1. CHAPTER 7 Social and Ethical Environment of Business
7.1 Human Resources
7.2 Societal Values
7.3 Ethical Issues and Social Responsibility

2. Characteristics of the Workers
Growing and changing Population
Baby boom generation includes people born during the high birth-rate period between 1945–1964.
Generation X includes people born in the low birth-rate period between 1965–1980.
Generation Y includes people born between 1991 and the end of the millennium; also called millennials.
Slide 2

3. Population and Growth Rate in the United States, 1940–2010
Slide 3

4. Characteristics of the Workers (continued)
Ethnic Populations
Moving Population
Frost Belt refers to the colder states in the north and northeast.
Sun Belt refers to the warmer states in the south and southwest.
Rust Belt refers to the north central and northeastern states where major manufacturing firms once dominated.
Slide 4

5. Ethnic Categories in the United States
Slide 5

6.  CHECKPOINT
What factors are influencing shifts in the U.S. worker characteristics?
Population growth, changing proportions of ethnic groups, and geographic shifts
Slide 6

7. Labor Force
Labor force includes most people aged 16 or over who are available for work, whether employed or unemployed.
Labor participation rate is the percentage of the adult population that is in the labor force.
Poverty
Slide 7

8. U.S. Labor Force and Labor Force Participation, 2005–2015
Slide 8

9. U.S. Labor Force Participation Rates
Slide 9

10. Labor Force (continued)
Equal Employment
Glass ceiling is an invisible barrier to job advancement.
Sticky floor syndrome is the inability of workers to move up from low-paying jobs that require little skill and education.
Comparable Worth
Comparable worth means paying workers equally for jobs with similar but not identical job requirements.
Slide 10

11.  CHECKPOINT List the factors influencing the U.S. labor force.
Labor participation rate
Changes in gender job choice
Pay equity
Slide 11

12. 7.2 Societal Values Learning Outcomes
7.2.1 Discuss how the values of Americans have changed.
7.2.2 Explain how businesses have adapted to changing values.
7.2.3 Describe the dilemma posed by the need for business to grow and the need to protect the natural environment.
Slide 12

13. Key Terms
values
telecommute
sustainability
recycling
Slide 13

14. Changing American Values
Values are underlying beliefs and attitudes.
Transformation of the Family
Divorce
Single Parenting
Low Birth Rates
Delayed Marriages
Violence
Lawsuits
Slide 14

15.  CHECKPOINT Name three developments that are transforming the family.
Rising divorce rates, rising number of single parents, declining birth rates, and delayed marriages as women pursue careers outside the home
Slide 15

16. Employer Responses Redesigning Jobs Improving Health and Safety
Family-Friendly Practices
Telecommute means staying in contact with the employer electronically while working from home or on the road.
Slide 16

17.  CHECKPOINT
Describe how employers are reacting to changing societal issues.
Employers are reacting by redesigning jobs, improving health and safety, and implementing family-friendly practices.
Slide 17

18. Sustainability Issues
Sustainability involves using strategies that consider the needs of the environment, society, and the economy to meet present needs without compromising the ability of future generations to meet their needs.
Managing the Environment
Recycling is reusing products and packaging whenever possible.
Controlling Environmental Pollution
Slide 18

19.  CHECKPOINT
What are some sustainability issues businesses face and how are they responding?
Issues include environmental pollution, energy use, hazardous waste, recycling, material efficiency, and people and their community.
Slide 19

20. 7.3 Ethical Issues and Social Responsibility
Learning Outcomes
7.3.1 Describe how ethics relates to business practice.
7.3.2 Suggest ways in which businesses can be socially responsible.
7.3.3 Show integrity by choosing an ethical course.
Slide 20

21. Key Terms ethics business ethics code of ethics social responsibility
stakeholders
nongovernmental organizations (NGOs)
ethical framework
Slide 21

22. Business Ethics Ethical Dilemmas
Ethics refers to standards of moral conduct that individuals and groups set for themselves, defining what behavior they value as right or wrong.
Business ethics is a collection of principles and rules that define right and wrong conduct for an organization.
Code of ethics is a formal, published collection of values and rules that reflect the firm’s philosophy and goals.
Ethical Dilemmas
Slide 22

23.  CHECKPOINT Describe why ethics is important to a business.
Ethics guides business practices and employee behavior, and it can have a positive impact on a business’s reputation.
Slide 23

24. Social Responsibility of Business
Social responsibility refers to the duty of a business to contribute to the well-being of society.
Stakeholders are any individuals or groups that are affected by the firm’s actions, such as owners, customers, suppliers, employees, creditors, government, and the public.
Slide 24

25. Social Responsibility of Business (continued)
Stakeholders
Nongovernmental organizations (NGOs) use lobbying, publicity, and pressure tactics to influence businesses to alter their activities.
The Future
Slide 25

26.  CHECKPOINT
List the reasons that a business needs to be concerned about social responsibility issues.
Businesses rely on society for resources, opportunities, and rights to take action.
Slide 26

27. Choosing an Ethical Course
Ethical frameworks provide guidance for ethical decision making.
Self-Interest
Slide 27

28. Ethical Frameworks
Slide 28

29.  CHECKPOINT List the five ethical frameworks for business situations.
Utilitarianism
Rights principle
Justice principle
Common-good principle
Virtue principle
Slide 29