ESSENTIAL STANDARD 2.00 Understand the nature of business. 1

OBJECTIVE 2.05 Understand responsible actions for conducting business. 2

Topics 3  Common socially responsible practices of businesses  Government protection  Consumer Bill of Rights  Government regulation and assistance

4 Common socially responsible practices of businesses

Common Socially Responsible Practices of Businesses 5  Socially responsible practices of businesses include practices that positively impact communities.  Common social responsibilities addressed: − Environmental protection − Workplace diversity − Job safety − Employee wellness

Common Socially Responsible Practices of Businesses continued 6  Companies can contribute to environmental protection by  Implementing actions to conserve natural resources  Minimizing pollution of air and water resources  What is an example of an organization or action that protects the environment?  Environmental Protection Agency enforces and provides standards for air and water quality.  Computer Manufacturing Company refurbishes computers

Common Socially Responsible Practices of Businesses continued 7  Workplace diversity exists in a company when the employees represent a variety of groups including women, ethnic groups, physically challenged, and older workers.  What is an example of an organization or action that enforces workplace diversity?  The American with Disabilities Act (ADA)  The Age Discrimination in Employment Act  The Equal Employment Opportunity Commission (EECOC)

Common Social-responsible Practices of Business continued 8  Job Safety is ensuring work environments are risk- free of accidents.  What is an example of an organization or action that enforces job safety?

Common Socially Responsible Practices of Businesses continued 9  Employee Wellness programs are offered by employers to maintain a healthy workforce.  What are some examples of employee wellness activities?  assist employees with programs such as stop- smoking seminars, counseling for employees with drug problems, and weight-loss counseling

Evaluation of Social Responsibility  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.  Increase awareness of social issues among workers, consumers, and others. 10

Evaluation of Social Responsibility The costs of providing social programs must be realistic to allow a business to earn a profit. 11

Ethics 12 What is the purpose of business ethics?

Ethics 13 Guidelines for responsible business conduct addresses the following questions:  Is the action illegal?  Does the action violate professional or company standards?  Who is affected by the action and how?

14 Government protection

Government Protection continued 15 How are workers protected in their work environments by the government?  Worker’s protection provides safe work condition for employees.  The government enforces minimum standards for buildings, machines, and chemicals.

Government Protection continued 16  A contract is an agreement usually between two parties to exchange goods or services for something of value, usually money.  What are the elements of a contract?  Agreement  Competent parties  Consideration  Legality

Government Protection continued 17  The government enforces contracts between businesses and individuals by ensuring agreed upon work and the exchange of money or other means are completed.  Examples of when contracts are used:  Buying an automobile  Leasing a building  Buying inventory

Government Protection continued 18  Intellectual property protected by the government are:  Copyrights  Patents  Trademarks  What is an example of each intellectual property?

19 Consumer Bill of Rights

20 What is the purpose of the consumer bill of rights?

Consumer Bill of Rights continued 21  The Right to Be Informed  Consumers have the right to be informed of what a product is and its functions.  The Right to Safety  Consumers have the right to be protected from harm while using a product or service.

Consumer Bill of Rights continued 22  The Right to Choose  Consumers have the right to choose what to buy among a variety of products and services.  The Right to Be Heard  Consumers have the right to talk with businesses about products or services they offer. Consumers may share their comments, complaints, concerns, or questions.

Consumer Bill of Rights continued 23  The Right to a Remedy  Consumers are assured that they can seek legal remedy when they encounter a problem or defective product.  What is a guarantee?  What is the difference between an express and an implied warranty?

Consumer Bill of Rights continued 24  The Right to Consumer Education  Consumers have the right to be informed about how their purchasing decisions impact them personally and the economy.  The Right to Service  Consumers have the right to receive goods and services at the promised level by companies.

25 Government regulation and assistance

Government Regulation and Assistance 26  Why does the government regulate utility companies?  The government regulates utility companies to promote business practices such as fair rates and services. Utility companies are usually a monopoly in the area it serves.  Government assist businesses by  Providing them demographic information  Buying goods and services from them  Employing workers who can buy goods and services from them

27  How does the government prevent unfair business practices?  The antitrust laws encourage competition and fairness among businesses and avoid monopolies. These laws avert false advertising, deceptive pricing, and misleading labeling.