1. Business Administration
Unit 1
Business and Its Environment
Chapter 2
Social & Ethical Environment of Business

2. Controversial Issue Text Book – Page 31
Because most jobs require more skills than in the past, should the minimum amount of education be raised to 18 years or a high school diploma
3-5 reasons for yes
3-5 reasons for no
Text Book – Page 31
Read The Supervisor’s Secret

3. Population
Size & characteristics of population important in business planning
Growth rate
Birth/death/immigration rate
Better health care, live longer
U.S. accepts more immigrants than any other country

4. Changing Population Baby Boom – born 1945-1965
Large # people approaching retirement within years
Baby Bust – after baby boom
Shortage of workers
Businesses must respond
Different ages/racial groups

5. Moving Population 1 out of 5 move each year Frost Belt Rust Belt
Northern half of country
Rust Belt
North central & north east
Manufacturing firms dominated
Sun Belt
Southern half of country

6. Moving Population Businesses left rust belt:
Unemployed workers
Closed factories
Decaying towns
Homeless people
Cities lose financial power
Crime & poverty increases

7. Labor Force Ages 16 & up, available for work
Employed or unemployed
Bureau of Labor Statistics
U.S. labor force is approximately 140 million

8. Labor Force Labor participation rate Poverty – 12-15% live in poverty
% of labor force employed or actively seeking employment
Rate has increased – women
Poverty – 12-15% live in poverty
Inner-city slums or rural areas
Poorly housed, clothed & fed
Female pay increases +.07/Male +.24

9. Equal Employment Glass Ceiling Sticky Floor Syndrome
Invisible barrier to job promotion
Sticky Floor Syndrome
Entry-level positions, little hope of advancement
Low paying, require little skill or education

10. Comparable Worth Paying workers equally with similar job requirements
Same level of training/skills
1966 women .58 to men $1
1996 women .74 to men $1
2006 women .79 to men $1
Gap closes average ½ cent yr.

11. Societal Values Family - # kids living w/both parents
+ divorce/single mothers
- birth rate
Women delaying marriage
Both parents working
Quality of life suffers

12. Societal Values Gen. X – post baby boom Net Gen. – born 1977-1997
Less loyal to employer
Expect to change jobs
Net Gen. – born
Glass ceiling causes women to open own businesses
Women own/operate majority of small businesses

13. Societal Values Changes in society include: Services Eating out
Fast food
Active lifestyle
Law suit happy society
Services
Dry cleaners
House cleaners
Day care
Delivery services
Violence

14. Redesigning Jobs Repetitive tasks = boring Redesign jobs Work Teams
Productivity drops
Redesign jobs
Varied, challenging, interest
Knowledge to do other jobs
Work Teams
Improve morale/quality of work

15. Family Friendly Law – unpaid leave for Day care facilities
Care of sick kids/parents
Give birth or adopt
Day care facilities
Flexible scheduling
Telecommute
Stay in contact electronically

16. Environment Pollution
Environmental Protection Agency (EPA)
Fed Gvt. created in 1974
Control & reduce pollution
Clean air & clean water acts
Cars – fuel efficient & less polluting
Hazardous materials
Recycled materials

17. Environment Pollution
CERES Principles
Coalition of environmentally responsible economies
Formed after Exxon Valdez accident in 1989
Voluntary – not legally required
Sunoco first major co. to follow
See page 43 - fig. 2-4 for chart

18. Controversial Issue
Should all firms be required to use the CERES Principles (p.43) rather than practicing the principles only on a voluntary basis?
3-5 reasons for yes
3-5 reasons for no

19. Ethics Standards of moral conduct Defines behavior as right or wrong
Set by individuals/groups
Defines behavior as right or wrong
Linked closely with personal values
Is it right or wrong, regardless of laws

20. Business Ethics Principles & rules of business
– Right or wrong behavior
Accepting gifts from clients
Using company supplies for personal use
Code of ethics
Formal, published values & rules
Reflects firms philosophy & goals

21. Text Book Page 45 – Ethical Issues Read article
Answer 4 questions on paper
Check if done
Discuss in class

22. Social Responsibility
Business contribution-society
Obligation to community
Stakeholders
Affected by firm’s actions
Owners, customers, suppliers, employees, creditors, public, gvt.

23. Social Responsibility
Donate money
Ben & Jerry’s – donates 7% pre-tax profit to charity
Sponsor exhibit
College scholarships
Day care for employees

24. Conclusion Questions Describe one example of changes in population.
What effect does that change have on business?
Discuss business ethics and the responsibility businesses have to society.

25. Group Work Text Book – pages 52-54 Solve Business Problems
3-4 students in a group
Case 2-1 – 3 questions
Case 2-2 – 4 questions
Check if done
Review in class

26. Work Book Pages 9 & 10 Pages 12-14, Do Problems
Chapter 2 Study Guide
Turn in
Pages 12-14, Do Problems
2A,B,D,E - Check if done
Review in class

27. End of Chapter 2