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Auditing 200
INTRODUCTION TO ETHICS
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Created by
Palesa Mphahlele
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Cards (40)
Capitalism
Market system in which production and distribution of goods and services is
privatised
Efficiency
is achieved if there is
no
interferences from the state
Division
of
labour
and specialisation
Capitalism
Widely used
economic system
Capitalism
has contributed to major developments in technology,
medicine
, innovation, science and ultimately, humans
The
general wealth
of society has also
increased
through time
Adam
Smith's view of capitalism
Market system in which production and distribution of goods and services is
privatised
Efficiency
is achieved if there is
no
interferences from the state
Division
of labour and
specialisation
Capitalism
Manufacturer
A
specialises in making shirts and trousers
Manufacturer
B
specialises in making shirts and trousers
Specialisation
Reduces
time spent on production and results in more
profit
Capitalism
assumes that we are all
materialistic
Capitalism also advances
self centered
behaviours
If you do not have
money
, you cannot participate or expect
goods
and services from the system
The
rich
get
richer
, and the poor get poorer (Inequality)
South
Africa
being the most
unequal
country in the world
Karl
Marx's view of capitalism
Capitalism brings about
alienation
and
exploitation
of the workforce
Workers are forced to work for less
wages
and have no
bargaining
power
Resulting in
lower
costs of sales and more
profit
for the capitalists
Capitalism is
dehumanizing
Karl
Marx
was concerned about the workers in a
capitalist
country
Countries
have policies to protect workers (
EFF
/ SACP/ Trade Unions)
Every country has applied
capitalism
differently
Corporations
Groups of people come together to form a single entity with a single objective
The corporation has a perpetual life
The corporations are juristic persons with rights and obligations
Liability of shareholder is limited to the
investment
made
Capitalism
Private
property
Profit motive
Competition
Competition helps regulate and control
prices.
Thus, the
greater
interest of society are served
The
position of the seller is the same as the position of the buyer i.e. there is no
monopoly
Corporations are part of society and have
relationships
with the
stakeholders
where they conduct business
Corporations create
employment
, improve
economy
, and develop opportunities
CSR
is legislated in some countries, whilst in others, there is
no
such
Ethical
dimensions of CSR
Economic
Workplace
Social Environment
Natural environment
Economic
expectations (Sustainable financial performance)
Corporations must be economically/ financially
sustainable
Corporations should aim for
long
term economic growth without negatively affecting the natural and social environment, and the
workplace
Mandatory
Responsibility (Law)
Comply with
formal obligations
employed by law
Societal
Expectations (Society has expectations)
Corporations should contribute
positively
towards society
Ensure corporations gain
legitimacy
, advance their strategic interest and
honour
ethical duties to society
Discretionary
Contributions
Companies engage in these
CSR
work voluntarily
They take the form of
philanthropy
or
social investment
Corporate
Citizenship
Corporations should become
responsible
corporate citizens
Comply with
laws
, comply with best practices,
respect everyone
including the environment etc.
Organisations
cannot function and
survive
without ethics
In
business today, the
interest of shareholders
is the main focus
Shareholder
focus results in the view that organisations are only created to make
money
Managers
take the view that businesses should be "
ethics neutral
" and as such, should not engage in ethical debates
Amoral
Managers (Ethically neutral)
They are
decisive
They choose to
disregard
ethics/ not
balance
ethical considerations when pursuing ethical objectives
They are often
unaware
of the consequences of their ethical
decision making
or lack thereof
There are two types of amoral managers:
intentional
and
unintentional
Ethics is
inherently
part of businesses
The
relational nature
of
businesses
requires ethics like trust, honesty, integrity, respect, empathy, compassion, responsibility, accountability
The
cooperative nature of work
requires ethics as the foundation of teamwork
Organisations have to build
trust-based
relationships through ethics with various
stakeholders
Employee
performance is based on the ethical
relationships
within organisations