Chapter 4 Social Responsibility of Business and Government

Chapter 4 Social Responsibility of Business and Government Introduction to Business © Thomson South-Western

SOCIAL RESPONSIBILITY ISSUES n Environmental protection n n Conservation – saving scarce resources Non-renewable resources Pollution EPA – environmental Protection Agency n Workplace diversity n n Women~Ethic~Mature Worker~Physically challenged How to manage a diverse work force ADA – Americans with Disabilities Act Age Discrimination Chapter 4 Slide 2 Introduction to Business © Thomson South-Western

SOCIAL RESPONSIBILITY ISSUES n Job safety n Protected from hazards n OSHA – Occupational Safety and Health Administration n Employee wellness n Healthy = Productive n Programs to help employees n Conditions of Work Chapter 4 Slide 3 Introduction to Business © Thomson South-Western

SOCIAL RESPONSIBILITY EVALUATION n Benefits n n 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 n Increased awareness of social issues among workers, consumers, and others Chapter 4 Slide 4 Introduction to Business © Thomson South-Western

SOCIAL RESPONSIBILITY EVALUATION (continued) n Costs n n New nonpolluting or safer equipment Building repairs to remove risks Wellness and rehabilitation programs Social projects sponsored by a company Chapter 4 Slide 5 Introduction to Business © Thomson South-Western

BUSINESS ETHICS n Ethics – Principles of morality or rules of conduct n Business Ethics Rules how businesses/employees behave Ethical behavior conforms to these rules Chapter 4 Slide 6 Introduction to Business © Thomson South-Western

BUSINESS ETHICS n Code of ethics Set of rules of guiding the actions of employees n Ethical conduct guidelines Worded in acceptable behavior Determined by top management Programs designed to promote ethical conduct How to make ethical decisions Legal ? Violate Standards? Whose Affected? conflict of Interests Chapter 4 Slide 7 Introduction to Business © Thomson South-Western

GOVERNMENT IN SOCIETY n Roles of government n Providing services for members of society n Protecting citizens, consumers, businesses, and workers n Regulating utilities and promoting competition n Providing information and support to businesses n Buying goods and services n Hiring public employees n Raising revenue Chapter 4 Slide 8 Introduction to Business © Thomson South-Western

FEDERAL GOVERNMENT n Oversees the activities that involve two or more states or other countries. n Regulates foreign and interstate commerce Interstate-between states Chapter 4 Slide 9 Introduction to Business © Thomson South-Western

STATE GOVERNMENTS n Regulate business actions within their own borders Intrastate = business within one state n Assign some of their legislative power to local governments Chapter 4 Slide 10 Introduction to Business © Thomson South-Western

LOCAL GOVERNMENTS n Include county boards and city or town councils n Provide services needed for an orderly society, such as police and fire protection Chapter 4 Slide 11 Introduction to Business © Thomson South-Western

GOVERNMENT PROTECTION ACTIVITIES n Citizen protection Police ~ Armed Forces ~ National Guard n Worker protection Basic rights ~ Safe Working Environment Chapter 4 Slide 12 Introduction to Business © Thomson South-Western

GOVERNMENT PROTECTION ACTIVITIES n Contract enforcement Contract = agreement to exchange goods/services for something of value n Contract Requirements Agreement offer & accepted Competent parties Consideration Legal n Examples Lease ~ Credit Card ~ Documents that states terms of purchase Chapter 4 Slide 13 Introduction to Business © Thomson South-Western

PROTECTION OF INTELLECTUAL PROPERTY n Patents Gives the inventor sole rights to make, use, or sell for 17 years n Copyrights Protects creative work of authors, composers, artists for life +50 years n Trademarks Protects word, letter or symbol linked with specific company/product Chapter 4 Slide 14 Introduction to Business © Thomson South-Western

Government Regulation and Assistance n Regulation of utilities Public Utilities ~ Organization that supplies a service or product vital to all people. (power ~ phone ~ water) Most privately owned by government closely regulates these businesses Chapter 4 Slide 15 Introduction to Business © Thomson South-Western

Government Regulation and Assistance n Prevent unfair business practices Monopoly ~ business has control of the market for a product or service (Microsoft ~ Clear Lake Telephone) Antitrust Laws ~ to prevent unfair business practices such as false advertising, deceptive pricing and misleading labeling. Chapter 4 Slide 16 Introduction to Business © Thomson South-Western

GOVERNMENT ASSISTS BUSINESS n Government buys goods and services n Government employs workers Chapter 4 Slide 17 Introduction to Business © Thomson South-Western

GOVERNMENT RAISES MONEY n Government Income = Revenue n Taxes ~ Fees ~ Fines ~ Licenses Income tax ~ levied on individuals income Corporate income tax – levied on companies Property tax ~ levied on real estate For schools and local government services such as police, community parks Sales tax ~ state/local on goods/services collected by the seller and then pays the state. Chapter 4 Slide 18 Introduction to Business © Thomson South-Western

GOVERNMENT RAISES MONEY n Borrowing Needed to construct new buildings Bonds – sold to citizens Bonds – sold to banks or large businesses Least risky way to earn interest Chapter 4 Slide 19 Introduction to Business © Thomson South-Western