Chapter 3

VALUE SYSTEMS IN SOUTH

AFRICA
Questions

1. Define the concept ethics

2. What do business ethics entail and professional ethics
and how can they be differentiated?
3. Give an example of an action or practice within the
accounting or auditing profession for each of the
following categories:
- Ethically right
- Ethically wrong
- Ethical dilemma
Outcomes
• Understand the more widely followed and influential
value systems in the South African context
• Be able to function in a context of moral pluralism
• Understand the way in which people’s histories and
cultures shape their ethical values and behaviour
• Become more aware of the relevance of religious and
other moral world views for the accounting and
auditing professions
Outcomes, cont.
• Develop an increased moral consciousness
• Recognise the importance of ethics for the accounting
and auditing professions, and the importance of acting
in a morally responsible manner.
Introduction
• Ethical value system in SA shaped by history of country
– apartheid, unemployment, crime etc
• There has been reputational damage to the profession
• Need for action and not just talk
The purpose of the topic
• The purpose is to:
– Identify what ethical norms and values (or principles) are
– Ask from where (or Whom) they are derived
– Establish the role they can play in an accounting and auditing
environment
• The following key questions will be considered:
– Why should anything be valued?
– What is a good life?
– Why should I be moral?
– What is the role of moral communities?
The purpose of the topic, cont.
• We begin with this question: Why is religious and
secular ethics important for aspiring accountants and
auditors?
– Millions of South Africans identify themselves as religious
adherents
– And many who do not associate themselves with a particular
religion still stress the importance of morality
– In Africa, as elsewhere in the world, religion has shaped
morality, society and the economy for centuries
• And more recently, non-religious approaches such as secular
humanism, communism, human rights, and feminist ethics have
become influential.
Values and their importance to
professionals
• What is ethical is not what is legal or culturally
acceptable
• Moral norms/principles are expected of everyone e.g.
10 commandments in bible.
- do not steal etc
• Values are whats important to us
• Virtues are traits of character
• Norms, values and traits give fair and constructive
social interaction
Religious and secular values
• Values shaped by religious and secular sources
• Religion
– Specific definition: A system of beliefs and practices about God
and/or the nature of reality, which includes moral teachings,
traditions, rituals and customs
• E.g. Christianity and Islam
– Broader definition: That which is of ultimate concern to a
person or group
• Some possibilities: Belief in God; the pursuit of self-gain, pleasure
or power; a life dedicated to caring for others; or the adoption of
an ideology
• What is of ultimate concern to us will motivate our actions
Religious and secular values
• Secularism is opposed to religion and involves
disengagement of religion in public
• SA is a secular state (cannot promote a particular
religion)
Importance of values
• Education must encompass religion, politics, sociology
• Need to have good relationships in addition to material
things
• What is a good life?
• Consider economy, society and environment
Sources of ethical values - case study

Scenario summary:
Thandi, a young African lady, is a recently qualified CA and works for a
government department. She was taught by her parents to do what is
right and to care for others, and is a committed Christian. Thandi is in
line for promotion to a post where she would be involved in
procurement for the department.
Thandi’s politically-connected uncle Sipho invites her to lunch. He
wants Thandi to provide him with information that he can “sell on” to
firms wanting to supply the department, and promises to give her a
percentage of his takings. Thandi tells Sipho that she is not prepared to
do so, and he then threatens to spread rumours about her that would
block her promotion and could even cost her her job.
Lunch ends with Sipho saying that he will contact Thandi in a week’s
time.
Sources of ethical values

•Parents
•Family
•Culture
•Peers
•Education
•Media
Ethics and the family
• The family plays an important role in the early
formation of moral values and actions
• Most people continue to live by what they were taught
when they were young.
Ethical value systems
• Traditional African ethics
• Christian ethics
• Islamic ethics
• Hindu ethics
• Secular humanism
• Communist ethics
• Other modern value systems
Traditional African ethics
• What is an African ethic?
• African traditional religion regards elders and ancestors
as custodians of ethical traditions.
• African ethics is from moral taboos, rules, customs
developed over centuries (results in respect, patience,
generosity, industry, honesty etc)
• Transmitted through stories, proverbs, rituals
• “An African ethic emphasises not the moral
autonomy of the individual, but the wellbeing of
the group and moral obligations (duties) within
the community”
Traditional African ethics
• The central concern of African ethics is managing life and
maintaining wellbeing within society…Individual actions
are evaluated and judged based on the effect that they
have on the life of the community”
– In the South African context, the above view finds expression
in the ubuntu concept
Traditional African ethics, cont.
• What is ubuntu?
– Derived from the phrase “umuntu ngumuntu ngabantu”,
meaning that a person is a person through (or because of)
others or I belong, therefore I am
– But it is one thing to talk about ubuntu, and another thing to
live accordingly
• The role of the ancestors
– The ancestors are people who have passed away, who had
lived a honourable life and had been custodians of wisdom in
their communities
– They are the link between the invisible world and the visible
world
– They are perceived as the guardians of the ethical traditions
Traditional African ethics, cont.

Ubuntu ethics contributes to:

•Holism
•Hospitality
•Sharing
•Justice
•Compassion
•Social relationships
Traditional African ethics, cont.
• African ethics in a 21st century context
– To what extent is the above still relevant/real?
• Summary
– The history of the community and the community members’
collective life experiences are the source of African ethics
– The collective wisdom of the ancestors and elders become the
basis of moral decisions by the individual or the community,
with respect being an important moral principle.
– Morality is the creation of the community.
Christian ethics
• Commonalities between Jewish and Christian ethics
– Jesus and most of the early Christians were Jews
– Three commonalities:
• Morality and faith cannot be separated
• Moral goodness is believed to have its source in the perfect
goodness of God
– For Jews, God’s moral guidance takes the form of the Hebrew Bible
(Christians’ Old Testament)
– Christians refer to the Old and New Testaments
• An emphasis on a high standard of personal moral behaviour and
social justice
Christian ethics, cont.
• Jesus of Nazareth
– God made flesh
– He exemplified the values of justice and mercy
– His golden rule (per Mark’s gospel): “Love the Lord your God
with all your heart and with all your soul and with all your
mind and with all your strength … Love your neighbour as
yourself”
• Today the Christian faith is global one, with about two
billion people identifying themselves as Christians
Christian ethics, cont.
• Key elements of a Christian worldview
– It is God-centred
• Humans find their true selves by living to the glory of God
– Salvation/redemption
• Though the death of Jesus, all of humanity can be saved and their
relationship with God, each other and all of creation can be
restored
Christian ethics, cont.
• Ethics and the work place
– Similarities between business values and Christian ethics
- fiduciary – faithfulness
- integrity – honesty & wholeness
- assisting others – corporate social responsibility
– But their moral teaching on economic matters emphasises
certain important moral norms
• The Ten Commandments provide some prescriptions that are
relevant to business, e.g. that one must not steal
• The Bible emphasises the principles of compassion, justice, respect,
generosity, truth, and love
– Where specific Biblical teaching relating to present-day issues is
absent, existing Christian norms and values need to be
reinterpreted for new contexts
Christian ethics, cont.
• Ethics, the economy and business, cont.
– Recently, many Christian theologians have been critical of the
type of capitalism that is all too often practised today
• Critical comments and questions
– A critical question: If so many people on the African continent
are Christians, why is their faith not having a more positive
moral impact?
Islamic ethics
• Introduction
– Islam has its origins in 7th century Arabia
– It now has approximately one billion followers across the
world, but has a minority status in South Africa
– In its religious sense Islam implies submission to God or Allah’s
will
• The word “Islam” is also closely related to the word for peace
– Central beliefs involve the acceptance of God’s oneness and
the prophethood of Muhammad
• The general character of Islamic ethics
– Ethics are part and parcel of the religion
– God is the basis for evaluating ethical behaviour
Islamic ethics, cont.
• The three sources of Islamic ethics:
– The Qur’an
• The passages that describe the attributes of God are particularly
important
– The Prophet Muhammad’s example
• He is seen by Muslims as the embodiment of human perfection
Islamic ethics, cont.
– Sharia (Islamic law)
• Derived from the above sources
• It classifies human actions into five basic categories
1. Obligatory acts e.g. daily 5 prayers, fasting, giving alms
2. Recommended acts- visiting the sick, kindness to animals and
respect to environment
3. Reprehensible but not entirely forbidden- silence against injustice
and smoking,
4. Forbidden or reprehensible- stealing, bribery, cheating and
dishonesty
5. Moral neutral acts – human actions on which Qur’an,
Muhammad,s example and Islamic law are either vague or silent
Islamic ethics, cont.
• An ethic of action
– Beliefs must be accompanied by the necessary actions
• The intention to do good is not sufficient
Islamic ethics, cont.

Critical comments and reflections

-Some believe Islamic morality is rigid and enforced
-It is difficult for marginalised groups like women and
critical thinkers
Hindu ethics
• Introduction
– “Hinduism” is a Western name for the oldest of the Indian
religious traditions. Believe in action
– Adherents prefer to refer to “the eternal way”
– A variety of beliefs, practices, customs and trends can be found
within Hinduism
• Hinduism as a way of life
– Often thought to be a tolerant and flexible tradition
– But this flexibility and freedom of choice lie in the realm of
beliefs and ideas, rather than in the areas of religious practice
and social organisation
– Religious and social practice is crucial
Hindu ethics, cont.
• The four goals of life:
– Moral and ritual action
– Economic and political activity
– Desire and pleasure
– Ultimate spiritual liberation.
• Two important themes:
– Karma: If you do good, good will come to you
– Dharma: Right or appropriate actions – patience, kindness, self
control, hospitality
• Sources of Hindu ethics
– Various scriptures
– The examples of Hindu teachers and holy people
Hindu ethics, cont.
• Controversial practices
– The caste system (social slot, social niche)
– The place and treatment of women
– Child marriages
– Ritual suicide
Religious ethical systems
• Faith and life are linked and provide a comprehensive
framework and motivation for ethics
• They supply morality
• Many values overlap

Weaknesses
• Diff religions have diff views on reality
• Social conflicts
• Distorted teachings
Modern value systems
Introduction
• The following systems approach ethics in secular terms
• Some of these systems regard all beliefs about the
existence of a supernatural Being or spiritual world as
mistaken and even harmful
– And instead hold that the physical universe is the only reality.
Modern value systems
Secular humanism
• The natural world is the only reality
– Secularists deny the validity of belief in God
• Seek to build a global ethic embracing the values of
older religious approaches
– But divorcing such values from their religious foundations
• “The key to secular humanist ethics is the conviction
that moral values come from nature, human nature,
and the lessons of our experience as human beings”
Modern value systems
Secular humanism, cont.
• Core values (per Paul Kurtz) (ethics of personal
excellence):
– Integrity (truthfulness, honesty)
– Trustworthiness (fidelity/faithfulness)
– Benevolence (goodwill)
– Fairness (justice, tolerance, accountability).
Modern value systems
Communist ethics
• Communism has declined as an international force
since the fall of the Berlin Wall (in 1989)
• It is a political and economic movement
• Governed by basic need to meet material needs
• Based on Marxist theory
– There is a class struggle between the capitalist class and the
working class, which inevitably will culminate in a proletarian
revolution
– Involves an economic interpretation of history: economic
conditions produce religions, philosophical ideas, schools of
art, and political movements.
Modern value systems
Communist ethics, cont.
• Moral values cannot be universal
• The goal of Marxist ethics is to overthrow all
exploitation of persons by persons, and with it the
capitalist system
• Communism values - active commitment to the common good-
loyalty to the party, self-discipline, and human equality.
• Evil is all exploitation, delusion and everything undermining/
overthrowing capitalism
Ethical relativism and hedonism
• Ethical relativism – there are no moral principles
applicable to all. When in Rome do like the Romans.
• Relativism leads to unethical behaviour – no moral
norms
• Hedonism – selfish pursuit of pleasure or self
indulgence – I can do what I want.
• Decisions made based on personal preference.
• Little clarity on what is right and wrong
Modern value systems
Human rights and responsibilities
• The human rights movement seeks to entrench basic
human rights in laws, national constitutions, and
internationally accepted documents like the Universal
Declaration of Human Rights
• Debate pursued by both secular and religious thinkers
• This is usually done by asserting in a Bills of Rights that
all people are entitled to certain freedoms (freedom of
speech, movement, association, etc.) and rights (e.g.
the right to a healthy environment)
– Purpose is to foster conditions that promote our wellbeing
against forces that might lead to tyranny, exploitation,
domination, violence, etc.
Modern value systems
Human rights and responsibilities, cont.
• Core values per the Bill of Rights in the South African
Constitution:
– Human dignity
– Equality
– Freedom.
• Namibian Bill of rights
The Constitution of the Republic of Namibia, which came
into effect on March 21, 1990, contains a Bill of Rights
comprising twenty-five articles
Namibian Bill of rights

• liberty, respect, and dignity

• all Namibians will be considered equal and will not be
subject to inequality by factors such as sex, race, colour
and ethnicity, religious beliefs and status in society.
• protects citizens against certain authoritative actions
such as unwarranted arrests.
• Etc
Modern value systems
Feminist ethics
• Critical of marginalisation of women, abuse of women
and children
• Involves a rethinking of aspects of traditional value
systems that fail to do justice to women’s collective
moral experience
• Carol Gilligan
– She responded to Kohlberg’s theory of moral development
– Women’s handling of moral problems place care and
responsibility above rights and rules
Modern value systems
Feminist ethics
• Nel Noddings
– The ethic emphasises interconnectedness of life, rights of
women, their role in the economy, politics and ethics of care
– But it does not mean men do not have the capacity to care
Modern value systems
Feminist ethics, cont.
• “The feminist ethic of care places enormous
importance on the development of morally sensitive
and caring beings who are aware of their relatedness to
others. In this moral paradigm … there is a definite
departure from individualistic ethics to a more
communalistic ethic …”
– Similarity with ubuntu.
What is required to address the
moral problems we face?
• “[F]inancial systems cannot be reconstructed nor trust
in accounting and auditing practices ensured without a
credible view of reality, a moral understanding of life
and work, the reawakening of moral conscience and
conduct, and the formative role of moral communities”
Why should I be moral?

Motivated by:
-Sticks
-Carrots
-Inner moral conviction
What motivates your ethical practice?
How can moral individuals be
formed?
• Education, reason and personal moral effort
• Relationship with God (prayer, fasting etc)
Role of moral communities
• Legal framework
• Professional codes of conduct
• Professional bodies
• Ethical leadership in companies
Rank the following statements from 1
- 12
• Protect and nurture my family
• Live a life of integrity
• Accumulate wealth quickly and buy smart cars and prestigious
properties
• Gain status and a powerful position
• Follow the company’s code of ethics
• Obey significant leaders in my context
• Attain a sense of achievement from doing my work well
• Work towards a better life for all
• Do what is right
• Do what I want to do
• Use my position to promote the interests of my own family and social
groups
• Be respected by others as a moral leader
Questions
• What are the key ethical challenges in Namibia as a
country and what reputational damage have
accountants and auditors experienced?
• What are the similarities and differences between the
ethical value systems discussed in this chapter?
Thank you