How do businesses look to give back to their surrounding communities? How do we look to give back...

Bell Ringer

How do businesses look to give back to their surrounding communities?

How do we look to give back to our own community?

Social Responsibility of Business and GovernmentChapter 4

This week……and next……..

Monday: 4-1 Social Responsibilities

Tuesday: 4-2 Government Protection Activities

Wednesday: 4-3 Government Regulations and Assistance Chapter 4 Organizer Due

Thursday: Chapter 3 and 4 Review Packet Chapter 3 and 4 Review Packet due 10/25

Friday: No School

Next Week: International Business Project

Learning Goals

Chapter 4Explain the concepts of business ethics and social responsibility.

Describe the factors that influence business ethics.

List the stages in the development of ethical standards.

Identify common ethical dilemmas in the workplace.

Discuss how organizations shape ethical behavior.

Describe how businesses’ social responsibility is measured.

Summarize the responsibilities of business to the general public, customers, and employees.

1

2

3

4

5

6

7

Social Responsibility

Refers to the duty of a business to contribute to the well-being of a community. https://www.dhs.state.il.us/page.aspx?item=45438

Calls for more attention towards social concern; such as: Environment Inclusion of minorities Women in the workplace Employment of physically disabled and elderly

Environmental Protection

Conservation Saving scarce natural resources

Non-renewable Resources Natural resources that cannot be replaced when used up.

Pollution Occurs when the environment is tainted with the by-

products of human actions. Lakes, River, and Air

EPA

Environmental Protection Agency Monitors and enforces those standards to reduce

pollution. Make the environment healthier.

http://www.epa.gov/

Mission: EPA's mission is to protect human health and to

safeguard the natural environment—air, water, and land—upon which life depends.

Workplace Diversity

Equal opportunities for employment for women, ethnic groups, physically challenged, and older workers.

The individual will have equal access to: Education Training Jobs Career Advancement

ADA

Americans with Disabilities Act Looks to improve accommodations for physically disabled

workers.

Such improvements: Wheelchair ramps Elevators Audio or Visual Equipment

Age Discrimination in Employment Act

Bars employers from using age as a basis for employment decision, including hiring, promotions, or termination of a job.

Protects person aged 40 and older.

Job Safety

Work environment should provide full protection from fire and other hazards.

Safety involves employee training in how to work safely and what to do in case of an emergency.

OSHA (Occupational Safety and Health Administration)

• Workplace Safety. Monitored by Occupational Safety and Health Administration.

• Quality-of-Life Issues. Balancing work and family through flexible work schedules, subsidized child care, and regulation such as the Family and Medical Leave Act of 1993.

• Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees without discrimination; many aspects regulated by law.

• Age Discrimination. Age Discrimination in Employment Act of 1968 protects workers age 40 or older.

• Sexual Harassment and Sexism. Avoiding unwelcome actions of a sexual nature; equal pay for equal work without regard to gender.

Responsibilities to

Employees

Employee Wellness

A healthy workforce is a productive one.

Improving the workforce, employees are provided: Stop-Smoking Seminars Counseling for Drug and Alcohol Problems Weight-Loss Sessions

The well-being of a work force is to living a long and happy life.

Improving the Health

Employees are provided with: Dieting Advice Exercise Programs Other programs to improve home life. Athletics (Softball, Basketball, etc…)

• The Right to Be Safe. Safe operation of products, avoiding product liability.

• The Right to Be Informed. Avoiding false or misleading advertising and providing effective customer service.

• The Right to Choose. Ability of consumers to choose the products and services they want.

• The Right to Be Heard. Ability of consumers to express legitimate complaints to the appropriate parties.

Responsibilities to

Customers

Social Responsibility

Benefits: Expanded justice for groups of society Enhanced company image Reduced need for government actions Improved quality of life in the community and around the

world Increased awareness of social issues among workers,

consumers, and others.

Social Responsibility

Costs: Buying equipment to reduce pollution Building repairs to reduce risk of injury Wellness Programs Rehabilitation Programs Social Projects

Key Goal = Make a Profit To ensure jobs will not be lost.

Social Responsibility

• Management’s consideration of profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance.

• Contributions to the overall economy, job opportunities, and charitable contributions and service.

• Organizations measure through social audits.

Acting Responsibly

to

Satisfy Society

Business Ethics Objectives

Describe the importance of ethics not only in businesses but throughout society.

Identify and describe the guidelines for developing a code of ethics.

Business Ethics

Ethics: Principals of morality (doing what’s right).

Business Ethics: Rules about how businesses and their employees out to

behave.

Code of Ethics: Set of rules for guiding the actions of employees or

members of an organization.

Concern for Ethical

and Societal Issues

Business Ethics

The standards of conduct and moral values governing actions and decisions in the work environment.

Social responsibility.

Balance between what’s right and what’s profitable.

Often no clear-cut choices.

Often shaped by the organization’s ethical climate.

Sarbanes-Oxley Act

2002 law that added oversight for the nation’s major companies and a special oversight board to regulate public accounting firms that audit the financial records of these corporations.

Dilemmas

Business should expand into a profitable market in another country where doing business requires giving expensive gifts to key government officials?

Should a company continue to produce popular products after its discovers a minor defect in it?

• Individuals can make the difference in ethical expectations and behavior

– Putting own interest ahead of the organization

– Lying to employee

– Misrepresenting hours

– Safety violations

– Internet Abuse

• Technology is expanding unethical

behavior

Individuals Make

A Difference

Development of

Individual Ethics

Situation in which a business decision may be influenced for personal gain.

Telling the truth and adhering to deeply felt ethical principles in business decisions.

Businesspeople expect employees to be loyal and truthful, but ethical conflicts may arise.

Employee’s disclosure of illegal, immoral, or unethical practices in the organization.

On-the-Job Ethical

Dilemmas

How Organizations

Shape Ethical

Conduct

Executives must demonstrate

ethical behavior in their actions.

Ethical Leadership

Guidelines

1 Determine a purpose for the code.

2 Tailor the code to the needs and values of the organization.

3 Consider involving employees from all levels

4 Determine the rules or principles

5 How will it be enforced?

6 How will the code be implemented and where will it be posted?

7 How will it be reviewed or revised?

Ethics of Business

Follow these guidelines: Is the action legal? Does the action violate professional or company

standards? Who is affected by the actions and how?

Review

What is social responsibility?

What are some benefits and cost of social responsibility?

Name the guidelines for writing a code of ethics.

Government Protection Activities

Objectives: Identify the roles and levels of government. Explain government protection activities Types of intellectual property rights.

ROLESOF

GOVERNEMENT

Levels of Government

Interstate Commerce: Business dealing involving companies in more than one

state.

Intrastate Commerce: Refers to business dealing involving companies that do

businesses in only one state.

Government Protection Agency

We are protected through means of: Law Enforcement Fire Fighting Services Armed Forces National Security

For Your Protection

•Cannot be denied work because of your:•Race•Religion•Sex•Age

•Selection for a job must be based upon:•Job Requirements•Training•Experience

Contracts

An agreement to exchange goods and services for something of value, usually money.

Intellectual Property Rights

Purely intangible with no physical characteristics – a person cannot touch it. Intellectual property rights include the following:

Government Regulation and Assistance

Explain actions by government to regulate business.

Discuss efforts of government to assist businesses.

Identify methods used by government to raise money.

Regulatory Activities

United States Private Enterprise Free Market System

Who are price and output determined by? Businesses and Consumers

What to sell or produce? What to buy?

Utilities

Public Utilities Organization that supplies a service or product vital to all

people.

Examples: Telephone Services Water Electricity

Prices can determined through government agencies

•Unfair Business Practices

Government attempts to promote fair business practice Customer Satisfaction and Competition

Monopoly Exists when business has control of the market for a product or

service. Businesses could charge higher prices and selling poor quality

product.

Antitrust Laws Government promote competition and fairness to avoid

monopolies .

Assisting Businesses

How does the government help businesses? Collecting and Reporting valuable information, such as:

Incomes Prices Worker Availability Business Failures

Bureau of Labor Statistics

Department of Agriculture

Department of Commerce

Small Business Administration (SBA)

Government Buys Goods and Services

Federal, State, Local Government Spending Makes up 20% of all goods and services produced in the United

States.

Buys everything from filing cabinets to military jets

Government Contract Businesses become dependant Helps build schools and highways

Government Employees

16 % of workers are public workers.

Government Jobs: Administrative Assistants Teachers Lawyers Inspectors Data Analysts

Raising Money

Money that is brought in to fund operations and pay wages is known as revenue

Gaining money through… Taxes

Income Taxes Property Tax Sales Tax

Borrowing Borrowing money by selling bonds

Government becomes the debtor and must pay interest