1. SOCIAL RESPONSIBILITY & BUSINESS ETHICS
CHAPTER 4
SOCIAL RESPONSIBILITY & BUSINESS ETHICS

2. 4-1 SOCIAL RESPONSIBILITY ISSUES
Social Responsibility – the duty of a business to contributor to the well-being of a community.
Environmental Protection
Workplace Diversity
Job Safety
Employee Wellness

3. 4-1 SOCIAL RESPONSIBILITY ISSUES
Environmental Protection
Conservation – saving scarce natural resources
Non-renewable resources – a natural resource that cannot be replaced when used up (ex. Gas, oil, copper)
Pollution – occurs when the environment is tainted with the by-products of human actions.
EPA – monitors and enforces measurable standards for water and air quality.

4. 4-1 SOCIAL RESPONSIBILITY ISSUES
Workplace Diversity
The workforce of a business should reflect the groups in a community.
Members of these groups must have equal access to education, training, jobs, & career advancement.
Americans with Disabilities Act (ADA)
Major improvements in accommodating workers who are physically challenged.

5. 4-1 SOCIAL RESPONSIBILITY ISSUES
Job Safety
An office or factory free from risks that could cause accidents
The work environment should provide full protection from fire and other hazards
OSHA – regulates and enforces safety standards.

6. 4-1 SOCIAL RESPONSIBILITY ISSUES
OSHA

7. 4-1 SOCIAL RESPONSIBILITY ISSUES
Employee Wellness
A healthy workforce is a productive workforce!
Workers in good physical health are valuable assets.
Organizations will offer:
Stop-smoking seminars
Counseling for employees with drug problems
Weight-loss sessions

8. 4-1 SOCIAL RESPONSIBILITY ISSUES Social Responsibility Evaluation
Benefits
Expanded justice for groups of a society
Enhance company image
Reduced need for government action
Improved quality of life in a community and around the world
Increased awareness of social issues
Costs
Money must be spent to provide safer equipment, building repairs, wellness projects and social projects.
Spending on social programs must be at a suitable level so a business can still earn a reasonable profit.

9. 4-1 BUSINESS ETHICS
Ethics – principles of morality or rules of conduct.
Business ethics – rules about how business and their employees ought to behave.
Code of ethics – a set of rules for guiding the actions of employees or members of an organization.

10. Ethical Conduct Guidelines
4-1 BUSINESS ETHICS
Writing a company Code of Ethics:
Worded in terms of acceptable behavior rather than forbidden behavior
Ethical Conduct Guidelines
Is the action legal?
Does the action violate professional or company standards?
Who is affected by the action and how?

11. 4-2 GOVERNMENT PROTECTION ACTIVITIES
Roles of Government
Provide services for members of society
Protecting citizens, consumers, businesses, workers
Regulating utilities and promoting competition
Providing information and support to businesses
Buying goods and services
Hiring public employees
Raising revenue

12. 4-2 GOVERNMENT PROTECTION ACTIVITIES
Levels of Government
The federal government oversees activities that involve two or more states or other countries.
Interstate commerce – business dealings involving companies in more than one state. Ex. The federal government will regulate a trucking company that ships products to several states.
Intrastate commerce – business dealings involving companies that do business in only one state. (regulated by the state)

13. 4-2 GOVERNMENT PROTECTION ACTIVITIES
Worker Protection
Law are established to help provide a safe work environment.
Safety standards for buildings, machines, and chemicals are set by government agencies.
Contract Enforcement
Contract – an agreement to exchange goods or services for something of value, usually money.
Legal System
The legal system enforces laws and government regulations.
Criminal case – violation of criminal laws (shoplifting)
Civil cases – a plaintiff who asks the courts to take action against a defendant

14. 4-2 GOVERNMENT PROTECTION ACTIVITIES
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 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.

16. 4-2 GOVERNMENT PROTECTION ACTIVITIES
Protection of Intellectual Property
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.
Copyright protection lasts the life of the person receiving the copyright and extends for 70 years after their death.
Trademarks – a word, letter, or symbol linked with a specific company or product.

17. GROUP ASSIGNEMNT Create a group of three students
Open the link under Chapter 4 Section 2 – Intellectual Property Disputes
Summarize the dispute that your group is assigned.
Identify if there was a violation of patent, copyright or trademark.
Does your group agree or disagree with the outcome? Why or why not?

18. 4-3 Gov’t Regulations & Assistance
Regulatory Activities
Regulations of Utilities
Public Utility – an organization that supplies a service or product vital to all people. Many are privately owned, however rates must be approved by the government
Telephone service
Water
Electricity

19. 4-3 Gov’t Regulations & Assistance
Regulatory Activities
Prevent Unfair Business Practices
Monopoly – When a business has control of the market for a product or service.
Monopolies prevent competition
Antitrust Laws – prevent unfair business practices such as false advertising, deceptive pricing and misleading labeling.
These practices hurt competition and reduce consumer choices.

20. 4-3 Gov’t Regulations & Assistance
Government Assists Business
Gathering Data
The government reports about incomes, prices, worker availability and business failures.
Reporting Agencies
The U.S. Census
The Bureau of Labor Statistics
Department of Agriculture
Department of Commerce

21. 4-3 Gov’t Regulations & Assistance
Government Assists Business
Loans
Small Business Administration (SBA)
Helps new businesses get started by guaranteeing private bank loans
Subsidiaries
Farmers receive financial help in times of great hardship (drought, flooding)
Natural Disasters
Destruction of home and property by a tornado may make a person eligible for a low-interest government loan.

22. 4-3 Gov’t Regulations & Assistance
Government Buys Goods and Services
Total federal, state, and local government spending make up about 20% of all the goods and services produced in the U.S.
Many businesses depend on government contracts for their survival.
Government pays businesses to construct highways and build schools.

23. 4-3 Gov’t Regulations & Assistance
Government Employs Workers
Government is the single largest employer in the U.S. economy.
About 16% of workers are public employees
Lawyers, teachers, administrative assistants, meat inspectors, and data analyst are all needed by the government

24. 4-3 Gov’t Regulations & Assistance
Government Raises Money
Government income is called revenue
Fines for traffic violations
Fees and licenses (for running a business)
Fees for driver’s licenses and fishing licenses

25. 4-3 Gov’t Regulations & Assistance
Government Raises Money
Taxes
Levied on earning (income taxes)
Levied on property (local government)
Taxes on the sale of goods and services (varies by state)

26. 4-3 Gov’t Regulations & Assistance
Government Raises Money
Borrowing
Selling bonds
Banks, Insurance companies and other large financial institutions help finance governments by purchasing bonds in large numbers.
Bonds issued by the U.S. government are backed by the “full faith and credit” of the federal government.
Considered the least risky of all debt.