1. 4 Social Responsibility of Business and Government
C H A P T E R 4
Social Responsibility of Business and Government
4-1 Social Responsibility and Business Ethics
4-2 Government Protection Activities
4-3 Government Regulation and Assistance

2. 4-1 Social Responsibility and Business Ethics
Goal 1 Describe social responsibility issues.
Goal 2 Identify benefits and costs of social responsibility.
Goal 3 Explain the purpose of a code of ethics.

3. KEY TERMS social responsibility non-renewable resource ethics
business ethics
code of ethics

4. SOCIAL RESPONSIBILITY ISSUES
Environmental protection
Workplace diversity
Job safety
Employee wellness

5. Checkpoint 
What are four areas of social responsibility that may require the attention of business?
Environmental protection
Workplace diversity
Job safety
Employee wellness

6. SOCIAL RESPONSIBILITY EVALUATION
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
Increased awareness of social issues among workers, consumers, and others

7. SOCIAL RESPONSIBILITY EVALUATION
(continued)
Costs
New nonpolluting or safer equipment
Building repairs to remove risks
Wellness and rehabilitation programs
Social projects sponsored by a company

8. Checkpoint  What are the main benefits of social responsibility?
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
Increased awareness of social issues among workers, consumers, and others

9. BUSINESS ETHICS Code of ethics Ethical conduct guidelines
Is the action legal?
Does the action violate professional or company standards?
Who is affected by the action and how?

10. GUIDELINES FOR WRITING A CODE OF ETHICS
Determine the purpose of the code.
Tailor the code to the needs and values of the organization.
Consider involving employees from all levels of the company in writing the code.
Determine the rules or principles that all members of the organization will be expected to adhere to.
Include information about how the code will be enforced.
Determine how the code will be implemented and where it will be published or posted.
Determine how and when the code will be reviewed and revised.

11. Checkpoint  What is the purpose of a code of ethics?
The purpose of a code of ethics is to guide actions and decisions of employees or members of an organization.

12. 4-2 Government Protection Activities
Goal 1 Identify the roles and levels of government.
Goal 2 Explain the role of government protection and the legal system in business.
Goal 3 Describe types of intellectual property.

13. KEY TERMS
contract
patent
copyright
trademark

14. GOVERNMENT IN SOCIETY
Government plays a role in all economic systems.

15. ROLES OF GOVERNMENT Providing services for members of society
Protecting citizens, consumers, businesses, and workers
Regulating utilities and promoting competition
Providing information and support to businesses
Buying goods and services
Hiring public employees
Raising revenue

16. LEVELS OF GOVERNMENT Federal government State government
Local government

17. FEDERAL GOVERNMENT
Oversees the activities that involve two or more states or other countries.
Regulates foreign and interstate commerce

18. STATE GOVERNMENTS Regulate business actions within their own borders
Assign some of their legislative power to local governments

19. LOCAL GOVERNMENTS Include county boards and city or town councils
Provide services needed for an orderly society, such as police and fire protection

20. Checkpoint  What are the three levels of government? Local State
Federal

21. GOVERNMENT PROTECTION ACTIVITIES
Worker protection
Contract enforcement

22. CONTRACT BASICS Valid, enforceable contracts must contain: Agreement
An offer must be made, and an acceptance must occur.
Competent Parties
Those entering into the contract must be of legal age and must be mentally competent.
Consideration
Something of measurable value must be exchanged by the parties involved.
Legality
The contract must be for a product or service that may be legally sold; also no fraud or deception exists in the agreement.

23. Checkpoint  What are the main elements of a contract? Agreement
Competent parties
Consideration
Legality

24. PROTECTION OF INTELLECTUAL PROPERTY
Patents
Copyrights
Trademarks

25. Checkpoint  What are three types of intellectual property? Patents
Copyrights
Trademarks

26. 4-3 Government Regulation and Assistance
Goal 1 Explain actions by government to regulate business.
Goal 2 Discuss efforts of government to assist businesses.
Goal 3 Identify methods used by government to raise money.

27. KEY TERMS
public utility
monopoly
antitrust laws

28. REGULATORY ACTIVITIES
Regulation of utilities
Prevent unfair business practices

29. Checkpoint  Why does government regulate utilities?
Reasons for government regulation of utilities might include the assurance of fair prices, the conservation of resources, and to avoid overcrowding of utility poles and other facilities, such as power plants.

30. GOVERNMENT ASSISTS BUSINESS
Government buys goods and services
Government employs workers

31. Checkpoint  How does government assist business?
The government assists businesses in a variety of ways, including providing demographic data, buying goods and services, and employing workers who then have the means to buy goods and services.

32. GOVERNMENT RAISES MONEY
Taxes
Borrowing

33. Checkpoint 
What is the difference between tax revenue and borrowing by government?
Tax revenue is money the government collects to cover the costs of services.
This is money that the government is not required to pay back.
The government is required to pay back money borrowed.