Chapter 6: Ethics, Professionalism and Social Responsibility Professional Codes
Aims to regulate behaviour of people practicing a particular profession
A job requiring specialised tertiary education qualifying someone to be a professional in a
particular field
[when registered with a professional body, the person must abide by organisation’s professional code,
failure to do so will = fined/suspended/expelled. These includes Law, Education, Charted Accounting, etc]
Good business practice
Definition: Standard of professionalism, accountability, ethics and effective business practice that
should be conducted
BASICALLY= unethical actions are not illegal (selling low quality goods at a high price) but illegal acts
are unethical
Principle- based theory Consequence-based theory
Person’s principles, values, The outcome (consequence) of
morals or ingrained set of rules the action will determine if
about what’s right/ wrong’ll the action is ethical or not.
determine if the person sees Example: “it’s okay to lie to
action as ethical or not. my boss if I know the truth
Example: “life I have a deadline, will upset her”
I can’t fake being sick to avoid
it”
Utilitarian theory
The decision of ethical vs unethical
action is based on what’s best for the
greater number of people
Example: “it helps 9/10 people get
negativity affects 1/10, we’ll go
forward with it”
Ethical behaviour in practice
When a person chooses personal gain over their duties to employer,
Conflict of interest= exploiting their position. Example: if someone is part of recruitment
and selection panel and don’t disclose applicant is a friend
Bribe: when someone is offered a reward to give a third party an unfair
Bribes and corruption= advantage which the business/individual is not entitled to (form of money,
gift, offer of employment, promotion
Corruption: when someone in a position of power abuses power for personal gain (includes consciously
accepting bribe, indirect bribe to supplier, abusing an official position for personal gain)
Aims to regulate behaviour of people practicing a particular profession
A job requiring specialised tertiary education qualifying someone to be a professional in a
particular field
[when registered with a professional body, the person must abide by organisation’s professional code,
failure to do so will = fined/suspended/expelled. These includes Law, Education, Charted Accounting, etc]
Good business practice
Definition: Standard of professionalism, accountability, ethics and effective business practice that
should be conducted
BASICALLY= unethical actions are not illegal (selling low quality goods at a high price) but illegal acts
are unethical
Principle- based theory Consequence-based theory
Person’s principles, values, The outcome (consequence) of
morals or ingrained set of rules the action will determine if
about what’s right/ wrong’ll the action is ethical or not.
determine if the person sees Example: “it’s okay to lie to
action as ethical or not. my boss if I know the truth
Example: “life I have a deadline, will upset her”
I can’t fake being sick to avoid
it”
Utilitarian theory
The decision of ethical vs unethical
action is based on what’s best for the
greater number of people
Example: “it helps 9/10 people get
negativity affects 1/10, we’ll go
forward with it”
Ethical behaviour in practice
When a person chooses personal gain over their duties to employer,
Conflict of interest= exploiting their position. Example: if someone is part of recruitment
and selection panel and don’t disclose applicant is a friend
Bribe: when someone is offered a reward to give a third party an unfair
Bribes and corruption= advantage which the business/individual is not entitled to (form of money,
gift, offer of employment, promotion
Corruption: when someone in a position of power abuses power for personal gain (includes consciously
accepting bribe, indirect bribe to supplier, abusing an official position for personal gain)
