ETHICS, PROFESSIONALISMS AND SOCIAL RESPONSIBILITY
GOOD BUSINESS PRACTICE
Ethical theories
Principle based theory: A persons, morals and values determines if the person sees the action as
ethical or not
Consequence based theory: The consequence of the action will determine if the action is ethical or
not
Utilitarian Approach: if the action is for the greater good or best for the greatest number of people.
ETHICAL BEHAVIOUR IN PRACTICE
Conflict of interest
If one of the applicants is a friend/family/loved one, the person who knows them should not make the
final decision.
Bribes and corruption
This is when a reward is offered to give to give a third party an unfair advantage, which is not
allowed by the business.
- When someone in a position of power, abuses the role
Unauthorised use of funds
This is the use unauthorised business funds
- It is seen as theft
Inappropriate Gifts
Businesses expect employees to declare all gifts as they are received, as some may be seen as a form
of bribery
Sexual harassment
sexual advancements, it is a criminal offence
- gifts
- Unwelcome physical contact
1
, - Verbal conduct (sexual jokes, asking questions about someones personal sex life, sexual
advances)
- When a senior employee promises a reward in exchange for sexual favours.
Unfair advertising
Refer to ch7
Employment/labour issues
- Abusing sick leave
- Taking business stationary
- Using internet to visit porn sites
- Spending work time on Facebook
Pricing of goods
Price fixing: When competitors agree to charge the buyers a predetermined price; the Consumer
Protection Act makes it illegal to charge more for products in rural areas.
Insider trading
This is when someone trades shares on the JSE based on knowledge that is confidential.
Piracy
The illegal use, or copying of somebody's work if it is protected by a patent or copyright
Counterfeiting/bootlegging
Someone fraudulently imitating someone else's work, pretending it's original.
- illegal distribution or production of a product
Taxation
Tax Avoidance:
It is a legal and ethical way that a business finds to reduce tax burden (eg. prioritising investments
that have tax advantages)
Tax Evasion:
It is illegal, and unethical as the business does not declare all of its income and lies about expenses in
order to pay less tax.
2
GOOD BUSINESS PRACTICE
Ethical theories
Principle based theory: A persons, morals and values determines if the person sees the action as
ethical or not
Consequence based theory: The consequence of the action will determine if the action is ethical or
not
Utilitarian Approach: if the action is for the greater good or best for the greatest number of people.
ETHICAL BEHAVIOUR IN PRACTICE
Conflict of interest
If one of the applicants is a friend/family/loved one, the person who knows them should not make the
final decision.
Bribes and corruption
This is when a reward is offered to give to give a third party an unfair advantage, which is not
allowed by the business.
- When someone in a position of power, abuses the role
Unauthorised use of funds
This is the use unauthorised business funds
- It is seen as theft
Inappropriate Gifts
Businesses expect employees to declare all gifts as they are received, as some may be seen as a form
of bribery
Sexual harassment
sexual advancements, it is a criminal offence
- gifts
- Unwelcome physical contact
1
, - Verbal conduct (sexual jokes, asking questions about someones personal sex life, sexual
advances)
- When a senior employee promises a reward in exchange for sexual favours.
Unfair advertising
Refer to ch7
Employment/labour issues
- Abusing sick leave
- Taking business stationary
- Using internet to visit porn sites
- Spending work time on Facebook
Pricing of goods
Price fixing: When competitors agree to charge the buyers a predetermined price; the Consumer
Protection Act makes it illegal to charge more for products in rural areas.
Insider trading
This is when someone trades shares on the JSE based on knowledge that is confidential.
Piracy
The illegal use, or copying of somebody's work if it is protected by a patent or copyright
Counterfeiting/bootlegging
Someone fraudulently imitating someone else's work, pretending it's original.
- illegal distribution or production of a product
Taxation
Tax Avoidance:
It is a legal and ethical way that a business finds to reduce tax burden (eg. prioritising investments
that have tax advantages)
Tax Evasion:
It is illegal, and unethical as the business does not declare all of its income and lies about expenses in
order to pay less tax.
2
