How do businesses look to give back to their surrounding communities? How do we look to give back to our own community?
Social Responsibility of Business and Government Chapter 4
This week……and next…….. Monday: 4-1 Social Responsibilities Tuesday: 4-2 Government Protection Activities Wednesday: 4-3 Government Regulations and Assistance Chapter 4 Organizer Due Thursday: Chapter 3 and 4 Review Packet Chapter 3 and 4 Review Packet due 10/25 Friday: No School Next Week: International Business Project
Learning Goals Chapter 4 Explain the concepts of business ethics and social responsibility. Describe the factors that influence business ethics. List the stages in the development of ethical standards. Identify common ethical dilemmas in the workplace. Discuss how organizations shape ethical behavior. Describe how businesses’ social responsibility is measured. Summarize the responsibilities of business to the general public, customers, and employees
Social Responsibility Refers to the duty of a business to contribute to the well- being of a community. Calls for more attention towards social concern; such as: Environment Inclusion of minorities Women in the workplace Employment of physically disabled and elderly
Environmental Protection Conservation Saving scarce natural resources Non-renewable Resources Natural resources that cannot be replaced when used up. Pollution Occurs when the environment is tainted with the by- products of human actions. Lakes, River, and Air
EPA Environmental Protection Agency Monitors and enforces those standards to reduce pollution. Make the environment healthier. Mission: EPA's mission is to protect human health and to safeguard the natural environment—air, water, and land—upon which life depends.
Workplace Diversity Equal opportunities for employment for women, ethnic groups, physically challenged, and older workers. The individual will have equal access to: Education Training Jobs Career Advancement
ADA Americans with Disabilities Act Looks to improve accommodations for physically disabled workers. Such improvements: Wheelchair ramps Elevators Audio or Visual Equipment
Age Discrimination in Employment Act Bars employers from using age as a basis for employment decision, including hiring, promotions, or termination of a job. Protects person aged 40 and older.
Job Safety Work environment should provide full protection from fire and other hazards. Safety involves employee training in how to work safely and what to do in case of an emergency. OSHA (Occupational Safety and Health Administration)
Workplace Safety. Monitored by Occupational Safety and Health Administration.Occupational Safety and Health Administration Quality-of-Life Issues. Balancing work and family through flexible work schedules, subsidized child care, and regulation such as the Family and Medical Leave Act of 1993.the Family and Medical Leave Act Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees without discrimination; many aspects regulated by law. Age Discrimination. Age Discrimination in Employment Act of 1968 protects workers age 40 or older.Age Discrimination in Employment Act Sexual Harassment and Sexism. Avoiding unwelcome actions of a sexual nature; equal pay for equal work without regard to gender. Responsibilities to Employees
Employee Wellness A healthy workforce is a productive one. Improving the workforce, employees are provided: Stop-Smoking Seminars Counseling for Drug and Alcohol Problems Weight-Loss Sessions The well-being of a work force is to living a long and happy life.
Improving the Health EEmployees are provided with: DDieting Advice EExercise Programs OOther programs to improve home life. AAthletics (Softball, Basketball, etc…)
The Right to Be Safe. Safe operation of products, avoiding product liability. The Right to Be Informed. Avoiding false or misleading advertising and providing effective customer service. The Right to Choose. Ability of consumers to choose the products and services they want. The Right to Be Heard. Ability of consumers to express legitimate complaints to the appropriate parties. Responsibilities to Customers
Social Responsibility Benefits: Expanded justice for groups of society Enhanced company image Reduced need for government actions Improved quality of life in the community and around the world Increased awareness of social issues among workers, consumers, and others.
Social Responsibility Costs: Buying equipment to reduce pollution Building repairs to reduce risk of injury Wellness Programs Rehabilitation Programs Social Projects Key Goal = Make a Profit To ensure jobs will not be lost.
Social Responsibility Management’s consideration of profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance. Contributions to the overall economy, job opportunities, and charitable contributions and service. Organizations measure through social audits. Acting Responsibly to Satisfy Society
Business Ethics Objectives Describe the importance of ethics not only in businesses but throughout society. Identify and describe the guidelines for developing a code of ethics.
Business Ethics Ethics: Principals of morality (doing what’s right). Business Ethics: Rules about how businesses and their employees out to behave. Code of Ethics: Set of rules for guiding the actions of employees or members of an organization.
Concern for Ethical and Societal Issues Business Ethics The standards of conduct and moral values governing actions and decisions in the work environment. Social responsibility. Balance between what’s right and what’s profitable. Often no clear-cut choices. Often shaped by the organization’s ethical climate. Sarbanes-Oxley Act 2002 law that added oversight for the nation’s major companies and a special oversight board to regulate public accounting firms that audit the financial records of these corporations.
Dilemmas Business should expand into a profitable market in another country where doing business requires giving expensive gifts to key government officials? Should a company continue to produce popular products after its discovers a minor defect in it?
Individuals can make the difference in ethical expectations and behavior –Putting own interest ahead of the organization –Lying to employee –Misrepresenting hours –Safety violations –Internet Abuse Technology is expanding unethical behavior Individuals Make A Difference
Development of Individual Ethics
Situation in which a business decision may be influenced for personal gain. Telling the truth and adhering to deeply felt ethical principles in business decisions. Businesspeople expect employees to be loyal and truthful, but ethical conflicts may arise. Employee’s disclosure of illegal, immoral, or unethical practices in the organization. On-the-Job Ethical Dilemmas
How Organizations Shape Ethical Conduct
Executives must demonstrate ethical behavior in their actions. Ethical Leadership
Guidelines 1Determine a purpose for the code. 2Tailor the code to the needs and values of the organization. 3Consider involving employees from all levels 4Determine the rules or principles 5How will it be enforced? 6How will the code be implemented and where will it be posted? 7How will it be reviewed or revised?
Ethics of Business Follow these guidelines: Is the action legal? Does the action violate professional or company standards? Who is affected by the actions and how?
Review What is social responsibility? What are some benefits and cost of social responsibility? Name the guidelines for writing a code of ethics.
Government Protection Activities Objectives: Identify the roles and levels of government. Explain government protection activities Types of intellectual property rights.
Levels of Government Interstate Commerce: Business dealing involving companies in more than one state. Intrastate Commerce: Refers to business dealing involving companies that do businesses in only one state.
Government Protection Agency We are protected through means of: Law Enforcement Fire Fighting Services Armed Forces National Security
For Your Protection Cannot be denied work because of your: Race Religion Sex Age Selection for a job must be based upon: Job Requirements Training Experience
Contracts An agreement to exchange goods and services for something of value, usually money. Contract Basics 1. Agreement An offer must be made, and a acceptance must occur 2. Competent Parties Those entering into the contract must be of legal age and must be mentally competent. 3. Consideration Something of measurable value must be exchanged by the parties involved. 4. Legality The contract must be for a product or service that may be legally sold; also, no fraud or deception exists in the agreement.
Intellectual Property Rights Patents Gives inventor sole right to make, use, and sell items for 20 years Copyrights Protects creative work of authors, composers, and artists. Trademarks Word, letter, or symbol linked to a specific company or product. Purely intangible with no physical characteristics – a person cannot touch it. Intellectual property rights include the following:
Government Regulation and Assistance Explain actions by government to regulate business. Discuss efforts of government to assist businesses. Identify methods used by government to raise money.
Regulatory Activities United States Private Enterprise Free Market System Who are price and output determined by? Businesses and Consumers What to sell or produce? What to buy?
Utilities Public Utilities Organization that supplies a service or product vital to all people. Examples: Telephone Services Water Electricity Prices can determined through government agencies
Unfair Business Practices Government attempts to promote fair business practice Customer Satisfaction and Competition Monopoly Exists when business has control of the market for a product or service. Businesses could charge higher prices and selling poor quality product. Antitrust Laws Government promote competition and fairness to avoid monopolies.
Assisting Businesses How does the government help businesses? Collecting and Reporting valuable information, such as: Incomes Prices Worker Availability Business Failures Bureau of Labor Statistics Department of Agriculture Department of Commerce Small Business Administration (SBA)
Government Buys Goods and Services Federal, State, Local Government Spending Makes up 20% of all goods and services produced in the United States. Buys everything from filing cabinets to military jets Government Contract Businesses become dependant Helps build schools and highways
Government Employees 16 % of workers are public workers. Government Jobs: Administrative Assistants Teachers Lawyers Inspectors Data Analysts
Raising Money Money that is brought in to fund operations and pay wages is known as revenue Gaining money through… Taxes Income Taxes Property Tax Sales Tax Borrowing Borrowing money by selling bonds Government becomes the debtor and must pay interest