Chapter 6 - Ethics Professionalism & Social Responsibility
1. Professional Codes
- Aim to regulate the behaviour of a person practising a particular profession
- Profession: occupation/ job that requires specialised tertiary education
that qualifies a person to practice in that field
- Person has to abide by the professional code of the organisation
- If contravened, the person may be fined, suspended or disbarred
(predetermined consequences)
- Eg. Accounting, Architecture & Chartered Accounting
1. Good Business Practice
- Standards of professionalism, accountability, ethics and effective business
practices that should be conducted
- If employee does not belong to a Professional Organisation it may be difficult to
regard what is ethical and not as the individual's morals and values may differ
- Unethical actions are NOT NECESSARILY ILLEGAL
- BUT all ILLEGAL ACTS are seen as UNETHICAL
- Eg. selling petrol below the Government determined price
- Ethical Theories that may justify certain actions:
- Principle-based Theory a person’s morals, values, principles or ingrained
set of rules will determine what is right or wrong (ie. ethical or unethical)
- Consequence-based Theory the outcome will determine if the action is
ethical or unethical
- Consequence-based Theory whether an action is ethical or unethical is
based on what is best for the majority of people
2. Ethical behaviour in practice
3.1 Conflict of Interest
- If person submitting the tender knows the person who makes the final decision,
they should disclose the information and withdraw from the process
- If person is apart of the recruitment & selection process panel, they should
disclose the information and withdraw from the process
3.2 Bribes and Corruption
- When someone is offered a reward to give a third party an unfair advantage to
which the business/ person is not entitled = bribe
- Doesn’t have to be in the form of money (or smoothing payment/
facilitation payment) (may be a gift, employment, promotion or any other
favour)
, - When someone in a position of power abuses the power for personal gain =
corruption
- Includes receiving a bribe, giving an indirect bribe (kickback) to supplier,
abusing funds or an official position for personal gain
3.3 Unauthorised use of Funds
- Using business funds that are not authorised = theft
- Office workers often take part in this “white collar crime”
- Claiming lunch with spouse as a business expense = guilty of unauthorised use
of funds
3.4 Inappropriate Gifts
- Most businesses expect employees to declare all gifts received
- OR may stipulate that no employee may receive a gift greater than a certain
value
- This is done as it could be seen as being a form of bribery, regardless of the
intention
3.5 Sexual Harassment
- According to the LRA sexual harassment is a criminal offence
- Examples include:
Unwelcome physical contact.
Verbal conduct such as sexual advances, sex-related jokes, unwelcome enquires about a
person’s sex life & unwelcome body language directed at a person or group of persons.
Non-verbal conduct such as sexual gestures, indecent exposure or display of sexually
explicit pictures and objects.
Rewards in exchange for sexual favours often offered by more senior employees.
- Employees may not engage in any of the above activities with customers,
suppliers or any person who deals with the business
- All businesses should have a clearly defined policy on sexual harassment
- Including procedures to follow if an employee feels victim to sexual
harassment and also the consequences for being found guilty of the
offence
3.6 Unfair Advertising
- CH 7 will discuss unethical advertising and the role of the Advertising Standards
Authority of South Africa (ASA)
3.7 Employment/ labour issues
- Unethical issues examples:
1. Professional Codes
- Aim to regulate the behaviour of a person practising a particular profession
- Profession: occupation/ job that requires specialised tertiary education
that qualifies a person to practice in that field
- Person has to abide by the professional code of the organisation
- If contravened, the person may be fined, suspended or disbarred
(predetermined consequences)
- Eg. Accounting, Architecture & Chartered Accounting
1. Good Business Practice
- Standards of professionalism, accountability, ethics and effective business
practices that should be conducted
- If employee does not belong to a Professional Organisation it may be difficult to
regard what is ethical and not as the individual's morals and values may differ
- Unethical actions are NOT NECESSARILY ILLEGAL
- BUT all ILLEGAL ACTS are seen as UNETHICAL
- Eg. selling petrol below the Government determined price
- Ethical Theories that may justify certain actions:
- Principle-based Theory a person’s morals, values, principles or ingrained
set of rules will determine what is right or wrong (ie. ethical or unethical)
- Consequence-based Theory the outcome will determine if the action is
ethical or unethical
- Consequence-based Theory whether an action is ethical or unethical is
based on what is best for the majority of people
2. Ethical behaviour in practice
3.1 Conflict of Interest
- If person submitting the tender knows the person who makes the final decision,
they should disclose the information and withdraw from the process
- If person is apart of the recruitment & selection process panel, they should
disclose the information and withdraw from the process
3.2 Bribes and Corruption
- When someone is offered a reward to give a third party an unfair advantage to
which the business/ person is not entitled = bribe
- Doesn’t have to be in the form of money (or smoothing payment/
facilitation payment) (may be a gift, employment, promotion or any other
favour)
, - When someone in a position of power abuses the power for personal gain =
corruption
- Includes receiving a bribe, giving an indirect bribe (kickback) to supplier,
abusing funds or an official position for personal gain
3.3 Unauthorised use of Funds
- Using business funds that are not authorised = theft
- Office workers often take part in this “white collar crime”
- Claiming lunch with spouse as a business expense = guilty of unauthorised use
of funds
3.4 Inappropriate Gifts
- Most businesses expect employees to declare all gifts received
- OR may stipulate that no employee may receive a gift greater than a certain
value
- This is done as it could be seen as being a form of bribery, regardless of the
intention
3.5 Sexual Harassment
- According to the LRA sexual harassment is a criminal offence
- Examples include:
Unwelcome physical contact.
Verbal conduct such as sexual advances, sex-related jokes, unwelcome enquires about a
person’s sex life & unwelcome body language directed at a person or group of persons.
Non-verbal conduct such as sexual gestures, indecent exposure or display of sexually
explicit pictures and objects.
Rewards in exchange for sexual favours often offered by more senior employees.
- Employees may not engage in any of the above activities with customers,
suppliers or any person who deals with the business
- All businesses should have a clearly defined policy on sexual harassment
- Including procedures to follow if an employee feels victim to sexual
harassment and also the consequences for being found guilty of the
offence
3.6 Unfair Advertising
- CH 7 will discuss unethical advertising and the role of the Advertising Standards
Authority of South Africa (ASA)
3.7 Employment/ labour issues
- Unethical issues examples:
