Business Ethics

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MBL926S
BUSINESS ETHICS
ASSIGNMENT 2

PREPARED
BY
STUDY GROUP CEN011A
FOR
MR MAHARAJ

STUDY GROUP MEMBERS - CEN011A
NAME

STUDENT NUMBER

CONTRIBUTION

Arnold Lukoto

73026379

100%

Cicelia Van Rooi

71119183

100%

Dingaan Masango

32700113

100%

Gerardt Viljoen

72997737

100%

Hansie Wessels

72903902

100%

Hennie van Tonder

72999055

100%

Khunou Kgame

72781238

100%

Nhlanhla Mkhwanazi

72538732

100%

Terence Israel

72887435

100%

Wilko Smit

72923571

100%

Zanele Sihlangu

72913487

100%

DECLARATION
We hereby declare that the content of this assignment is our own work done as part of the requirement for the MBL2 programme. Correct referencing using the Harvard system was done to substantiate all research information sourced.

CEN011A

MBL926S ASSIGNMENT 2

Page ii

TABLE OF CONTENTS
1. Introduction

1

2. Identify and elaborate on the major ethical issues in this case

2

3. How would you advise the staff members?

5

4. Would his report constitute a protected disclosure in terms of the Act?

8

5. How would you deal with the report from the whistle-blower?

10

6. What are the major strategies the Department of Health in Limpopo may employ?

14

7. Conclusions

18

8. References

19

CEN011A

MBL926S ASSIGNMENT 2

Page iii

1. INTRODUCTION
This assignment is based on a Mail and Guardian media article written by Fiona Forde dated 16 September 2011 entitled, “Malema ‘pushed’ for payment for cronies’’. In hindsight, this article is neither a ruling nor a judgement made from a court of law, and therefore nobody from the names mentioned has been found guilty. It is thus proper to view this article as just allegations rather than a final verdict which most of the Acts to be quoted focuses on instances where judgement has been passed, and individuals have either been found guilty oracquitted. In South Africa, we live under the golden rule that “everyone is innocent, until proven guilty by a court of law”.

That been said, it must be stated that government departments are mandated by Treasury Regulations to develop and implement Fraud Prevention Plans. These plans are among the key instruments that departments should have, to ensure that there is transparency and accountability in public administration and a proactive approach towards minimising risks that can impact adversely on their operations. One of the major risks is the element of corruption that can impact negatively on what could have been the best performance of a particular department on its mandate to basic service delivery. Moreover, the Public Service Commission is an independent and impartial body that derives its mandate from sections 195 and 196 of the Constitution 1996. Their purpose is to enhance excellence in governance within the Public Service. It does this by promoting a professional and ethical environment and adding value to a public administration that is accountable, equitable, efficient, effective, corruption-free and responsive to the needs of the people of South Africa. The ethical challenge in business is, a serious one, and progress on this front is vital to successful business (Buchholtz and Carroll, 2008).

CEN011A

MBL926S ASSIGNMENT 2

Page 1

2. IDENTIFY AND ELABORATE ON THE MAJOR ETHICAL ISSUES
According to the Mail & Guardian article, Julius Malema allegedly pressured staff at Limpopo’s Department of Health to pay out on multimillion-rand contracts that are being investigated by the Auditor General, an Internal Auditors and PriceWaterhouseCoopers. Chapter 2 of Prevention and Combating of Corrupt Activities Act No. 12 (2004), of Part 1 (b) (i) (aa), and (ii) (aa), refers precisely to this point. This alleged pressure by Julius Malema is indeed some of the major ethical issues in this case.

Part 2 provides for Offences in respect of corrupt activities relating to specific persons...
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