SOCIAL RESPONSIBILITY & BUSINESS ETHICS CHAPTER 4 SOCIAL RESPONSIBILITY & BUSINESS ETHICS

4-1 SOCIAL RESPONSIBILITY ISSUES Social Responsibility – the duty of a business to contributor to the well-being of a community. Environmental Protection Workplace Diversity Job Safety Employee Wellness

4-1 SOCIAL RESPONSIBILITY ISSUES Environmental Protection Conservation – saving scarce natural resources Non-renewable resources – a natural resource that cannot be replaced when used up (ex. Gas, oil, copper) Pollution – occurs when the environment is tainted with the by-products of human actions. EPA – monitors and enforces measurable standards for water and air quality.

4-1 SOCIAL RESPONSIBILITY ISSUES Workplace Diversity The workforce of a business should reflect the groups in a community. Members of these groups must have equal access to education, training, jobs, & career advancement. Americans with Disabilities Act (ADA) Major improvements in accommodating workers who are physically challenged.

4-1 SOCIAL RESPONSIBILITY ISSUES Job Safety An office or factory free from risks that could cause accidents The work environment should provide full protection from fire and other hazards OSHA – regulates and enforces safety standards.

4-1 SOCIAL RESPONSIBILITY ISSUES OSHA

4-1 SOCIAL RESPONSIBILITY ISSUES Employee Wellness A healthy workforce is a productive workforce! Workers in good physical health are valuable assets. Organizations will offer: Stop-smoking seminars Counseling for employees with drug problems Weight-loss sessions

4-1 SOCIAL RESPONSIBILITY ISSUES Social Responsibility Evaluation Benefits Expanded justice for groups of a society Enhance company image Reduced need for government action Improved quality of life in a community and around the world Increased awareness of social issues Costs Money must be spent to provide safer equipment, building repairs, wellness projects and social projects. Spending on social programs must be at a suitable level so a business can still earn a reasonable profit.

4-1 BUSINESS ETHICS Ethics – principles of morality or rules of conduct. Business ethics – rules about how business and their employees ought to behave. Code of ethics – a set of rules for guiding the actions of employees or members of an organization.

Ethical Conduct Guidelines 4-1 BUSINESS ETHICS Writing a company Code of Ethics: Worded in terms of acceptable behavior rather than forbidden behavior Ethical Conduct Guidelines Is the action legal? Does the action violate professional or company standards? Who is affected by the action and how?

4-2 GOVERNMENT PROTECTION ACTIVITIES Roles of Government Provide services for members of society Protecting citizens, consumers, businesses, workers Regulating utilities and promoting competition Providing information and support to businesses Buying goods and services Hiring public employees Raising revenue

4-2 GOVERNMENT PROTECTION ACTIVITIES Levels of Government The federal government oversees activities that involve two or more states or other countries. Interstate commerce – business dealings involving companies in more than one state. Ex. The federal government will regulate a trucking company that ships products to several states. Intrastate commerce – business dealings involving companies that do business in only one state. (regulated by the state)

4-2 GOVERNMENT PROTECTION ACTIVITIES Worker Protection Law are established to help provide a safe work environment. Safety standards for buildings, machines, and chemicals are set by government agencies. Contract Enforcement Contract – an agreement to exchange goods or services for something of value, usually money. Legal System The legal system enforces laws and government regulations. Criminal case – violation of criminal laws (shoplifting) Civil cases – a plaintiff who asks the courts to take action against a defendant

4-2 GOVERNMENT PROTECTION ACTIVITIES Contract Basics Valid enforceable contracts must contain: Agreement An offer must be made and an acceptance must occur. Competent Parties Those entering into the contract must be legal age and must be mentally competent. Consideration Something of measurable value must be exchanged by the parties involved. Legality The contract must be for a product or service that may be legally sold; also no fraud or deception exists in the agreement.

4-2 GOVERNMENT PROTECTION ACTIVITIES Protection of Intellectual Property 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. Copyright protection lasts the life of the person receiving the copyright and extends for 70 years after their death. Trademarks – a word, letter, or symbol linked with a specific company or product.

GROUP ASSIGNEMNT Create a group of three students Open the link under Chapter 4 Section 2 – Intellectual Property Disputes Summarize the dispute that your group is assigned. Identify if there was a violation of patent, copyright or trademark. Does your group agree or disagree with the outcome? Why or why not?

4-3 Gov’t Regulations & Assistance Regulatory Activities Regulations of Utilities Public Utility – an organization that supplies a service or product vital to all people. Many are privately owned, however rates must be approved by the government Telephone service Water Electricity

4-3 Gov’t Regulations & Assistance Regulatory Activities Prevent Unfair Business Practices Monopoly – When a business has control of the market for a product or service. Monopolies prevent competition Antitrust Laws – prevent unfair business practices such as false advertising, deceptive pricing and misleading labeling. These practices hurt competition and reduce consumer choices.

4-3 Gov’t Regulations & Assistance Government Assists Business Gathering Data The government reports about incomes, prices, worker availability and business failures. Reporting Agencies The U.S. Census The Bureau of Labor Statistics Department of Agriculture Department of Commerce

4-3 Gov’t Regulations & Assistance Government Assists Business Loans Small Business Administration (SBA) Helps new businesses get started by guaranteeing private bank loans Subsidiaries Farmers receive financial help in times of great hardship (drought, flooding) Natural Disasters Destruction of home and property by a tornado may make a person eligible for a low-interest government loan.

4-3 Gov’t Regulations & Assistance Government Buys Goods and Services Total federal, state, and local government spending make up about 20% of all the goods and services produced in the U.S. Many businesses depend on government contracts for their survival. Government pays businesses to construct highways and build schools.

4-3 Gov’t Regulations & Assistance Government Employs Workers Government is the single largest employer in the U.S. economy. About 16% of workers are public employees Lawyers, teachers, administrative assistants, meat inspectors, and data analyst are all needed by the government

4-3 Gov’t Regulations & Assistance Government Raises Money Government income is called revenue Fines for traffic violations Fees and licenses (for running a business) Fees for driver’s licenses and fishing licenses

4-3 Gov’t Regulations & Assistance Government Raises Money Taxes Levied on earning (income taxes) Levied on property (local government) Taxes on the sale of goods and services (varies by state)

4-3 Gov’t Regulations & Assistance Government Raises Money Borrowing Selling bonds Banks, Insurance companies and other large financial institutions help finance governments by purchasing bonds in large numbers. Bonds issued by the U.S. government are backed by the “full faith and credit” of the federal government. Considered the least risky of all debt.