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
Businesses feel need to conserve non-renewable resources and avoid pollution
Govt. sets standards enforced by EPA
Workplace diversity
Workforce should represent actual groups of a community
Remove employment barriers
Accommodate for challenges

5. SOCIAL RESPONSIBILITY ISSUES
(continued)
Job safety
Must provide safe work environment
Standards regulated by Occupational Safety and Health Administration (OSHA)
Employee wellness
Healthy employees = productive employees
Some companies provide means of staying healthy (healthy food, gyms, seminars)

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

7. 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

8. 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

9. 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

10. BUSINESS ETHICS Code of ethics Ethical conduct guidelines
Set of rules guiding actions of employees
Some ethical dilemmas can occur
Ethical conduct guidelines
Is the action legal?
Does the action violate professional or company standards?
Who is affected by the action and how?

11. 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.

12. 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.

13. 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.

14. KEY TERMS
contract
patent
copyright
trademark

15. GOVERNMENT IN SOCIETY Government plays a role in all economic systems.
Voting citizens play key role in deciding policies
If we don’t like current policies, we elect new people to change how the government acts

16. 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

17. LEVELS OF GOVERNMENT Federal government State government
Local government

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

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

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

21. How To Vote via Texting EXAMPLE
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22. Checkpoint  Poll: Which of the following is not a role of ...
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Poll: Which of the following is not a role of ...
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Poll: Which of the following is not a role of ... 22

23. Checkpoint  Poll: What are the three levels of government?
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Poll: What are the three levels of government?
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25. Checkpoint  What are the three levels of government? Local State
Federal

26. GOVERNMENT PROTECTION ACTIVITIES
Worker protection – working conditions and basic human rights
Contract enforcement – in case of dispute about contract details
Must meet certain criteria to be enforceable

27. 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.

28. Checkpoint  Poll: The four elements of a legal contract ar...
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29. Checkpoint  What are the main elements of a contract? Agreement
Competent parties
Consideration
Legality

30. LEGAL SYSTEM
Criminal case – brought on by some level of government, depending on severity
Civil case – brought on by civilians
Plaintiff or defendant can be a business or an individual
Based on some wrongdoing such as breach of contract, property damage, copyright infringement, etc.

31. PROTECTION OF INTELLECTUAL PROPERTY
Patents – for processes and inventions
Copyrights – for works of art
Trademarks – can be a word or logo associated with an organization

32. Checkpoint  Poll: Your computer is an example of intellect...
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33. Checkpoint  Poll: What protects creative work of authors, ...
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34. Checkpoint  Checkpoint 
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Poll: What gives the inventor sole right to ma...
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35. Checkpoint  Poll: A trademark is a word, letter, or symbol...
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36. Checkpoint  What are three types of intellectual property? Patents
Copyrights
Trademarks

37. 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.

38. KEY TERMS
public utility
monopoly
antitrust laws

39. REGULATORY ACTIVITIES
Regulation of utilities
Usually doesn’t make sense to have more than one utility company in a city
Businesses without competition need regulation
Prevent unfair business practices
Prevent and regulate monopolies
Pass antitrust laws against false advertising, etc. and to preserve competition

40. 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.
What is an organization that supplies a service or product vital to all people?
Public utility

41. Checkpoint  Which of the following is an example of a public utility?
Professional baseball team
Fire department
Insurance company
Electric company

42. Checkpoint 
T or F: All public utility companies are owned and operated by state govts.
False
T or F: A monopoly exists when a business has control of the market for a product or service.
True

43. Checkpoint  Government attempts to prevent monopolies with…
Antitrust laws
Antitrust laws do all of the following except:
Promote competition
Prevent false advertising
Prevent misleading labels
They do all of these

44. GOVERNMENT ASSISTS BUSINESS
Government buys goods and services
It buys about 20% of goods/services produced in U.S.
Provide demographic info (census data)
Government employs workers
Largest employer in the country (16% of work force)
These workers also buy goods and services

45. 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.

46. GOVERNMENT RAISES MONEY
Taxes
Income – largest source for federal govt.
Property – largest source for local govt.
Sales tax – largest source for state govt.
Borrowing
Borrow by selling bonds
Considered least risky bonds b/c the govt has largest source of revenue to pay them back

47. Checkpoint 
What are the three major kinds of taxes levied by the government?
Income tax
Sales tax
Property tax
How does the government borrow money?
By issuing bonds

48. 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.