Social Responsibility of Business and Government Intro to Business Chapter 4

Social Responsibility Issues ENVIRONMENTAL PROTECTION ENVIRONMENTAL PROTECTION WORKPLACE DIVERSITY WORKPLACE DIVERSITY JOB SAFETY JOB SAFETY EMPLOYEE WELLNESS EMPLOYEE WELLNESS

ENVIRONMENTAL PROTECTION Conservation Conservation –Saving scarce natural resources –i.e. lumber companies with reforestation programs Non-renewable Resource Non-renewable Resource –Cannot be replaced (oil, gas, minerals) Pollution Pollution –When environment is tainted with the by-products of human actions

WORKPLACE DIVERSITY The work force of a business should reflect the range of groups in a community The work force of a business should reflect the range of groups in a community EOE = Equal Opportunity of Employment EOE = Equal Opportunity of Employment Americans with Disabilities Act (ADA) & Age Discrimination in Employment Act Americans with Disabilities Act (ADA) & Age Discrimination in Employment Act

JOB SAFETY OSHA – Occupational Safety and Health Administration OSHA – Occupational Safety and Health Administration Workplace should provide full protection from fire and other hazards and training Workplace should provide full protection from fire and other hazards and training How to manage the unexpected How to manage the unexpected

EMPLOYEE WELLNESS Healthy = Productive!! Healthy = Productive!! Stop-smoking seminars, counseling for employees with drug problems, weight- loss sessions Stop-smoking seminars, counseling for employees with drug problems, weight- loss sessions Exercise, gyms, sponsored teams Exercise, gyms, sponsored teams

Benefits vs. Costs BENEFITS Expanded justice for groups of society Expanded justice for groups of society Enhanced image Enhanced image No need for government actions No need for government actions Improved quality of life Improved quality of life Increased awareness Increased awarenessCOSTS Increased spending Increased spending Decrease of profits Decrease of profits

ETHICS Principles of morality or rules of conduct Principles of morality or rules of conduct A code of ethics is a set of rules for guiding the actions of employees A code of ethics is a set of rules for guiding the actions of employees Must be worded in terms of acceptable behavior rather than forbidden action. Why?? Must be worded in terms of acceptable behavior rather than forbidden action. Why??

ETHICAL GUIDELINES Is the action legal? Is the action legal? Does the action violate professional or company standards? Does the action violate professional or company standards? Who is affected by the action and how? Who is affected by the action and how?

Conflict of Interest When an action by a company or individual results in an unfair benefit When an action by a company or individual results in an unfair benefit Ex: Martha Stewart – stock conspiracy Ex: Martha Stewart – stock conspiracy –She sold stock of ImClone a day before the FDA was to reject their application for a cancer drug and after learning that the CEO dumped $7.5 million of his stock –What’s the problem??? They were good friends!

Government and Commerce Interstate Commerce Interstate Commerce –Business dealings involving companies in more than one state –The federal government would regulate a trucking company that ships over many states Intrastate Commerce Intrastate Commerce –Business dealings involving companies within one state –A trucking company that only ships within one state would be regulated by that state

Contracts An agreement to exchange goods or services for something of value An agreement to exchange goods or services for something of value May be written or unwritten May be written or unwritten –AGREEMENT –COMPETENT PARTIES –CONSIDERATION –LEGALITY

Protecting Intellectual Property Purely intangible (ideas, methods, statements, etc…) Purely intangible (ideas, methods, statements, etc…) Patent – inventor has sole right to make, use, or sell the item for 17 years Patent – inventor has sole right to make, use, or sell the item for 17 years Copyright – creative works of authors, composers, and artists for life of person plus 50 years Copyright – creative works of authors, composers, and artists for life of person plus 50 years Trademark – word, letter, or symbol linked to a specific company or product Trademark – word, letter, or symbol linked to a specific company or product

Can Gov’t Regulate Business? Even though we have a “free market” system, government can regulate certain aspects of business Even though we have a “free market” system, government can regulate certain aspects of business Public Utility – an organization that supplies a service or product vital to all people Public Utility – an organization that supplies a service or product vital to all people –Telephone, water, electricity –Imagine what it would be like if there were 6 different electric companies in Honeoye Falls

Monopoly A monopoly exists when one business has total control of the market for a product or service A monopoly exists when one business has total control of the market for a product or service –Why is this illegal?? –Is Microsoft a monopoly? Antitrust Laws = prevent unfair business practices such as false advertising, deceptive pricing, and misleading labeling

Government Assisting Business They collect data (census information) They collect data (census information) They buy goods and services (20%) They buy goods and services (20%) They employ workers – largest employer in our economy (1 in 9 people) They employ workers – largest employer in our economy (1 in 9 people) They raise money (taxes) They raise money (taxes) –Income taxes –Property taxes –Sales taxes