Objective 2.05 Understand responsible actions for conducting business. 1

Common Socially Responsible Practices of Businesses Socially responsible practices of businesses positively impact communities. Common social responsibilities addressed: −Environmental protection −Workplace diversity −Job safety −Employee wellness 2

Common Socially Responsible Practices of Businesses 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 –Company that refurbishes computers 3

Common Socially Responsible Practices of Businesses Workplace diversity exists in a company when the employees represent a variety of groups including women, ethnic groups, physically challenged, and older workers. Examples: –Americans with Disabilities Act –Age Discrimination Act –Equal Employment Opportunity Commission 4

Common Socially Responsible Practices of Businesses Job Safety is ensuring work environments are risk-free of accidents. Examples: –Occupational Safety and Health Admin (OSHA) –Wearing protective clothing on the job 5

Common Socially Responsible Practices of Businesses Employee Wellness programs are offered by employers to maintain a healthy workforce. Examples: –Stop-smoking seminars –Drug counseling –Weight-loss counseling 6

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. 7

Evaluation of Social Responsibility The costs of providing social programs must be realistic to allow a business to earn a profit. 8

Ethics What is the purpose of business ethics? Address the conduct of business and employees When given the opportunity, does a person or business choose right or wrong 9

Ethics 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? 10

Government Protection How are workers protected in their work environments by the government? Worker’s protection provides safe work conditions for employees. The government enforces minimum standards for buildings, machines, and chemicals. 11

Government Protection 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 (offer + acceptance) –Genuine agreement –Competent parties (capacity) –Consideration –Legality 12

Government Protection 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 13

Government Protection Intellectual property protected by the government are: –Copyrights – literary or artistic works Lifetime + 70 years –Patents – inventions Right to make, use, or sell for 17 years –Trademarks – words, letters, logos or symbols Examples: –Copyright: Textbooks, poems, or photographs –Patents: Nike’s production of their footwear –Trademarks: Starbucks or McDonald’s logo 14

Government Regulation and Assistance 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. Antitrust laws encourage competition and fairness among businesses and avoid monopolies. These laws avert false advertising, deceptive pricing, and misleading labeling. 15

Government Regulation and Assistance Government assist businesses by –Providing them demographic information –Buying goods and services from them –Employing workers who can buy goods and services from them 16

Consumer Bill of Rights What is the purpose of the consumer bill of rights? The consumer bill of rights protects consumers from unfair business practices. 17

Consumer Bill of Rights 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. 18

Consumer Bill of Rights 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. 19

Consumer Bill of Rights 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? Is a promise that a product meets certain quality. –What is the difference between an express and an implied warranty? Stated or written vs. based on actions 20

Consumer Bill of Rights 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. 21