Intro to Business 7/3/2015

What do they have in common? Starbucks created C.A.F.E. Practices, a set of guidelines to achieve product quality, economic accountability, social responsibility and environmental leadership. Ben & Jerry 's founders Ben Cohen and Jerry Greenfield have infused the company with the notions of giving back in every way possible, as well as "linked prosperity" between the company, its employees and the community. Blake Mycoskie started Toms Shoes on the premise that for every pair of shoes sold, one pair would be donated to a child in need.

Social Responsibility Refers to the obligation of a business to contribute to the well being of a community Attention to social concerns: Protecting the environment Minorities and women in the workplace Physically handicapped employees Older workers Healthy and safe work environment

Environmental Protection Conservation – preserving scarce natural resources Lumber company that has reforestation program Non-renewable resource – natural resource that cannot be replaced when used up Copper, Iron ore, gas, oil

Environmental Protection Cnt’d Socially responsible businesses take action to reduce or completely eliminate pollution EPA (environmental Protection Agency) and businesses work together to reduce pollution and make our environment healthier

Workplace Diversity The workforce of a business should reflect the various groups that comprise the community. Learning how to manage a work force made up of a variety of cultures is a major challenge.

Workforce diversity cnt’d Removing employment barriers for women Equal employment opportunity laws Lilly Ledbetter Fair Pay Act of 2009 Accommodate physically disabled Americans with Disabilities Act Wheelchair access etc. Eliminate discrimination towards elderly Age Discrimination in Employment Act Age is not a basis for employment decisions (hiring, promotions, or terminations) – 40 and over

Safety on the job All employees should be able to work in an office or factory free from the hazards that could cause accidents. Also includes employee training to show how to work safely and what to do in the event of an emergency. Workplace safety regulations are mandated by the government – OSHA (Occupational Safety and Health Administration)

Employee Wellness Healthy workforce = productive workforce Workers in good physical health are valuable assets to a company Business offer programs aimed at helping their employees remain healthy Stop-smoking seminars, counseling for drug problems, weight loss sessions, team sport sponsor – to encourage employees to play

Cost of Social Responsibility With those around you: Come up with a list of 3-5 costs of being socially responsible. Come up with a list of 3-5 benefits of being socially responsible.

Cost of Social Responsibility To be socially responsible, companies must endure costs New non-polluting equipment Safer materials Building renovations Rehabilitation programs Companies must balance their commitment to be socially responsible in order to continue making profits

Business Ethics Ethics – principles of morality or rules of conduct Business ethics – rules about how the business or employees ought to behave

Business Ethics Cont’d The ethical conduct of a business is greatly determined by its top management Executives who show good moral decision making, set the standard for a business

Business Ethics Cont’d Code of ethics – statement of rules for guiding behavior of employees or members of an organization Should be written in terms of acceptable behaviors, not forbidden actions Wordle