BUSINESS STUDIES
GRADE 12
MAIN TOPIC: BUSINESS ROLES
TOPIC: PROFESSIONALISM AND ETHICS
1.
ETHICS
1.1
Ethical behaviour - Definition
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1.2
Acting in ways consistent with what society and individuals typically think are good values
Involves demonstrating respect for key moral principles that include honesty, fairness,
equality, dignity, diversity and individual rights.
Business practice - Definition
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1.3
A method, procedure, process, or rule employed or followed by a business in the pursuit of
its objectives
Ethical business practice - Examples
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1.4
Using fair advertising techniques
Not engaging in illegal practices
Not using child labour
Paying workers fair wages
Allowing workers to work only the permissible number of hours per week
Ensuring that the environment is protected and not destroyed
Unethical business practice - Examples
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Hiding the truth of the origin of products
Using false figures in reporting the financial results of the business
Bribing people to lie on your behalf
Pumping contaminated water into rivers
Using confidential client information to your benefit
Taking excessive salaries when workers are retrenched
1.5
Professional business practice - Examples
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1.6
Using polite language when engaging with your colleagues.
Keeping to working hours
Staying after normal working hours to complete a job
Never criticizing clients in front of colleagues
Treating all the people the same
Respect and learn from those with more experience
Unprofessional business practice - Examples
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1.7
Swearing at colleagues
Stealing stationery and equipment
Not completing work as agreed and within the stipulated time
Discussing client information
Giving special favour to certain clients
Disregarding the experience of older workers
Relationship between ethical behaviour and professional behaviour
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Professionalism and ethics are close related
Professionalism and ethics reinforce each other
Ethical behaviour conforms to a set of values that are morally acceptable in society and
defines actions which are fair, good, right and honest
Professional behaviour is related to a set of standards of expected behaviour
To encourage professional and ethical behaviour a business should:
Set high ethical standards for the work force
Expect professional behaviour from all employees at all times
1.8.
Principles of professionalism
1
Respect
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Respect dignity and rights of others
Respect the image of the business
2
Integrity
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Working with honesty according to the law and the
norms of the profession
3
Competency
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Applying your skills and knowledge for the good of
society and the environment
4
Confidentiality
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Refrain from using client information for own benefit
Refrain from divulging client details to others
5
Objectivity
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Acting fairly and justly to all without bias or
favouritism
6
Development
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Continuously improving your own skills
Helping others to improve their own skills
RICCOD
1.9
King Code
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The King Code is a ground-breaking code of corporate governance in South Africa issued
by the King Committee on Corporate Governance.
Three reports were issued in 1994 (King I), 2002 (King II), and 2009 (King III).
Compliance with the King Reports is a requirement for companies listed on the
Johannesburg Stock Exchange.
The King Report on Corporate Governance has been cited as "the most effective summary
of the best international practices in corporate governance".
1.10
Link the principles of King Code on ethics and professionalism with ethical
business practice.
1
Ethical leadership and
corporate citizenship
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The Board should ensure that the
Company’s ethics are managed effectively.
2
Board of Directors
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Companies should remunerate directors
and executives fairly and responsibly.
3
Audit Committees
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Audit Committee members should be
suitably skilled and experienced
independent non-executive directors.
4
Governance of Risk
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The Board should delegate to management
the responsibility to design, implement and
monitor the risk management plan
5
Governance of Information
technology
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The Board should ensure that information
assets are managed effectively.
6
Compliance with laws,
rules, codes and standards
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The Board should delegate to management
the implementation of an effective
compliance framework and processes.
7
Internal audit
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Internal Audit should provide a written
assessment of the effectiveness of the
Company’s system of internal controls and
risk management
8
Governing stakeholder
relations
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Companies should ensure the equitable
treatment of shareholders.
9
Integrated reporting and
disclosure
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The Board should ensure the integrity of the
Company’s integrated report.
1.11
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Code of Ethics – Definition
Refers to a broad statement of values and beliefs that defines an organisation
1.12
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The Telkom Business Code of Ethics informs employees of acceptable and unacceptable
behaviour and conduct.
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The Business code of Ethics also seeks to guide our conduct and behaviour in terms of
fairness, justice and ethical standards and to ensure that the integrity of Telkom is not
compromised in any way.
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It is expected of each of our employees to apply sound judgment in deciding on the most
ethical means of dealing with any given situation involving customers, competitors, and
suppliers, the public, fellow employees and company matters in general.
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Whenever employees are uncertain on how to deal with a situation, they are encouraged
to seek guidance from their seniors.
1.13
1
Recommend a code of ethics for a business based on the principles of the King
Code
Recommend ways in which professional, responsible, ethical and effective
business practice should be conducted.
Not starting a venture at the expense of someone else
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2
Paying employees a fair wages
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3
Paying tax to SARS on time and disclosing all material information in the tax
return
Taking care of the environment and society
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5
Paying employees more than the minimum wage as determined by law,
because they are productive and contribute to the business profits
Regular payment of tax
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4
Not building a hotel that will obstruct the views of residence and therefore
lower their quality of life
Use of green policies in the workplace, e.g. recycling paper, saving electricity
Treating all employees equally
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All employees should be treated with the same respect regardless of their rank
in the organisation
1.14
1
Evaluate situations and reflect on issues/situations in terms of ethical/professional
behaviour in given scenarios/case studies that pose challenges in the business
environments:
Ethical and professional behaviour in the workplace
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2
Sexual harassment
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3
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People in rural areas are often not able to compare prices of different retailers
They are forced to buy from one local store
They are at the mercy of greedy shopkeepers who inflate prices
Taxation
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7
Businesses must keep their advertising legal, respectful, honest and truthful
Biased advertising are unethical
Advertising for positions should not have discriminatory conditions that would
exclude certain sections of the population
Pricing of goods in rural areas
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6
Using the business’s money without permission is called unauthorized use of
funds
It is a criminal offence
Using the organisations funds for own use is an illegal
Unfair advertising
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5
Involves unwanted and unwelcome attention of a sexual nature from someone
at work.
The attention causes discomfort, is humiliating and interferes with the job
It is wrong and unethical to abuse your position to take advantage of others
Unauthorised use of workplace funds and resources
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4
Set high standards for employees, by letting them sign a code of conduct
Expect professional behaviour from employees at all times
Support ethical standards with training, communication and an atmosphere of
trust
Corporate tax and personal income tax are the main source of income for the
government
Many businesses and individuals do not declare all their income to SARS
This is called tax evasion and it is illegal and unethical
Abuse of work time
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Refers to activities that is not focused on the job that you are meant to do
during working hours