ACC704: Business Ethics

and
Corporate Governance
Topic 3
 TOPIC 3:
EMERGING BUSINESS ETHICS
ISSUES
AND
INSTITUTIONALIZATION
OF
BUSINESS ETHICS

2
 Learning outcome
• The student shall be able to compare and contrast
between voluntary and mandated boundaries of
ethical conduct.
Performance Criteria
• After studying this topic, the students should be
able to:
– Utilize research skills to evaluate the laws
relating to competition, consumer protection,
equality and safety and the environment
– Analyze ethical dilemmas in real world
business situations
 FIJIAN LAWS RELATING TO COMPETITION
•The Competition Regulator in Fiji is “Fijian Competition
and Consumer Commission” (FCCC).
• Previously known as Fiji Commerce Commission

What is Competition Law?

“Serves as a legal framework that promotes or seeks
to maintain healthy competition in the Fijian
Markets by regulating anti-competitive conduct by
any trader or person involved in selling either goods
and/or services”.
(FCCC, 2017)
 FIJIAN LAWS RELATING TO COMPETITION
(Cont.)
1. Currently FCCC is the only competition regulator
in Fiji and ensures the market operates in
accordance with Fijian Competition and Consumer
Commission Act 2010.
2. Encourages competition so that consumers are at
maximum benefit
3. Discourages businesses to enter into contracts
which may breach the rights of consumers and
other businesses.
4. Discourages misuse of market power and
exclusive dealership
(FCCC, 2017)
 FIJIAN LAWS RELATING TO COMPETITION
(Cont.)
Competition related legislations in Fiji are:

1.The Public Enterprise Act, (1996);

2.The Commerce Act, (1998);
3.The Fair Trading Decree (1992) and the Fair
Trading (Amendment) Act, (1998); and
4.Fijian Competition and Consumer
Commission Act 2010
(FCCC, 2017)
 OBJECTIVE OF COMPETITION

•Prevent anti-competitive behaviors

•Remove obstacles to competition
•Ensure competitive, efficient, fair and
informed marketplace for customers
• to provide better quality of service/ products
and reach a larger number of customers
•To compete with other businesses that share
the same or similar customers
 BENEFITS OF COMPETITION AND
COMPETITION LAW
•Ensures businesses compete with each other to gain a
higher market share, as a result, customers get a better
quality of products/ services
•Helps to highlight poor suppliers
•Businesses become obliged to provide better quality
of products
•Businesses also ensure efficiency and effectiveness in
producing the goods and services as a result, resources
are utilized property – misuse of resources are
minimized.
 FIJIAN LAWS RELATING TO CONSUMER
PROTECTION

•“Fijian Competition and Consumer Commission”

(FCCC) also protects the Consumers
•Laws that protect consumers against unfair trade
practices are:
1.Commerce Commission Decree 2010
2.Consumer Council of Fiji Act 1992
3.Consumer Credit Act 1999
(Fiji Commerce Commission, 2016)
 CONSUMER PROTECTION
How is a Consumer Protected?
•From misleading or defective product
•False or misrepresentation about a product/ service
•False or misleading advertisement
•Misstatement on the price
• misleading promotion such as prizes or gifts
•Black marketing
•Not supplying as demanded
•Harassment
(Fiji Commerce Commission, 2016)
 BAIT ADVERTISING
•Occurs when a business advertises to sell a
particular product at a certain price. However,
when the consumer reaches the shop, they are
offered some other product at a higher price.
•It is an offence under Section 86 for businesses to
advertise a particular product knowing very well
that they do not have that product.

(Fiji Commerce Commission, 2016)

 PENALTIES
•Section 129 of the Decree states the penalties of
offence committed:
•Any person : a fine not exceeding $5,000 for first
offence
•$10,000 for a second offence.
•The maximum penalty for an offence committed
by a body corporate is five times the fine provided
for any person or individual.

(Fiji Commerce Commission, 2016)

IMPOSING CONDITIONS ON CONSUMERS
•A business cannot impose any condition on any
consumer
•Example: A consumer wants to buy 11 meters of
fabric but the businesses forces him to buy 12.5
meters just because 1.5 meters would be left on the
roll. This type of condition is not allowed.
• Section 87I (2) — A person who offers goods for
sale by retail must not refuse or fail, on demand of
a quantity or number of the goods and tender of the
appropriate price, to supply the goods in the
quantity or number demanded.
(Kumar, 2016)
 FIJIAN LAWS ON EQUALITY
•The Constitution of Fiji (2013) covers the following laws on
Equality and Safety:
•CHAPTER 2—BILL OF RIGHTS
•Section 26 - Right to equality and freedom from
discrimination
26.—(1) Every person is equal before the law and has the right
to equal protection, treatment and benefit of the law
(2) Equality includes the full and equal enjoyment of all
rights and freedoms recognized in this Chapter or any other
written law.
(3) A person must not be unfairly discriminated against,
directly or indirectly on the grounds of his or her:
(continued on the next slide)
 FIJIAN LAWS ON EQUALITY (Cont.)

(Continued from the previous slide)

(a)actual or supposed personal characteristics or
circumstances, including race, culture, ethnic or social
origin, color, place of origin, gender, birth, primary
language, economic or social or health status, disability,
age, religion, conscience, marital status or pregnancy; or
(b)opinions or beliefs, except to the extent that those
opinions or beliefs involve harm to others or the
diminution of the rights or freedoms of others
 FIJIAN LAWS ON SAFETY (Cont.)
•Everyone has the right to be safe
•Fiji Police Force ensures safety
•Safety from violence, harassment, robbery and others
•Fiji Police Force also provides safety when needed on
special occasions
•Land Transport Authority is also in charge of ensuring
safety
•Safe to travel and drive
•LTA ensures safety by making sure the roads are
proper, the vehicles are proper and is safe to travel
 FIJIAN LAWS ON ENVIRONMENT
•Fiji Environmental Law Association (FELA) is in
charge of promoting sustainable resource management and
the protection of Fiji's environment through law.

•Many laws in Fiji that cover environmental concerns/

protection. Some of these are:

1.Environmental Management Act 2005

2.Fisheries Act
3.Marine Act 1986
4.Maritime Transport Decree
 THREATS TO ENVIRONMENT
• Bush fire in summer
• Climate change
• Drought
• Flood
• Tourism
• Unsustainable fishing practices such as
explosives
• Development activities
• Pollution such as sewage mining, industrial
discharges, drainage
HOW TO PROTECT THE ENVIRONMENT
• Follow current laws on environment
• Understand the importance of environment
and marine life
• Understand the bad effects of pollution etc
on the environment
• Government to raise public awareness
• Reward individuals or organizations that
undertake activities which can significantly
make a positive difference to the
environment
HOW TO PROTECT THE ENVIRONMENT
(Cont.)

• Importance of Arbor day

• Businesses and individuals to pay penalties
if found damaging the environment
• Government to make initiatives as well
• Good initiative of putting price on plastic
bags and charging Environmental Levy
 ETHICAL DILEMMA

• Also known as moral dilemmas

• Making a choice from two options and
neither of the options resolves the situation
in an ethically acceptable manner
• Therefore, the person may refer to societal
(such as constitution or religious laws) or
personal values
ETHICAL DILEMMAS IN BUSINESS SITUATIONS
• Noting down reporting time
• Colleagues who are also good friends have been found in
unethical practices. Will you report?
• Filling the expense reports
• Using colleague’s log in and password for official work
purposes without his/ her approval
• Giving discount because a colleague’s relative is buying
goods
• Taking office stationery home because you forgot to buy
stationery for your children
• Using office phones to make urgent calls because you ran
out of credit
END OF TOPIC 3