Business Studies Grade 12 Paper 2 Term 1 - Ethics and Professionalism

Flashcards covering key concepts from Business Studies Grade 12, Paper 2 Term 1, focusing on Ethics and Professionalism.

What does ethical behaviour mean?

Acting according to a set of values that is morally acceptable in society.

What is the meaning of ethics in business?

A set of values that are morally acceptable when conducting business.

Define Corporate Governance.

The exercise of ethical and effective leadership by the individuals who are responsible for managing the business.

Define Professionalism.

Describes the internationally accepted standards and expectations that businesses and society have of people’s conduct and levels of competence in the workplace.

Define Responsibility.

The legal and moral obligation of the business in relation to the economic, social and natural environment within which it operates.

Define Transparency.

Directors and managers are expected to operate in a manner that makes it easy for stakeholders to understand what actions are performed.

What are examples of ethical business practices?

Using fair advertising, treating all employees equally, and not engaging in illegal business practices.

What are examples of unethical business practices?

Unfair advertising, pricing of goods unfairly in rural areas, and tax evasion.

What are examples of professional business practices?

Good use of work time, treating all people the same, and using polite language to colleagues.

What are examples of unprofessional business practices?

Abuse of work time, giving some people special favors, and unauthorized use of business resources.

How can businesses apply the King Code principle of Transparency?

Decisions/Actions must be clear to all stakeholders, staffing processes should be open, and business deals should be conducted openly.

How can businesses apply the King Code principle of Accountability?

There must be regular communication between management and stakeholders, and businesses should present accurate reports at the AGM.

How can businesses apply the King Code principle of Responsibility?

The business should develop programs aimed at protecting the communities in which they operate and programs to protect the environment.

What are examples of unfair advertising?

Giving goods deceptive names, selling second-hand goods as new goods and exaggerating the merits of the product.

What are some challenges posed by unfair advertising?

It can be harmful to consumers as may lead to misrepresentation of the product, violating the trust of consumers and destroying business relationships.

How can businesses deal with unfair advertising?

Report unfair advertisements to the Advertising Standards Authority (ASA) and ensure advertisements are honest and legal.

What are some challenges posed by businesses practicing unfair pricing in rural areas?

Some consumers in rural areas have little economic power and are vulnerable to exploitation and businesses may form monopolies in rural areas which result in heavy fines.

How can businesses deal with unfair pricing in rural areas?

Work together with suppliers to share delivery costs to remote rural areas and buy in bulk to get a discount to avoid charging high prices.

How can businesses deal with taxation/tax evasion?

Submit the correct tax returns to SARS on time, disclose all sources of income for tax payment purposes and keep abreast with the latest SARS regulations and tax laws.

What are some examples of sexual harassment in a business environment?

Managers who promise employees promotions if they agree to have a relationship with them.

What are unprofessional conduct examples that involve unauthorized use of workplace funds and resources?

Employees who download music and movies using the business’s resources or use business resources for personal gain.

What are some examples of abuse of work time by employees?

Making personal calls during work hours, taking extended lunch breaks and doing personal business during work hours.

What are some of the challenges posed by sexual harassment in the workplace?

The affected party is normally reluctant to report the incident because of the fear of victimisation, the business can lose workers because they do not feel safe in the business and it causes discomfort/humiliation and interferes with the ability of the victim completion of assigned work tasks.

How can businesses deal with sexual harassment in the workplace?

Formulate a policy regarding sexual harassment, implement internal complaints and disciplinary procedures and ensure that all employees are familiar with the code of ethics of sexual abuse.

What are the challenges of unauthorized use of workplace funds and resources?

Fraud increases the cost of doing business and undermines the competitiveness of a business and it could discourage investors when the business receives bad publicity from lawsuits.

What are the ways to deal with unauthorized use of workplace funds and resources?

Conduct regular audits, identify risk areas/ vulnerable areas and educate employees about the impact of fraud.

What are the challenges posed by abuse of work time?

It may result in employees often abusing work time, could result in losing customers or not meeting deadlines and results in a decline in profits which could damage the financial wealth of the business.

What are the ways to deal with abuse of work time in the workplace?

Speak directly to those employees who abuse work time, monitor employees to ensure that tasks are completed on time and remind employees that profit will decrease resulting in fewer incentives/bonus pay-outs.