CHAPTER 4: AN OVERVIEW OF MANAGEMENT EBUS1624
CLASS DISCUSSION QUESTIONS
Question 1 Case Study
Dryck is a company that imports alcohol from Sweden into South Africa. They are particularly known
for their vodka distribution. As an import export business which facilitates trades of goods and
commodities between South African and Swedish companies, they need to ensure compliance with
laws from both companies as well as ensure that all the documentation for their products is in order
for them to ship goods internationally for domestic purchase. Dryck takes ethics training incredibly
seriously and ensures that all new employees receive training on their code of conduct as well as the
various legal frameworks employees need to be aware of. The values of the organisation’s code of
ethics are instilled in employees by ongoing communication and training which every employee
needs to renew every couple of months. The HR department at Dryck is constantly monitoring the
organisation's compliance with the company's code of ethics.
However, as the business has had to reduce their employee numbers in recent months due to the
Covid-19 pandemic, the HR department feels overburdened with monitoring the organisation's
compliance, doing the ethics training, as well as their other duties.
1. What is the importance of a code of ethics in a company such as Dryck?
2. What is a reasonable way in which to ensure the continued ethical compliance of Dryck?
3. Explain the redistribution of responsibility that this would entail.
Case Study 2 Answers:
1. A code of ethics makes employees aware of ethical considerations and minimises the
chances of unethical behaviour occurring in the organisation.
2. They should consider creating an ethics committee.
3. The role of the ethics committee would be to oversee social and economic development,
ensure practices of good corporate citizenship, advise management on environment, health,
and public safety issues, manage consumer relationships as well as ensuring adherence to
labour and employment conditions.
Question 2
Scenario: HealthCare
HealthCare identified several forces that shaped ethical conduct within the organization. Despite
having established ethical guidelines, the company encountered instances of ethical lapses, which
raised concerns about maintaining a culture of integrity and ethical conduct. To tackle the challenge
of improving ethical conduct, HealthCare implemented a comprehensive strategy that encompassed
proactive measures and cultural interventions. The company began by conducting regular ethics
training programs to educate employees about ethical decision-making and the implications of their
actions. This not only raised awareness but also empowered employees to navigate ethical dilemmas
with confidence. Furthermore, HealthCare revamped its code of conduct, emphasizing the
importance of transparency, honesty, and respect in all interactions. The leadership team took a
proactive stance in promoting ethical behavior by leading by example and fostering open
communication channels, encouraging each person in the organisation must acknowledge the
viewpoints of others. The company also established an ethics committee to review and address
reported ethical concerns, ensuring that all issues were thoroughly investigated and resolved in a
fair and consistent manner.
Question 2 Answers
1.1 Name the two types of management tools for encouraging ethical conduct that are used by
HealthCare. Motivate your answer from the scenario.
(2 + 2 = 4)
Any two:
Code of ethics/code of conduct –
o HealthCare revamped its code of conduct, emphasizing the importance of
transparency, honesty, and respect in all interactions
Ethics Committee–
o The company also established an ethics committee to review and address reported
ethical concerns, ensuring that all issues were thoroughly investigated and resolved
in a fair and consistent manner.
Ethics training –
o The company began by conducting regular ethics training programs to educate
employees about ethical decision-making and the implications of their actions.
1.2 Which approach to making ethical judgements did HealthCare use? Motivate from the scenario.
[1 x2=2]
Justice Model-
Encouraging that each person in the organisation must acknowledge viewpoints of others.
1.3 Mention two (2) ways customers can evaluate companies regarding ethical behaviour.
(2)
Any of the following two
Extent of offering innovative products and services fulfilling customer needs.
Offering of quality products and services continuously
Not selling faulty or unsafe products or services
Safe disposal of harmful or substandard products and services
Reasonable pricing policies and practices
Honest advertising by providing truthful, reliable products and services