unit 4 exam revised

Question 1

Define the concept of ethics and discuss what ethics is not.

Answer 1

Ethics are the principles that define behavior as right, good and proper.

Ethics are not laws, people’s feelings or religion.

Question 2

List and describe the 4 important ethical decision-making frameworks.

Answer 2

Deontology - a belief that rules should be used to distinguish right from wrong.
Consequentialism - the belief that ethical decisions are based on the consequences of one’s actions.
Virtue ethics - a belief that making good choices based on good character traits helps us become better humans.
Theory of justice - a belief that all humans should be treated the same, except those with situational differences.

Question 3

Explain the concept of business ethics.

Answer 3

These are the moral principles and values that guide a business’s operations.

Question 4

List 4 reasons why business ethics are important.

Answer 4

• Protects employees
• Supports fairness between companies
• Promotes good service delivery to customers and clients
• Organizational reputation is safeguarded

Question 5

Explain the concept of corporate governance.

Answer 5

It is a framework that governs and protects stakeholders invested in the organization.

Question 6

List reasons why corporate governance is important.

Answer 6

Ensures legitimacy
Promotes ethical culture
Boosts performance

Question 7

List and describe all 5 theories of corporate governance.

Answer 7

Shareholder theory - Management’s goal is to increase the value for shareholders over stakeholders.
Stakeholder theory - All parties contributing to the organisation should benefit from ethical governance.
Agency theory -Agents make decisions on behalf of the owners.
Stewardship theory - Managers’ goals are aligned with the organisation and must maximise shareholder returns through organisational performance.
Resource dependence - Businesses rely on external resources. Exchange relationships are necessary.

Question 8

How is corporate governance regulated in South Africa?

Answer 8

Companies Act - promotes transparency and accountability.
King Code on Corporate Governance - Guidelines for governance structures.
Protected Disclosure Act - Protects those who report unethical conduct
Broad-Based Black Economic Empowerment - Addresses racial inequalities
Protection Of Personal Info - protects personal information

Question 9

Explain the process of creating an ethical working environment.

Answer 9

Foster a culture of ethics - expectations of managers and employees to behave ethically.
Code of Conduct - enforces ethics policies.
Business ethics policy - principles that guide behaviour in an organisation.

Question 10

List and describe the 6 different ethical issues found in the workplace.

Answer 10

Discrimination
Harassment
Employee theft
Health and safety violations
Disclosure of confidential information
Using organisational resources for personal purposes

Question 11

List methods to manage ethical issues in the workplace.

Answer 11

Clear communication
Reporting ethical issues:
- Internal whistle-blowing
-External whistle-blowing