1. SECTION 4-1: Social Responsibility CHAPTER 4 SOCIAL RESPONSIBILITES & GOVERNMENT

2. Social responsibility refers to the duty of a business to contribute to the well-being of a community. In considering its responsibility to society, a business must weigh the interests and concerns of many groups. SOCIAL RESPONSIBILITY

3. A broadened social responsibility of business calls for more attention to social concern. This includes: Protection of the environment Minorities and women in the workplace Employment of the physically challenged and older workers A healthy and safe work environment

4. A non-renewable resource is a natural resource that cannot be replaced when used up. Some examples of this are: Gas Oil Minerals Copper Iron Conservation is saving scarce natural resources. This is a goal for many companies. Lumber companies, for example, that consume trees have reforestation programs. ENVIRONMENTAL PROTECTION

5. Pollution occurs when the environment is tainted with the by-products of human actions.

6. A socially responsible business takes action to improve or change operations that cause pollution. Engineers design new equipment for reducing pollution.

7. The federal government has set measurable standards for water and air quality. The Environmental Protection Agency (EPA) monitors and enforces those standards. THE ENVIRONMENTAL PROTECTION AGENCY

8. Businesses now are much more sensitive to the role of women, ethnic groups, the physically challenged, and older workers. WORKPLACE DIVERSITY

9. Employers also have taken steps to accommodate individuals who are physically challenged. The Americans with Disabilities Act (ADA), along with other federal and state legislation, has caused major improvements to be made toward accommodating workers who are physically challenged. THE AMERICANS WITH DISABILITIES ACT

10. Having a safe place to work is important to all employees. Workers should be able to work in an office or factory free from the risks that could cause accidents. JOB SAFETY

11. A healthy workforce is a productive workforce. Workers who have good physical health are valuable assets. Businesses today do a number of things to help improve the health of their workforce. EMPLOYEE WELLNESS

12. Some programs offered by employers are: Stop Smoking Seminars Counseling for employees with drug problems Weight loss sessions/groups

13. Socially responsible actions can cause controversy. While a number of benefits exist, these actions also have various costs. SOCIAL RESPONSIBILITY EVALUATION

14. Common benefits of socially responsible activities include the following: 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 BENEFITS

15. There are costs involved when a business takes socially responsible actions. Money must be spent for non-polluting or safer equipment, for building repairs, to remove risks, for wellness and rehabilitation programs, and for social projects sponsored by a company. COSTS

16. A socially responsible business engages in ethical business practices. Ethics are principles of morality or rules of conduct. BUSINESS ETHICS

17. A code of ethics is a set of rules for guiding the actions of employees or members of an organization. A code must be worded in terms of acceptable behavior rather than forbidden action. CODE OF ETHICS

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19. When considering the ethics of business situations, you could follow these guidelines. 1. Is the action legal? 2. Does the action violate professional or company standards? 3. Who is affected by the action and how?

20. A common concern in ethical decision-making involves a conflict of interest. This can occur when an action by a company or individual results in an unfair benefit. For example, it would be a conflict of interest if a person serving on a board of directors required that the company buy items only from businesses that he owns or controls. CONFLICT OF INTEREST