1. CHAPTER 5: BUSINESS AND SOCIAL RESPONSIBILITY

2. I. WHAT IS BUSINESS
BUSINESS IS ALL OF THE ACTIVITIES INVOLVED IN PRODUCING AND MARKETING GODDS AND SERVICES.
BUSINESSES HAVE TWO PRIMARY FUNCTIONS:

3. A. PRODUCTION-
CREATING, GROWING, MANUFACTURING OR IMPROVING ON GOODS AND SERVICES.

4. B. MARKETING-
GETTING THE PRODUCT TO THE CONSUMER.

5. C. MANAGEMENT- OVERSEES THE FUNCTIONS OF BUSINESS

6. II. TYPES OF BUSINESSES
BUSINESSES CAN BE CATORGIZED IN THE FOLLOWING WAYS, THEY MAY FIT INTO MORE THAN 1 CATEGORY:

7. A. LARGE VS. SMALL-
95% OF ALL BUSINESSES ARE CLASSIFIED AS SMALL BUSINESSES IN THE U.S. AND CONSIST OF 100 EMPLOYEES OR LESS.

8. B. DOMESTIC VS. GLOBAL-
DOMESTIC CONSISTS OF BUYERS AND SELLERS IN A SINGLE COUNTRY WHIL GLOBAL CONSISTS OF TRADE AMONG NATIONS.
(*MCDONALD’S IS THE LARGEST GLOBAL RETAILER IN THE WORLD.)

9. C. PROFIT VS. NON-PROFIT-
MOST BUSINESSES ARE ESTABLISHED TO MAKE A PROFIT, HOWEVER SOME ARE ESTABLISHED FOR THE GOOD OF OTHERS (NON- PROFIT).EX.-YMCA, RED CROSS

10. D. PUBLIC VS. PRIVATE-
BUSINESS RUN BY THE GOVERNMENT FOR NON-PROFIT ARE PUBLIC SECTORS.
BUSINESSES RUN FOR PROFIT ARE PRIVATE SECTORS.(CORP.)

11. E. GOODS AND SERVICES-
BUISNESSES SELL EITHER A GOOD OR SERVIE, SOME SELL BOTH. THE SERVICE INDUSTRY IS THE LARGEST GROWING INDUSTRY.

12. III. ETHICAL AND SOCIAL RESPONSIBILITIES
APART FROM FOLLOWING THE LAW AND PAYING TAXES, SHOULD BUSINESSES HAVE ANY FURTHER RESPONSIBILITIES?
MCDONALD’S, BEN AND JERRY’S WENDY’S

13. A. CONSERVATION AND RECYCLING
WATER, OIL, RESOURCES, AND COMPANIES PACKAGING PRODUCTS RESONSIBLY.

14. B. GREEN MARKETING-
PRODUCING AND PROMOTING ENVIRONMENTALLY SAFE PRODUCTS (AERSOL, PESTICIDES, ANIMAL OR ECOLOGICAL HARM)

15. IV. ETHICAL AND LEGAL CONCERNS
MOST ETHICS ARE COVERED BY GOVERNMENT LAWS. QUESTIONS ARISE WITH FREEDOM OF SPEECH, FREEDOM OF PRESS, AND FREEDOM TO COMPETE.
ALCOHOL AND TOBACCO

16. THREE QUESTIONS A BUSINESS SHOULD ASK THEMSELVES:
1. WAS THE PRACTICE FAIR, RIGHT, ETHICAL?
2. WHAT WOULD HAPPEN IF IT WAS MARKETED DIFFERENTLY?
3. WHAT PRODUCT WOULD RESULT IN GREATER GOOD FOR MORE PPL?

17. V. CONSUMERISM
CONSUMERISM IS THE RELATIONSHIP OF MARKETING WITH THOSE WHO BUY CONPANY’S PRODUCTS AND SERVICES
CONSUMERS HAVE 4 BASIC RIGHTS:

18. 1. RIGHT TO BE INFORMED OF. FRAUD, DECEIT, AND
1. RIGHT TO BE INFORMED OF FRAUD, DECEIT, AND MISLEADING STATEMENTS, AND EDUCATED IN THE WISE USE OF FIREARMS.

19. 2. RIGHT TO BE PROTECTED FROM UNSAFE PRODUCTS.

20. 3. RIGHT TO HAVE A CHOICE OF GOODS AND SERVICES.

21. 4. VOICE IN PRODUCT AND MARKETING DECISIONS MADE BY THE GOVERNMENT.
“THE CUSTOMER IS ALWAYS RIGHT!”