Ethics Flashcards
What is the difference between the code of conduct and the code of ethics
The code of conduct is a set of rules and regulations that explain appropriate behaviour in specific situation
It dictates how employees must act
It focuses on rules and compliance
It has a broader scope
It is usually only accessible to employees
Whereas…
The code of ethics is a set of principles based on values and morals by which a company makes decisions about what is right or wrong
It explains how decisions are made
It focuses on values
It has a narrower scope
It is publicly disclosed
What are ethics
It refers to moral principles to describe what is right and wrong
Describe the role do Ethics institute of South Africa
The Ethics Institute’s vision is to build an ethically responsible society, by forming partnerships with the public and private sectors, and the professions. They serve as a resource through their thought leadership, research, training, support, assessments and certification activities.
What are corporate ethics codes
Policies formulated by businesses to guide the behaviour of employees
What does corporate ethics code contain
The organisations values and guidelines on how employees should conduct themselves
What does the code of ethics govern
Decision- making and related to morals, principles and values
What does the code of conduct govern
It governs actions it refers to specific behaviour that regulated behaviour in terms of staff, interaction with dealing with contracts, etc
What is unethical behaviour
Doing things which are against the acceptable norm
What is false advertising
Use of misleading, or unproven information to advertise products to consumers.
What determines a consumers ability to distinguish false advertisements
Their emotions. People with positive emotions are more sensitive to false advertisements
What are examples of unethical behaviors
Misleading consumers Cultural pollution Exploiting consumers Conflict of interest Tenderpreneurship Cronyism Nepotism
Why is misleading consumers unethical behaviour
Consumers have the right to expect that a business will not mislead or deceive Them. Your advertising should never lead a consumer to believe something that isn’t true. This might relate to the value, capabilities or quality of goods and services.
Why is cultural pollution unethical business behaviour
Defilement of culture. However what is to be considered as cultural pollution is very much subjective and depends on ones own perspective
What is an example of exploiting customers
Giving credit to a customer who cannot afford it
What is conflict of interest
When a staff member takes part in a activity which brings them benefits that are contrary to their employer’s
What is a tenderpreneur
A business person who uses political contacts to secure government procurement contracts (called tenders) often as part of reciprocal exchange of favours or benefits
What is cronyism
Showing favouritism towards friends
What is nepotism
Showing favouritism towards family
What is king code
A set of guidelines for ethical governance structures in businesses
How often is king code updated and why
It is updated periodically to ensure the information is applicable and as useful as possible
What businesses use king code for
Businesses use king code to guide their activities and must provide explanation when they choose to deviate from the standard set by the code
What is the purpose of king code
It provides a number of benchmark standards for companies to meet in their business practices, this makes an economy more appealing to foreign investors.
What is king code 1
King code 1 stressed the importance of responsible corporate behaviour
What is king code 2
King code 2 gives guidelines for corporate management principles
What is king 3
King code 3 sets our principles relating to intergrated reporting
What is king 4
King code 4 focuses on mindful application of the code
What are the main principles of the king code
Transparency, responsibility, accountability and fairness
Explain the transparency principle of the king code and give an example
Being honest and open eg. Mc Donald’s being honest about the ingredients in their food
Explain the responsibility principle of the king code and give an example
A business must be responsible for its actions and decisions eg retailers taking responsibility for price gouging of ginger
Explain the accountability principle of the king code and give an example
The obligation of a business to be answerable for its actions and decisions eg we are answerable for poor marks in a test
Explain the fairness principle of the king code and give an example
A business should make judgements free from. Discrimination and dishonesty
tenders should be awarded to a business that
has satisfied the minimum requirements of the tender
proposal and who is the best from the submitted
applications.
What is the difference between accountability and responsibility
Responsibility can be shared while accountability cannot
What are business ethics
the study of how personal values and principles are applied in a business situation.
What some ethical issues in the corporate world
Employee conflict of interest, inappropriate gifts, sexual harassment, unauthorised use of funds, insider trading, Piracy, Counterfeiting and Bootlegging, tax evasion.
What is inappropriate gifs
Gifts given to a potential decision-maker with the intention of swinging his/her decision.Could also be a manager giving married female employee jewellery or perfume.
What is sexual harassment
unwelcomed, uninvited sexual advances, both verbal and physical.May also include explicit comments,signs, innuendos, phone calls, emails, SMS’s or any other act that makes the recipient feel uncomfortable
What is unauthorised sue of funds
fraudulentinvoices/payments,forged signatures,skimming accounts
What is insider trading
illegal practice of buying and selling shares on the stock markets with the advantage of having ‘insider’ access to confidential information.
What is piracy
unauthorised and illegal duplication of products protected by patents or copyrights
What is counterfeiting and bootlegging
Counterfeiting is the act of copying someone else’s work to pass it off as an original. Example, creating a fake Nike
Bootlegging is the illegal distribution of a product. Example a shebeen that does not have a liquor licence.
What are benefits of implementing ethical programs
- helps a business stay within boundaries of the law
- ethical codes improve teamwork and productivity
- clear codes make employees feel secure in what is acceptable and what is not
- a sense of trust is built.
What are the levels of business ethics
- Individual level
- organisational level
- professional level
- societal level
- international level
What is business ethics on an individual level
To cheat on an expense account, accepting a bribe, plagiarism,
What is business ethics on an organisational level
Asking an employee to perform an unethical act, pressure staff to commit fraudulent activities.
What is business ethics on a societal level
values, laws and norms differ in each society.
o Moral Relativism: what is right for you may not be right for me. Morality differs from culture to
culture.
o Moral absolutism: all actions are intrinsically(naturally) right or wrong. Eg. Murder, stealing
What is business ethics on a professional level
business ethics laid down in Code of Conduct. Examples:medical doctor risking life of patient to favour Pharmaceutical Company;lawyer offering plea bargain for benefit of his/her career rather than interest of client.
What is business ethics on an international level
economicsanctionsagainstcountriessuchNorthKorea,Russia. Companies that are involved with countries who practice child labour and other human rights violations.
