PTY LTD
Studying Business Grade 12
Chapter Chapter 21
2. Some Ethical Issues in the Corporate World 2.1 Conflict of interest A conflict of interest is a situation in which an individual or business is involved in multiple interests and serving one interest could involve working against another. For example, someone who is in the position to make decisions on granting tenders has a family member who is submitting tenders for a project. More examples on conflict to interest: ○ A supervisor has a relative or close friend who reports to them which affects their job responsibilities, salary, and promotions. ○ A manager dating an employee who reports to him or her. ○ An employee works part-time in the evening for a company that makes a product that competes with the products of his full-time employer. ○ A member of the company board of directors accepts fees and provides advice to a company that is in direct competition with the company on whose board of directors he sits. ○ A purchasing agent accepts trips and gifts from a supplier and then selects that supplier's products for purchase by the company. ○ An employee sets up a personal website on which he sells his employer's software products.
2.2 Bribes, Corruption and Inappropriate gifts ○ When a gift is inappropriately large and given to persuade someone to act in one’s favour, it is seen as a bribe. ○ Corruption is the misuse of public power (by elected politicians or appointed civil servants) for private gain. ○ Inappropriate gifts may be linked to sexual harassment; for example, a senior manager giving junior employees jewelry, perfume or other gifts of that nature.
2.3 Sexual Harassment It may be defined as unwelcomed and uninvited sexual advances, both physical or verbal; normally from an authority figure to a subordinate. Sexual harassment is not confined only to giving inappropriate gifts or other overt sexual behaviour, but may include sexually explicit comments, signs, innuendos, phone calls, emails, SMSs, voyeurism, intrusion of privacy and any other act that makes the recipient feel uncomfortable.
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