Unit 4 revised

Question 1

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

Answer 1

Ethics are the principles that define behaviour 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

List 4 reasons why business ethics are important.

Answer 3

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

Question 4

List reasons why corporate governance is important.

Answer 4

Ensures legitimacy
Promotes ethical culture
Boosts performance

Question 5

List and describe all 5 theories of corporate governance.

Answer 5

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 6

How is corporate governance regulated in South Africa?

Answer 6

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 7

Explain the process of creating an ethical working environment.

Answer 7

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 8

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

Answer 8

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

Question 9

List methods to manage ethical issues in the workplace.

Answer 9

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