1. Ch. 5, Social Responsibility

2. Part 1 Marketing Dynamics Social Responsibility
Chapter 5
Social Responsibility

3. Chapter Objectives
Describe the relationship between business and society.
List the three requirements of business responsibility and give an example of each.
Name the three areas for which there are laws affecting business and marketing.
(Continued)

4. Chapter Objectives
List four ethical qualities that employers expect in employees.
Describe how a business can contribute to society.
List three benefits of social responsibility to business.

5. Marketing Terms social responsibility business social responsibility
laws
ethics
honesty
integrity
responsibility
confidentiality
code of ethics
diversity
philanthropy
public service advertisement (PSA)

6. What Is Social Responsibility?
acting in ways that do not harm another person
helping others
improving society
Both businesses and individuals have social responsibility
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7. What Is Social Responsibility?
Business social responsibility is based on three requirements
be legal
be ethical
be philanthropic
What might happen if businesses were not socially responsible?

8. Be Legal
Laws are established to make sure that people and businesses are socially responsible
Federal, state, and local governments make laws
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9. Be Legal Laws in these areas affect business and marketing
fair business practices
safety
environmental protection

10. Fair Business Practices
Laws concerning fair business practices require businesses to be fair to
employees
customers
competitors
How does each law on the next slide protect employees, customers, or competitors?
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11. Examples of Fair Business Practice Laws
Sherman Antitrust Act
Prohibits activities that interfere with competition
Equal Pay Act
Protects men and women from sex-based wage discrimination
Civil Rights Act
Prohibits discrimination based on race, color, religion, sex, or national origin
Trademark Counterfeiting Act
Prohibits the sale of counterfeit goods

12. How does each law on the next slide ensure safety?
Laws concerning safety require businesses to
provide a safe work environment
produce safe products
How does each law on the next slide ensure safety?
(Continued)

13. Examples of Safety Laws
Federal Food, Drug, and Cosmetic Act
Prohibits the sale of impure food and medicines
Child Protection Act
Prohibits the sale of dangerous toys to children
Occupational Safety and Health Act
Protects the safety and health of workers
Public Health Cigarette Smoking Act
Prohibits tobacco advertising on radio and television

14. Environmental Protection
Laws that protect the environment require businesses to
reduce pollution
protect endangered animals
clean up hazardous waste sites
How does each law on the next slide protect the environment?
(Continued)

15. Examples of Environmental Protection Laws
National Environmental Policy Act
Protects human health and the environment from pollution
Clean Air Act
Reduces air pollution
Emergency Planning Act
Helps communities protect public health, safety, and the environment from chemical hazards
Toxic Substances Control Act
Protects human health and the environment from toxic substances used in industry

16. How would you describe ethics?
Be Ethical
Ethics are rules for deciding the right behavior in a situation
Types of ethics
personal ethics
professional ethics
business ethics
How would you describe ethics?

17. Personal Ethics Personal ethics
rules individuals use to make ethical decisions
rules you learned
at home
from your spiritual beliefs
through personal experiences
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18. Personal Ethics
Employers expect these ethical qualities in their employees
honesty
integrity
responsibility
confidentiality
If you were in charge of a team, what qualities would you expect in the team members?
(Continued)

19. Personal Ethics Honesty telling the truth not stealing
doing your own work
keeping accurate records
respecting the property of others
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20. Describe a situation in which integrity is important.
Personal Ethics
Integrity
following the rules, even if no one is watching
treating people fairly
applying rules consistently
being unbiased and unprejudiced
Describe a situation in which integrity is important.
(Continued)

21. Personal Ethics Responsibility being reliable
following through on your promises
performing tasks assigned to you
(Continued)

22. Why would an employer want to know that you can keep confidences?
Personal Ethics
Confidentiality
ability to keep confidential information private
Why would an employer want to know that you can keep confidences?

23. Why would a professional organization develop a code of ethics?
Professional Ethics
Professional ethics are rules of conduct developed by a professional organization for its members to follow
often presented as a written list, called a code of ethics
code of ethics is also called a statement of ethics
Why would a professional organization develop a code of ethics?
(Continued)

24. Professional Ethics Many professions have ethic statements medicine
law
social work
web communications
marketing

25. Business Ethics
In the past, business had a reputation for a lack of ethics
society has pressured businesses to be more ethical
Ethical behavior is necessary for good business relationships
Business ethics
rules used to make ethical business decisions
(Continued)

26. Business Ethics
Many businesses have developed their own codes of ethics
these codes are often based on honesty, integrity, responsibility, and confidentiality
Have you worked at a business or been a member of an organization that has a code of ethics?
(Continued)

27. What makes the workplace diverse?
Business Ethics
Businesses value diversity
a group that includes people of two or more different backgrounds
What makes the workplace diverse?

28. Give some examples of philanthropy.
Be Philanthropic
Philanthropy
actions that improve human welfare and spread goodwill
Examples of philanthropy include
giving to charity and good causes
volunteering to help others
Give some examples of philanthropy.
(Continued)

29. Be Philanthropic Public service advertisement (PSA)
an advertisement that publicizes information that contributes to human welfare
The Ad Council is a nonprofit organization that develops PSAs
the Ad Council developed the ad campaign featuring Smokey the Bear and information to prevent wildfires
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30. Describe a PSA that you have seen.

31. Benefits of Social Responsibility
Benefits to business of social responsibility
saving money
building a good reputation
increasing worker productivity

32. Review What is social responsibility?
Explain the three requirements of business social responsibility.
Describe the four ethical qualities employers expect.
What are the benefits to business of behaving in a socially responsible manner?

33. Glossary
Back
business social responsibility. Obligation to make business decisions that consider the impact on society; includes the requirement to reduce harmful impacts of business processes and to contribute to improving society.
code of ethics. List of rules to help a person make ethical decisions.
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34. Glossary
Back
confidentiality. Ability to keep confidential information private.
diversity. Word used in business to refer to a group that includes people from two or more different backgrounds.
ethics. Rules for deciding the right behavior in a situation.
(Continued)

35. Glossary
Back
honesty. Quality of telling the truth, not stealing, doing work assigned to you, not wasting time, keeping accurate records, and respecting the property of others.
integrity. Quality of following ethical rules, even if no one is around to enforce them; includes treating people fairly, applying rules consistently, and being unbiased and unprejudiced.
(Continued)

36. Glossary laws. A country’s rules for proper behavior.
Back
laws. A country’s rules for proper behavior.
philanthropy. Actions that improve human welfare and spread goodwill.
public service advertisement (PSA). Advertisement whose goal is to publicize information that will contribute to human welfare.
(Continued)

37. Glossary
Back
responsibility. Quality of being reliable, following through on your promises, and performing tasks assigned to you.
social responsibility. Responsibility of each person to not harm another person; includes the duty to help others and to improve society in general.