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Summary Ethics, Professionalism and Social Responsibility - IEB Business Studies

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A complete summary on Ethics, Professionalism and Social Responsibility as per the IEB Curriculum.

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Ethics, Professionalism and Social Responsibility:
The relevance of professional codes:
Professional codes aim to regulate the behaviour of people practicing a particular
profession.
A profession is an occupation requiring specialised tertiary education that qualifies
someone to practice as a professional in a particular field. Not all tertiary
qualifications will enable the graduate to register with a professional body. However,
if someone is registered with a professional body they must abide by the
professional code of the organisation.
Professions subject to specific codes:
- Law
- Education
- Chartered accounting
- Medicine
- Nursing
- Engineering
- Architecture
- Actuary
Good business practice:
This refers to the standards of professionalism, accountability, ethics and effective
business practice that should be conducted.
If the employee does not belong to a professional organisation sometimes it isn’t
clear what is regarded unethical because ethics are also a part of an individual’s
values and morals
 Unethical actions are not necessarily illegal, but all illegal acts are seen as
unethical thus it is illegal to sell petrol below the price that the government
determines.
Principle-based theory: The persons principles, values, morals or ingrained set of
rules about what is right/wrong will determine if the person sees the action as ethical
or not
Consequence-Based theory: The outcome of the action determines if the action is
ethical or not.
Utilitarian Theory: The decision of ethical/unethical action is based for what is best
for the greatest number of people.

, Ethical behaviour in practice:
Conflict of interest:
If the person awarding the tender knows the person who is submitting it, they should
not make the final decision. The person awarding should disclose that they know the
person submitting and then withdraw from the tender allocation process.
If someone is a part of the recruitment and selection panel and they fail to disclose
that an applicant is a family member or a friend.
Bribe and corruption:
When a reward is offered to give a third party an unfair advantage to which one is
not entitled it is a bribe. It may be a gift, an offer of employment a promotion or any
other favour. Smoothing/facilitation payment = money
When someone in a position of power abuses this power for personal gain it is
Corruption > may include receiving a bribe, abusing a position for personal gain,
misappropriating funds
Unauthorised use of funds:
Using business funds that are not authorised is the same as theft > White collar
crime.
Inappropriate Gifts:
Most businesses expect employees to declare all gifts that they have received.
Some may even have a “no employee may receive a gift over R…”
Sexual Harassment:
Sexual harassment is a criminal offence. Sexual harassment may include:
- Unwelcome physical contact
- Verbal conduct, sexual advances, sex-related jokes, unwelcome enquiries
about a person’s sex life and unwelcome body language directed at a person/
group of people.
- Non-Verbal conduct, sexual gestures, indecent exposure/display of sexually
explicit pictures & objects
- When a more senior employee promises a reward in exchange for sexual
favours
Every business must have a clearly defined policy on sexual harassment including
the procedure one must follow when they feel like they are the victim of sexual
harassment and the penalties for being found guilty.
Employment/ Labour issues:
Employees abusing sick leave
Abuse of the internet such as:
- Visiting porn sites

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