BASES PEDAGÓGICAS DEL DISEÑO CURRICULAR

3.2.1 Defining business ethics

Ethics and morality refers to that which is good or right in human interaction. The term encompasses three intertwined concepts, namely; “self”, “good” and “other” (IOD, 2009).

The King Report on corporate governance in South Africa published in 2009 by the Institute of Directors (IOD), states that business ethics “refers to the ethical values that determine the interaction between a company and its stakeholders. Furthermore those ethical values translate into behavioural commitments (principle) or behavioural directives (standards, norms, and guidelines).

According to Pricewaterhousecoopers (2002, p.22) it is the principles and standards that the organisation promote for the guidance and conduct of its activities, internal relations and interactions with external stakeholders.

3.2.2 The relevance of business ethics

The cost of unethical behaviour is often underestimated and the most direct cost is losing business. Additional costs associated with unethical behaviour include; legal costs, employee theft, recruitment and turnover costs, monitoring costs, reputation costs and abusive treatment cost (Collins, 2012).

Collins (2012, p. 9) found that, due to their size, small businesses are more susceptible to bullying from larger unethical customers or suppliers and that the resultant costs of lawsuits can create a bigger burden for these businesses.

The preluding literature highlighted the extent of monitoring costs, legal costs and reputation cost in the current milieu of medical schemes fraud in South Africa. The author further states that an organisations reputation is one of its most valuable assets and that reputation accounts for 63% of a corporations market value (Collins, 2012, p.13).

In the setting of the current disputes regarding the interactions between Medical Schemes and medical practitioners, as stakeholders, the reputation of both parties has the ability to be tarnished due to the allegations of unethical business practices on the part of both entities. Practices referring to the alleged and proven fraud committed by medical practitioners as service providers and the subsequent fraud investigation and management practices of schemes.

In contrast to the disadvantages of unethical business practices Collins (2012, p.14) states that ethical behaviour can have a very positive impact on an organisations‟ bottom line. The author outlines a number of competitive advantages of being ethical and trustworthy. Table 3.1 below outlines these.

Table 3.1 Competitive advantages of being ethical and trustworthy 1. Attract and retain high quality employees

2. Attract and retain high quality customers

3. Attract and retain high quality suppliers

4. Attract and retain high quality investors

5. Earn good will with community members and government officials

Attracting and retaining high quality employees, customers, suppliers, and investors, and earn good will with community members and government officials, are more likely to have;

1. Greater trustworthy

2. Higher product and service quality

3. Higher levels of employee productivity

4. Less employee theft

5. Less need for employee supervision

6. Increased flexibility from stakeholders in times of emergency

(Source: Adapted from Collins, 2012, p. 14)

Ghillyer (2012, p. 22) voices the concern of the involvement of stakeholders with the actions of the organisation and the extent to which they would be impacted by unethical behaviour. These potential impacts are outline in Table 3.2 below.

Table 3.2 Stakeholder impact from unethical behaviour

Stakeholders

Interest in organisation

Shareholders False or misleading financial information on which to base investment decisions

Loss of stock/share value Cancellation of dividends

Employees Loss of employment

Not enough money to pay severance packages or meet pension obligations

Customers Poor service quality

Suppliers/vendor partners Delayed payment for delivered goods and services Unpaid invoices when the company declared bankruptcy

Federal government Loss of tax revenue

Failure to comply with all relevant legislation Creditors Loss of principal and interest payments

Failure to repay debt according to the agreed schedule

Community Unemployment of local residents Economic decline

(Source: Adapted from Ghillyer: 2012, p. 23)

It is clear that from both perspectives, medical practitioners (suppliers) and medical schemes (the organisation) could likely suffer as a result of unethical business conduct.

3.2.3 Systematic rational ethical decision making framework and ethical theories

Collins (2012, p.148) proposes a systematic rational ethical decision making framework to reach moral conclusions regarding the rightness or wrongness of any decision.

The author relates this framework to the six major ethical theories; that is outlined in Table 3.3 below.The aim of the framework is to develop a decision that has the strongest ethical basis. By answering the 7 questions, all the necessary information is gathered to perform an ethical analysis.

Table 3.3 A systematic rational ethical decision making framework and six major ethical theories

The seven questions of the framework

1. Who are the people affected by the action? Question one is related to stakeholder analysis and not considered an ethical theory

The related ethical theory

2. Is the action beneficial to me? Egoism: how does the action relate to me? If the action furthers my interest, then it is right. If it conflicts with my interests, then it is wrong. 3. Is the action supported by my social

group?

Social group relativism: how does the action relate to my social group (peers, friends, etc.)? If the action conforms to the social group‟s norms, then it is right. If it is contrary to the social group‟s norms, then it is wrong.

4. Is the action supported by national laws? Cultural relativism: how does the action relate to the national culture, particular its laws? If the action conforms to the law, then it is right. If it is contrary to the law, then it is wrong.

5. Is the action for the greatest good of the greatest number of people affected by it?

Utilitarianism: how does the action relate to everyone who is affected by it? If the action is beneficial to the greatest number of people affected by it, then it is right. If it is detrimental to the greatest number, then it is wrong.

6. Does the action treat every stakeholder with respect and dignity, and is the act something that everyone should do?

Deontology: does the action treat every stakeholder with respect and dignity in all situations? Is the action something that everyone should do? If yes, then it is right. If no

7. Is this how a virtuous person would act? Virtue ethics: how would a virtuous person act in this situation? If the act strengthens moral character, then it is right. If it is contrary to moral character building, then it is wrong.

Similarly, Dobrin cited in Ghillyer (2012, p. 10) proposes the consideration of eight specific questions when confronted with an ethical dilemma. These include:

1. What are the facts?

2. What can you guess about the facts you don‟t know? 3. What do the facts mean?

4. What do the problem look like through the eyes of the people involved? 5. What will happen if you choose one thing rather than another?

6. What do your feelings tell you?

7. What will you think of yourself if you decide one thing or another? 8. Can you explain or justify your decisions to others?