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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 can be defined as a set of standards that govern the behavior of employees and employers within an organization. These standards often relate to principles of right and wrong as they apply to various business scenarios. A strong ethical foundation in the workplace fosters an environment of trust, respect, and fairness, encouraging employees to conduct themselves professionally and responsibly. Many companies implement a Code of Conduct or ethics guidelines to delineate acceptable behaviors and expectations, which not only protect employees but also enhance the company's reputation.
Step 2
Explain how the following unethical/unprofessional business practices can pose a challenge to businesses: Sexual harassment.
Answer
Sexual harassment is a form of discrimination that can create a toxic work environment. It may lead to emotional trauma for the victims, resulting in decreased employee morale and productivity. Additionally, companies can face legal repercussions, financial penalties, and damage to their reputation if such issues are not addressed promptly and effectively.
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 manifest through tardiness, excessive breaks, and wasting time on non-work-related activities. This can lead to lost productivity, increased operational costs, and dissatisfaction among compliant employees who may feel overburdened. Ultimately, it can negatively impact the company's profitability and work atmosphere.
Step 4
Explain how the following unethical/unprofessional business practices can pose a challenge to businesses: Tax evasion/Taxation.
Answer
Tax evasion not only poses a legal risk but also tarnishes the business's credibility with stakeholders. Businesses found engaging in tax fraud may incur not only penalties but also grave damage to their public image. Companies might struggle to regain trust from consumers and investors, which could lead to decreased sales and an unfavorable market position.
Step 5
Recommend ways in which businesses can deal with EACH unethical/professional business practice mentioned above: Sexual harassment.
Answer
To combat sexual harassment, businesses can implement comprehensive training programs to educate employees about the issue. Establishing a clear reporting procedure, ensuring confidentiality, and conducting thorough investigations of reported cases is also crucial. Regularly reinforcing a zero-tolerance policy towards harassment will help maintain a respectful workplace.
Step 6
Recommend ways in which businesses can deal with EACH unethical/professional business practice mentioned above: Abuse of work time.
Answer
To address abuse of work time, organizations can establish a clear Code of Conduct that explicitly defines acceptable workplace behaviors. Management should regularly monitor productivity and foster a culture that rewards efficiency. Employees should be reminded of their responsibilities and the expectations concerning their work time.
Step 7
Recommend ways in which businesses can deal with EACH unethical/professional business practice mentioned above: Tax evasion/Taxation.
Answer
Businesses need to maintain accurate financial records and adhere strictly to taxation laws. Conducting regular audits can help ensure compliance. Furthermore, companies should have clear policies in place for handling financial transactions and transparently report their financial activities to avoid any misunderstandings with tax authorities.
Step 8
Advise businesses on how they can apply accountability and transparency as King Code principles for good corporate governance.
Answer
For effective accountability, businesses should regularly report on their activities and decisions to stakeholders, ensuring all financial and operational practices are documented transparently. Conducting Annual General Meetings (AGMs) allows shareholders to voice concerns and contribute to governance discussions. Furthermore, transparency in communication fosters trust and encourages collaborative relationships with stakeholders.