LEARNER GUIDE

Faculty MANAGEMENT SCIENCES

Department ACCOUNTANCY

Module BABET1A/BAERO1A

Title BUSINESS ETHICS

Compiled By M MALULEKE

Year 2024

NQF Level 6

Credits 8

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INDEX

PART 1 SUBJECT INFORMATION

WELCOME TO BUSINESS ETHICS ................................................................. 3
LECTURERS’ TEACHING AND LEARNING PHILOSOPHY ............................ 3
UNIVERSITY VALUES....................................................................................... 3
CONTACT PERSONS ....................................................................................... 3
CONSULTATION................................................................................................ 4
RATIONALE....................................................................................................... 4
PREREQUISITES .............................................................................................. 4
LEARNING MATERIAL ..................................................................................... 4
CREDITS AND NOTIONAL HOURS.................................................................. 4
GUIDELINES FOR BEING SUCCESSFUL IN THIS SUBJECT......................... 5
STUDENT CONDUCT......................................................................................... 5
General................................................................................................................ 5
Class attendance, punctuality and participation.................................................. 5
Ethical behaviour................................................................................................. 5
What you should do if you have a problem concerning your lectures or lecturers 5
Rights and Responsibilities
ASSESSMENT ................................................................................................... 6
Assessment dates............................................................................................... 7
Scope of assessments........................................................................................ 8
Assignment.......................................................................................................... 8
Submission of online assignment........................................................................ 8
Discussion of marks: Assessment results and Final marks................................. 8
Final mark............................................................................................................ 9
Calculation of final mark...................................................................................... 9
Reassessments................................................................................................... 9
WARNING AGAINST PLAGIARISM.................................................................. 9
ACTION VERBS ................................................................................................ 10

PART 2 LEARNING UNIT INFORMATION

Learning units 1 – 9............................................................................................. 12
Work Program..................................................................................................... 16
Annexure: Departmental Student conduct guidelines................................... 17

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PART 1: SUBJECT INFORMATION

WELCOME TO BUSINESS ETHICS

In this course we strive towards integration of existing knowledge with new knowledge and to afford the
learner the ability to:

 Think logically
 Gain knowledge of the principles of ethics, business ethics and professional ethics
 Make a positive contribution to the field of study once you have completed your studies
 Make wise choices and put moral values into practice when faced with ethical dilemmas

The aim of this learning guide is to direct your studies for this subject in such a way that you always
know what is expected from you and where it fits into the general programme of your study.

LECTURERS’ TEACHING AND LEARNING PHILOSOPHY

We believe that most individuals are capable of far more than what they believe. Through faith,
perseverance, and hard work one can be successful.

We try to create a comfortable learning environment based on mutual trust. It is important that
students should internalise knowledge and not merely memorise content. We encourage students to
relate what we do in class to the “real” world, and we therefore expect them to be up to date with news
and everyday events that are related to the subject.

Our goal is to produce ethical, responsible, competent professionals who have a sense of obligation to
society and their professions.

UNIVERSITY VALUES
In this subject we will cultivate and uphold the university values:
Excellence, creativity, mutual respect, collegiality, honesty and integrity, tolerance, and diversity

CONTACT PERSONS
Title and Surname Office Telephone number
and e-mail address
musam2@vut.ac.za
Mr Musa Maluleke Office G201, Main Campus
0834029991
Departmental Administrator (Queen (016) 950 9267
Office G102, Main Campus
Mofoka) queenm@vut.ac.za

Subject information specialist (Faculty Office H200, Library (016) 950 9652
librarian) (Ms Rebecca Fani) building rebeccaf@vut.ac.za

Coordinator of the VUT Writing Lab (MS

First Floor, Library building innocentias@vut.ac.za
Innocentia Shube)
Very important: please always use your VUT e-mail address when communicating.

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CONSULTATION
We will have a blended teaching environment and we will make use of electronic consultation. You are
welcome to e-mail your lecturer. When you e-mail, please use your VUT e-mail address so that it is
possible to identify you.

RATIONALE
In a society where corruption and lax ethics are growing problems, it is fitting for you, as an
Accountancy student to be taught business ethics in order to be well equipped to discharge your
responsibilities and defend what the profession stands for. The objective of this course is to give insight
and understanding of what is meant by business ethics and its necessity. You will be guided towards
understanding the factors that influence your moral reasoning in the South African context and also be
introduced to some of the macro - ethical issues that companies have to deal with. You will also be
introduced to how ethics can be managed in organisations, the focus being on the interface between
corporate governance processes and the facilitation of ethical values within the workplace. This
knowledge will hopefully assist you in internalising ethical values and behaviour, fostering a good
environment for personal and professional growth.

PREREQUISITES
As this is a final year subject, you may only continue with this course once you met the following
conditions:

All students must have passed:

• Financial Accounting 2.1 and 2.2
• Cost Accounting 2.1 + 2.2

Internal Auditing students must also have passed:

• Internal Auditing 2.1 + 2.2

FIS students must also have passed:

• FIS 2.1 + 2.2

LEARNING MATERIAL
Although this learning guide is an important part of your study material, it is only a guide, and you must
obtain your own copy of the following prescribed learning material:
 Rossouw D (ed.), 2019. Ethics for Accountants & Auditors. 4th Edition. Oxford University
Press, SA.
 The VUT Harvard Referencing Techniques guide that will be emailed to you via Turnitin.
 Additional notes or articles that may be made available.

CREDITS AND NOTIONAL HOURS

BABET1A consists of 8 credits. The credits per course are an indication of the number of notional
hours of learning the student is supposed to spend in order to master the outcomes for the course.
The course is compiled in such a way that 1 credit represents 10 notional hours of learning. An eight
credit course therefor requires 80 notional hours of learning.

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GUIDELINES FOR BEING SUCCESSFUL IN THIS SUBJECT
 Attend all classes. Class attendance will count towards your final mark. To be marked present
during an online class you need to log on to Vutela from the Vutela platform and not through a
link;
 Study the work that was discussed in class as soon as possible, but at least within the same
week (do not wait for the assessment week to start studying – the volume of the work is too
much);
 Complete all the questions in your textbook and discuss it objectively with another student/study
group;
 If you do not understand a section of the work, please contact your lecturer to assist you;
 Prepare properly and continuously for all assessment events and follow the instructions
provided.
 Submit the assignment on Turnitin through Vutela on/before the due date
 Do not underestimate the assignment. It will require extensive reading, critical thinking, and
attention to detail in order to complete it properly.
 Contact the Writing lab for assistance with the writing of your assignment.
 You need to work hard from DAY 1!

STUDENT CONDUCT

 General

Lecturers expect the following from Business Ethics students to make the learning environment as
friendly as possible:

 Because of the current Covid 19 protocols that we must follow, it is extremely important that
you as a student take responsibility for your own studies. You must log on to Vutela regularly
as notices and information will be posted on Vutela.
 You need to have the prescribed textbook and study guide with you in each lecture
 You must be on time for the online class, and you must stay for the duration of the class
 Do not disrupt the course of the lecture in any way
 Ensure that you are familiar with the netiquette rules for participating in online activities
 Please mute your microphone during class so that we eliminate disturbing background noise
unless you are participating in the discussion or asking questions.
 Respect other students by not disrupting the lecture, BUT
 Ask questions and participate in discussions

 Class attendance, punctuality, and participation

As you know, time is limited and must, therefore, be managed optimally. As a smart, responsible
student, ensure that you are punctual for classes. It is important that you attend and participate in ALL
lectures for this module. We encourage you to engage in group discussions, debates and we
appreciate your action learning, insight, and opinions

We will have weekly classes on campus on Wednesday afternoons. It is very important for you to
attend all the contact sessions as indicated on your timetable, as these are the ideal opportunities for
you to ask questions and discuss problems.

If you miss any contact sessions, the work that was discussed during that time is considered as
completed. If you missed a section because you were absent, that part of the work will be regarded as
self-study, and it is your responsibility to consult with the lecturer if anything is not clear to you.

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Weekly online classes are scheduled for Fridays from 08:00 – 09:00 on Blackboard Collaborate Ultra.
These will be used to clarify problem areas or for consultation. For the online classes: • Ensure that
you are familiar with the netiquette rules for participating in online activities • Please mute your
microphone during class so that we eliminate disturbing background noise unless you are participating
in the discussion or asking questions.

Ethical behaviour

As a future professional it is already expected of you to conduct yourself according to the principles of
the Code of Ethics of your profession. You must be honest when writing online assessments, marking
class tests, signing the attendance register, et cetera. Dishonesty will be regarded in a serious light. If
you are found guilty of dishonesty you may be expelled from the university for a certain period and you
might not be allowed to continue your studies. A guilty verdict will also be reflected on your academic
record.

What you should do if you have a problem concerning your lectures or lecturers
REMEMBER: A problem that is not addressed will not disappear; it will
only become bigger.

As an adult we expect you to take responsibility for your own studies. We want you to think for
yourself, to question information with an open mind and to ask if you do not understand. If you have a
problem, we expect you to discuss it with the relevant people before it gets out of hand. Please do not
wait until the week before the end of the semester to bring a problem to our attention? If you
experience any academic problems, please address it with the following people in the following order:

1. Your lecturer
2. The course coordinator
3. The Head of Department: Accountancy, Dr Johannes Maseko

If your discussions with the above people could not help to solve your problem, you are free to consult
with the Dean of the Faculty. Please remember that it is always better to have your complaint in writing
if you have to take it to anybody except your lecturer. Writing down your complaint will help you to
formulate your ideas properly and it also looks professional.

ASSESSMENT
Formative assessment will take place throughout the semester in the form of 2 written assessments,
an online assessment, and an assignment. Assessments can include multiple choice questions,
definitions, long discussion questions, practical application of theoretical knowledge through case
studies, compulsory questions as well as choice questions. Take note: You need a semester mark of
50 to pass the subject. In order to pass with a distinction, you must obtain a final mark of 75% in a
subject.

The lecturer will not give you any extra marks if you fail to obtain 50. The lecturer will
not give you a class test/additional assignment to “boost” your marks.

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 Assessment dates

Tentative assessment dates are indicated in your work program and final dates will be communicated
on Vutela. Please make sure that you are aware of the dates and times and that you are well prepared
to take the assessment.

Being well prepared for an online assessment will include your devices being fully charged and
having a stable internet connection.

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 Scope of assessments

The learning material that will be included in each assessment is indicated in your work program and it
is your responsibility to familiarise yourself with it. All the work indicated will be assessed and there will
be no “scope”.

 Assignment
There is one assignment in this subject that will contribute 25% towards your final mark. No excuses
will be accepted for not handing in an assignment, as you will have ample time to complete the
assignment, and hand it in on time.

Submission of the online assignment

Assignments must be submitted electronically in Word format through Vutela on the Turnitin link.

When submitting your assignment in Turnitin, it will give you a similarity score. Any assignment with a
similarity score of more than 40% will automatically obtain a zero mark. You can change your
assignment and re-submit it up to the final date. On every submission the previous version will be
deleted, and a new similarity score will be calculated for the new version. It is advisable not to wait until
the last minute to submit the assignment. Rather submit it and re-submit it at a later stage if you want
to improve an earlier submission.

When submitting the assignment for a second, third or fourth time, it will take longer to get your
similarity score. You must take this into consideration when you do your planning.

Please follow the guidelines given in Vutela to do the assignment and do not make use of unethical
methods to lower your similarity score.

You need to include a complete bibliography of all the resources you used with every assignment.
Please follow the VUT Referencing Guidelines. The guide will be loaded on Vutela, or you can
download it from the VUT library website under the heading Research at your library. The guide
explains the referencing in great detail.

An assignments will not be marked and obtain 0% under the following circumstances:
 Any assignment with a similarity score of 40% and above
 Any assignment with a similarity score of less than 5%
 When it is clear that unethical methods were used to reduce the similarity score. If you do not
agree with the decision that unethical methods were used to lower the similarity score, you will
have to make a written submission to your lecturer. Your submission will be evaluated by the
lecturers and the HOD and their decision will be final.
 When you use language that is incoherent and does not make sense.

 Discussion of marks: Assessment Results and Final Marks

Assessments will be discussed during a normal class period, as indicated by the lecturer.

Your marks will be entered on ITS. It is your responsibility to verify all marks entered on ITS, and to
report any errors to your lecturer at least 2 days before the calculation of the final marks. The final
marks will be available to you on ITS once it has been calculated.

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 Please note that there will also be formal examinationwritten examination as part of the
assessment. You will need to obtain a final mark of 40% to qualify for the final exam.

Final mark
The marks you obtain for attendance, assessments, the assignment and the formal exam will determine
your final mark.
You need a final mark of 50 to pass the subject.

Calculation of the final mark

Assessment Final mark

contribution
Formal Assessment
Assessment 1 30%
Assessment 2 30%
Online Assessment 15%
Assignments 25%
Formal Exam 100%
Total(100+100/2) 100

 Reassessments
A Re-assessment might be offered to students who have failed the initial assessment. A review on the
requirements for assessment will be made to consider whether a re-assessment can be offered to
students.

The mark that you obtain in the reassessment will replace the mark of the original assessment, even if it
is lower.

Very important: There will not be a reassessment for the assignment.

WARNING AGAINST PLAGIARISM

ALL ASSESSMENTS ARE INDIVIDUAL TASKS AND NOT GROUP ACTIVITIES (unless specifically
indicated otherwise)

Plagiarism is the unacknowledged use of the words or ideas of others. To plagiarize means to use the
words or ideas of another to create the false impression that these words and ideas are one’s own. To
avoid committing plagiarism one must always acknowledge the source from which one has
borrowed certain words or ideas.

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In terms of the VUT examination rules and regulations plagiarism in all its forms (direct, by
paraphrasing or by stealing ideas) is prohibited. Students are expected to acknowledge sources and
reference using the Harvard referencing method. Not referencing will result in plagiarism which will
earn you a zero (0%) for the assignment and possible disciplinary action. If you copy work of another
student, you will both get zero (0%) and possibly be disciplined. This is a serious offence; please
see the Examination Rules for the possible sanctions/penalties that may be incurred by a
student in this case.

ACTION VERBS
In preparation for your studies in this subject the action verbs used in the assessments are given to
you in advance. Make sure that you understand the meaning of each verb and that you deliver your
work accordingly.

 Apply
To relate a theory to a specific case study. [Example: Apply Kant’s theory to the case study.]

 Define
To supply the accurate meaning of a concept. [Example: Define ethics.]

 Name/mention/list/state
Briefly name/mention/list/state without giving details. Neither a discussion nor an explanation is
necessary. [Example: Name any economic systems.]

 Identify
Give the essential characteristics or aspects of a phenomenon. [Example: Identify some of the
myths about ethical behaviour in business.]

 Demonstrate
Include and discuss examples. You have to prove that you understand how a process works or
how a concept is applied in real-life situations. [Example: Demonstrate how the ethical
conceptual framework can be used to resolve ethical dilemmas.]

 Describe
Say exactly what something is like, give an account of the characteristics or nature of something,
and explain how something works. No opinion or argument is needed. [Example: Describe the
four-step process of governing corporate ethics.]

 Discuss
Comment on something in your own words. Often requires debating two viewpoints or two
different possibilities. [Example: Discuss the Modes of Managing Morality (MMM) model]

 Example
A practical illustration of a concept is required. [Example: Give an example of a moral dilemma]

 Explain/clarify
Clarify or give reasons for something, usually in your own words. You must prove that you
understand the content. It may be useful to use examples or illustrations. [Example: Briefly
explain the following concepts: business, ethics, and morality.]

 Motivate
You should explain the reasons for your statements or views. You should try to convince the
reader of you view. [Example: Motivate why this action would be unacceptable according to the
Utilitarian theory.]

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 Compare/contrast
Point out the similarities and the differences between objectives, ideas, or points of view. When
you compare two or more objectives, you should do so systematically – completing one aspect at
a time. It is always better to do this in your own words. [Example: Compare and contrast the free
market system and command systems.]

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PART 2: LEARNING UNIT INFORMATION

Chapters from
Learning unit Description
textbook
Learning unit 1 2 Key concepts Principles of Ethics
Learning unit 2 3 Ethical value systems for professionals in South Africa
Learning unit 3 4 Classical ethical theories
Chapter 5
(paragraphs 1 –
Ethical decision making: application of the five tenets of
Learning unit 4 1.3.1) Notes that
ethical decision making
will be loaded
on Vutela
Learning unit 5 7 Macro ethics
Learning unit 6 8 The modern corporation and its moral obligations
Learning unit 7 9 Corporate Governance
Learning unit 8 10 Managing ethics
Learning unit 9 12 + 13 Professional ethics (Not for examination purposes)

Learning Unit 1 - Principles of ethics

Learning outcomes
 Define the concepts ‘ethics’, ‘business ethics’ and ‘professional ethics
 Identify the relationship between ethics and values
 Distinguish between personal and social moral dilemmas
 Discern the three levels at which ethics in business is being studied and identify the core issues
that are studied on each of these levels
 Indicate why ethics needs to be addressed on both the personal and organisational levels
 Make a clear distinction between morality and legality
 Demonstrate why professionals need both ethics and professional virtues.

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Learning Unit 2 - Ethical value systems for professionals in South Africa
Learning outcomes
 Recognise the importance of ethics for the accounting and auditing professions
 Understand how ethical values and practices are shaped by family, culture, and other sources
 Demonstrate an awareness of several influential ethical value systems and be able to function in a
context of moral pluralism
 Understand the relevance of various moral world views for the accounting and auditing
professions
 Develop an awareness of the importance of personal moral conduct and the role of moral
communities

Learning Unit 3 - Classical ethical theories

Learning outcomes
 Explain what virtue ethics entails
 Identify and distinguish features of deontological ethics
 Discern the approach taken by utilitarian ethics
 Demonstrate the relevance of ethical theories for accounting and auditing

Learning Unit 4 - Ethical decision making and applying the five tenets of ethical
decision making
Learning outcomes
 Understand ethical decision-making and its impact on stakeholders
 Understand the definition of ethical decision-making
 Understand the ‘common sources’ of ethical decision-making and their strengths and
weaknesses
 Understand the difference between an ethical problem and an ethical dilemma
 Understand how the five normative ethical theories relate to ethical decision-making
 Develop the capability to use the Five tenets of ethical decision-making to make better ethical
decisions
 Understand ethical issues in the context of real-life situations
 Use and apply the Five tenets to real-life case studies to evaluate decisions or courses of action
for their (un)ethical impact
 Use the Five tenets to make better ethical decisions

Learning Unit 5 - Macro-ethics

Learning outcomes
 Demonstrate the relationship between macro-ethics and business conduct

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 Prevent a normative critique of capitalism
 Compare capitalism to statism
 Critically explain the key features of capitalism
 Demonstrate knowledge of critical challenges facing the future of capitalism
 Demonstrate the relation between capitalism and distributive justice
 Describe and assess the utilitarian, egalitarian and libertarian theories of distributive justice

Learning Unit 6 - The modern corporation and its moral obligations

Learning outcomes
 Explain why the moral status and obligations of corporations have become prominent
 Provide arguments for and against corporate social responsibility
 Articulate what corporate moral agency entails
 Discuss different strands of stakeholder theory
 Distinguish between the company as property and company as entity
 Explain the six capitals integrated reporting framework

Learning Unit 7 - Corporate Governance

Learning outcomes
 Understand and explain the benefits of sound corporate governance to a company’s stakeholders,
the company itself and the country
 Understand and explain, the relationship between ethics and corporate governance
 Understand and explain the agency problem in the modern company, and how a company’s board
of directors is supposed to exercise oversight over its management
 Understand and explain the importance of the King IV Report on Corporate Governance for South
Africa 2016, as well as the corporate governance guidance model utilised in that report
 Understand and explain the role that the accounting and auditing professions perform in the
corporate governance process.

Learning Unit 8 – Managing ethics

Learning outcomes
 Explain why accounting and auditing professionals need a proper understanding of the
governance and management of ethics
 Identify the different elements of the ethics management process
 Distinguish between different kinds of codes of ethics for which companies can opt to use
 Indicate what can be done to institutionalise ethics in the organisation
 Describe what the process and standards of internal and external reporting on organisational
ethics entails

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Learning Unit 9 - Professional Ethics
Learning outcomes

(This unit is not for examination purposes as you covered it in

either Internal Auditing 2 or Auditing 2)
 Understand what a profession is
 Understand what a code of ethics is, and its value to the accounting and auditing professions
 Demonstrate an awareness of the major scandals that have involved accounting and auditing
professionals in recent years, and the implications thereof on the importance of professional ethics

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WORK PROGRAM
Please take note of all the important dates as indicated on the work program. Any changes will be
communicated on Vutela.

Learning Chapter Topic

Date
unit
14 February
1 2 Key concepts in business and professional ethics
2024
21 February
2024
28 February 2 3 Ethical value systems for professionals in South Africa
2024

6 March
2024 3 4 Classical Ethical value systems

5
(paragrap Ethical decision-making
13 March
4 hs 1 -
2024
3.1.3) Applying the Five tenets of Ethical decision-making
Notes
20 March
1-4 2-6 Revision
2024
Date to be
1-4 2–6 ASSESSMENT 1 (see Vutela for final date and time)
updated
3 April 2024 5 7 Macro-ethics
10 April 2024 6 8 The modern corporation and its moral obligations
17 April 2024 7 9 Corporate Governance
VUT recess from 02 October to 06 October
24 April 2024 8 10 Managing ethics
Due date for the Assignment is 03 May 2024 @ 23:59. The
03 May 2024
marking guidelines will be posted on Vutela.
Date to be
5-8 7 - 10 ASSESSMENT 2 (see Vutela for final date and time)
updated

Annexure - Departmental student conduct guidelines

Student conduct (academic honesty, rules of engagement, etc.)

Learning policies and procedures
The table below presents important information for you on the policy and procedures for plagiarism,
grievance and appeals, sick test, class attendance, and your rights and responsibilities as a student. We
urge you to read, remember and heed to these pointers, as they will empower you to become the
successful student that you strive to be.

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Criteria
Class attendance,
punctuality and
participation
Rights and responsibilities
Plagiarism and self-
plagiarism
Grievance and appeals
Policy and procedure
As you know, time is limited and must, therefore, be managed
optimally. As a smart, responsible student, ensure that you are
punctual for classes. It is important that you attend and
participate in ALL lectures for this module. We encourage you
to engage in group discussions, debates and we appreciate your
action learning, insight, and opinions.
As a VUT student, YOU have rights such as, to be taught
according to the module Learning Outcomes (LOs); assessed as
per the Assessment Criteria (ACs); fair, valid, and reliable
teaching, learning and assessment. As a VUT student, YOU also
have responsibilities. The responsibility of learning and providing
evidence of that learning rests with YOU.
The consequences for plagiarism are very serious. When needed,
the VUT disciplinary processes will be followed. Plagiarism is
any form of literature fraud. Dishonesty and plagiarism are not
tolerated and will be punished. Plagiarism means the following
(Maurer, Kappe, & Zaka, 2006, p.1050-1051):
 Presenting someone else’s words as one’s own original work
 The duplication of someone’s work without appropriate
recognition of the source
 Quoting without quotation marks
 Giving incorrect facts of a cited source
 Copying of a sentence replacing words with synonyms without
citing
the original source
 When the majority of the discussion comes from one source,
whether
cited or not
 Self-plagiarism of one’s own writings that have appeared
previously in the public domain.
It is important to acknowledge any thoughts, ideas and
information that are not your own. It is also important to use a
standard form of referencing to provide all relevant information
that will help any person who may be interested to read further
about the information. As a result, you need to keep an accurate
record of where you collect your data. You will be required to
cite your source(s), especially when referring to an item within
your text. You are also required to indicate the reference where
the citation can be found at the end of your work (in a “List of
References” or “Bibliography” section at the end of your
assignment). It is important for you to enquire and adhere to
the requirements set by the university regarding the
consequences of plagiarism.
As a student, you must be able to follow procedures, solve
problems and manage conflict. The Department’s grievance
procedure should be followed in case of any dissatisfaction,
grievance or appeal of results.
Step 1: If you experience any problems in this module, contact
your lecturer.
Step 2: If a satisfactory agreement is not reached, then you may
consult with the course/qualification coordinator.
Step 3: If a satisfactory agreement is not reached, then you may
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 consult with the Head of Department responsible for the module.
Step 4: If you are still dissatisfied, then contact the Executive
Dean of the Faculty.
Assignment deadlines and test dates are given well in advance.
Assignment deadlines No extension will be allowed. In the case of health issues, follow
the appropriate university policies.

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