CHAPTER 4 Social Responsibility Business Ethics Definition System

CHAPTER 4 Social Responsibility

Business Ethics � Definition: � System of moral principles � Values related to human conduct (rightness or wrongness of certain actions � To Promote ethical behavior a business will develop a code of ethics.

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? � � Code of Ethics: A set of rules � Are used by businesses to guide the actions of the employees or members of an organization. � Should be worded in terms of acceptable behaviors, to best serve as a guide of values for employees within the company. � Values

Checkpoint � Read A Question of Ethics page 57 � How would you answer question #1? � Is there a limit to how valuable a gift a teacher may receive? SLIDE 4

� Small Businesses � Large Organizations � Schools – teachers and students � Professional associations � Clubs, or recreational organizations

Shared Values � Think about how this conflict, problem or the decision will impact customers, employees, and the community. � Thinking about and making decisions “ with shared values” of the society in mind is social responsibility.

Social Responsibility of Business � Social Responsibility – the duty of the business to contribute to the well being of a community. �A business must weigh the interests and concerns of many groups when considering it’s responsibility and contributions to society. � Businesses generally aim their efforts toward addressing social, environmental, and economical concerns.

Social Responsibility Cont. �Refers to the duty of a business or individual to contribute to the well-being of the community Choice or Obligation?

NIKE’S UNETHICAL PRACTICES EXPOSED

Nike Sweatshops 1. Reactions to videos 2. Opinions-Is this right or wrong? 3. How does. 20 cents an hour affect how people live, do they live like Kings and Queens? 4. Power as a consumer What does that mean for you and for Nike? 5. Is social Responsibility a choice or an obligation? Does, Nike and other companies have a choice to be socially responsible ?

Shared Values in United States’ Businesses Social � Creating and supporting workplace diversity � Providing appropriate labor conditions � Job safety � Fair pay � Wellness programs Environmental � Conservation of natural resource, and non-renewable resources � Limiting/eliminating pollution � Finding new and improved energy sources (solar paneling) Economical � Creating and supporting local jobs � Financial accountability

Brainstorm What are ways that companies promote the following values in their companies? workplace diversity � appropriate labor conditions � Job safety � Fair pay � Wellness programs � Conservation of natural resource, and non-renewable resources � Limiting/eliminating pollution � Finding new and improved energy sources � *HINT: think about even here at Shaker(We are an organization too). *

Diversity � Workforce � Members should reflect groups in the community of these groups must have equal access to education, training, jobs, and career advancement

Diversity � The Equal Employment Opportunity Act of 1972 is the act which gives the Equal Employment Opportunity Commission (EEOC) authority to sue in federal courts when it finds reasonable cause to believe that there has been employment discrimination based on of race, color, national origin, sex, religion, age, disability, political beliefs, and marital or familial status.

Diversity � Eliminate � bias against older workers Age Discrimination (Equal Employment Opportunity Act) � Bars using age as a basis for employment decisions, including hiring, promotions, or termination � Removal of barriers of women Gender discrimination (Equal Employment Opportunity Act) � Can’t exclude women from physically demanding jobs � Gender equality for pay, (Equal Pay Act) � � Need to provide accommodations for individuals who are physically challenged � Buildings must have access for wheelchairs � People with sight and hearing disabilities must be accommodated (Americans with Disabilities Act)

Job Safety/Labor Conditions � Work environment should have full protection from fire and other hazards � Involves training to handle the unexpected and how to work safely (OSHA—Occupational Safety and Health Administration) � Child Labor Restrictions � Hours that youth under 16 years of age can work � Safe work experiences for young workers by listing tasks youth can’t perform or hazardous occupations classified as too dangerous for young workers to perform

Employee Wellness �Healthier workers are more productive �Companies can provide � Stop smoking seminars � Counseling for drug problems � Counseling for weight problems � Reward/incentives for healthy lifestyle choices (Included in conditions of work in labor contracts)

Environmental: Limiting pollution � Limit Carbon Footprint ("the total sets of greenhouse gas emissions caused by an organization, event, product or person) � Company can limit emissions of air pollutants coming from sources like chemical plants, utilities, and steel mills. 9 ( Clean Air Act) � Safer procedures for oil rigs � Manufacture in the U. S. verses internationally less travel for product distribution � Organize company wide recycling program (bottles, cans, paper, ect. )

� Conservation – is the saving of natural resources. Ex: water, lumber(wood) � Non- renewable resources – natural resources that can not be replaced when used up. Ex: Gas, oil, minerals (copper and iron ore)

Sustainability � Sustainability is based on a simple principle: Everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment. � Sustainability has emerged as a result of significant concerns about the unintended social, environmental, and economic consequences of rapid population growth, economic growth and consumption of our natural resources � Sustainability is important to making sure that we have and will continue to have, the water, materials, and resources to protect human health and our environment. � Protecting our natural resources

Starbucks � https: //www. youtube. com/watch? v=kdr. FXFMFq. B 0 � https: //www. youtube. com/watch? v=sv. Vrejw. Vlk. Y

SOCIAL RESPONSIBILITY EVALUATION Benefits – Costs = Action/No Action � 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 SLIDE 25

SOCIAL RESPONSIBILITY EVALUATION (continued) Benefits – Costs = Action/No Action � Costs � Building repairs to remove risks � Wellness and rehabilitation programs � Social projects sponsored by a company � New safer or nonpolluting equipment SLIDE 26

Checkpoint � Read page 27 Business Improving Society �How would you answer question #1? �Can you think of other ways to apply this idea? � Have you heard of a Shaker person who is doing similar work? SLIDE 27

What are four areas of social responsibility that may require the attention of business? � Environmental protection � Workplace diversity � Job safety � Employee wellness

Choice or Obligation The following laws are set up to help companies be…. . � Equal Employment Opportunity Act � Americans with Disabilities Act � OSHA—Occupational Safety and Health Administration � Clean Air Act

Ethics Social Responsibility Shared Values

Ethics Social Responsibility Shared Values Build your own diagram using Microsoft’s Smart Art to explain how a business(of your choice) is being socially responsible? You should have at least two examples for each category – Social, Environmental, Economic.

Social Responsibility Project � Step 1: � Collect and save all research in a word document. � Narrow research down to find specific information for your Smart. Art diagram. � Step: 2 � Create Smart. Art diagram and input titles (Categories: Social, Economic, Environmental) and corresponding info for each social responsibility category. � Edit diagram to make sure that all information is readable.

Examples of where to start your research

Examples of where to start your research

Examples of where to start your research

Helpful Websites The 25 Best Companies for Employee Compensation and Benefits � http: //www. entrepreneur. com/article/234183 America's Most Reputable Companies � http: //www. forbes. com/sites/jacquelynsmith/2013/04/24/americ as-most-reputable-companies-2/ Top 50 socially responsible corporations: 2014 � http: //www. macleans. ca/work/bestcompanies/top-50 -sociallyresponsible-corporations-2014/

Governmental Involvement in Promoting Social Responsibility Social � Americans with Disabilities Act (ADA) � Age Discrimination in Employment Act � Occupational Safety and Health Act & Occupational Safety and Health Administration � Family and Medical Leave Act Environmental � NYS Department of Environmental Conservation � Clean Air Act(CAA) � The United States Environmental Protection Agency

Governmental Involvement in Promoting Social Responsibility Economic � Sarbanes-Oxley Act � The federal Trade Commission(FTC) � Securities and Exchange Commission � Food and Drug Administration

Social Responsibility Around the World � In our international economy, what happens when American companies “outsource”- produce products and manage organizations abroad? � United States our values are very different based on: � Culture � Traditions � Economy

Social Responsibility Around the World � The Inter-American Convention Against Corruption (IACAC) was adopted by the member countries of the Organization of American States (OAS) in March 1996; it came into force in March 1997. It was the first international convention to address the question of corruption. It gives a wide and inclusive interpretation to what constitutes 'corruption offences' including bribery, domestic and foreign; illicit enrichment; money laundering and concealment of property. � According to Article II of the Convention's text, it has two goals: � To promote and strengthen the development by each of the States Parties of the mechanisms needed to prevent, detect, punish and eradicate corruption; and, � To promote, facilitate and regulate cooperation among the States Parties to ensure the effectiveness of measures and actions to prevent, detect, punish and eradicate corruption in the performance of public functions and acts of corruption specifically related to such performance.

Social Responsibility Around the World U. S. Department of State � The Office of Economic Policy Analysis and Public Diplomacy (EPPD), provides guidance, promotion and support for responsible business practices, engaging the private sector, civil society, and non-governmental organizations. EPPD leads the U. S. relationship with the Organization for Economic Cooperation and Development (OECD) on vital international economic issues. � The mission of the Organization for Economic Cooperation and Development (OECD) is to promote policies that will improve the economic and social wellbeing of people around the world. We set international standards on a wide range of things, from agriculture and tax to the safety of chemicals. � OECD Guidelines � ISO Standards � The EPPD also manages the Secretary of State’s annual Award for Corporate Excellence (ACE)program.