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Explore the principles of ethical decision-making in business with these insightful notes. Covering corporate social responsibility, ethical frameworks, and real-world business ethics dilemmas, this guide is ideal for students and profess...
Table of Contents
ETHICS, PROFESSIONALISM AND SOCIAL RESPONSIBILITY ............................................................................... 2
RELEVANCE OF PROFESSIONAL CODES: ....................................................................................................................... 2
GOOD BUSINESS PRACTICE: ........................................................................................................................................ 2
ETHICAL THEORIES MAY HELP EXPLAIN WHY PEOPLE SEE THINGS AS ETHICAL/UNETHICAL (3 THEORIES):.............................. 2
Principle-based Theory:....................................................................................................................................... 2
Consequence-based Theory: .............................................................................................................................. 3
Utilitarian Theory: ................................................................................................................................................ 3
ETHICAL BEHAVIOUR IN PRACTICE: ............................................................................................................................... 3
Conflict of interest: .............................................................................................................................................. 3
Bribes and corruption: ......................................................................................................................................... 3
Unauthorised use of funds: .................................................................................................................................. 3
Inappropriate gifts: .............................................................................................................................................. 3
Sexual harassment:............................................................................................................................................. 4
Unfair Advertising: ............................................................................................................................................... 4
Employee/Labour issues: .................................................................................................................................... 4
Pricing of goods: ................................................................................................................................................. 5
“Insider Trading”: ................................................................................................................................................. 5
Piracy:................................................................................................................................................................. 5
Counterfeiting and Bootlegging:........................................................................................................................... 5
Taxation: ............................................................................................................................................................. 5
Whistle-blowing: .................................................................................................................................................. 5
EVALUATE ETHICAL/ UNETHICAL BEHAVIOUR IN DIFFERENT SPHERES OF SOCIETY: .......................................................... 6
Ethical behaviour in the world of business and finance: ....................................................................................... 6
Reasons why a Code of Ethics is important: ........................................................................................................ 6
THE RELATIONSHIP BETWEEN MANAGEMENT ETHICS AND SOCIAL RESPONSIBILITY: ............................................................ 7
The concept of Corporate Social Responsibility (CSR): ....................................................................................... 7
The Implications of CSR: ..................................................................................................................................... 8
FTSE/JSE RESPONSIBLE INVESTMENT INDEX: ............................................................................................................. 9
Purpose of the FTSE/JSE Responsible Investment index: ................................................................................... 9
Benefits: .............................................................................................................................................................. 9
GRI (GLOBAL REPORTING INITIATIVE): ....................................................................................................................... 10
Purpose: ........................................................................................................................................................... 10
Benefits: ............................................................................................................................................................ 10
1
, Ethics summary Code of ethics
a set of guideline l l rules to enhance business honesty 8 integrity
Relevance of professional codes :
AIM → to regulate the behaviour of people practicing a particular
profession
Good business practice
refers to the standard of professionalism , accountability , ethics
and effective business practice conducted
Professional behaviour → guided by professional codes that specify
the predetermined consequences for professionals that don't act
according to the specific code
unethical actions aren't illegal
actions seen at Unethical
illegal are
Principle-based theory
morals or set of rules
States that the person 's principles , values ,
Fa sees the action at ethical unethical
(✓ vs X ) det if the or
Consequence-based theory
of the action det If the action is ethical or
the consequences / outcome .
unethical
Utilitarian theory
the ethical / Unethical action IS based off of what 's belt for the
largest amount of people
BRIBE = when someone is given a reward to give a third party an
Unfair advantage to which they aren't entitled to
CORRUPTION → when in a position of power the person abuses it for
,
personal gain
office working
-
of have more opportunities to get involved in
white -
collar crime than manufacturing workers
Privacy
the illegal Ute / reproduction of someone 's work if it is protected by
patent / copyright
COUNTERFEITING 8 BOOTLEGGING
&
and
someone fraudulently imitating another 's work pretending
its the original
bootlegging
= the illegal production t distribution of a product
TAXATION
a legally
Tax avoidance → and ethical bc the business reduces their
legal
tax burden
8 Unethical because the bus doesn't state
TAX EVASION → Illegal .
all their income t lies about its expenses in order to pay
less tax
WHISTLE -
BLOWING
someone who exposes Unethical behaviour
( protected by law )
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