<strong>Orientation:</strong> As background to the study it can be stated that the ethical conduct of employees in an organisation is of paramount importance to the successful operations of an organisation, both real and perceived. In recent times the ethical conduct of employees has received extensive publicity and, as such, has emphasised the impact of organisational ethics on the global competitiveness of organisations.<p><strong>Research purpose:</strong> The main aim of the paper is to analyse the impact of business ethics in the Eastern Cape Motor Industry Cluster (ECMIC) and the different perceptions regarding such ethics. This is based on the main research question, namely, whether a business ethics model should be developed to assist in creating an ethical organisation.</p><p><strong>Motivation of the study:</strong> The motivation for this study is based on the question of whether there is a dedicated drive within the motor industry to establish an ethical organisation and, if such is the case, what benefits would accrue to the organisations in ECMIC.</p><p><strong>Research design, approach and method:</strong> An empirical study was conducted within ECMIC to test the proposed ethics intervention model. A questionnaire, as the main measuring instrument, was developed and 150 questionnaires were distributed. Statistical hypothesis testing was used, with a significance level set at 5%. The aim of the hypothesis testing was to test whether the percentage responses in certain categories were significantly higher than a pre-determined test-value.</p><p><strong>Main findings:</strong> The research results substantiate the fact that the majority of the surveyed organisations do not implement specific ethics interventions. Nevertheless, the majority of respondents acknowledge the importance of ethical behaviour in the organisation, especially with regard to their financial positions.</p><p><strong>Practical/managerial implications:</strong> From this study it became clear that the implementation of a code of ethics would create a platform for ethical behaviour in organisations. It is also concluded from this study that all organisations must strive towards creating an ethical organisation which would have long-term rewards for the organisation, especially from a financial perspective.</p><p><strong>Contribution/value-add:</strong> This study highlights the fact that although ethics and ethical behaviour in organisations are emphasised and receive wide-spread media coverage, not enough action is linked to this task at hand. The results of this research clearly indicate where the shortcomings are, in the process of establishing ethical organisations and who should be seen as the custodians of such activities.</p><p><strong>How to cite this article:</strong> Lloyd, H.R., & Mey, M.R. (2010). An ethics model to develop an ethical organis...
High profile scandals have brought about a renewed interest in business ethics and, in particular, inunderstanding the factors that promote ethical behaviour. Business ethics is about identifying andimplementing values, rules and standards of conduct for guiding morally right behaviour in an organisation’sinteraction with its stakeholders. Against this background a quantitative analysis of the ethical practices of46 companies operating in the Eastern Cape automotive industry was conducted to determine the extent towhich ethics-related interventions contributed to establishing and maintaining an ethical organisationalenvironment. A structured online questionnaire was used to collect the data. The data collected wassubjected to extensive statistical analyses, including Cronbach Alpha coefficients and item total correlations,and various descriptive statistics were included as a quantitative summary of the data. A constant referencevalue for the study was also calculated to allow inferences regarding the significance of the tested variablesto the study. The results revealed that the organisations in the sample are highly ethical due to the presenceof ethics-related interventions, including a code of ethics, committed leadership, adherence to internal andexternal governance requirements, compliance with legislation and encouragement and disclosure ofunethical behaviour. In light of the high number of ethical scandals internationally, this study will add to theempirical body of business ethics research, as it provides organisations with a framework to establish andmaintain an ethical business environment.
Background: Economies aim to grow over time, which usually implies the need for increased energy availability. Governments can use their procurement of energy to increase benefits in their economies via certain policy tools. One such tool is local content requirements (LCRs), where the purchase of goods prescribes that a certain value has to be sourced locally. The argument for this tool is that spending is localised and manufacturing, as well as job creation, can be stimulated because industry will need to establish in the host economy. However, this practice is distortionary in effect and does not create a fair playing ground for global trade. Furthermore, if the local content definition is weak, or open to manipulation, the goals of such a policy may not be achieved at all.Aim: The objective of this study was to determine how LCRs would ultimately impact on the overall procurement programme.Setting: This study took place as South Africa commenced with large scale development of the renewable energy sector. This was largely achieved via the State run Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).Method: This study utilised opinion-based surveys to look into the LCRs of South Africa’s REIPPPP and measure the impact of this policy on the renewable energy sector in general. The mixed method approach was utilised to analyse qualitative and quantitative data and this was then triangulated with an international peer group to arrive at certain conclusions. The Delphi Technique was then employed to achieve population consensus on the findings.Results and conclusion: It was found that, in order to implement a policy such as local content without any negative welfare effects, the host economy had to show certain pre-existing conditions. Because South Africa does not hold all supportive pre-conditions, the impact and effect of LCRs have not been optimal, and it has not been found to be a sustainable mechanism to continue using indefinitely. The pricing of renewable energy was also found to be higher due to local content and such pricing is passed on to the energy consumer. The welfare created for South Africa, which should be in a trade-off for the creation of jobs and manufacturing, is therefore diminished and coupled with unsustainability and potential manipulation of the system, the country does not seem to be benefitting as it should be from this specific application of a local content policy.
High profile scandals and ethical misconduct in companies around the world have brought about a renewed interest in business ethics, specifically the need for a better understanding of the roles and responsibilities of leadership in promoting ethical behaviour. Against this background, a quantitative analysis was conducted among companies operating in South Africa's Eastern Cape Province's automotive industry. The aim of the study was to determine the ethics-related roles played by the leadership at these organisations and the extent to which they contributed to establishing and maintaining an ethical organisational environment. A structured online questionnaire was used to collect the data. The results revealed that
Albeit in its infancy, South Africa's LED practice is a benchmark of a large number of African countries in general and southern African countries in particular. The practice stand out for its massive and growing LED budgets, robust legal and a variety of LED governance structures, amongst others. This study seeks to answer three critical questions: What LED facets (particular aspects) are available in literature? Are these facets being implemented in Nelson Mandela Bay Municipality (NMBM) and Buffalo City Metropolitan Municipality (BCMM)? Besides the effort and monies invested in ingraining LED in South Africa, are the levels of LED practices of the two municipalities deeply embedded in literature? This paper utilises the purpose-built tool to measure the level at which LED practice in the two municipalities is embedded in LED theory. The analysis revealed presence of six key LED facets, namely, enterprise development, locality development, livelihoods development, workforce development, community development and LED Governance. Furthermore, the results show that NMBM's LED practice is embedded in literature across all the identified; while BCMM's LED practice is embedded across all the facets bar community development.
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