C6 Professionalism and Ethics

What does the South African constitution state?

South Africa is a democracy where the rights of freedom, equality and human dignity are guaranteed.

What is organisational culture?

The common perception amongst employees of a business regarding what is right and wrong. The common understanding is created when the business clearly states its expectations and values.

Why is organisational culture important?

Guides daily relationships within the business and its shareholders. Ensures there are negative consequences for employees who do not act accordingly.

How is a culture of ethical behaviour established in a business?

Recruit and employ people who will act in an ethical manner. There should be policies and ethical codes developed and formal sessions to remind employees of the values.

What is value based leadership?

When management leads by example in their professional and personal lives.

What is considered unethical when a business markets a product?

Deceptive names and information. Materialism of products to those who should avoid it and selling second hand goods as new goods. Competitive advertising is illegal, as well discrimination.

What are the contractual obligations?

Contractual capacity, sound mind, reasonable, legal and possible.

Who are the 2 parties entering a contract?

Person making a offer and person accepting the contract.

What is contractual capacity?

All parties are of legal age to enter the contract. The legal age is 18.

What is sound mind?

The person entering the contract does not have any mental illness.

What is reasonable?

The conditions of the contract have to be reasonable.

What is the legal requirement?

The duties carried out as a part of the contract must be
legal and no unlawful activities.

What is the possible requirement?

The activities that form part of the contract must be physically possible to achieve.

When does a breach of contract occur?

Any of the contractual obligations are compromised. Either of the parties fails to fulfil the requirements and if there is false or misleading information in the contract. A person is forced to sign a contract. Unclear requirements in the contract.

Name the different types of contracts.

Employment, insurance, lease, installment, rental and franchising.

Explain an employment contract.

An agreement between an employer and employee. The employee undertakes to perform certain duties and deadlines. The employer promises to pay employee for work done. Contract has to in align with the BCEA.

What does BCEA stand for?

Basic conditions of employment act.

What is an insurance contract?

An insurer the company that promises to protect the insured against possibility of loss. The insured wants to protect their assets and will make a monthly payment to the insurer.

What is a lease agreement?

The lessor is the owner of goods and the lessee uses the goods for an agreed upon fee, but the goods never become the property of the lessee.

What is the installment sale?

Ownership is transferred to the buyer when the last installment is settled. Seller adds interest to the amount paid off by the buyer. Done by a credit transaction and NCA is applied.

What does the NCA do?

Protects the rights of both parties that enter into the installment contract.

Explain a rental agreement.

Contract between a landlord and tenant where the tenant rents property from the landlord. Property never becomes property of the tenant.

What is a franchising agreement?

Franchisor (original owner) and franchisee (pays to use the business concept to generate income). Both parties sign an agreement. Franchisor promises to provide ongoing training to keep brand ongoing. Franchisee promises to pay once a month lump sum to use the business concept.