Topic 3: Challenges posed by unethical & unprofessional business practices

Question 1

Challenges posed by unfair advertising?

Answer 1

• Can lead to misrepresentaion of the product
• Can violate the trust of consumers and destroy business relationships
• Can negatively affect consumers

Question 2

Challenges posed by pricing of goods in rural areas?

Answer 2

• Can lead to disloyalty from coustomers
• May experience a lack of sales due to high prices
• Businesses may form monopolies that can lead to large fines

Question 3

Challenges posed by tax evasion?

Answer 3

• Business can pay heavy fines
• Negative impact on business image
• May lose key stakeholders

Question 4

Dealing with unfair advertising?

Answer 4

• Report unfair advertising to the ASA
• Businesses should be encouraged to keep avertising fair and in line
• Ads should not contain anything discriminatory

Question 5

Dealing with pricing of goods in rural areas?

Answer 5

• Lobby with other businesses in the area to cinvince government to improve infrastructure
• Charge market related prices
• Investigate cost effective methods of transportation

Question 6

Dealing with tax evasion?

Answer 6

• Submit the correct tax returns to SARS on time
• All products should be correctly invoiced and recorded
• Disclose all sources of income for tax purposes

Question 7

Challenges posed by sexual harassment?

Answer 7

• Party is normally reluctant to report the incident due to fear of victimisation
• Victim may stay away from work and business loses productivity
• Causes emotional trauma and the victim can stay away from work

Question 8

Challenges posed by unauthorised use of workplace funds?

Answer 8

• Increases the cost of doing business
• Coustomers may be unhappy if the prices are inceased to absorb the loss
• May affect the competitiveness of the business

Question 9

Challenges posed by abuse of worktime?

Answer 9

• Decreases productivity and causes business to lose profit
• Can lead to loss of coustomers and not meeting deadlines
• Time is money,loss of time = loss of money

Question 10

Dealing with sexual harassment?

Answer 10

• Business must have iternal complaints & diciplinary procedures
• Educate employees on sexual harassment matters
• Formulate a policy against sexual harassment

Question 11

Dealing with unauthorised use of workplace funds?

Answer 11

• Limit access to these assets
• Identify risk areas
• Conduct regular audits

Question 12

Dealing with abuse of worktime?

Answer 12

• Speak dierctly to the employee
• Code of conduct should contain clear rules on the matter
• Monitor employees