+ Social Responsibility and Business Ethics Ch. 6 – 6.2

+ Social Responsibility Businesses have a role in society, not only as providers of goods and services, but also a social responsibility that contributes to our society as a whole. Corporate scandals and unethical practices ruin businesses and reputations.

+ In the Workplace Flextime – allows workers to choose their work hours Telecommuting – working at home (good for employees and the environment Extended Family Leave – this type of policy allows businesses to retain quality employees (some even pay their employees during leave) On-Site Child Care – reduces employee absenteeism and employee turn-over. Some even incorporate schooling and clinics (on-site) Healthcare Benefits – paid by employee. Some include dependents Time off with Pay – Vacations, sick days, personal days, etc.

+ In the Marketplace Providing Information – some companies work in providing helpful information to consumers. Educating them… Employing Self-Censorship – Federal Communications Commission (FCC) establishes standards for broadcasting. Commercials are reviewed and if not socially acceptable, they may be rejected. Responding to Consumer Concerns – Self image an issue? – Dove addressed it.

+ In the Community Funding and supporting the local community Any business ever fund your little league team?

+ In the Environment Socially responsible companies are concerned about the environment. Programs in place to promote saving the earth for future generations. GREEN MARKETING – companies engage in the production of environmentally safe products. Environmentally friendly Recyclable Ozone-safe

+ Business Ethics Ethics – Guidelines for good behavior Knowing the difference between right and wrong Truthful and fair

+ Ethics and Consumerism Consumerism – Relationship of marketing to a company’s consumer. Consumer Bill of Rights (JFK) We have the right to be informed and protected against fraud, deceit, and misleading statements. Protected from unsafe products. Choice with goods and services Have a voice in product and marketing decisions made by government and businesses.

+ Ethics in Marketing Self-Regulation – companies must be proactive. Some join organizations that help build a better business environment. BETTER BUSINESS BUREAU (BBB)

+ Ethical Issues - Marketing Price-Gouging – pricing products unreasonably high when the need is great and when consumers don’t have any other choices Gas prices increasing after Hurricane Katrina Marketing Information – keeping consumer’s personal information private (doctors, banks, etc) Selling Practices – Bribes/kickbacks, high pressure selling tactics.

+ Managerial and Personnel Issues Proper Accounting & Reporting Whistle Blowing – reporting an illegal action of one’s employer. Financial records altered in order to cover up personal purchases made by upper executives. If you report, you were known as a whistle blower. Protected now under the Sarbanes-Oxley Act of 2002.

+ Classwork Ch. 6, Section 6.2 Questions – Pg. 153 (1-4) Select a corporate scandal in history and give me a brief summary of what happen (3 paragraphs). Conclude with your opinion on the matter. Mae sure to include 5 vocab words from Section 6.2.