Overview
This lecture covers the concepts of ethics and professionalism in business, their differences, examples, challenges, and how businesses can address unethical and unprofessional practices.
Ethics in Business
- Ethical behavior means acting according to moral codes to distinguish right from wrong.
- Ethics forms part of a business’s code of conduct and guides decision-making.
- Examples of ethical behavior: telling the truth, keeping promises, showing loyalty, operating within the law, and protecting the environment.
- Unethical behavior includes pollution, falsifying tax returns, using child labor, price fixing, and false advertising.
- Ethical behavior focuses on socially acceptable principles in society.
Professionalism in Business
- Professionalism is broader than ethics, covering appearance, communication, responsibility, and skills.
- Professional behavior includes being punctual, polite, maintaining confidentiality, treating all equally, and admitting mistakes.
- Unprofessional behavior: using rude language, abusing work time, disclosing confidential info, favoritism, and being unprepared.
- Professionalism focuses on acceptable conduct and upholding business reputation.
Key Differences: Ethics vs. Professionalism
- Ethics is about right and wrong in society; professionalism is about expected conduct in the workplace.
- Ethics creates a moral compass; professionalism maintains business reputation.
King Code Principles
- Developed by Mervin King, the King Code sets principles for ethical and effective leadership.
- Transparency: business decisions must be open and clear to stakeholders.
- Accountability: regular, accurate reporting and clear roles in management.
- Responsibility: businesses must protect communities and the environment.
Addressing Ethical & Professional Behavior
- Decisions should be transparent, and businesses must be accountable.
- Employ honest staff, pay taxes on time, and disclose all info to SARS.
- Develop a code of ethics and offer ongoing training.
- Ensure fair wages, safe environment, respect intellectual property, and prevent discrimination.
- Provide quality, safe services, and truthful information to customers.
Challenges from Unethical or Unprofessional Business Practices
- Unfair advertising misleads consumers and damages trust.
- Overpricing in rural areas exploits customers and may result in fines or loss of loyalty.
- Tax evasion leads to heavy fines, bad reputation, and possible legal action.
- Sexual harassment, unauthorized use of resources, and abuse of work time lower morale, productivity, and profitability.
Solutions to Unethical & Unprofessional Practices
- Report unfair advertising and ensure honest, nondiscriminatory ads.
- Match rural pricing to urban standards and share delivery costs.
- Submit accurate tax returns and keep up-to-date with tax laws.
- Implement policies and educate staff on sexual harassment, fraud, and time abuse.
- Regular audits, clear code of conduct, and flexible working hours support professional behavior.
Key Terms & Definitions
- Ethical Behavior — Acting according to moral principles distinguishing right from wrong.
- Professionalism — Maintaining expected workplace conduct, including appearance, communication, and responsibility.
- King Code — A set of principles for good corporate governance focusing on transparency, accountability, and responsibility.
- Unfair Advertising — False or misleading advertising that deceives consumers.
- Tax Evasion — Illegally avoiding paying taxes owed.
- Sexual Harassment — Unwanted sexual attention causing discomfort at work.
Action Items / Next Steps
- Review the mind map summary in the slides.
- Study the differences between ethics and professionalism.
- Prepare for June exams by revising this chapter and completing recommended exercises.