1. Business and Social Responsibility Unit 1, Lesson 6 Copyright © Texas Education Agency, 2012. All rights reserved.

2. Copyright Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2)Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3)Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4)No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, 2012. All rights reserved. 2

3. Ethical and Social Responsibility o Goals o Students will be able to describe the legal issues affecting businesses. o Students will know the nature of business and show its contribution to society. Copyright © Texas Education Agency, 2012. All rights reserved. 3

4. Ethical and Social Responsibility o Terms to know o Green Marketing o Ethics o Code of Ethics o Consumerism o Consumer Rights Copyright © Texas Education Agency, 2012. All rights reserved. 4

5. Ethical and Social Responsibility o Should businesses have any responsibility other than following the law? o A prominent ice cream seller donates 7.5% of its pre-tax earnings to disadvantaged and the needy. o They also donate to groups that strive for social change and environmental protection. o Ronald McDonald houses are funded by a major fast food chain. Copyright © Texas Education Agency, 2012. All rights reserved. 5

6. Ethical and Social Responsibility o Environmental issues o Air and water pollution o Environmental Protection Agency (EPA) was established to protect environment. o Regulate emission standards o Banned Chlorofluorocarbons (CFCs) o Propellants used in spray products such as hair spray, spray paint, insecticides. o International agreement reached to phase out CFCs. Copyright © Texas Education Agency, 2012. All rights reserved. 6

7. Ethical and Social Responsibility o Conservation and Recycling o Energy crisis of the 1970s o Oil consumption on rise estimated to be 13 million barrels a day by the year 2020. o Price of oil and availability an issue. o Alternative fuel sources being investigated. o Many car manufactures have hybrid alternatives. Copyright © Texas Education Agency, 2012. All rights reserved. 7

8. Ethical and Social Responsibility o Green marketing involved companies making an effort to produce and market environmentally friendly products. Copyright © Texas Education Agency, 2012. All rights reserved. 8

9. Ethical and Social Responsibility o Ethics are guidelines for good behavior. oLaws are made to address ethical concerns involved products or marketing. oPrice fixing oBait and switch oSelling unsafe products Copyright © Texas Education Agency, 2012. All rights reserved. 9

10. Ethical and Social Responsibility oTo make the right ethical choices, marketers must answer three basic questions. oIs the practice right, fair, and honest? oWhat would happen if the product were marketed differently? oWhat practice will result in the greatest good for the greatest number of people? Copyright © Texas Education Agency, 2012. All rights reserved. 10

11. Ethical and Social Responsibility oThe American Marketing Association has developed a Code of Ethics for marketers. oDetailed provisions about truthfulness and fairness of marketing. oAdvertising oSelling oPricing oMarketing research oProduct development Copyright © Texas Education Agency, 2012. All rights reserved. 11

12. Ethical and Social Responsibility o Consumerism is the societal effort to protect consumer rights by putting legal, moral, and economic pressure on businesses. Copyright © Texas Education Agency, 2012. All rights reserved. 12

13. Ethical and Social Responsibility o Consumer Bill of Rights provides four basic rights. oTo be informed and protected against fraud, deceit, and misleading statements, and to be educated in the wise use of financial resources. oTo be protected from unsafe products. Copyright © Texas Education Agency, 2012. All rights reserved. 13

14. Ethical and Social Responsibility o Consumer Bill of Rights continued oTo have a choice in goods and services oTo have a voice in product and marketing decisions made by government and business. Copyright © Texas Education Agency, 2012. All rights reserved. 14

15. Picture Sources o http://www.sxc.hu/photo/133585 2 http://www.sxc.hu/photo/133585 2 o http://www.sxc.hu/help/7_2 http://www.sxc.hu/help/7_2 o http://www.sxc.hu/photo/124705 8 http://www.sxc.hu/photo/124705 8 o http://www.sxc.hu/photo/119743 4 http://www.sxc.hu/photo/119743 4 o http://www.sxc.hu/photo/956664 http://www.sxc.hu/photo/956664 o http://www.sxc.hu/photo/494936 http://www.sxc.hu/photo/494936 Copyright © Texas Education Agency, 2012. All rights reserved. 15