1. Understand Responsible Actions for Conducting Business
Objective 2.05
Understand Responsible Actions for Conducting Business

2. Topics Common socially responsible practices of businesses
Government protection
Consumer Bill of Rights
Government regulation and assistance

3. Common Socially Responsible Practices of Businesses

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

5. Common Socially Responsible Practices of Businesses Continued
Companies contribute to environmental protection by:
Implementing actions to conserve natural resources
Minimizing pollution of air and water resources
Examples of an organization or action that protects the environment
Environmental Protection Agency – enforces and provides standards for air and water quality
Computer Manufacturing Company refurbishes computers, recycling parts of computers

6. Common Socially Responsible Practices of Businesses Continued
Workplace Diversity – exists in a company when the employees represent a variety of groups including women, ethnic groups, physically challenged, and older workers
Examples of an organization or action that enforces workplace diversity
The American with Disabilities Act (ADA) enforces regulations to accommodate people with disabilities
The Age Discrimination in Employment Act protects employees of the age 40 and over from employment decisions based on their age
The Equal Employment Opportunity (EECOC) protects applicant and employees against workplace discrimination
Companies providing workforce diversity training to employees

7. Common Socially Responsible Practices of Business Continued
Job Safety – ensuring work environments are risk-free of accidents
Example of an organization or action that enforces job safety
The Occupational Safety & Health Administration (OSHA) gives surety of safe and healthful working conditions for men and women
A company’s schedule cleaning of bathrooms used by employees three times a day
Employees who work in a plant that manufactures chemicals are required to wear proper clothing to protect them from skin irritations

8. Common Socially Responsible Practices of Businesses Continued
Employee wellness programs are offered by employers to maintain a healthy workforce
Examples
Businesses today assist employees with programs such as stop- smoking seminars, counseling for employees with drug problems, and weight-loss counseling

9. 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

10. Evaluation of Social Responsibility
Why should a business explore the costs of being socially responsible?
The costs of providing social programs must be realistic to allow a business to earn a profit

11. Ethics
Business ethics address the conduct of business and employees

12. 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?

13. Government Protection

14. Government Protection Continued
Worker’s protection provides safe work conditions for employees
The government enforces minimum standards for buildings, machines, and chemicals

15. Government Protection Continued
Contract – an agreement usually between two parties to exchange goods or services for something of value, usually money
Elements of a contract
Agreement
Competent parties
Consideration
Legality
The government enforces contracts between businesses and individuals by ensuring agreed upon work and the exchange of money or other means are completed

16. Government Protection Continued
Intellectual property protected by the government are:
Copyrights – protect the creative works of artists, authors, and composers
In the US, originators are protected during their lifetime plus 70 years to publish and exhibit their works
Example: Published poem titled Still I Rise by poet Dr. Maya Angelou
Patents – provide originators the exclusive right to make, use, or sell the item for 17 years
Example: Nike’s production of the footwear
Trademarks – protect registered words, letters, or symbols connected with a company or product
Example: Starbucks symbol found on coffee cups

17. Consumer Bill of Rights and Government Regulation

18. Consumer Bill of Rights
Protects consumers from unfair business practices

19. Consumer Bill of Rights Continued
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.

20. Consumer Bill of Rights Continued
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.

21. Consumer Bill of Rights Continued
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?
A promise that a product meets certain quality
Difference between an express and an implied warranty
Express warranty – verbal promise by a company about the specific quality performance of a product
Implied warranty – may not be verbally communicated but is understood to apply anyway

22. Consumer Bill of Rights Continued
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

23. Government Regulation and Assistance
Why does the government regulate utility companies?
To promote business practices such as fair rates and services
Utility companies are usually a monopoly in the area it serves
How does the government prevent unfair business practices?
Antitrust laws encourage competition and fairness among businesses and avoid monopolies
These laws avert false advertising, deceptive pricing, and misleading labeling

24. Government Regulation and Assistance
Government assists businesses by:
Providing them demographic information
Buying goods and services from them
Employing workers who can buy goods and services from them