Business Ethics
Professionalism
▪ Image: Neatness, well groomed, competent
▪ Communication: Clear and appropriate
▪ Actions: Act with honour and integrity, show expertise
▪ Working environment: No discrimination, confidential, neat and structured
▪ Respect: Diversity
Ethics
▪ Ethics are a description of human behaviour that is acceptable and unacceptable.
▪ Effectiveness: You have to identify the core values of the business and ensure that they are
applied by everyone, everyday. This requires professional conduct.
▪ Code of ethics: General guidelines that describe what is acceptable- and what is
unacceptable behaviour.
▪ Code of conduct: Specific rules that prescribe the expected behaviour as well as listing the
consequences for unethical conduct.
o Communicate the ethical behaviour of the business.
o Creates common framework for business decisions.
o Sets desired behaviour for employees.
o Makes acceptable conduct clear to new employees.
o Create positive image to business.
▪ Professional code: A set of rules that prescribe the expected behaviour of members of a
certain profession.
▪ Your values are based on:
o Principle-based theory
o Consequence-based theory
o Utilitarian theory: How the majority acts
o Narrative theory: Stories that affect your behaviour.
o Virtue-based theory
o Deontology
▪ Ethical behaviour: Honesty, integrity, do what is right and financially awarding.
▪ Unethical behaviour: Conflict of interest, bribes, corruption, unauthorised use of business
funds, inappropriate gifts, harassment, unfair advertising, labour-related issues, insider
trading, piracy, tax evasion and whistle-blowing.
Implications of unethical practice
▪ Negative impact on morale due to an atmosphere of distrust.
▪ Embarrassment to business.
▪ May lead to legal proceedings against individual or business.
▪ May affect the reputation of business.
▪ Negative impact on profitability due to fines or penalties.
▪ Lower profits may result in a decline in investor confidence and a drop in share prices.
▪ May lead to more strict regulations and control.
Business Studies Business Ethics | 1
Professionalism
▪ Image: Neatness, well groomed, competent
▪ Communication: Clear and appropriate
▪ Actions: Act with honour and integrity, show expertise
▪ Working environment: No discrimination, confidential, neat and structured
▪ Respect: Diversity
Ethics
▪ Ethics are a description of human behaviour that is acceptable and unacceptable.
▪ Effectiveness: You have to identify the core values of the business and ensure that they are
applied by everyone, everyday. This requires professional conduct.
▪ Code of ethics: General guidelines that describe what is acceptable- and what is
unacceptable behaviour.
▪ Code of conduct: Specific rules that prescribe the expected behaviour as well as listing the
consequences for unethical conduct.
o Communicate the ethical behaviour of the business.
o Creates common framework for business decisions.
o Sets desired behaviour for employees.
o Makes acceptable conduct clear to new employees.
o Create positive image to business.
▪ Professional code: A set of rules that prescribe the expected behaviour of members of a
certain profession.
▪ Your values are based on:
o Principle-based theory
o Consequence-based theory
o Utilitarian theory: How the majority acts
o Narrative theory: Stories that affect your behaviour.
o Virtue-based theory
o Deontology
▪ Ethical behaviour: Honesty, integrity, do what is right and financially awarding.
▪ Unethical behaviour: Conflict of interest, bribes, corruption, unauthorised use of business
funds, inappropriate gifts, harassment, unfair advertising, labour-related issues, insider
trading, piracy, tax evasion and whistle-blowing.
Implications of unethical practice
▪ Negative impact on morale due to an atmosphere of distrust.
▪ Embarrassment to business.
▪ May lead to legal proceedings against individual or business.
▪ May affect the reputation of business.
▪ Negative impact on profitability due to fines or penalties.
▪ Lower profits may result in a decline in investor confidence and a drop in share prices.
▪ May lead to more strict regulations and control.
Business Studies Business Ethics | 1