Professionalism and ethics
Ethical behaviour in practice:
➢ Conflict of interest- the person who is submitting the tender. Part of the recruitment
and selection panel. Board of directors is approached by supplier to be part of BOD.
➢ Bribery and corruption- “bribe” is when someone is offered a reward to give a third
party an unfair advantage. (Aka smoothing payment or facilitation payment) and
“corruption” is when someone in a position of power abuses power for personal gain
(kickback= indirect bribe)
➢ Unauthorised use of funds- theft… white collar crime eg. Manager using business
expense account to go out for dinner
➢ Inappropriate gifts- must declare, transparency is vital
➢ Sexual harassment- code of conduct practice on the handling of sexual harassment
cases. Strategy= building good relationships in respectful work environment
➢ Unfair advertising- ‘false advertising’
➢ Employment labour issues- abusing sick leave, email/ internet
➢ Pricing of goods- price fixing is when competitors agree to charge the buyers a
predetermined price. Free market= keeps prices low and quality high. Competition
board= big fines and liable in personal capacity. CPA makes it illegal to charge more
for products in rural areas than urban without good justification.
➢ Insider trading- where someone trades shares on the JSE with knowledge that is
confidential
➢ Piracy- the illegal use of somebody’s work that is protected by a patent or copyright.
➢ Counterfeiting/bootlegging- C= someone fraudulently imitating another’s work and
pretending it’s the original. B= illegal production/ distribution of a product
➢ Taxation- tax avoidance: find a way to reduce tax burden (legal and ethical). Tax
evasion: does not declare all income and lies about expenses to pay less tax (illegal
and unethical)
➢ Dismissing a whistle blower- (illegal) someone who exposes unethical behaviour:
fraud, health and safety
➢ Nepotism
➢ Cronyism- the appointment of friends to a position of authority without proper
regard to their qualifications
➢ Racism
Ethical behaviours in the business world:
- Ethical vision of the business- govern day to day behaviour
- Creates common framework business decisions= all understands and acceptable
behaviour
- Sets out desired behaviour
- Consequences of unethical behaviour
- Protects the business
- Help new employees understand induction programs
- Stipulate acceptable behaviour when conflict of interest arises
- Positive image of business= competitive advantage
Ethical behaviour in practice:
➢ Conflict of interest- the person who is submitting the tender. Part of the recruitment
and selection panel. Board of directors is approached by supplier to be part of BOD.
➢ Bribery and corruption- “bribe” is when someone is offered a reward to give a third
party an unfair advantage. (Aka smoothing payment or facilitation payment) and
“corruption” is when someone in a position of power abuses power for personal gain
(kickback= indirect bribe)
➢ Unauthorised use of funds- theft… white collar crime eg. Manager using business
expense account to go out for dinner
➢ Inappropriate gifts- must declare, transparency is vital
➢ Sexual harassment- code of conduct practice on the handling of sexual harassment
cases. Strategy= building good relationships in respectful work environment
➢ Unfair advertising- ‘false advertising’
➢ Employment labour issues- abusing sick leave, email/ internet
➢ Pricing of goods- price fixing is when competitors agree to charge the buyers a
predetermined price. Free market= keeps prices low and quality high. Competition
board= big fines and liable in personal capacity. CPA makes it illegal to charge more
for products in rural areas than urban without good justification.
➢ Insider trading- where someone trades shares on the JSE with knowledge that is
confidential
➢ Piracy- the illegal use of somebody’s work that is protected by a patent or copyright.
➢ Counterfeiting/bootlegging- C= someone fraudulently imitating another’s work and
pretending it’s the original. B= illegal production/ distribution of a product
➢ Taxation- tax avoidance: find a way to reduce tax burden (legal and ethical). Tax
evasion: does not declare all income and lies about expenses to pay less tax (illegal
and unethical)
➢ Dismissing a whistle blower- (illegal) someone who exposes unethical behaviour:
fraud, health and safety
➢ Nepotism
➢ Cronyism- the appointment of friends to a position of authority without proper
regard to their qualifications
➢ Racism
Ethical behaviours in the business world:
- Ethical vision of the business- govern day to day behaviour
- Creates common framework business decisions= all understands and acceptable
behaviour
- Sets out desired behaviour
- Consequences of unethical behaviour
- Protects the business
- Help new employees understand induction programs
- Stipulate acceptable behaviour when conflict of interest arises
- Positive image of business= competitive advantage
