CHAPTER 7 Social and Ethical Environment of Business

CHAPTER 7 Social and Ethical Environment of Business 7. 1 Human Resources 7. 2 Societal Values 7. 3 Ethical Issues and Social Responsibility © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Characteristics of the Workers CHAPTER 7 ● Growing and changing Population • Baby boom generation includes people born during the high birth-rate period between 1945– 1964. • Generation X includes people born in the low birth-rate period between 1965– 1980. • Generation Y includes people born between 1991 and the end of the millennium; also called millennials. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 2

Population and Growth Rate in the United States, 1940– 2010 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 7 Slide 3

Characteristics of the Workers (continued) CHAPTER 7 ● Ethnic Populations ● Moving Population • Frost Belt refers to the colder states in the north and northeast. • Sun Belt refers to the warmer states in the south and southwest. • Rust Belt refers to the north central and northeastern states where major manufacturing firms once dominated. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 4

Ethnic Categories in the United States © 2017 Cengage Learning®. May not be scanned,

CHECKPOINT CHAPTER 7 ● What factors are influencing shifts in the U. S. worker characteristics? • Population growth, changing proportions of ethnic groups, and geographic shifts © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 6

Labor Force CHAPTER 7 ● Labor force includes most people aged 16 or over who are available for work, whether employed or unemployed. ● Labor participation rate is the percentage of the adult population that is in the labor force. ● Poverty © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 7

U. S. Labor Force and Labor Force Participation, 2005– 2015 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 7 Slide 8

U. S. Labor Force Participation Rates © 2017 Cengage Learning®. May not be scanned,

Labor Force (continued) CHAPTER 7 ● Equal Employment • Glass ceiling is an invisible barrier to job advancement. • Sticky floor syndrome is the inability of workers to move up from low-paying jobs that require little skill and education. ● Comparable Worth • Comparable worth means paying workers equally for jobs with similar but not identical job requirements. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 10

CHECKPOINT CHAPTER 7 ● List the factors influencing the U. S. labor force. • Labor participation rate • Changes in gender job choice • Pay equity © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 11

7. 2 Societal Values CHAPTER 7 Learning Outcomes 7. 2. 1 Discuss how the values of Americans have changed. 7. 2. 2 Explain how businesses have adapted to changing values. 7. 2. 3 Describe the dilemma posed by the need for business to grow and the need to protect the natural environment. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 12

Key Terms CHAPTER 7 ● values ● telecommute ● sustainability ● recycling © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 13

Changing American Values CHAPTER 7 ● Values are underlying beliefs and attitudes. ● Transformation of the Family • Divorce • Single Parenting • Low Birth Rates • Delayed Marriages ● Violence ● Lawsuits © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 14

CHECKPOINT CHAPTER 7 ● Name three developments that are transforming the family. • Rising divorce rates, rising number of single parents, declining birth rates, and delayed marriages as women pursue careers outside the home © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 15

Employer Responses CHAPTER 7 ● Redesigning Jobs ● Improving Health and Safety ● Family-Friendly Practices • Telecommute means staying in contact with the employer electronically while working from home or on the road. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 16

CHECKPOINT CHAPTER 7 ● Describe how employers are reacting to changing societal issues. • Employers are reacting by redesigning jobs, improving health and safety, and implementing family-friendly practices. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 17

Sustainability Issues CHAPTER 7 ● Sustainability involves using strategies that consider the needs of the environment, society, and the economy to meet present needs without compromising the ability of future generations to meet their needs. ● Managing the Environment • Recycling is reusing products and packaging whenever possible. ● Controlling Environmental Pollution © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 18

CHECKPOINT CHAPTER 7 ● What are some sustainability issues businesses face and how are they responding? • Issues include environmental pollution, energy use, hazardous waste, recycling, material efficiency, and people and their community. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 19

7. 3 Ethical Issues and Social Responsibility CHAPTER 7 Learning Outcomes 7. 3. 1 Describe how ethics relates to business practice. 7. 3. 2 Suggest ways in which businesses can be socially responsible. 7. 3. 3 Show integrity by choosing an ethical course. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 20

Key Terms CHAPTER 7 ● ethics ● business ethics ● code of ethics ● social responsibility ● stakeholders ● nongovernmental organizations (NGOs) ● ethical framework © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 21

Business Ethics CHAPTER 7 ● Ethics refers to standards of moral conduct that individuals and groups set for themselves, defining what behavior they value as right or wrong. ● Business ethics is a collection of principles and rules that define right and wrong conduct for an organization. ● Code of ethics is a formal, published collection of values and rules that reflect the firm’s philosophy and goals. ● Ethical Dilemmas © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 22

CHECKPOINT CHAPTER 7 ● Describe why ethics is important to a business. • Ethics guides business practices and employee behavior, and it can have a positive impact on a business’s reputation. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 23

Social Responsibility of Business CHAPTER 7 ● Social responsibility refers to the duty of a business to contribute to the well-being of society. ● Stakeholders are any individuals or groups that are affected by the firm’s actions, such as owners, customers, suppliers, employees, creditors, government, and the public. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 24

Social Responsibility of Business (continued) CHAPTER 7 ● Stakeholders • Nongovernmental organizations (NGOs) use lobbying, publicity, and pressure tactics to influence businesses to alter their activities. ● The Future © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 25

CHECKPOINT CHAPTER 7 ● List the reasons that a business needs to be concerned about social responsibility issues. • Businesses rely on society for resources, opportunities, and rights to take action. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 26

Choosing an Ethical Course CHAPTER 7 ● Ethical frameworks provide guidance for ethical decision making. ● Self-Interest © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 27

Ethical Frameworks © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or

CHECKPOINT CHAPTER 7 ● List the five ethical frameworks for business situations. • • • Utilitarianism Rights principle Justice principle Common-good principle Virtue principle © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Slide 29