©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social and Ethical Environment of Business Human Resources Societal Values Ethical Issues and Social Responsibility CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Human Resources GOALS ● Describe the changing nature of the U.S. worker characteristics. ● Explain the issues that businesses face with the U.S. labor force. 2 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Growing population ● Growth rate determined by birth rate, death rate, & immigration ● Standard of living increases, the birth rates fall in the U.S. 3 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Changing population ● 25% of Americans racially classified as non-white ● Increases the need for better cross-cultural communication ● Baby boom – high birth rate between ● Large pool of workers now retiring ● Generation X – people born in the low birth rate period between (baby bust) ● Caused shortage of workers ● Generation Z – higher birth rate between 1991 and the end of the millennium (millennial) ● Larger pool of potential employees 4 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. Population and Growth Rate in the United States 1940 to CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Moving population ● Every year 1 out of 7 Americans move ● Frost belt – colder states in the north and northeast ● Sun belt – warmer states in the south and southwest ● Rust belt – the north central and northeastern states (where manufacturing firms once dominated) 6 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Labor force – includes most people age 16 or over who are available to work (employed or unemployed) ● Labor participation rate – the percentage of adult population in the labor force 7 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. U.S. Labor Force and Labor Force Participation 2001 to CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Labor participation rate is higher for men than woman (gap is narrowing) ● 1950 – 35% of women work ● 2010 – 60% of women work ● American economy is flexible in workforce & creation of new jobs (mostly in service industries) 9 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. U. S. Labor Force Participation Rates 10 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Poverty – people who are poorly housed, clothed, & fed ● According to Bureau of the Census, percent of people live in poverty ● Due to Social Security, poverty among elderly is lower today than previously ● Children live in poverty due to parents lack of education & skills, also lack of affordable day-care 11 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Equal employment ● Laws on discrimination based on race, gender, national origin, color, religion, age, handicap & other characteristics ● Glass ceiling – an invisible barrier to job advancement (female or African-American supervisors) ● Sticky floor syndrome – inability of workers to move up from low-paying jobs that require little skill & education (restaurant servers, sales, clerks, nurses aides) 12 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Comparable worth – paying workers equally for jobs with similar but not identical job requirements ● Men earn more than women ● “equal pay for comparable work” ● Work is of equal value, compare skills, physical strength, job dangers, responsibility, & education 13 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Societal Values GOALS ● Discuss how the values of Americans have changed. ● Explain how businesses have adapted to changing values. ● Describe the dilemma posed by the need for business to grow and the need to protect the natural environment. 14 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Changing American Values ● Values – are underlying beliefs and attitudes ● Modern family life ● Both parents working, rising divorce rate, single-parent homes ● Birth rates decline & women delay marriage to pursue career ● 40% of women are managers earning 81 cents per every dollar earned by men ● 66% of women have associates degrees and 57 % have bachelor degrees ● Women operate a majority of small businesses 15 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Changing American Values ● Sexual harassment ● Men and women working side by side ● Workplace violence ● Guns in the workplaces, schools, shopping centers, entertainment venues, transportation ● Legal liabilities ● US is lawsuit - happy 16 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses ● Redesigning jobs ● Learn variety of jobs within the organization ● Increases worker’s interest ● Fill in for co-workers for tomorrow ● Work teams improve morale & quality of work 17 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses ● Improving health and safety ● Wellness and fitness programs ● Unfit employees are absent more & less productive ● Incentives to stop smoking ● Employee Assistance Programs (EAP) 18 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses ● Family-friendly practices ● Law requires employers to provide unpaid leave for sick children or parents, birth or adoption to take care of newborns ● Flexible schedule to accommodate family needs and lifestyle and avoid rush hours ● Telecommute – work from home or on the road, stay in contact electronically with employers 19 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● Managing the environment ● Society concern of disposing consumer and industrial waste ● Recycling – reusing products and packaging whenever possible ● Trying to conserve nonrenewable resources, such as oil, natural gas, & iron ore ● Pollution causes breathing problems ● Chemical products endangers waterways and farm land, some in places entered in food chain 20 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● Controlling environmental pollution ● Government created Environmental Protection Agency (EPA) in 1974 to help control and reduce pollution in air, water, solid, waste, pesticides, noise, and radiation 21 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Ethical Issues and Social Responsibility GOALS ● Describe how ethics relates to business practice. ● Suggest ways in which businesses can be socially responsible. 22 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Business Ethics ● Ethics – standards of moral conduct that individuals and groups set for themselves, value what is right or wrong ● Business ethics – collection of principles and rules that define right and wrong conduct for and organization ● Not all firms have the same ethical conduct ● Code of ethics – formal, published collection of values and rules that reflect firm’s philosophy and goals 23 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Business Ethics ● Ethical dilemmas ● Issues of a particular action being legal or illegal ● Values differ among nations, problems with firms in international businesses 24 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social Responsibility of Business ● Social responsibility – the duty of a business to contribute to the well-being of society ● Stakeholders – individuals or groups that are affected by the firm’s actions, such as owners, customers, suppliers, employees, creditors, government, and the public 25 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social Responsibility of Business ● Obligation to communities ● Donations, scholarships, training gangs, daycares ● Nongovernmental organizations (NGOs) – the conduct of business is being increasingly and closely examined by various independent groups ● Examples: American Civil Liberties Union and Sierra Club 26 CHAPTER 7

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social Responsibility of Business ● The future ● Difficult to predict trends ● Internet altering business operations ● Modern innovations ● Social media, cell phones 27 CHAPTER 7