1. Social Responsibility of Business and Government
Chapter 4
Social Responsibility of Business and Government

2. 4-1 Social Responsibility
1. The obligation of a business to contribute to the well-being of a community
2. protection of environment minorities and women employment of physically challenged older workers healthy and safe workplace employee wellness

3. 3. preserve our scarce natural resources
4. a natural resources that cannot be replaced when used up
5. gas, oil, mined materials
6. pollution
7. action, pollution
8. water, air
9. EPA

4. 10. Environmental Protection Agency
11. community
12. education, training, jobs, career development
13. women
14. Equal Employment Opportunity Laws
15. physical skills that women do not have
16. physically challenged

5. 17. Americans with Disabilities Act
18. access for wheelchairs and hearing problems
19. Age Discrimination in Employment Act
20. 40
21. safe
22. fire, hazards
23. safety, protect

6. 24. OSHA
25. Occupational Safety and Health Administration
26. healthy, productive
27. assets
28. stop-smoking seminars, counseling for drug problems, weight loss seminars

7. 32. the need for government regulation 33. Money for:
29. labor contracts
30. conditions of work
31. sports teams
32. the need for government regulation
33. Money for:
Non-polluting and safety equipment
Building renovations
Rehabilitation programs

8. 34. profit, laid off
35. principles of morality or rules of conduct
36. rules about how businesses and their employees ought to behave
37. code of ethics
38. a statement of rules for guiding the behavior of employees or members of an organization

9. 39. confidentiality of business information
40. behavior, forbidden
41. management
42. making personal phone calls, taking supplies, make ethical decisions on the job

10. GOVERNMENT IN SOCIETY Roles of Government
Government is mainly concerned with these areas:
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

11. Each of these roles has either a direct or indirect impact on business expansion, consumer affairs, and economic growth in the economy.

12. Levels of Government
The main goal of the federal government is to oversee activities that involve two or more states or other countries
Interstate commerce- business dealings involving companies in more than one state
Example: The federal government would regulate a trucking company that ships products to several states

13. Intrastate commerce- business dealings involving companies that do business in only one state
Example: A trucking company that hauls products only within a state’s boundaries would be regulated by that state and not the federal government
All states have assigned some of their legislative power to local governments.
Local governments include county boards and city or town councils

14. Checkpoint>>
What are the three levels of government?

15. GOVERNMENT PROTECTION ACTIVITIES
Government protects your rights in numerous ways.
Police and fire fighters
Armed forces provide for national defense

16. Worker Protection
Safety standards for the following are set by government agencies:
Buildings
Machines
Chemicals

17. Selections for a job must be based on:
Job requirements
Training
experience

18. Contract Enforcement
Contract- an agreement to exchange goods or services for something of value, usually money
A contract may be written or unwritten

19. To be valid, a contract must contain: agreement, competent parties, consideration, and legality
Agreement- an offer must be made and an acceptance must occur
Competent parties- those entering into a contract must be of legal age and mentally competent
Consideration- something of value must be exchanged by the parties
Legality- the contract must be for a product or service that can be legally sold

20. Checkpoint>>
What are the main elements of a contract?

21. PROTECTION OF INTELLECTUAL PROPERTY
Intellectual property is purely intangible, with no physical characteristics—a person cannot touch it
Patents- gives the inventor the sole right to make, use, or sell the item for 20 years
Copyrights protects the creative work of authors, composers, and artists which lasts 70 years after the author’s death

22. Trademarks- a word, letter, or symbol linked with a specific company or product
Businesses register company names, team emblems, and label designs with the government
Many are famous all over the world and are often identifies what a symbol called a logo

23. Checkpoint>>
What are three types of intellectual property?

24. 4-2 ASSESSMENT
Complete the four assessment questions contained in your packet.

25. 4-3 Government Regulation and Assistance
REGULATORY ACTIVITIES
Business activities in the United States is structured as a private enterprise or free market system
Private organizations own the factors of production
They choose efficient methods of production in order to earn a profit
Price and output decisions are not made by the government but by the businesses and consumers

26. Regulation of Utilities
Most goods and services come from private businesses which are free of government regulation

27. Public utility- an organization that supplies a service or product vital to all people
These include companies that provide local telephone service, water, and electricity
While many utility companies are privately owned, the government closely regulates them
In recent years, there has been a trend toward deregulation where competition can be introduced

28. Prevent Unfair Business Practices
The government attempts to promote fair competition
If a business charges different people different prices for the same products, it is treating consumers unfairly

29. Monopoly- exists when a business has control of the market for a product or service
A public service monopoly may benefit consumers by making sure they receive needed service at a fair price
Other monopolies may not be good for the economy because they prevent competition
Customers would pay higher prices for poor quality products

30. Antitrust laws- prevent unfair business practices such as false advertising, deceptive pricing, and misleading labeling

31. Checkpoint>>
Why does government regulate utilities?

32. GOVERNMENT ASSISTS BUSINESS
Government assists business by collecting and reporting valuable information
Information about incomes, prices, worker availability, and business failures can help a business person make wiser choices
Example: Census information can help a business decide where to locate so that they are near where a majority of potential customers live

33. Other government agencies that provide information:
Bureau of Labor Statistics
Department of Agriculture
Department of Commerce

34. The government helps small businesses through the SBA
Helps new businesses get started
Guaranteeing private bank loans

35. Government Buys Goods and Services
The federal, state, and local governments buy an array goods and services each day
Account for 20% of all goods and services produced in the United States
Key economic force
Pays businesses to construct highways and build schools

36. Government Employs Workers
Government is the single largest employer in the United States
About 16% of workers are public employees
Examples of government jobs: administrative assistants, lawyers, teachers, meat inspectors

37. Checkpoint>>
How does government assist business?

38. GOVERNMENT RAISES MONEY
Revenue- government income
Governments can obtain revenue through taxes and borrowing
Other options for raising revenue: fines for traffic violations, fees and licenses

39. Taxes- levied on earnings, the value of property, and on the sale price of goods and services
Income taxes- largest source of revenue for the federal government
Property taxes- based on the value of land and buildings
Used to pay for schools, police protection, community parks

40. Sales tax- state or local tax on goods and services collected by the seller
Example: If you buy a can of paint for $15.00 and the state sales tax is 6%, the seller collects $15.90 from you and will then pay .90 to the state.
Businesses also pay a lot of taxes to all levels of government.

41. Borrowing
Government income from taxes may not be sufficient to cover the costs of providing services.
The government borrows money by selling bonds
When you buy a government bond, you are helping to fund services provided by the government
By borrowing money, the government becomes the debtor and must pay interest on its debt

42. Checkpoint>>
What is the difference between tax revenue and borrowing by government?

43. 4-3 ASSESSMENT