BUSINESS STUDIES
GRADE 12
CHAPTER 6: ETHICS, PROFESSIONALISM & SOCIAL
RESPONSIBILITY
1. THE RELEVANCE OF PROFESSIONAL CODES
Professional codes aim to regulate the behaviour of people
practising a particular profession.
A profession is an occupation/job requiring specialised
tertiary education that qualifies someone to practise as a
professional in a particular field.
Not all tertiary qualifications allow registration with a
professional body, but if someone is registered, they must
abide by that body’s professional code.
If the code is contravened, the person may be fined,
suspended or disbarred from ever practising in that field.
Examples of professions with specific codes:
Law
Education
Chartered Accounting
Medicine
Nursing
Engineering
Architecture
Actuary
2. GOOD BUSINESS PRACTICE
Refers to the standards of professionalism, accountability,
ethics and effective business practice that should be
conducted.
1
, Professional behaviour is guided by professional codes, which
include consequences for misconduct.
When the employee is not part of a professional organisation:
Ethical behaviour becomes subjective – based on individual
values and morals.
Unethical actions aren’t always illegal:
E.g. Selling poor quality goods at high prices is not illegal but
may be unethical.
All illegal acts are unethical.
E.g. Selling petrol below the government-determined price is
both illegal and unethical.
Ethical Theories:
1. Principle-based theory:
o Right or wrong is based on a person’s principles or
ingrained rules.
o E.g. Don’t lie to avoid punishment, don’t feign illness,
don’t pay bribes even if it means losing a deal.
2. Consequence-based theory:
o Action is judged ethical based on the outcome.
o E.g. It’s okay to lie if the truth will upset someone.
3. Utilitarian theory:
o Action is ethical if it benefits the greatest number.
o E.g. Paying a bribe is acceptable if it secures a deal and
creates many jobs.
3. ETHICAL BEHAVIOUR IN PRACTICE
3.1 Conflict of interest
Occurs when someone in authority could benefit personally
from a decision.
2
GRADE 12
CHAPTER 6: ETHICS, PROFESSIONALISM & SOCIAL
RESPONSIBILITY
1. THE RELEVANCE OF PROFESSIONAL CODES
Professional codes aim to regulate the behaviour of people
practising a particular profession.
A profession is an occupation/job requiring specialised
tertiary education that qualifies someone to practise as a
professional in a particular field.
Not all tertiary qualifications allow registration with a
professional body, but if someone is registered, they must
abide by that body’s professional code.
If the code is contravened, the person may be fined,
suspended or disbarred from ever practising in that field.
Examples of professions with specific codes:
Law
Education
Chartered Accounting
Medicine
Nursing
Engineering
Architecture
Actuary
2. GOOD BUSINESS PRACTICE
Refers to the standards of professionalism, accountability,
ethics and effective business practice that should be
conducted.
1
, Professional behaviour is guided by professional codes, which
include consequences for misconduct.
When the employee is not part of a professional organisation:
Ethical behaviour becomes subjective – based on individual
values and morals.
Unethical actions aren’t always illegal:
E.g. Selling poor quality goods at high prices is not illegal but
may be unethical.
All illegal acts are unethical.
E.g. Selling petrol below the government-determined price is
both illegal and unethical.
Ethical Theories:
1. Principle-based theory:
o Right or wrong is based on a person’s principles or
ingrained rules.
o E.g. Don’t lie to avoid punishment, don’t feign illness,
don’t pay bribes even if it means losing a deal.
2. Consequence-based theory:
o Action is judged ethical based on the outcome.
o E.g. It’s okay to lie if the truth will upset someone.
3. Utilitarian theory:
o Action is ethical if it benefits the greatest number.
o E.g. Paying a bribe is acceptable if it secures a deal and
creates many jobs.
3. ETHICAL BEHAVIOUR IN PRACTICE
3.1 Conflict of interest
Occurs when someone in authority could benefit personally
from a decision.
2
