This summary contains 11 pages covering all aspects of Ethics and professionalism, Creative Thinking, Social Responsibility & Corporate Citizenship (CSR), TEAM Performance Assessment, Conflict management & problem solving
Ethics and professionalism
Ethical behaviour
Set of values that are morally acceptable in society
o Good right and fair actions
Business ethics refers to:
o Rules and principles that infuence the best business practice
Businesses develop their own code of ethics for best practice
Professional Behaviour:
Set of standards of expected practice
Occupational practices have developed their own code of professionalism
Issues that afect the ethical and professional behaviour of business
practice
Sexual harassment in the workplace
Unethical advertising
Fraud and corruption
Tax evasion
Abusing working times
Pricing of goods in rural areas ( overcharging)
Sexual Harassment
Any unwanted sexual advance, request for sexual favours and other verbal or physical
sexual conduct as a condition of employment
Types of Sexual Harassment:
Pro Quo Harassment
Superior implies the granting of a beneft will happen on receipt of sexual favours from
subordinate
Hostile Harassment
Behaviour creates an abusive, intimidating, ofensive or hostile environment- can be seen
as sexual harassment
Harassment by non-employees
Employer can be held responsible for 3rd parties
Incl. customers and sales reps who engage in sexual harassment, if employer has ability to
stop improper behaviour
Sexual Harassment Explained
Any unwanted sexual advances
Prohibited by labour legislation
Basic violation of human rights
Afected party usually scared to report it
Unethical Advertising Explained
Business makes use of unfair, deceptive or unethical advertising to lead customers to believe that
they will get more value for their money than they actually do
Deceptive advertising – 2nd hand goods as new
Advertisements should be honest and not abuse customers trust or lack of knowledge
2nd hand goods as new
Deceptive pricing / promotion / packaging
, Giving goods deceptive names
Advertising Standards Authority (ASA) regulates advertising and protects the interests
3 Groups of unfair advertising
Deceptive/ Misleading pricing
Business falsely advertises “factory” or “wholesale” prices
Deceptive/ misleading promotion
When they overstate the feature of the product or the performance of the product
Deceptive/ misleading packaging
Incl. exaggerating package contents through subtle design
Not flling package to the top
Misleading labelling
Unauthorised use of funds explained
Fraud – theft or misuse of business money
Fraud – increases cost of doing business/ discourages investors
Systems must be in place to reduce fraud
Tax Evasion Explained
Government needs revenue from taxation to provide essential services such as:
o Housing
o Education
o Infrastructure development
o Medical care
Tax evasion = illegal in SA ( not paying taxes due to SARS or paying less than is required)
Abuse of Working Time Explained
Employees using work time for personal activities
Must implement time monitoring systems and time recording procedures
Must be a policy in place for people who misuse work time
Pricing of goods in rural areas
Prices must be same as urban areas
Big business reluctant on opening store in rural areas due to poor return on investment
Strategies To Address Ethical & Professional Issues
Setting ethical standards by:
Set up ethical Maintain ethical Building ethical
Taking action
committee culture awareness
King Code
Linking the principles of King Code on ethics and professionalism with Ethical business practice
1 Ethical leadership and Board should ensure the companies ethics are managed
corporate citizenship efectively
2 Board of Directors Companies should remunerate directors and executives fairly
and responsibly
3 Audit Committees Should be suitably skilled and experience independent non-
executive directors
4 Governance of Risk Board should delegate to management the responsibility to
design/implement and monitor the risk management plan
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