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According to the King Code principles, businesses are expected to conduct their operations in a professional and ethical manner - NSC Business Studies - Question 9 - 2019 - Paper 1
Question 9
According to the King Code principles, businesses are expected to conduct their operations in a professional and ethical manner. Many businesses develop strategies t... show full transcript
Worked Solution & Example Answer:According to the King Code principles, businesses are expected to conduct their operations in a professional and ethical manner - NSC Business Studies - Question 9 - 2019 - Paper 1
Step 1
Elaborate on the meaning of ethics in the workplace.
Answer
Ethics in the workplace refers to the principles and standards that guide the behavior of employees and organizations in a professional setting. It establishes a framework for ethical conduct by promoting values such as honesty, integrity, and respect. Organizations often develop a Code of Conduct to clarify expectations for their employees, ensuring that they understand the moral standards expected of them in their interactions with coworkers, clients, and stakeholders.
Step 2
Explain how the following unethical/unprofessional business practices can pose a challenge to businesses: Sexual harassment.
Answer
Sexual harassment can create a toxic work environment, leading to decreased employee morale and productivity. Victims may experience trauma and emotional distress, resulting in increased absenteeism and turnover rates. This can diminish the organization's reputation and potentially lead to legal ramifications, including lawsuits and financial penalties.
Step 3
Explain how the following unethical/unprofessional business practices can pose a challenge to businesses: Abuse of work time.
Answer
Abuse of work time can severely impact a business's efficiency and productivity. When employees fail to adhere to their work commitments, it may lead to unmet deadlines, lost clients, and a decline in overall performance. Furthermore, it can create resentment among diligent employees, affecting team dynamics and collaboration.
Step 4
Explain how the following unethical/unprofessional business practices can pose a challenge to businesses: Tax evasion/Taxation.
Answer
Tax evasion jeopardizes a business’s integrity and can result in significant legal penalties, including fines and imprisonment for responsible parties. It can tarnish the company’s reputation, leading to lost trust from stakeholders and customers. Additionally, engaging in tax evasion may divert resources away from legitimate business operations and cause long-term financial instability.
Step 5
Recommend ways in which businesses can deal with EACH unethical/unprofessional business practice: Dealing with sexual harassment.
Answer
Businesses should implement clear policies against sexual harassment and provide regular training to employees. Establishing a confidential reporting system allows victims to voice their concerns without fear of retaliation. Additionally, organizations should foster an inclusive workplace culture that encourages respect and promotes awareness of appropriate conduct.
Step 6
Recommend ways in which businesses can deal with EACH unethical/unprofessional business practice: Dealing with abuse of work time.
Answer
To combat abuse of work time, companies should implement a robust attendance policy and regularly communicate the significance of time management. Monitoring productivity through performance reviews can help identify issues early on. Establishing flexible working hours may also enhance employee satisfaction and commitment to their responsibilities.
Step 7
Recommend ways in which businesses can deal with EACH unethical/unprofessional business practice: Dealing with tax evasion/taxation.
Answer
Businesses must maintain accurate financial records and ensure compliance with tax laws by consulting financial experts. Regular audits and transparency in financial reporting can prevent tax evasion. Educating employees about the legal implications of tax evasion reinforces accountability and promotes ethical behavior.
Step 8
Advise businesses on how they can apply accountability and transparency as King Code principles for good corporate governance.
Answer
Businesses can cultivate accountability by regularly reporting their financial performance to stakeholders, ensuring that all actions are justified and transparent. Implementing an Annual General Meeting (AGM) can allow stakeholders to voice their concerns and contribute to decision-making. Upholding transparency involves disclosing pertinent information about the company's operations, maintaining open communication, and adhering to ethical standards in all dealings.