© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE Social Responsibility and Business Ethics Government Protection Activities Government Regulation and Assistance 4 C H A P T E R Social Responsibility of Business and Government

© 2012 Cengage Learning. All Rights Reserved. SLIDE Social Responsibility and Business Ethics Goal 1Describe social responsibility issues. Goal 2Identify benefits and costs of social responsibility. Goal 3Explain the purpose of a code of ethics.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 3 KEY TERMS ●social responsibility ●non-renewable resource ●ethics ●business ethics ●code of ethics

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 4 SOCIAL RESPONSIBILITY ISSUES ●Social Responsibility: the duty of a business to contribute to the well being of a community ●Environmental Protection ●Workplace Diversity ●Job Safety ●Employee Wellness

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SOCIAL RESPONSIBILITY ISSUES Environmental Protection ●Conservation of scarce natural resources ●Manage Resources- Reforestation ●Nonrenewable Resources- can not be replaced ●Pollution-improve/change operations to reduce pollution ●EPA: monitors government standards Workplace Diversity ●Workforce should reflect community ●Removal of barriers for women ●Accommodate individuals who are physically challenges ●Bias (discrimination) SLIDE 5

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SOCIAL RESPONSIBILITY ISSUES Job Safety ●Ensure a safe work environment ●Eliminate risks that could cause accidents, fire, and or physical harm ●Employee Training Programs ●OSHA (Occupational Safety & Health Administration Employee Wellness ●Healthy workforce = productive workforce ●Assorted programs offered including stop smoking, weight loss, employees assistance programs, exercise/diet, etc. ●“Conditions of Work” clauses in contracts SLIDE 6

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 7 Checkpoint ●What are four areas of social responsibility that may require the attention of business? ●Environmental protection ●Workplace diversity ●Job safety ●Employee wellness

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 8 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

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 9 SOCIAL RESPONSIBILITY EVALUATION ●Costs ●New nonpolluting or safer equipment ●Building repairs to remove risks ●Wellness and rehabilitation programs ●Social projects sponsored by a company (continued)

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 10 Checkpoint ●What are the main benefits of social responsibility? ●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

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 11 BUSINESS ETHICS ●Ethics: principles of morality or rules of conduct ●Business Ethics: rules about how a business and employees ought to behave ●Code of ethics ●Ethical conduct guidelines ●Is the action legal? ●Does the action violate professional or company standards? ●Who is affected by the action and how?

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 12 GUIDELINES FOR WRITING A CODE OF ETHICS 1.Determine the purpose of the code. 2.Tailor the code to the needs and values of the organization. 3.Consider involving employees from all levels of the company in writing the code. 4.Determine the rules or principles that all members of the organization will be expected to adhere to. 5.Include information about how the code will be enforced. 6.Determine how the code will be implemented and where it will be published or posted. 7.Determine how and when the code will be reviewed and revised.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 13 Checkpoint ●What is the purpose of a code of ethics? ●The purpose of a code of ethics is to guide actions and decisions of employees or members of an organization.

© 2012 Cengage Learning. All Rights Reserved. SLIDE Government Protection Activities Goal 1Identify the roles and levels of government. Goal 2Explain the role of government protection and the legal system in business. Goal 3Describe types of intellectual property.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 15 KEY TERMS ●contract ●patent ●copyright ●trademark

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 16 GOVERNMENT IN SOCIETY ●How is the governments role similar to an umpires? ●Ensure a fair playing field! ●Government plays a role in all economic systems. ●Changes with newly elected officials.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 17 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

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 18 LEVELS OF GOVERNMENT FEDERAL GOVERNMENT ●Oversees the activities that involve two or more states or other countries. ●Regulates foreign trade ●Interstate commerce (business dealings between companies in two or more states)

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 19 LEVELS OF GOVERNMENT STATE GOVERNMENTS ●Regulate business actions within their own borders ●Intrastate Commerce (business dealings involving companies that do business in only one state) ●Assign some of their legislative power to local governments

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 20 LEVELS OF GOVERNMENT LOCAL GOVERNMENTS ●Include county boards and city or town councils ●Provide services needed for an orderly society, such as police and fire protection

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 21 GOVERNMENT PROTECTION ACTIVITIES ●Worker protection ●Safe work environment ●Basic human rights of workers ●Contract enforcement ●Agreement to exchange g/s for something of value (usually money) ●Can be written or unwritten ●Contract elements: agreement, competent parties, consideration, legality (figure 4-2)

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 22 CONTRACT BASICS Valid, enforceable contracts must contain: AgreementAn offer must be made, and an acceptance must occur. Competent PartiesThose entering into the contract must be of legal age and must be mentally competent. ConsiderationSomething of measurable value must be exchanged by the parties involved. LegalityThe contract must be for a product or service that may be legally sold; also no fraud or deception exists in the agreement.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 23 PROTECTION OF INTELLECTUAL PROPERTY ●Intellectual Property: intangible, with not physical characteristic ●Patents: gives the inventor the sole right to make, use, or sell the item for 20 years ●Flash Of Genius ● idea-bionic-wrench http://abcnews.go.com/WNT/video/dan-brown-claims-sears-stole- idea-bionic-wrench ●

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 PROTECTION OF INTELLECTUAL PROPERTY ●Copyrights: protects the creative works of authors, composers, and artists. Extends for 70 years after person’s death. SLIDE 24

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 PROTECTION OF INTELLECTUAL PROPERTY ●Trademarks: word, letter or symbol linked with a specific company or product ●Logo SLIDE 25

© 2012 Cengage Learning. All Rights Reserved. SLIDE Government Regulation and Assistance Goal 1Explain actions by government to regulate business. Goal 2Discuss efforts of government to assist businesses. Goal 3Identify methods used by government to raise money.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 27 KEY TERMS ●public utility ●monopoly ●antitrust laws

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 28 REGULATORY ACTIVITIES ●US: Private Enterprise System ●Limited Government Involvement ●Regulation of utilities (supplies a service/product vital to all people ●Telephone/water/electric/natural gas/cable ●Privately owned company chosen to serve community ●Rates approved by government agencies

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 REGULATORY ACTIVITIES ●Prevent unfair business practices ●Fair competition ●Monopoly: exists when a business has control of the market for a product/service ●Antitrust laws: prevent false advertising, deceptive pricing, misleading labeling SLIDE 29

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 30 Checkpoint ●Why does government regulate utilities? ●Reasons for government regulation of utilities might include the assurance of fair prices, the conservation of resources, and to avoid overcrowding of utility poles and other facilities, such as power plants.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 31 GOVERNMENT ASSISTS BUSINESS ●Government collects and reports data ●Income, prices, worker availability, business failures, etc. ●Bureau of labor statistics, Department of Agriculture, Department of Commerce ●Small Business Administration: services related to starting a business & keeping it running

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 GOVERNMENT ASSISTS BUSINESS ●Government buys goods and services ●20% of all g/s produced in US ●File cabinets to buildings to military jets ●Government employs workers ●Single largest employer in the US economy ●Efforts to reduce/eliminate the number of public employees SLIDE 32

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 33 Checkpoint ●How does government assist business? ●The government assists businesses in a variety of ways, including providing demographic data, buying goods and services, and employing workers who then have the means to buy goods and services.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 34 GOVERNMENT RAISES MONEY ●Government Income = revenue ●Revenue pays for services provided ●Fines/fees/licensing ●Taxes ●Income tax, sales tax, property tax ●Borrowing ●Taxes do not always pay the bills ●Bonds

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 35 Checkpoint ●What is the difference between tax revenue and borrowing by government? ●Tax revenue is money the government collects to cover the costs of services. ●This is money that the government is not required to pay back. ●The government is required to pay back money borrowed.