Ch. 5, Social Responsibility

Part 1 Marketing Dynamics Social Responsibility Chapter 5 Social Responsibility

Chapter Objectives Describe the relationship between business and society. List the three requirements of business responsibility and give an example of each. Name the three areas for which there are laws affecting business and marketing. (Continued)

Chapter Objectives List four ethical qualities that employers expect in employees. Describe how a business can contribute to society. List three benefits of social responsibility to business.

Marketing Terms social responsibility business social responsibility laws ethics honesty integrity responsibility confidentiality code of ethics diversity philanthropy public service advertisement (PSA)

What Is Social Responsibility? acting in ways that do not harm another person helping others improving society Both businesses and individuals have social responsibility (Continued)

What Is Social Responsibility? Business social responsibility is based on three requirements be legal be ethical be philanthropic What might happen if businesses were not socially responsible?

Be Legal Laws are established to make sure that people and businesses are socially responsible Federal, state, and local governments make laws (Continued)

Be Legal Laws in these areas affect business and marketing fair business practices safety environmental protection

Fair Business Practices Laws concerning fair business practices require businesses to be fair to employees customers competitors How does each law on the next slide protect employees, customers, or competitors? (Continued)

Examples of Fair Business Practice Laws Sherman Antitrust Act Prohibits activities that interfere with competition Equal Pay Act Protects men and women from sex-based wage discrimination Civil Rights Act Prohibits discrimination based on race, color, religion, sex, or national origin Trademark Counterfeiting Act Prohibits the sale of counterfeit goods

How does each law on the next slide ensure safety? Laws concerning safety require businesses to provide a safe work environment produce safe products How does each law on the next slide ensure safety? (Continued)

Examples of Safety Laws Federal Food, Drug, and Cosmetic Act Prohibits the sale of impure food and medicines Child Protection Act Prohibits the sale of dangerous toys to children Occupational Safety and Health Act Protects the safety and health of workers Public Health Cigarette Smoking Act Prohibits tobacco advertising on radio and television

Environmental Protection Laws that protect the environment require businesses to reduce pollution protect endangered animals clean up hazardous waste sites How does each law on the next slide protect the environment? (Continued)

Examples of Environmental Protection Laws National Environmental Policy Act Protects human health and the environment from pollution Clean Air Act Reduces air pollution Emergency Planning Act Helps communities protect public health, safety, and the environment from chemical hazards Toxic Substances Control Act Protects human health and the environment from toxic substances used in industry

How would you describe ethics? Be Ethical Ethics are rules for deciding the right behavior in a situation Types of ethics personal ethics professional ethics business ethics How would you describe ethics?

Personal Ethics Personal ethics rules individuals use to make ethical decisions rules you learned at home from your spiritual beliefs through personal experiences (Continued)

Personal Ethics Employers expect these ethical qualities in their employees honesty integrity responsibility confidentiality If you were in charge of a team, what qualities would you expect in the team members? (Continued)

Personal Ethics Honesty telling the truth not stealing doing your own work keeping accurate records respecting the property of others (Continued)

Describe a situation in which integrity is important. Personal Ethics Integrity following the rules, even if no one is watching treating people fairly applying rules consistently being unbiased and unprejudiced Describe a situation in which integrity is important. (Continued)

Personal Ethics Responsibility being reliable following through on your promises performing tasks assigned to you (Continued)

Why would an employer want to know that you can keep confidences? Personal Ethics Confidentiality ability to keep confidential information private Why would an employer want to know that you can keep confidences?

Why would a professional organization develop a code of ethics? Professional Ethics Professional ethics are rules of conduct developed by a professional organization for its members to follow often presented as a written list, called a code of ethics code of ethics is also called a statement of ethics Why would a professional organization develop a code of ethics? (Continued)

Professional Ethics Many professions have ethic statements medicine law social work web communications marketing

Business Ethics In the past, business had a reputation for a lack of ethics society has pressured businesses to be more ethical Ethical behavior is necessary for good business relationships Business ethics rules used to make ethical business decisions (Continued)

Business Ethics Many businesses have developed their own codes of ethics these codes are often based on honesty, integrity, responsibility, and confidentiality Have you worked at a business or been a member of an organization that has a code of ethics? (Continued)

What makes the workplace diverse? Business Ethics Businesses value diversity a group that includes people of two or more different backgrounds What makes the workplace diverse?

Give some examples of philanthropy. Be Philanthropic Philanthropy actions that improve human welfare and spread goodwill Examples of philanthropy include giving to charity and good causes volunteering to help others Give some examples of philanthropy. (Continued)

Be Philanthropic Public service advertisement (PSA) an advertisement that publicizes information that contributes to human welfare The Ad Council is a nonprofit organization that develops PSAs the Ad Council developed the ad campaign featuring Smokey the Bear and information to prevent wildfires (Continued)

Describe a PSA that you have seen.

Benefits of Social Responsibility Benefits to business of social responsibility saving money building a good reputation increasing worker productivity

Review What is social responsibility? Explain the three requirements of business social responsibility. Describe the four ethical qualities employers expect. What are the benefits to business of behaving in a socially responsible manner?

Glossary Back business social responsibility. Obligation to make business decisions that consider the impact on society; includes the requirement to reduce harmful impacts of business processes and to contribute to improving society. code of ethics. List of rules to help a person make ethical decisions. (Continued)

Glossary Back confidentiality. Ability to keep confidential information private. diversity. Word used in business to refer to a group that includes people from two or more different backgrounds. ethics. Rules for deciding the right behavior in a situation. (Continued)

Glossary Back honesty. Quality of telling the truth, not stealing, doing work assigned to you, not wasting time, keeping accurate records, and respecting the property of others. integrity. Quality of following ethical rules, even if no one is around to enforce them; includes treating people fairly, applying rules consistently, and being unbiased and unprejudiced. (Continued)

Glossary laws. A country’s rules for proper behavior. Back laws. A country’s rules for proper behavior. philanthropy. Actions that improve human welfare and spread goodwill. public service advertisement (PSA). Advertisement whose goal is to publicize information that will contribute to human welfare. (Continued)

Glossary Back responsibility. Quality of being reliable, following through on your promises, and performing tasks assigned to you. social responsibility. Responsibility of each person to not harm another person; includes the duty to help others and to improve society in general.