Social Responsibility of Business and Government Chapter 4 Social Responsibility of Business and Government

4-1 Social Responsibility 1. The obligation of a business to contribute to the well-being of a community 2. protection of environment minorities and women employment of physically challenged older workers healthy and safe workplace employee wellness

3. preserve our scarce natural resources 4. a natural resources that cannot be replaced when used up 5. gas, oil, mined materials 6. pollution 7. action, pollution 8. water, air 9. EPA

10. Environmental Protection Agency 11. community 12. education, training, jobs, career development 13. women 14. Equal Employment Opportunity Laws 15. physical skills that women do not have 16. physically challenged

17. Americans with Disabilities Act 18. access for wheelchairs and hearing problems 19. Age Discrimination in Employment Act 20. 40 21. safe 22. fire, hazards 23. safety, protect

24. OSHA 25. Occupational Safety and Health Administration 26. healthy, productive 27. assets 28. stop-smoking seminars, counseling for drug problems, weight loss seminars

32. the need for government regulation 33. Money for: 29. labor contracts 30. conditions of work 31. sports teams 32. the need for government regulation 33. Money for: Non-polluting and safety equipment Building renovations Rehabilitation programs

34. profit, laid off 35. principles of morality or rules of conduct 36. rules about how businesses and their employees ought to behave 37. code of ethics 38. a statement of rules for guiding the behavior of employees or members of an organization

39. confidentiality of business information 40. behavior, forbidden 41. management 42. making personal phone calls, taking supplies, make ethical decisions on the job

GOVERNMENT IN SOCIETY Roles of Government Government is mainly concerned with these areas: Providing services for members of society Protecting citizens, consumers, businesses, and workers Regulating utilities and promoting competition Providing information and support to businesses Buying goods and services Hiring public employees Raising revenue

Each of these roles has either a direct or indirect impact on business expansion, consumer affairs, and economic growth in the economy.

Levels of Government The main goal of the federal government is to oversee activities that involve two or more states or other countries Interstate commerce- business dealings involving companies in more than one state Example: The federal government would regulate a trucking company that ships products to several states

Intrastate commerce- business dealings involving companies that do business in only one state Example: A trucking company that hauls products only within a state’s boundaries would be regulated by that state and not the federal government All states have assigned some of their legislative power to local governments. Local governments include county boards and city or town councils

Checkpoint>> What are the three levels of government?

GOVERNMENT PROTECTION ACTIVITIES Government protects your rights in numerous ways. Police and fire fighters Armed forces provide for national defense

Worker Protection Safety standards for the following are set by government agencies: Buildings Machines Chemicals

Selections for a job must be based on: Job requirements Training experience

Contract Enforcement Contract- an agreement to exchange goods or services for something of value, usually money A contract may be written or unwritten

To be valid, a contract must contain: agreement, competent parties, consideration, and legality Agreement- an offer must be made and an acceptance must occur Competent parties- those entering into a contract must be of legal age and mentally competent Consideration- something of value must be exchanged by the parties Legality- the contract must be for a product or service that can be legally sold

Checkpoint>> What are the main elements of a contract?

PROTECTION OF INTELLECTUAL PROPERTY Intellectual property is purely intangible, with no physical characteristics—a person cannot touch it Patents- gives the inventor the sole right to make, use, or sell the item for 20 years Copyrights protects the creative work of authors, composers, and artists which lasts 70 years after the author’s death

Trademarks- a word, letter, or symbol linked with a specific company or product Businesses register company names, team emblems, and label designs with the government Many are famous all over the world and are often identifies what a symbol called a logo

Checkpoint>> What are three types of intellectual property?

4-2 ASSESSMENT Complete the four assessment questions contained in your packet.

4-3 Government Regulation and Assistance REGULATORY ACTIVITIES Business activities in the United States is structured as a private enterprise or free market system Private organizations own the factors of production They choose efficient methods of production in order to earn a profit Price and output decisions are not made by the government but by the businesses and consumers

Regulation of Utilities Most goods and services come from private businesses which are free of government regulation

Public utility- an organization that supplies a service or product vital to all people These include companies that provide local telephone service, water, and electricity While many utility companies are privately owned, the government closely regulates them In recent years, there has been a trend toward deregulation where competition can be introduced

Prevent Unfair Business Practices The government attempts to promote fair competition If a business charges different people different prices for the same products, it is treating consumers unfairly

Monopoly- exists when a business has control of the market for a product or service A public service monopoly may benefit consumers by making sure they receive needed service at a fair price Other monopolies may not be good for the economy because they prevent competition Customers would pay higher prices for poor quality products

Antitrust laws- prevent unfair business practices such as false advertising, deceptive pricing, and misleading labeling

Checkpoint>> Why does government regulate utilities?

GOVERNMENT ASSISTS BUSINESS Government assists business by collecting and reporting valuable information Information about incomes, prices, worker availability, and business failures can help a business person make wiser choices Example: Census information can help a business decide where to locate so that they are near where a majority of potential customers live

Other government agencies that provide information: Bureau of Labor Statistics Department of Agriculture Department of Commerce

The government helps small businesses through the SBA Helps new businesses get started Guaranteeing private bank loans

Government Buys Goods and Services The federal, state, and local governments buy an array goods and services each day Account for 20% of all goods and services produced in the United States Key economic force Pays businesses to construct highways and build schools

Government Employs Workers Government is the single largest employer in the United States About 16% of workers are public employees Examples of government jobs: administrative assistants, lawyers, teachers, meat inspectors

Checkpoint>> How does government assist business?

GOVERNMENT RAISES MONEY Revenue- government income Governments can obtain revenue through taxes and borrowing Other options for raising revenue: fines for traffic violations, fees and licenses

Taxes- levied on earnings, the value of property, and on the sale price of goods and services Income taxes- largest source of revenue for the federal government Property taxes- based on the value of land and buildings Used to pay for schools, police protection, community parks

Sales tax- state or local tax on goods and services collected by the seller Example: If you buy a can of paint for $15.00 and the state sales tax is 6%, the seller collects $15.90 from you and will then pay .90 to the state. Businesses also pay a lot of taxes to all levels of government.

Borrowing Government income from taxes may not be sufficient to cover the costs of providing services. The government borrows money by selling bonds When you buy a government bond, you are helping to fund services provided by the government By borrowing money, the government becomes the debtor and must pay interest on its debt

Checkpoint>> What is the difference between tax revenue and borrowing by government?

4-3 ASSESSMENT