Social Responsibility of Business and Government CHAPTER 4 4/17/2017 4 Social Responsibility of Business and Government ITB

SOCIAL RESPONSIBILITY ISSUES Environmental protection Conservation – saving scarce resources Non-renewable resources Pollution EPA – environmental Protection Agency Workplace diversity Women~Ethic~Mature Worker~Physically challenged How to manage a diverse work force ADA – Americans with Disabilities Act Age Discrimination Chapter 4

SOCIAL RESPONSIBILITY ISSUES Job safety Protected from hazards OSHA – Occupational Safety and Health Administration Employee wellness Healthy = Productive Programs to help employees Conditions of Work Chapter 4

SOCIAL RESPONSIBILITY EVALUATION Benefits Expanded justice for groups of a society Enhanced company image Reduced need for government actions Improved quality of life in a community and around the world Increased awareness of social issues among workers, consumers, and others Chapter 4

SOCIAL RESPONSIBILITY EVALUATION (continued) Costs New nonpolluting or safer equipment Building repairs to remove risks Wellness and rehabilitation programs Social projects sponsored by a company Chapter 4

BUSINESS ETHICS Ethics – Principles of morality or rules of conduct Rules how businesses/employees behave Ethical behavior conforms to these rules Chapter 4

BUSINESS ETHICS Code of ethics Ethical conduct guidelines Set of rules of guiding the actions of employees Ethical conduct guidelines Worded in acceptable behavior Determined by top management Programs designed to promote ethical conduct How to make ethical decisions Legal ? Violate Standards? Whose Affected? conflict of Interests Chapter 4

GOVERNMENT IN SOCIETY Roles of government 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 Chapter 4

FEDERAL GOVERNMENT Oversees the activities that involve two or more states or other countries. Regulates foreign and interstate commerce Interstate-between states Chapter 4

STATE GOVERNMENTS Regulate business actions within their own borders Intrastate = business within one state Assign some of their legislative power to local governments Chapter 4

LOCAL GOVERNMENTS Include county boards and city or town councils Provide services needed for an orderly society, such as police and fire protection Chapter 4

GOVERNMENT PROTECTION ACTIVITIES Citizen protection Police ~ Armed Forces ~ National Guard Worker protection Basic rights ~ Safe Working Environment Chapter 4

GOVERNMENT PROTECTION ACTIVITIES Contract enforcement Contract = agreement to exchange goods/services for something of value Contract Requirements Agreement offer & accepted Competent parties Consideration Legal Examples Lease ~ Credit Card ~ Documents that states terms of purchase Chapter 4

PROTECTION OF INTELLECTUAL PROPERTY Patents Gives the inventor sole rights to make, use, or sell for 17 years Copyrights Protects creative work of authors, composers, artists for life +50years Trademarks Protects word, letter or symbol linked with specific company/product Chapter 4

Government Regulation and Assistance Regulation of utilities Public Utilities ~ Organization that supplies a service or product vital to all people. (power ~ phone ~ water) Most privately owned by government closely regulates these businesses Chapter 4

Government Regulation and Assistance Prevent unfair business practices Monopoly ~ business has control of the market for a product or service (Microsoft ~ Clear Lake Telephone) Antitrust Laws ~ to prevent unfair business practices such as false advertising, deceptive pricing and misleading labeling. Chapter 4

GOVERNMENT ASSISTS BUSINESS Government buys goods and services Government employs workers Chapter 4

GOVERNMENT RAISES MONEY Government Income = Revenue Taxes ~ Fees ~ Fines ~ Licenses Income tax ~ levied on individuals income Corporate income tax – levied on companies Property tax ~ levied on real estate For schools and local government services such as police, community parks Sales tax ~ state/local on goods/services collected by the seller and then pays the state. Chapter 4

GOVERNMENT RAISES MONEY Borrowing Needed to construct new buildings Bonds – sold to citizens Bonds – sold to banks or large businesses Least risky way to earn interest Chapter 4