EEBS2614 - Memo

Question 1 (20 Marks)

1.1. a
1.2. d
1.3. c
1.4. e
1.5. d
1.6. c
1.7. c
1.8. c
1.9. d
1.10. d
1.11. d
1.12. a
1.13. d
1.14. a
1.15. b
1.16. b
1.17. a
1.18. c
1.19. d
1.20. e
Question 2 (20 Marks)

Part A
1. Macro-ethics is the study and evaluation of the social, economic, political,
environmental and cultural contexts that shape our practices.

2. This metaphor relates to fact that the unethical actions of one party (the apple) in
an organisation does not necessarily make the entire organisation (the barrel) a
bad or unethical in nature. OR one person's negative demeanour or bad
behaviour can affect a whole group of people, influencing them to have a similar
negative attitude or to engage in the same bad behaviour.

3. Any of the following: (max 2)

a) Legislation – e.g. Anti-competition, labour, or environmental laws;
b) Regulation - e.g. against insider trading; stock exchanges requirements;
c) Standards set by professional associations)

4. Amoral businessperson: ethical considerations are inappropriate in business.

Immoral businessperson: ethical considerations must be subverted in
business

5. Either one of the following: universalizability or reversibility

6. To maximise its profits (responsibility) for the benefit of its shareholders (for
whom)

Part B
a) A mode can be described as the preferred manner of an organisation to
manage its ethics.

b) Company A – Compliance mode; Company B – Integrity mode

c) Company A: They will have drawn up formal ethical standards for their
company. These formal ethical standards will be complemented with
enforcement of said standards. They will also actively be monitoring of the ethical
behaviour of employees, with contraventions of said ethical standards being
penalised.
 Company B: Company B will facilitate the internalisation of ethical standards in
all members of the organisation. The onus is thus placed on the employee to be
ethical (or act ethically), with no over reliance on an active monitoring or
penalisation.

d) No, Company C is following the survival mode of ethical management. As this

company is of the opinion that unethical behaviour is necessary for the survival of
the company, the ethical management mode is that of survival.

e) As Company C is in survival mode, they will face a number of challenges.

These challenges are (but not limited to):
1) they may face financial penalties from regulators/financial bodies;
2) they may alienate some or all of their stakeholders;
3) They (company c) may experience a dissonance (inconsistency) between
the personal value of their employees and the organisations values.

f) Company B
As Company B is trying to internalise the ethical standards in each employee,
ethical performance becomes a joint effort from both the employees and the
employer. As ethics form an integrated part of the organisation (in contract to it
being regarded as tick box exercise), it is thus guided by strong morals and
ethical standards via their daily interactions with all of Company B’s
stakeholders