Understanding Ethical and Professional Behaviour (Grade 12 NSC Matric Business Studies): Revision Notes
Understanding Ethical and Professional Behaviour
What is ethical behaviour?
Ethical behaviour refers to the actions and decisions that businesses make based on what is morally right and wrong. Every business has a responsibility to act ethically and make choices that are considered acceptable by society.
When we talk about business ethics, we're looking at:
- Using moral codes as guidelines for decision-making
- Distinguishing between right and wrong actions
- Following principles that benefit all stakeholders
- Making choices that society considers morally acceptable
Key point: Ethics become part of a business's code of conduct. This means that companies must establish clear values and moral principles that guide their operations and decision-making processes.
Examples of ethical and unethical behaviour
Ethical behaviour examples
Businesses demonstrate ethical behaviour when they:
- Tell the truth during public relations crises instead of hiding problems
- Keep their promises to employees, business partners, and customers
- Show loyalty by making decisions that benefit all stakeholders (staff, partners, investors, and customers)
- Exercise power fairly by treating all stakeholders justly
- Operate within the law and follow all legal restrictions
- Protect the environment by avoiding pollution during production
- Avoid illegal practices such as price-fixing schemes
- Refuse to use child labour in their operations
Unethical behaviour examples
Businesses act unethically when they engage in practices that harm society, the environment, or stakeholders. These behaviours damage trust and can result in legal consequences.
Businesses act unethically when they:
- Pollute water supplies instead of using environmentally friendly cleaning methods
- Release harmful toxins into the air above legal limits set by environmental protection agencies
- Deliberately provide false information on tax returns
- Misclassify employees as contractors to avoid paying proper taxes and benefits
- Use price-fixing tactics to force smaller competitors out of business
- Employ deceptive advertising (bait and switch tactics) to mislead customers
What is professional behaviour?
Professional behaviour is a broader concept than ethics. It includes how businesspeople present themselves and conduct business activities. Professionalism covers areas such as:
- Personal appearance and dress code
- Communication skills and language use
- Responsibility and reliability
- Knowledge and technical skills
- Attitudes and work ethic
Example: A professional businessperson wears appropriate business attire (like a suit and tie), demonstrates good manners, shows excellent business sense, manages time effectively, treats all people with respect, and keeps business and client information confidential.
Examples of professional and unprofessional behaviour
Professional behaviour examples
Professional Standards in Action:
Demonstrating professionalism involves consistent positive behaviours that build trust and credibility in business relationships.
- Being punctual for work and appointments
- Using polite language when communicating with colleagues and clients
- Managing work time effectively and maintaining high standards in all job areas
- Protecting confidential information and not using clients' details for personal benefit
- Treating everyone equally regardless of their position
- Taking responsibility for actions and admitting mistakes when they occur
- Maintaining reasonable work morale and staying self-motivated
Unprofessional behaviour examples
Unprofessional behaviour damages business relationships, undermines credibility, and can harm career prospects. These actions often violate workplace policies and professional standards.
- Using rude or inappropriate language with colleagues and clients
- Wasting work time by arriving late, taking personal calls, or sending unnecessary emails
- Misusing clients' information for personal gain
- Showing favouritism to certain people
- Working excessive hours beyond what is reasonable
- Being unprepared for assignments or tasks
- Creating false impressions and providing misleading information
- Unauthorised use of business resources
Key differences between ethical and professional behaviour
Understanding the distinction between ethical and professional behaviour helps businesses maintain both moral integrity and operational excellence.
| Aspect | Ethical Behaviour | Professional Behaviour |
|---|---|---|
| Focus | Principles of right and wrong that are acceptable in society | What is right, wrong, or acceptable specifically in business contexts |
| Foundation | Based on moral values that are universally acceptable | Based on established standards of expected business behaviour |
| Purpose | Forms part of a code of conduct to guide employees to act ethically | Applies a code of conduct specific to a profession or business |
| Scope | Develops a moral compass for business decision-making | Focuses on upholding the reputation of a business or profession |
| Application | Follows principles of right and wrong in all business activities and practices | Includes guidelines on employees' appearance, communication, attitude, and responsibility |
Key Points to Remember:
- Ethical behaviour is about making morally correct decisions based on what society considers right and wrong
- Professional behaviour is about maintaining appropriate business standards including appearance, communication, and conduct
- Ethics focus on moral principles that apply to all aspects of life, while professionalism focuses on business-specific standards
- Both are essential for building trust with stakeholders and maintaining a good business reputation
- Examples help distinguish between appropriate and inappropriate business conduct in both ethical and professional contexts