abe level 3 award in principles of business ethics

ABE Level 3 Award in Principles of Business Ethics

Qualification Syllabus

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ABE Level 3 Award in Principles of Business Ethics (pending accreditation) 2

Introduction to the ABE Level 3 Award in Principles of Business Ethics

Communicating and maintaining a clear code of ethical behaviour is critical to success in the modern global business environment, both at a personal and an organisational level. As consumers and organisations recognise the increasing importance of values and corporate social responsibility, the role of business ethics has become a key distinguishing factor in establishing a competitive advantage.

Business ethics is about applying ethical values to business behaviour. Because ethics are guided by values, they contain a variety of objective and subjective standards, some of which are defined by legislation, while others are not. Ultimately this is about making decisions based on what you consider to be ‘right’ and ‘wrong’. Such decisions can have a significant impact on how others perceive a business and consequently how successful it is.

This award provides an introduction to business ethics. It is particularly aimed at individuals who are either in the process of establishing their own business venture or those already in employment who wish to further their professional career. The award considers various approaches to business ethics and explores some of the dilemmas, challenges, conflicts and risks faced by individuals and organisations when applying ethical values to business practice.

On completing this qualification, individuals will have considered a wide variety of ethical issues and have produced a written Personal Statement of Intent with regard to their own ethical values and how this is likely to impact on their business conduct.


What You’ll Learn

Learning Outcomes

On completing this qualification, you will be able to:

1. Explain what ethics are and describe the implications they have in a business context, supported by a range of examples. 2. Explain ethical practices in a local and global business environment 3. Identify the principal forms of legislation that govern native and global businesses and enable them to develop high ethical business practices and

standards. 4. Outline your own personal values and ethics in relation to work and develop a Personal Statement of Intent.

Alongside academic learning and development, ABE’s qualifications have been designed to develop your practical skills and capabilities. These capabilities are highlighted as certain values, knowledge, skills and behaviours that will help you in your professional development.

Below is an overview of the key capabilities that learners will develop during the course of this qualification.

Elements of Learning Key Capabilities Developed

Element 1 Business ethics – key terms and concepts

Using key terms and concepts relating to ethics and understanding the implications they have in a business context, supported by a range of examples.

Element 2 Ethical challenges in a global business environment

Responding to the challenges of implementing ethical policies and practices in a global business environment.

Element 3 Setting ethical standards Applying principal forms of legislation that govern business practices and recognising businesses that set standards higher than their legal obligations.

Element 4 Personal ethics and professionalism

Identifying own personal values and ethics in relation to work and producing a Personal Statement of Intent.


Localisation – Understanding the local business environment in learning and assessment

It is very important for learners to appreciate the implications of ethics in the context of their local business environment, wherever that might be in the world. However, learners should understand that many of these concepts and standards have been established by global business practice and promoted through global media such as the internet.

The emphasis of the qualification is primarily to facilitate an understanding of business ethics within the learner’s local business environment. Learners should therefore take into account the following when preparing for their assessment:

How accepted business values and ethical practices vary by sector, geographical area, culture and faith

How legislation, socialisation and local culture shape and influence perspectives on values, ethics and business practices

How ethical convictions may lead to professional and personal conflicts

How local business practices may enable or constrain individuals from expressing their views and objections to ethical dilemmas and practices.

The aim is that learners undertaking this qualification will have a greater understanding of business ethics and how these impact on day-to-day operational business activities.


Description of the programme (Regulatory characteristics)

1. Aligned to the Office of Qualifications and Examinations Regulation (Ofqual) Regulated Qualification Framework (RQF) at Level 3

2. A single unit qualification with four elements of learning: Element 1 Business Ethics – key terms and concepts Element 2 Apply ethical challenges in a global business environment Element 3 Apply ethical standards in practice Element 4 Personal ethics and professionalism

3. Open entry for those who are 16 years of age and above

4. 6 credits (a credit being worth 10 hours of learning time)

5. 60 hours Total Qualification Time (TQT) of which there is expected to be 50 Guided Learning Hours (GLH) (approximately 15 hours each for Elements 1 and 3, and 10 hours each for Elements 2 and 4), consisting of a blend of. The remaining 10 hours can be unsupervised based on a series of self-study and supported study elements, including assessment preparation, and will be specified in ABE’s Tutor Resource Pack for this qualification.

6. Assessment: the qualification will be assessed formatively as part of the learning approach, culminating in a summative assignment in which you will be required to consider your own personal values and ethics in relation to a particular context.


Element 1: Business ethics – key terms and concepts (Weighting 20%)

Business ethics is a complex and evolving subject and in order to appreciate the challenges of applying ethical values to business practices, it is important to understand the concept of ethics from different perspectives. This Element does this in broad terms and goes on to differentiate it from other related concepts. It then introduces some of the dilemmas presented in applying ethical values to business practice.

Learning Outcomes Assessment Criteria

1. Explain what ethics are and describe the implications they have in a business context, supported by a range of examples.

1.1 Explain the concept of ethics and how it relates to business practices and business success

Concept of ethics in terms of ‘right and wrong’, ‘good and bad’ values Concept of ethics in terms of rights, responsibilities and considerations, including concepts such

as human rights, political rights, cultural rights, stakeholder rights, property rights, environmental rights, the Universal Declaration of Human Rights 1948, the role of trade unions

Challenges of aligning business values with ethical values: - Business values: shareholder return, social responsibility, integrity, customer focus, quality,

efficiency, openness, competitive positioning, collaboration, agility, innovation - Ethical values: social responsibility, ethical trading, staff welfare, honesty, sustainability, social

justice, transparency, equality and inclusion, fairness

1.2 Describe the impact of ethics on a business

Implications of adopting various ethical positions in business on: reputation, branding, marketing, corporate success, customer loyalty, cost and profitability

Outline the implications of ethical concepts on business policies and practices, including: diversity and discrimination, rights and responsibilities, equality of opportunity, gender-based ethics, health and safety, due process, right to privacy, preferential policies, family responsibilities, ethical considerations in sales and marketing, fair pricing, coercion, bribery, corruption


Element 2: Ethical challenges in a global business environment (Weighting 30%)

Ethical policies enable organisations to apply ethical values to their business practices in a consistent way. Developing and implementing such policies can present challenges as practices may vary widely depending on local customs and accepted behaviours. This Element considers some of the practicalities of dealing with these challenges whilst attempting to balance the needs of different stakeholders. It draws on examples to illustrate the dilemmas faced by some corporate organisations and how they have sought to manage any adverse publicity generated by what has been viewed as unethical practices.


2. Explain ethical practices in a local and global business environment

2.1 Identify the challenges of deploying ethical values and standards in a local versus global environment

Unethical behaviour: how to recognise it and identify the conflicts that may result with individual or organisational codes of ethics

Deciding what is ‘right’ and taking appropriate action, including: use of ethical codes, whistle-blowing, corporate governance

Moral dilemmas and moral reasoning Modern theories of corporate social responsibility including minimum moral framework; balancing the needs and views

of different stakeholders

2.2 Provide examples of unethical business culture and practice in the local and global business environment

Unethical business practices and behaviours, such as: bribery, labour exploitation in the global economy, regulation of global economic activities

Current ethical issues affecting global businesses: - Examples of current and historic unethical issues and events and lessons to be learnt - Challenges presented by the internet and social media in terms of ethical disputes and business practices.

2.3 Explain how organisations can respond positively to ethical challenges:

Stakeholder responses (including customers and shareholders) Business response/policy/process/penalties for breach of ethical practice How businesses could respond more ethically and develop ethical good practice


Element 3: Apply ethical standards in practice (Weighting 30%)

Organisations are obliged to comply with the law in whatever countries they operate. Legislation and regulations help to establish ethical standards; however, organisations may decide to operate higher ethical standards as part of their core values and to add perceived value for their stakeholders. This Element considers the legal frameworks within which businesses operate, and how some business’ ethical values can result in higher standards of practice for individuals and organisations.


3. Identify the principal forms of legislation that govern native and global businesses and enable them to develop high ethical business practices and standards.

3.1 Identify the Principal forms of legislation that inform high ethical standards and protect stakeholders from unethical practices.

Principal forms of legislation: employment, consumer protection, environment, competitors, health and safety

Protecting stakeholders from unethical practices: consumers, customers, suppliers, employees, business owners and shareholders, local communities and the environment

3.2 Provide examples of ethical business practices and standards that are higher than the current legal and ethical financial accounting requirements.

Setting an ethical standard that is higher than the minimum legal obligations. Creating and sustaining a virtuous business including: striving for excellence, corporate social

responsibility, ethical labour policies, ethical supply chains, environmental sustainability


Element 4: Personal ethics and professionalism (Weighting 20%)

Organisations sometimes establish an ethical position to the way they operate that has implications on their employees. Such organisational values may differ from those of an individual resulting in personal conflict. It is useful for individuals to have an awareness of how their own personal values and ethical convictions may affect their behaviour at work so that they are both personally and professionally accountable. This Element seeks to help individuals understand their own personal ethical values and recognise how these might affect their current and future business practice so that they may respond appropriately and be ethically accountable.


4. Outline your own personal values and ethics in relation to work and develop a Personal Statement of Intent.

4.1 Identify personal ethical values that present personal challenges and professional conflict in the context of business and the local business environment

Personal values and ethical convictions and their implications on professional behaviour Ethical accountability and authenticity in business and local custom and practice

4.2 Identify personal ethical values in relation to a current work role or personal responsibility in a social setting and produce a Personal Statement of Intent that demonstrates how key areas of conflict or challenge may be addressed

Personal ethical values in relation to work/social responsibility Actions to address areas of conflict or challenge: with other people, with organisations Format and content of a Personal Statement of Intent


Glossary of Qualification Terms

To assist you in your understanding of the qualification, ABE has defined the following qualification terms:

Assessment criteria these appear within each of the elements and like the learning outcomes they determine the knowledge and understanding of your learning and assessment.

Element An element represents a segment of learning within the ABE Level 3 Money Management for Small Businesses. Each individual element has its own rationale and content.

Guided Learning Hours (GLH)

is an element of the Total Qualification Time (TQT) and is an estimate of the number of hours during which the learner is given specific guidance by their tutor towards the achievement of the qualification, for example: face to face teaching, e-learning, mentoring etc.

Indicative content The indicative content is the scope of knowledge required in order to fulfil the assessment requirements and achieve the learning outcome; it also outlines the technical components of the programme.

Learning outcomes The learning outcome within an element lays down the expectations of the learner and defines the level of knowledge and understanding required to complete the ABE assessment.

Qualification For the purpose of this qualification, upon passing your assessment, you will be awarded the ABE Level 3 Award in Money Management for Small Businesses.

Total Qualification Time (TQT)

It is an estimate of the total amount of time a learner could reasonably be expected to take to achieve the qualification.

Weighting The weightings indicate the level of emphasis on the different parts of the syllabus in terms of teaching, learner effort and emphasis in assessment.

To assist you in your understanding of the syllabus content, ABE has defined the following terms:


Authenticity Someone who acknowledges their ethical beliefs and asserts ethical autonomy.

Business ethics The application of ethical values to all business behaviours and functions.

Business values Principles to which an organisation is committed and wishes to be held accountable.

Duty A task or action that a person is bound to perform for moral or legal reasons.

Ethical values Values such as respect for human dignity, honesty, fairness and the development of trust.

Responsibility A person or thing for which someone has an obligation or duty.

Right Having a claim to something by nature of who or what you are.

Value The moral principle or belief or accepted standard of a person or social group.


Recommended Resources

Core text:

ABE Study Guide for ABE Level 3 Award in Principles of Business Ethics.

Supplementary texts:

Hartman, Laura P. and Joseph R DesJardins, Business Ethics: Decision-Making for Personal Integrity & Social Responsibility. 1st Edition. McGraw-Hill/Irwin. 2008. ISBN: 978-0-07-313686-B (also available as an eTextbook)

Crane, Andrew and Dirk Matten, Business Ethics. 3rd Edition. Oxford University Press. 2010. ISBN 978-0-19-956433-0 Fryer, M. Ethics Theory and Business Practice. Sage. 2015. ISBN: 978-1-4462-7415-6

Online resources:

http://www.ibe.org.uk/frequently-asked-questions/3#faq273

http://www.bifm.org.uk/bifm/knowledge/resources/GuidanceNotes - Ethical Procurement and Supply

http://www.ethicalconsumer.org/ethicalreports.aspx

http://business-ethics.com/2016/04/05/1514-the-conflict-between-a-corporations-global-standards-and-national-law/

http://business-ethics.com/2015/11/13/1252-the-work-culture-at-amazon-does-the-tin-man-have-a-heart/

https://www.transparency.org.uk/publications/incentivising-ethics-managing-incentives-to-encourage-good-and-deter-bad-behaviour/

https://www.transparency.org.uk/publications/take-back-control/

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Tel: +44 (0)20 8329 2930 Fax: +44 (0)20 8329 2945

abe level 3 award in principles of business ethics

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