Rossouw, G JAuthor InformationView Profile. Journal of Business Ethics: JBE; Dordrecht Vol. 16, Iss. 14, (Oct 1997): 1539-1547.
Business ethics has become part of the South African vocabulary both on a practical and a theoretical level. The need for business ethics has been expressed by politicians, business leaders, and academics. The president of South Africa, Nelson Mandela, for example said at the opening of Parliament (February 17, 1995): "We are conscious of the reality that corruption in many forms has deeply infected the fibre of our society. Precisely because we face the challenge of dealing with systematic corruption, we need a dispassionate and systematic approach to this question."
In this paper an assessment will be made of the state of business ethics as an academic discipline as well as on the extent to which theory on business ethics has been translated into practice within South African society. The paper is based on a literature study, a questionnaire to or structured interviews with prominent academics at Business Schools and other academic departments involved in the teaching of business ethics, as well as with business leaders who take a special interest in business ethics. First, the way in which business ethics is defined will be examined. Then the issues within the field of business ethics that are considered to be most important will be addressed, as well as the reasons why it is believed to be important to address them. From there the attention will be shifted to the way in which business ethics has been institutionalized at the level of tertiary education. An overview of important initiatives taken by the business sector themselves will also be reviewed. Then cooperation between business and academia on business ethics will be discussed. Finally, an assessment will be made of what can be learned from business ethics elsewhere in the world and what can be offered in this regard. Also some future prospects of business ethics in South Africa will be explored.
1. Definition of business ethics
As far as terminology goes for describing the field of business ethics, the term "business ethics" is the most widely used one. The Afrikaans equivalents used are either "besigheidsetiek" or "sakeetiek". Some do however prefer to use the term "management ethics" or its Afrikaans equivalent "bestuursetiek".
As far as definitions of business ethics go, mainly three trends are apparent from the survey. The first trend defines Business ethics in terms of personal values and virtues that should be applied to business practices; the second, in terms of the application of societal or religious norms/ rules/standards/values to business practices; and the third as a reflection on economic and business practices and decision-making that will ensure that business activities are beneficial to individuals and society alike within the framework of a competitive market-driven economy.
2. Issues in business ethics
There is a broad consensus amongst academics and business leaders that the following issues should be regarded as priorities within the field of business ethics. Two general comments on these issues can be made. First, the issues identified reflect the current reality of South Africa in that the country is shedding its racist Apartheid legacy and is being transformed into a democracy where the basic rights of individuals are protected. Second, the fact that all these issues are of a normative kind, and almost none of a meta-ethical kind, suggests that business ethics as an academic discipline is still in its early stages of development. There still is very little reflection on business ethics as a field of study, and on the theoretical issues underlying normative decision making. 2.1. Cultivation of a moral business culture
By far the most important issue identified by respondents is the building of a moral business culture. This, of course, implies that the moral fibre of the business community is tarnished. It is amongst other things reflected in the high incidence of corruption, and so-called white collar crime. In South Africa, white collar crime has more than doubled during the first year of the newly formed democratic government. The cases which the South African Police are currently investigating amount to about 18.5 billion South African Rand. According to the police, it is estimated that only 10 percent of all economic crimes are being reported. Should one further take into consideration the fact that the success rate of the police in prosecuting these reported cases stands at 53 percent, speculations that the value of transactions associated with economic crime are in excess of South Africa's gross domestic product (GDP) become more credible (Financial Mail, 9 July 1993, p. 42). These alarming statistics produced by the South African Police are also confirmed by a recent study conducted amongst the 200 largest businesses in South Africa (based on total assets). The study found that 48 percent of respondents experienced fraud recently and that 62 percent had the perception that fraud was on the increase (Britz, 1994, p. 1).
Business ethics has become part of the South African vocabulary both on a practical and a theoretical level. The need for business ethics has been expressed by politicians, business leaders, and academics. The president of South Africa, Nelson Mandela, for example said at the opening of Parliament (February 17, 1995): "We are conscious of the reality that corruption in many forms has deeply infected the fibre of our society. Precisely because we face the challenge of dealing with systematic corruption, we need a dispassionate and systematic approach to this question."
In this paper an assessment will be made of the state of business ethics as an academic discipline as well as on the extent to which theory on business ethics has been translated into practice within South African society. The paper is based on a literature study, a questionnaire to or structured interviews with prominent academics at Business Schools and other academic departments involved in the teaching of business ethics, as well as with business leaders who take a special interest in business ethics. First, the way in which business ethics is defined will be examined. Then the issues within the field of business ethics that are considered to be most important will be addressed, as well as the reasons why it is believed to be important to address them. From there the attention will be shifted to the way in which business ethics has been institutionalized at the level of tertiary education. An overview of important initiatives taken by the business sector themselves will also be reviewed. Then cooperation between business and academia on business ethics will be discussed. Finally, an assessment will be made of what can be learned from business ethics elsewhere in the world and what can be offered in this regard. Also some future prospects of business ethics in South Africa will be explored.
1. Definition of business ethics
As far as terminology goes for describing the field of business ethics, the term "business ethics" is the most widely used one. The Afrikaans equivalents used are either "besigheidsetiek" or "sakeetiek". Some do however prefer to use the term "management ethics" or its Afrikaans equivalent "bestuursetiek".
As far as definitions of business ethics go, mainly three trends are apparent from the survey. The first trend defines Business ethics in terms of personal values and virtues that should be applied to business practices; the second, in terms of the application of societal or religious norms/ rules/standards/values to business practices; and the third as a reflection on economic and business practices and decision-making that will ensure that business activities are beneficial to individuals and society alike within the framework of a competitive market-driven economy.
2. Issues in business ethics
There is a broad consensus amongst academics and business leaders that the following issues should be regarded as priorities within the field of business ethics. Two general comments on these issues can be made. First, the issues identified reflect the current reality of South Africa in that the country is shedding its racist Apartheid legacy and is being transformed into a democracy where the basic rights of individuals are protected. Second, the fact that all these issues are of a normative kind, and almost none of a meta-ethical kind, suggests that business ethics as an academic discipline is still in its early stages of development. There still is very little reflection on business ethics as a field of study, and on the theoretical issues underlying normative decision making. 2.1. Cultivation of a moral business culture
By far the most important issue identified by respondents is the building of a moral business culture. This, of course, implies that the moral fibre of the business community is tarnished. It is amongst other things reflected in the high incidence of corruption, and so-called white collar crime. In South Africa, white collar crime has more than doubled during the first year of the newly formed democratic government. The cases which the South African Police are currently investigating amount to about 18.5 billion South African Rand. According to the police, it is estimated that only 10 percent of all economic crimes are being reported. Should one further take into consideration the fact that the success rate of the police in prosecuting these reported cases stands at 53 percent, speculations that the value of transactions associated with economic crime are in excess of South Africa's gross domestic product (GDP) become more credible (Financial Mail, 9 July 1993, p. 42). These alarming statistics produced by the South African Police are also confirmed by a recent study conducted amongst the 200 largest businesses in South Africa (based on total assets). The study found that 48 percent of respondents experienced fraud recently and that 62 percent had the perception that fraud was on the increase (Britz, 1994, p. 1).
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