Introduction to Social Responsibility and Ethics Key Terms flextime telecommuting Ad Council green marketing ethics Better Business Bureau price gouging whistle-blowing Objectives: Provide examples of business’s social responsibilities Textbook Reading: Explain the concept of business ethics Apply guidelines for ethical behavior Marketing Essentials Chapter 6, Section 6.2

What is Social Responsibility? It is the principle that companies should contribute to the welfare if society and not be solely devoted to maximizing profits.

Business and Social Responsibility Some businesses believe their role in society includes actions affecting: The workplace The marketplace Their communities The environment Social responsibility and ethics have become important business topics as trust has deteriorated due to corporate scandals. Corporate scandals and unethical behavior have a very negative effect on consumer confidence and the image of a company.

In the Workplace flextime A program that allows workers to choose their work hours. telecommuting A program that involves working at home, usually on a computer, with completed jobs transmitted by e-mail or mail-in disk. Many business try to accommodate employee needs by creating a user-friendly workplace environment. Flextime allows workers to choose their work hours from pre-determined options. Telecommuting involves working at home, usually on a computer. Completed jobs are transmitted by e-mail or by mailing in disks. Extended Family Leave The Family and Medical Leave Act of 1993 (FMLA) is a United States federal law requiring covered employers to provide employees job-protected and unpaid leave for qualified medical and family reasons.

In the Marketplace Socially responsible companies cooperate with the government and consumer groups to provide important information to consumers. Through its advertising, the Almond Board of California informs consumers about the health benefits of almonds.

In the Marketplace Ad Council A nonprofit organization that helps produce public service advertising campaigns for government agencies and other qualified sponsors. The Ad Council X is a nonprofit organization that helps produce public service advertising campaigns for government agencies and other qualifying groups. Click here to view

In the Marketplace In the broadcast industry, standards for acceptable material are established by the Federal Communications Commission (FCC). Network executives can also establish their own policies for self-regulation. Socially responsible companies also look for ways to respond to consumers’ concerns. This ad from McDonald’s shows the company’s efforts to promote its commitment to offering healthier menu options.

In the Community Local businesses try to support community efforts by funding teams or helping with food or toy drives. Large companies have guidelines and initiatives that clearly define how they see their role in supporting community causes. The World Business Council for Sustainable Development (WBCSD) is a coalition of international companies who try to use business leadership to bring about responsible economic development, improved efficiency, and corporate social responsibility.

Click this logo to view video clip In the Environment Green business design their business practices so that they promote sustainability. sustainability When a venture seeks to achieve economic, environmental and social goals without compromising the ability of future generations to meet their own needs. John Doeer, a famous venture capitalist said that green products could be the largest economic opportunity of the 21st century Issues related to sustainability include food quality, energy resources, pollution and human rights. Click this logo to view video clip

Social Responsibility Assignment Business Ethics & Social Responsibility Assignment Directions: Choose a partner to work with. Choose a company that demonstrates social responsibility (and let your teacher know right away so there are no duplicates). Visit the business (primary research) or conduct online (secondary) research to report back to the class. Create a PowerPoint presentation for the class on your findings. Be sure to include the name of the company, their size, their headquarters, brief company history, mission statement, company values/goals/philosophy and how they incorporate and promote social responsibility. If possible, include a video clip and/or pictures that are relevant to your findings. Be creative! How can you bring your presentation to life?

Evaluation: Your assignment will be graded on the following criteria: How well did you follow directions? Is your assignment neat and organized? Does the content help to clearly illustrate the concepts? How creative and credible is the information you are presenting? Is it evident that sufficient planning went into this assignment? What’s your WOW factor? Click here to see a rap!

Chapter Reading Read chapter 24 in the Entrepreneurship book. Take some brief notes on the content. In your notes, answer the questions 2-6 in the Key Concept Review found on page 527.