Grade 12 Business Studies: Ethics & Professionalism

Practice vocabulary flashcards covering key definitions, concepts, and principles of ethics and professionalism for Grade 12 Business Studies.

Business ethics

Ideas about what is morally correct or not applied in a business situation.

Ethical behaviour

Acting in ways consistent with what society and individuals think are good values, upholding the highest legal and moral standards when dealing with stakeholders.

Business practice

A procedure or rule employed or followed by a business in the pursuit of its objectives.

Professionalism

Describes the internationally accepted standards and expectations that society has of people's conduct and levels of competence in the workplace.

Tax evasion

When a business does not declare all their income to SARS with the aim of paying less tax.

Corporate governance

The exercise of ethical and effective leadership by the board of governors of a business towards achieving good performance, effective control, sustainability, and profitability.

Accountability

A King Code principle requiring directors and officials to be held responsible to stakeholders for their decisions and actions.

Transparency

A King Code principle requiring directors and managers to operate in a manner that is easy for stakeholders to understand what actions are performed.

Responsibility

A King Code principle regarding the legal and moral obligation of the business in relation to the economic, social, and natural environment within which it operates.

Quid pro quo harassment

A form of sexual harassment where a manager promises an employee an increase in salary or a promotion in exchange for sexual favours.

Sexual harassment

A violation of basic human rights that occurs when someone in power abuses their position through gestures, remarks, actions, or suggestive behaviour that victimises an employee.

Unauthorised use of workplace funds and resources

A form of fraud involving the misuse of money or company assets for private use or personal gain without prior authorisation from a senior manager.

Abuse of work time

An unprofessional business practice where employees use working hours for personal gain, such as arriving late, leaving early, taking extended lunch breaks, or making personal calls.

Unfair advertising

The use of false or misleading statements in promotional material—such as deceptive names, false labelling, concealing terms in fine print, or exaggerating merits—leading to product misrepresentation.

Pricing of goods in rural areas

An unethical practice where businesses exploit rural consumers who have little economic power by inflating prices or charging higher rates for goods of inferior quality.

Advertising Standards Authority

The regulatory entity to which consumers must report unfair or misleading business advertisements.

SARS

The South African Revenue Service, the governmental body to which businesses must declare income, submit timely tax returns, and pay corporate taxes.