Chapter 6 – Professionalism and Ethics (Grade 10 Business Studies)

These flashcards review key concepts from Chapter 6 – Professionalism and Ethics, covering constitutional rights and responsibilities, organisational culture, ethical marketing, types of contracts and their legal requirements, and the basics of managerial self-management.

Which three fundamental human rights does the South African Constitution guarantee?

Human dignity, equality and freedom.

What constitutional right allows citizens to challenge unfair treatment through the courts?

The right to just administrative action.

Give one responsibility that accompanies South Africans’ political rights.

To vote for parties that act in the best interests of the nation and remove corrupt politicians from power.

How must citizens act toward the country’s resources such as health-care facilities?

With respect – e.g. do not pollute or abuse the health-care system.

What responsibility does the right to basic education place on learners?

Learners must attend school and actively learn.

Define ‘organisational culture’.

A shared perception among employees about what is right vs. wrong and acceptable vs. unacceptable behaviour in the business.

Name one key way a business can establish an ethical culture.

Recruit and select people who will act ethically.

What is value-based leadership?

Management consistently modelling ethical behaviour in their professional and personal lives.

List two unethical practices businesses should eradicate (any two).

Examples: accepting/ offering bribes; sexual harassment; tax evasion; insider trading; piracy.

How can desired ethical behaviour be reinforced among employees?

Through formal policies, codes, training sessions, stories and everyday conversations.

What is ‘materialism’ in unethical marketing?

Creating false needs, e.g. advertising liquor to rehabilitated alcoholics.

Why is calling a high-calorie pizza a “Slimming meal” unethical?

It uses a deceptive product name to mislead consumers.

Is competitive advertising legal in South Africa?

No, any form of competitive advertising is illegal and therefore unethical.

Give an example of ‘cultural pollution’ in advertising.

Using racist, sexist or discriminatory language or imagery.

Explain the difference between ‘legal’ and ‘ethical’ using pricing of bread as an example.

Selling bread at a very high price may be legal in a free-market economy, but it can be unethical if it exploits the poor.

Define a contract.

A written or verbal agreement that is legally binding between two or more parties.

Who are the two parties in any contract?

The person making an offer and the person(s) accepting the offer.

What is contractual capacity?

The legal ability of a person (18 + and of sound mind) to enter into a contract.

State two other elements that make a contract legally binding (besides capacity).

Legality of purpose; conditions must be reasonable; duties must be possible; parties must be of sound mind.

Give two situations that constitute a breach of contract.

Failure to fulfil contractual duties; supplying false or misleading information; forcing or tricking someone into signing.

What is an employment contract?

An agreement where an employee undertakes duties and an employer promises remuneration.

With which Act must all South African employment contracts comply?

The Basic Conditions of Employment Act (BCEA).

Name three details typically included in an employment contract.

Job title; remuneration structure; leave details (among others).

Identify the parties in an insurance contract.

The insurer (company accepting risk) and the insured (person transferring risk).

What is the monthly payment made by the insured called?

A premium.

Who are the lessor and lessee in a lease agreement?

Lessor – owner of the goods/property; Lessee – user who pays for use but never gains ownership.

When does ownership transfer in an instalment sale (hire-purchase) agreement?

After the final instalment has been paid.

Which Act governs credit-related instalment sale agreements in South Africa?

The National Credit Act (NCA).

Which Act protects the rights of landlords and tenants in rental agreements?

The Rental Housing Act (RHA).

Explain franchising in one sentence.

A legal contract where a franchisee pays a franchisor for the right to use an established business concept and receives ongoing support.

What fee does a franchisee usually pay after the initial lump sum?

A regular (monthly/quarterly/annual) royalty or management fee.

Why is self-management important for a manager?

A manager’s performance directly influences business success; ineffective management harms motivation, teamwork and customer satisfaction.

How can knowing one’s weaknesses benefit a manager?

It allows the manager to seek training or surround themselves with people whose strengths compensate for those weaknesses.

List two elements of self-management highlighted in Grade 10.

Personal development and skills development.