Social Responsibility and Business Ethics Introduction to Business Mrs. Jurecka

Social Responsibility The obligation of a business to contribute to the well-being of a community. 4 social responsibility issues businesses face: –Environmental Protection –Workplace diversity –Safety on the job –Employee Wellness

Environmental Protection  Conservation (protecting scarce natural resources) –Example: reforestation programs of lumber companies  Non-renewable resources-resources that cannot be replaced when used up –examples: gas, oil  A Socially responsible business takes action to eliminate causes of pollution –EPA (Environmental Protection Agency) - the government agency that monitors standards for air and water quality

Workplace Diversity There are four groups that businesses must consider. They are increasingly sensitive to the role of: 1.Women in the workplace 2.Ethnic groups 3.Physically challenged workers 4.Older workers

1. Women in the workplace:  cannot discriminate based on sex  should take steps to remove employment barriers to women.

2. Ethnic groups  cannot discriminate based on ethnicity  managing a work force made up of the various cultures in our society is a major challenge to businesses

3. Physically challenged  cannot discriminate based on handicap  should make facilities accessible to physically challenged  must accommodate individuals who are physically challenged

4. Older workers  cannot discriminate based on age  laws have been passed to eliminate this type of discrimination

Workplace Diversity - concluded Members of these groups must have equal access to: –education –training –jobs –career advancement

Safety on the Job  Having a safe place to work is important to workers.  Areas that businesses must address when providing safety on the job: –Protection from physical harm –Employee training in how to work safely –Emergency procedure training  The government sets standards for safety which are regulated by agencies such as OSHA (the Occupational Safety and Health Administration)

Employee Wellness  Businesses do various things to improve the health of their work force. –stop smoking programs –counseling –fitness centers  Many contracts and company policy manuals include clauses (conditions of work) that pertain to the health and safety of employees while on the job

Costs of Social Responsibility  When businesses take socially responsible action, there are monetary costs involved.  Because businesses are motivated by profit, spending on social programs must be restrained so the businesses can still earn a profit.

Business Ethics  Ethics: Principles of morality or rules of conduct.  Business Ethics: Rules about how businesses and employees ought to behave. –If a business or employee demonstrates ethical behavior, he is following business ethics.

Code of Ethics  A statement of rules for guiding the behavior of employees or members of an organization.  Must be written so that it states acceptable behavior.  The ethical conduct of a business is greatly determined by the behavior of top management.  Sometimes businesses must provide training on ethical behavior.

Business Ethics Worldwide  Can cause confusion in international business.  Some actions that are considered unethical in the US are considered common business practices in other countries –example: giving gifts to government officials