the King Code principles
Transparency
Decisions/Actions must be clear to all stakeholders.
Staffing and other processes should be open and transparent.
Employees/Shareholders/Directors should be aware of the employment policies of
the business.
Auditing and other reports must be accurate/available to shareholders/ employees.
Accountability
There must be regular communication between management and stakeholders.
The company should appoint internal and external auditors to audit financial
statements.
Businesses should be accountable/responsible for their decisions/actions.
The human resources function
Understanding ethical and professional behaviour
The meaning of ethical behaviour
ethical behaviour means that businesses have the responsibility to use moral codes
that guide them to make the choice between right and wrong.
Examples of ethical behaviour
The business operates within the law and other restrictions.
Businesses ensure that the environment is not polluted during their production
process.
Businesses do not engage in illegal business practices such as price-fixing.
Businesses do not make use of child labour.
Examples of unethical behaviour
Deliberately falsifying information on tax returns.
Classifying an employee as a contractor to reduce payroll taxes and avoiding other
compulsory deductions.
Engaging in price-fixing to force smaller competitors out of business.
Using bait and switch or false advertising tactics to lure customers in or convince
them to buy a product.
The meaning of professional behaviour
Although professionalism is closely linked to ethics, it is a broader concept than
ethics. It includes issues such as appearance, communication, responsibility,
knowledge, skills, etc.
Examples of Professional behaviour
Using polite language with colleagues and clients.
Treating all colleagues and clients the same.
Taking responsibility for your actions, for example, admitting your mistakes.
Exercising reasonable work morale and self-motivation.
Examples of Unprofessional behaviour
Giving some people special favours.
Overstating the number of hours worked.
Being unprepared for assignments or tasks.
Creating false impressions and providing misleading information.
, The differences between ethical and professional behaviour
Application of the King Code principles
The meaning
The King Code was developed by the former Judge of the High Court, Mervyn King
and by the King Commission.
The King Code aims to set a code for ethical and effective leadership by the board
of directors.
The application of the King Code principles
Transparency
Decisions/Actions must be clear to all stakeholders.
Staffing and other processes should be open and transparent.
Employees/Shareholders/Directors should be aware of the employment policies of
the business.
Auditing and other reports must be accurate/available to shareholders/ employees.
Accountability
There must be regular communication between management and stakeholders.
The company should appoint internal and external auditors to audit financial
statements.
Businesses should be accountable/responsible for their decisions/actions.
