Professionalism & Ethics

Question 1

Define Corporate governance

Answer 1

Ethical and effective leadership by the board of governors of a business towards achieving sustainability and profitability

Question 2

What is the Meaning of ethical behaviour?

Answer 2

• What society think are good values.
• Ethical behaviour is expected from every employee in the business.

Question 3

Examples of ethical practices

Answer 3

• Using fair advertising
• Clients and employees information are
  not disclosed
• Business deals are conducted openly.
• Paying fair wages
• Operating within the law

Question 4

Examples of Unethical business practices

Answer 4

• Unfair advertising
• Pricing of goods in rural areas
• Tax evasion
• Paying employees unfair wages
• Disobeying the law

Question 5

Examples of professional business practice

Answer 5

• Using polite language to colleagues.
• Good use of work time
• Keeping clients details confidential

Question 6

Examples of Unprofessional business practice

Answer 6

• Using rude/impolite language
• Abuse of work time.
• Discussing clients’ information/using
  clients’ information for personal gain.
• Giving some people special favours.

Question 7

Ways in which businesses can apply King Code (Transparency, Accountability and Responsibility) principles for good corporate governance

Answer 7

Transparency
* Decisions must be clear to all stakeholders.
* Staffing and other processes should be open and transparent.
* Everyone is aware of the employment policies

Accountability
* regular communication between management and stakeholders.
* appoint internal and external auditors
* The board ensure company’s ethics are implemented.

Responsibility
* The business can develop and implement programmes that are aimed at protecting the communities in which they operate.
* The business can develop programmes to protect the environment

Question 8

Ways in which professional, responsible, ethical and effective business practice should be conducted

Answer 8

• Businesses should treat all their employees equally
• Mission statement should include values of equality/respect.
• Treat workers with respect
• Pay fair wages
• access to equal opportunities

Question 9

Types of unethical/unprofessional business practice & Explanations.
-Sexual harassment:
-Unauthorised use of workplace funds and
resources:
-Abuse of work time:
-Unfair advertising:
-Pricing of goods in rural areas:
-Tax evasion:

Answer 9

• -Sexual harassment: Manager promises an increase in salary in exchange for sexual favours.
• -Unauthorised use of workplace funds and
  resources: The misuse of money without prior authorisation from a senior manager.
• -Abuse of work time: Employees abuse work time by arriving late/leaving early and taking longer lunch breaks.
• -Unfair advertising:The use of false or misleading statements in advertising leading to misrepresentation of the concerned product, which may negatively affect consumers.
• -Pricing of goods in rural areas: Business may form monopolies in rural areas and increase their prices unilaterally
• -Tax evasion: Falsifying financial records.

Question 10

Strategies to deal with unethical and unprofessional business practices
-Sexual harassment:
-Unauthorised use of workplace funds and
resources:
-Abuse of work time:
-Unfair advertising:
-Pricing of goods in rural areas:
-Tax evasion:

Answer 10

Sexual harassment
* Implement internal complaints and disciplinary procedures.
* Educate employers on sexual harassment matters.
* Formulate a policy regarding sexual harassment.

Unauthorised use of workplace funds and resources
* Conduct regular audits.
* Identify risk areas/ vulnerable areas
* Limit the number of employees having access to business funds/assets.

Abuse of work time
* Speak directly to those employees who abuse work time.
* Code of conduct/ethics should contain clear rules about abuse of work time.
* Conduct training on the contents of the code of conduct/ethics.

Unfair advertising
* Consumers must report unfair advertisements to the Advertising Standards Authority.
* Business should be encouraged to keep their advertising fair and in line with the
constitution.

Pricing of goods in rural areas
* A business may lobby with other businesses in the area to convince government to improve
infrastructure in the rural area.
* Charge fair/market related prices for goods and services.
* Avoid unethical business practices to attract customer loyalty.

Tax evasion
* Submit all tax returns on time.
* Businesses should pay the correct amount of tax to SARS.
* Keep financial records honestly and accurately.