Question 1The new board of Dithaba Construction acknowledged the good work that Lynn Peters has been doing to implement ethics management systems like a whistleblower hotline. State the nature and purpose of the mode of ethics management (MEM) in which ethical behaviour is detected in a company and good conduct is recognised (rewarded).Explain how the new board of Dithaba Construction is displaying responsibility and transparency for ethics in the company as part of the King IV “ICRAFT” leadership characteristics.Explain why the following can assist with the setting of an ethical tone in a company:a new directors’ induction programme, a conflict of interest register for directors and annual declarations of directors’ shareholdings and board membership.

Question

Question 1The new board of Dithaba Construction acknowledged the good work that Lynn Peters has been doing to implement ethics management systems like a whistleblower hotline. State the nature and purpose of the mode of ethics management (MEM) in which ethical behaviour is detected in a company and good conduct is recognised (rewarded).Explain how the new board of Dithaba Construction is displaying responsibility and transparency for ethics in the company as part of the King IV “ICRAFT” leadership characteristics.Explain why the following can assist with the setting of an ethical tone in a company:a new directors’ induction programme, a conflict of interest register for directors and annual declarations of directors’ shareholdings and board membership.

Answer 1

The mode of ethics management (MEM) in which ethical behavior is detected and rewarded is known as a recognition and rewards program. The purpose of this MEM is to incentivize and acknowledge employees who consistently exhibit ethical behavior and adhere to the company's code of conduct. By rewarding ethical behavior, the company reinforces its commitment to ethical standards and encourages a culture of integrity and accountability.

The new board of Dithaba Construction is displaying responsibility and transparency for ethics in the company by implementing a whistleblower hotline and recognizing the efforts of Lynn Peters in promoting ethical behavior. This aligns with the King IV "ICRAFT" leadership characteristics, specifically in terms of integrity, responsibility, and accountability. By implementing systems like the whistleblower hotline, the board is showing their commitment to ethical behavior and ensuring that any unethical conduct can be reported and addressed.

Setting an ethical tone in a company can be assisted by implementing a new directors' induction program, a conflict of interest register for directors, and annual declarations of directors' shareholdings and board memberships. The new directors' induction program ensures that new board members are familiar with the company's code of ethics and expectations for ethical behavior. The conflict of interest register helps to identify and manage any potential conflicts that may arise, ensuring that directors act in the best interests of the company. Annual declarations of directors' shareholdings and board memberships promote transparency and accountability, allowing stakeholders to see any potential conflicts of interest and ensuring that directors are acting ethically and in the best interests of the company.