1. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 1 4-1 4-1Social Responsibility and Business Ethics 4-2 4-2Government Protection Activities 4-3 4-3Government Regulation and Assistance 4 C H A P T E R Social Responsibility of Business and Government

2. © 2012 Cengage Learning. All Rights Reserved. SLIDE 2 4-1 Social Responsibility and Business Ethics Goal 1Describe social responsibility issues. Goal 2Identify benefits and costs of social responsibility. Goal 3Explain the purpose of a code of ethics.

3. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 3 KEY TERMS ●social responsibility ●non-renewable resource ●ethics ●business ethics ●code of ethics

4. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 4 SOCIAL RESPONSIBILITY ISSUES ●Social Responsibility: the duty of a business to contribute to the well being of a community including 1.Environmental Protection 2.Workplace Diversity 3.Job Safety 4.Employee Wellness

5. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 Environmental Protection ●Conservation of scarce natural resources ●Manage Resources-Reforestation ●Nonrenewable Resources-can not be replaced ●Pollution is when by-products of human actions taint the environment. ●Pollution-improve/change operations to reduce pollution ●EPA: monitors government standards SLIDE 5

6. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 Workplace Diversity ●Workforce should reflect community ●Removal of barriers for women ●Accommodate individuals who are physically challenged ●Eliminate Bias (discrimination) SLIDE 6

7. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 Job Safety ●Ensure a safe work environment ●Eliminate risks that could cause accidents, fire, and or physical harm ●Employee Training Programs ●United States, work safety standards are regulated and enforced by the OSHA (Occupational Safety & Health Administration) SLIDE 7

8. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 Employee Wellness ●Healthy workforce = productive workforce ●Assorted programs offered including stop smoking, weight loss, employees assistance programs, exercise/diet, etc. ●“Conditions of Work” clauses in contracts SLIDE 8

9. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 9 Checkpoint ●What are four areas of social responsibility that may require the attention of business? ●Environmental protection ●Workplace diversity ●Job safety ●Employee wellness

10. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 10 SOCIAL RESPONSIBILITY EVALUATION ●Benefits ●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

11. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 11 SOCIAL RESPONSIBILITY EVALUATION ●Costs ●New nonpolluting or safer equipment ●Building repairs to remove risks ●Wellness and rehabilitation programs ●Social projects sponsored by a company (continued)

12. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 12 Checkpoint ●What are the main benefits of social responsibility? ●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

13. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 13 BUSINESS ETHICS ●Ethics: principles of morality or rules of conduct ●Business Ethics: rules about how a business and employees ought to behave ●Code of ethics ●Ethical conduct guidelines ●Is the action legal? ●Does the action violate professional or company standards? ●Who is affected by the action and how? ●Top management must model this behavior

14. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 Conflict of Interest. ●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 company’s board pressured the company to buy items only from businesses that the board member owns or controls. SLIDE 14

15. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 15 GUIDELINES FOR WRITING A CODE OF ETHICS 1.Determine the purpose of the code. 2.Tailor the code to the needs and values of the organization. 3.Consider involving employees from all levels of the company in writing the code. 4.Determine the rules or principles that all members of the organization will be expected to adhere to. 5.Include information about how the code will be enforced. 6.Determine how the code will be implemented and where it will be published or posted. 7.Determine how and when the code will be reviewed and revised.

16. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 16 Checkpoint ●What is the purpose of a code of ethics? ●The purpose of a code of ethics is to guide actions and decisions of employees or members of an organization. ●The Code of Ethics cannot cover all specific potential situations ●The Code is stated with positive terms ●Be Kind not ●DON’T BE UNKIND

17. © 2012 Cengage Learning. All Rights Reserved. SLIDE 17 4-2 Government Protection Activities Goal 1Identify the roles and levels of government. Goal 2Explain the role of government protection and the legal system in business. Goal 3Describe types of intellectual property.

18. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 18 KEY TERMS ●contract ●patent ●copyright ●trademark

19. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 19 GOVERNMENT IN SOCIETY ●Government plays a role in all economic systems. ●Changes with newly elected officials. ●How is the governments role similar to an umpires? ●Ensure a fair playing field!

20. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 20 ROLES OF GOVERNMENT ●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

21. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 21 LEVELS OF GOVERNMENT FEDERAL GOVERNMENT ●Oversees the activities that involve two or more states or other countries. ●Regulates foreign trade ●Interstate commerce (business dealings between companies in two or more states)

22. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 22 LEVELS OF GOVERNMENT STATE GOVERNMENTS ●Regulate business actions within their own borders ●Intrastate Commerce (business dealings involving companies that do business in only one state) ●Assign some of their legislative power to local governments

23. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 23 LEVELS OF GOVERNMENT LOCAL GOVERNMENTS ●Include county boards and city or town councils. ●Provide services needed for an orderly society, such as police and fire protection

24. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 24 Checkpoint ●What are the three levels of government? ●Local ●State ●Federal

25. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 25 GOVERNMENT PROTECTION ACTIVITIES ●Worker protection ●Safe work environment ●Basic human rights of workers ●Contract enforcement ●Agreement to exchange g/s for something of value (usually money) ●Can be written or unwritten ●Contract elements: agreement, competent parties, consideration, legality (figure 4-2)

26. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 26 CONTRACT BASICS Valid, enforceable contracts must contain: AgreementAn offer must be made, and an acceptance must occur. Competent PartiesThose entering into the contract must be of legal age and must be mentally competent. ConsiderationSomething of measurable value must be exchanged by the parties involved. LegalityThe contract must be for a product or service that may be legally sold; also no fraud or deception exists in the agreement. Just because its written does not make it legal…..

27. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 27 Checkpoint ●What are the main elements of a contract? ●Agreement ●Competent parties ●Consideration ●Legality

28. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 28 PROTECTION OF INTELLECTUAL PROPERTY ●Intellectual Property: intangible, with not physical characteristic ●Patents: gives the inventor the sole right to make, use, or sell the item for 20 years ●Flash Of Genius ●http://www.youtube.com/watch?v=mS7O6sF2K10

29. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 PROTECTION OF INTELLECTUAL PROPERTY ●Copyrights: protects the creative works of authors, composers, and artists. Extends for 70 years after person’s death. SLIDE 29

30. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 PROTECTION OF INTELLECTUAL PROPERTY ●Trademarks: word, letter or symbol linked with a specific company or product ●Logo SLIDE 30

31. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 31 Checkpoint ●What are three types of intellectual property? ●Patents ●Copyrights ●Trademarks

32. © 2012 Cengage Learning. All Rights Reserved. SLIDE 32 4-3 Government Regulation and Assistance Goal 1Explain actions by government to regulate business. Goal 2Discuss efforts of government to assist businesses. Goal 3Identify methods used by government to raise money.

33. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 33 KEY TERMS ●public utility ●monopoly ●antitrust laws

34. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 34 REGULATORY ACTIVITIES ●US: Private Enterprise System ●Limited Government Involvement ●Regulation of utilities (supplies a service/product vital to all people as a monopoly) ●Telephone/water/electric/natural gas/cable ●Privately owned company chosen to serve community ●Rates approved by government agencies

35. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 REGULATORY ACTIVITIES ●Prevent unfair business practices ●Fair competition ●Monopoly: exists when a business has control of the market for a product/service ●Antitrust laws: prevent false advertising, deceptive pricing, misleading labeling ADSADS SLIDE 35

36. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 36 Checkpoint ●Why does government regulate utilities? ●Reasons for government regulation of utilities might include the assurance of fair prices, the conservation of resources, and to avoid overcrowding of utility poles and other facilities, such as power plants.

37. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 37 GOVERNMENT ASSISTS BUSINESS ●Government collects and reports data ●Income, prices, worker availability, business failures, etc. ●Bureau of labor statistics, Department of Agriculture, Department of Commerce ●Small Business Administration: services related to starting a business & keeping it running

38. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 GOVERNMENT ASSISTS BUSINESS ●Government buys goods and services ●20% of all g/s produced in US ●File cabinets to buildings to military jets ●Government employs workers ●Single largest employer in the US economy ●Efforts to reduce/eliminate the number of public employees SLIDE 38

39. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 39 Checkpoint ●How does government assist business? ●The government assists businesses in a variety of ways, including providing demographic data, buying goods and services, and employing workers who then have the means to buy goods and services.

40. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 40 GOVERNMENT RAISES MONEY ●Government Income = revenue ●Revenue pays for services provided ●Fines/fees/licensing ●Taxes ●Income tax, sales tax, property tax ●Borrowing ●Taxes do not always pay the bills ●Bonds are how the Govt. borrows money

41. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 GOVERNMENT RAISES MONEY ●Largest source of Revenue for the Govt. is personal income taxes ●Property taxes (the tax on the value of land or buildings) are used for local services like schools, police and fire not national services like Medicare / Medicade ●Sales tax is a tax on goods and services purchased (State Revenue) SLIDE 41

42. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 42 Checkpoint ●What is the difference between tax revenue and borrowing by government? ●Tax revenue is money the government collects to cover the costs of services. ●This is money that the government is not required to pay back. ●The government is required to pay back money borrowed when it sells BONDS.