PROFESSIONALISM & ETHICS
SOME ETHICAL ISSUES IN THE CORPORATE WORLD
1. Conflict of interest:
● Individual/business - involved - multiple interests + serving 1 interest - involve working against another.
○ Supervisor - relative / close friend - reports to them - affects responsibilities, salary +
promotions.
○ Manager dating employee - reports to him/her.
2. Bribes, corruption & inappropriate gifts:
● Gift - largely inappropriate - given to persuade someone - act in one's favour = bribe.
○ Given - decision-maker - intention - swinging the decision.
● Corruption = misuse - public power - private gain.
● Inappropriate gifts - linked - SH.
3. Sexual harassment:
● Unwelcomed + uninvited sexual advances - physical / verbal - usually from authority figure to subordinate.
● Includes: sexually explicit comments, signs, innuendos, phone calls, emails, SMSs, voyeurism, intrusion of
privacy + any act - recipient - uncomfortable.
4. Unauthorised use of funds:
● Fraudulent invoices / payment requisitions
● Forged signatures
● Unauthorised electronic payments
● Skimming accounts (transferring small amounts from customers’ accounts)
5. Unfair advertising:
● False labelling
● Hidden fees
● Misusing the word ‘free’
● Fillers - in food to increase weight - chicken injected with broth.
● Misleading illustrations
● Bait + switch - advertising 1 product + subbing it for a similar product @ higher price by claiming -
advertised product - unavailable / sold out.
6. Employment / Labour issues:
● Internet, email + cell phone issues:
○ Employees visiting questionable websites to forwarding damaging emails.
● Stealing from company:
○ Company property - private use without authorisation.
○ Padding expense accounts - get reimbursed - questionable business expenses - personal meals.
SANJANA VINOD
, 7. Counterfeiting & bootlegging:
● Counterfeiting = copying / imitating a product + trying - pass it off as the original.
● Bootlegging = illegal distribution - product - alcohol.
8. Insider trading:
● Illegal practice - buying + selling - shares on stock exchange + having ‘insider’ access - confidential info.
9. Piracy:
● Unauthorised + illegal duplication - products - protected by patents / copyrights.
10. Unrealistic pricing:
● Demand - high + few options - mark-ups - exorbitant.
● CPA - illegal - inflate prices - rural areas.
● Competition Board protects - price fixing - large suppliers.
11. Firing an employee for whistle-blowing:
● Whistle blowing = employee reports unethical beh - management.
● WB - ethical but getting fired for it - unethical + reporter - protected - SA law.
12. Tax evasion:
● Not disclosing all income - SARS - pay less tax.
● Tax avoidance = applying legitimate tax deductions.
13. Affirmative action to redress issues of past:
● To rectify moral injustices - past - to heal + move on.
● Some cases - ‘reverse discrimination’ - well qualified - can’t find job.
● Some view - unethical.
WHY BUSINESS ETHICS?
● Employees - more productive + creative - work is meaningful + can manage a healthy balance - personal + prof life.
○ Implement progs - help employees - maintain balance.
○ Result - business acts ethically - looking after well-being of employees.
● Business - take into consideration - needs + requirements - all stakeholders.
○ Need to do more than just staying within the law.
○ Business - play - written + unwritten rules - perform better.
● Most SAs - religious + those - committed to a certain religion - impact - role players outside of religious org + those -
business environ.
○ Incentive - manager/owner - act ethical / embark - ethical progs.
● With deregulation - business - show - can act responsible citizens without - forced.
○ Business - intro ethical progs - can operate without external interference.
○ Some businesses - very powerful - act in responsible manner - creation - ‘good’ society.
● Increased globalisation - business operating across national boundaries.
○ Global transactions - difficult to fall back - shared culture / religious values - ensure acceptable beh.
○ Growing need - global set of moral values - shared - all businesses.
SANJANA VINOD
SOME ETHICAL ISSUES IN THE CORPORATE WORLD
1. Conflict of interest:
● Individual/business - involved - multiple interests + serving 1 interest - involve working against another.
○ Supervisor - relative / close friend - reports to them - affects responsibilities, salary +
promotions.
○ Manager dating employee - reports to him/her.
2. Bribes, corruption & inappropriate gifts:
● Gift - largely inappropriate - given to persuade someone - act in one's favour = bribe.
○ Given - decision-maker - intention - swinging the decision.
● Corruption = misuse - public power - private gain.
● Inappropriate gifts - linked - SH.
3. Sexual harassment:
● Unwelcomed + uninvited sexual advances - physical / verbal - usually from authority figure to subordinate.
● Includes: sexually explicit comments, signs, innuendos, phone calls, emails, SMSs, voyeurism, intrusion of
privacy + any act - recipient - uncomfortable.
4. Unauthorised use of funds:
● Fraudulent invoices / payment requisitions
● Forged signatures
● Unauthorised electronic payments
● Skimming accounts (transferring small amounts from customers’ accounts)
5. Unfair advertising:
● False labelling
● Hidden fees
● Misusing the word ‘free’
● Fillers - in food to increase weight - chicken injected with broth.
● Misleading illustrations
● Bait + switch - advertising 1 product + subbing it for a similar product @ higher price by claiming -
advertised product - unavailable / sold out.
6. Employment / Labour issues:
● Internet, email + cell phone issues:
○ Employees visiting questionable websites to forwarding damaging emails.
● Stealing from company:
○ Company property - private use without authorisation.
○ Padding expense accounts - get reimbursed - questionable business expenses - personal meals.
SANJANA VINOD
, 7. Counterfeiting & bootlegging:
● Counterfeiting = copying / imitating a product + trying - pass it off as the original.
● Bootlegging = illegal distribution - product - alcohol.
8. Insider trading:
● Illegal practice - buying + selling - shares on stock exchange + having ‘insider’ access - confidential info.
9. Piracy:
● Unauthorised + illegal duplication - products - protected by patents / copyrights.
10. Unrealistic pricing:
● Demand - high + few options - mark-ups - exorbitant.
● CPA - illegal - inflate prices - rural areas.
● Competition Board protects - price fixing - large suppliers.
11. Firing an employee for whistle-blowing:
● Whistle blowing = employee reports unethical beh - management.
● WB - ethical but getting fired for it - unethical + reporter - protected - SA law.
12. Tax evasion:
● Not disclosing all income - SARS - pay less tax.
● Tax avoidance = applying legitimate tax deductions.
13. Affirmative action to redress issues of past:
● To rectify moral injustices - past - to heal + move on.
● Some cases - ‘reverse discrimination’ - well qualified - can’t find job.
● Some view - unethical.
WHY BUSINESS ETHICS?
● Employees - more productive + creative - work is meaningful + can manage a healthy balance - personal + prof life.
○ Implement progs - help employees - maintain balance.
○ Result - business acts ethically - looking after well-being of employees.
● Business - take into consideration - needs + requirements - all stakeholders.
○ Need to do more than just staying within the law.
○ Business - play - written + unwritten rules - perform better.
● Most SAs - religious + those - committed to a certain religion - impact - role players outside of religious org + those -
business environ.
○ Incentive - manager/owner - act ethical / embark - ethical progs.
● With deregulation - business - show - can act responsible citizens without - forced.
○ Business - intro ethical progs - can operate without external interference.
○ Some businesses - very powerful - act in responsible manner - creation - ‘good’ society.
● Increased globalisation - business operating across national boundaries.
○ Global transactions - difficult to fall back - shared culture / religious values - ensure acceptable beh.
○ Growing need - global set of moral values - shared - all businesses.
SANJANA VINOD
