Social Responsibility of Business and Government CHAPTER 4 4/20/2017 4 Social Responsibility of Business and Government 4-1 Social Responsibility 4-2 Government Protection Activities 4-3 Government Regulation and Assistance ITB

SOCIAL RESPONSIBILITY ISSUES – the duty of a business to contribute to the well-being of a community Environmental protection – saving scarce natural resources Non-renewable resource – natural resource that cannot be replaced when used up. Ex. Gas, oil, minerals, etc. Conservation – saving scarce resources. Workplace diversity – learning how to manage a work force made up of the diverse cultures of society Job safety – to work in an office or factory free from risks that could cause accidents Federal and state governments have passed laws to make the workplace safer. Safety standards are regulated by OSHA. Employee wellness – a healthy workforce is a productive workforce. 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 Pollution – environment is tainted with the by-products of human actions. Building repairs to remove risks Wellness and rehabilitation programs Social projects sponsored by a company Chapter 4

BUSINESS ETHICS – rules about how a 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. Ethics – principles of mortality or rules of conduct. Ethical conduct guidelines- determined by its top management Chapter 4

Does the action violate professional or company standards? When considering the ethics of business situations, you could follow these guidelines. Is the action legal? Does the action violate professional or company standards? Who is affected by the action and how? Chapter 4

GOVERNMENT IN SOCIETY Roles of government (continued) 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

GOVERNMENT IN SOCIETY Levels of government (continued) Federal government State government Local government Chapter 4

FEDERAL GOVERNMENT Oversees the activities that involve two or more states or other countries. Regulates foreign and interstate commerce Interstate commerce is business dealings involving companies in more than one state. The federal government regulates. Chapter 4

STATE GOVERNMENTS Regulate business actions within their own borders Assign some of their legislative power to local governments Intrastate commerce refers to business dealings involving companies that do business in only one state. Regulated by the state 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 Worker protection Safe working conditions Job safety is removing workplace barriers for women accommodating employees who are physically challenged Basic human rights Cannot be denied work because of your race, religion, sex, or age. Prejudices and personal biases must not affect a hiring decision. Conditions of Work – clauses in labor contracts that pertain to employee health and safety while on the job Contract – an agreement to exchange goods or services for something of value, usually money. Written or unwritten contract Examples – leases, credit card agreements, documents that state the terms of a purchase. Chapter 4

Contract Elements What are the main elements of a contract? Agreement Competent parties Consideration Legality Chapter 4

PROTECTION OF INTELLECTUAL PROPERTY Patents – gives the inventor sole right to make, use or sell the item for 17 years. Copyrights – protects the creative work of authors, composers, artists. Copyright protection lasts for the life of the person receiving the copyright. It also extends 50 years after the person’s death. Trademarks – a word letter, or symbol liked with a specific company or product. Chapter 4

REGULATORY ACTIVITIES Regulation of utilities Public utility – is an organization that supplies a service or product vital to all people. Utilities are privately owned – government regulated. Telephone service Water Electricity Prevent unfair business practices Monopoly – when a business has control of the market for a product or service. Government attempts to prevent monopolies with anti-trust laws. Anti-trust laws – prevent other unfair business practices such as false advertising, deceptive pricing, and misleading labeling. Hurts competition and reduces consumer choice Chapter 4

GOVERNMENT ASSISTS BUSINESS Government buys goods and services Total federal, state, and local government purchases of goods & services make up about 20% of all goods and services produced in US. Government employs workers – single largest employer in the U.S. economy. 1 of every 9 workers is a public employee Police, firefighters, sanitation, meat inspectors, lawyers, data analysts, etc. Chapter 4

GOVERNMENT RAISES MONEY Taxes Income Tax – Earnings – money made at your job Property Tax Sales Tax Government income is called Revenue. Borrowing Example – need new courthouse/sell bonds Bonds issued by Federal Government Less risky!! Chapter 4