CHAPTER 6
ETHICS, PROFESSIONALISM AND SOCIAL RESPONSIBILITY
__________________________________________________
THE RELEVANCE OF PROFESSIONAL CODES
Professional Codes aim to regulate the behaviour of people practicing a particular
profession. If someone is registered with a professional body, that person has to abide
by the professional code of the organisation.
GOOD BUSINESS PRACTICE
• Refers to the standard of professionalism, accountability, ethics and effective
business practice that should be conducted.
• Professional behaviour is guided and prescribed to by Professional codes.
• Unethical actions are not necessarily illegal.
• All illegal acts will be seen as unethical.
There are many such theories, think about the following three:
- People-based theory - persons morals or ingrained set of rules about what is
right and wrong, will determine if the person sees the action ethical or not.
- Consequence-based theory - the action will determine if the action is ethical or
not.
- Utilitarian theory - decision of ethical or unethical actions is based on what is
best for the greatest number of people.
ETHICAL BEHAVIOR IN PRACTICE
Conflict of interest
Someone in authority has a opportunity to make decisions that will benefit him/her
rather than the business. It will create a conflict of interest.
Bribes and corruption
When someone is offered a reward to give the third party an unfair advantage, the
business is not entitled, it’s a bribe. When someone in a position of power, abuses this
power for personal gain, it is corruption.
Unauthorised use of funds
Using business funds that are not authorized is the same as theft. E.g. using a petrol
card and going to Durban with your family.
Inappropriate gifts
Most businesses expect employees to declare all gifts that they have received.
, Sexual harassment
The code of Good Practice on the Handling of Sexual Harassment Cases. This supports
section 2 of The Labour Relations Act. Sexual harassment is a criminal offence.
Examples of sexual harassment may include:
• Unwelcome physical contact
• Verbal conduct
• Non-verbal conduct
• Employee promises a reward in exchange for a sexual act
Unfair advertising
The role of the Advertising Regulatory Board (ARB) in this respect.
Employment / Labour issues
• Employee abusing sick leave
• The abuse of the internet or email may include:
- Employees who visit porn sites
- Make confidential information available
- Spread rumours or other damaging information about the business or
employee
- Spend work hours on social media
- Spending time on personal emails during work hours
• Taking business stationary home
• Verbal abuse of staff members by a manager
Pricing of goods
Price fixing occurs when competitors agree to charge the buyers a predetermined price.
Competition keeps prices low and quality high. The Consumer Protection Act (CPA)
makes it illegal to charge more for a product in rural areas than in urban areas.
“Insider trading”
Where someone trades shares on the JSE brand on knowledge that is confidential. This
is a criminal offence.
Piracy
An illegal use or reproduction of somebody’s work if it is protected by a patent or
copyright. E.g. GoMovies
Counterfeiting/Bootlegging
• Counterfeiting – someone fraudulently imitating another’s work and pretending it
is the original
• Bootlegging – illegal production and/or distribution of a product
ETHICS, PROFESSIONALISM AND SOCIAL RESPONSIBILITY
__________________________________________________
THE RELEVANCE OF PROFESSIONAL CODES
Professional Codes aim to regulate the behaviour of people practicing a particular
profession. If someone is registered with a professional body, that person has to abide
by the professional code of the organisation.
GOOD BUSINESS PRACTICE
• Refers to the standard of professionalism, accountability, ethics and effective
business practice that should be conducted.
• Professional behaviour is guided and prescribed to by Professional codes.
• Unethical actions are not necessarily illegal.
• All illegal acts will be seen as unethical.
There are many such theories, think about the following three:
- People-based theory - persons morals or ingrained set of rules about what is
right and wrong, will determine if the person sees the action ethical or not.
- Consequence-based theory - the action will determine if the action is ethical or
not.
- Utilitarian theory - decision of ethical or unethical actions is based on what is
best for the greatest number of people.
ETHICAL BEHAVIOR IN PRACTICE
Conflict of interest
Someone in authority has a opportunity to make decisions that will benefit him/her
rather than the business. It will create a conflict of interest.
Bribes and corruption
When someone is offered a reward to give the third party an unfair advantage, the
business is not entitled, it’s a bribe. When someone in a position of power, abuses this
power for personal gain, it is corruption.
Unauthorised use of funds
Using business funds that are not authorized is the same as theft. E.g. using a petrol
card and going to Durban with your family.
Inappropriate gifts
Most businesses expect employees to declare all gifts that they have received.
, Sexual harassment
The code of Good Practice on the Handling of Sexual Harassment Cases. This supports
section 2 of The Labour Relations Act. Sexual harassment is a criminal offence.
Examples of sexual harassment may include:
• Unwelcome physical contact
• Verbal conduct
• Non-verbal conduct
• Employee promises a reward in exchange for a sexual act
Unfair advertising
The role of the Advertising Regulatory Board (ARB) in this respect.
Employment / Labour issues
• Employee abusing sick leave
• The abuse of the internet or email may include:
- Employees who visit porn sites
- Make confidential information available
- Spread rumours or other damaging information about the business or
employee
- Spend work hours on social media
- Spending time on personal emails during work hours
• Taking business stationary home
• Verbal abuse of staff members by a manager
Pricing of goods
Price fixing occurs when competitors agree to charge the buyers a predetermined price.
Competition keeps prices low and quality high. The Consumer Protection Act (CPA)
makes it illegal to charge more for a product in rural areas than in urban areas.
“Insider trading”
Where someone trades shares on the JSE brand on knowledge that is confidential. This
is a criminal offence.
Piracy
An illegal use or reproduction of somebody’s work if it is protected by a patent or
copyright. E.g. GoMovies
Counterfeiting/Bootlegging
• Counterfeiting – someone fraudulently imitating another’s work and pretending it
is the original
• Bootlegging – illegal production and/or distribution of a product
