1. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social and Ethical Environment of Business 7.1 7.1 Human Resources 7.2 7.2 Societal Values 7.3 7.3 Ethical Issues and Social Responsibility CHAPTER 7

2. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 7.1 7.1 Human Resources GOALS ● Describe the changing nature of the U.S. worker characteristics. ● Explain the issues that businesses face with the U.S. labor force. 2 CHAPTER 7

3. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● U.S. has become world’s leading economic, technical, political power ● Has the world’s largest single-country economy ● Relies on highly sophisticated and modern means of production, transportation, and communication ● Examples of each? 3 CHAPTER 7

4. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. Characteristics of the Workers ● Americans enjoy a very high standard of living ● All of these achievements can be attributed to the enormous resources that the country possesses ● The ingenuity of its people ● Democratic form of government ● Social system that rewards individual initiative ● Public policies that encourage innovation 4 CHAPTER 7

5. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. Americans’ Standard of Living 5 CHAPTER 7 Google.com Dictionary.com HOW WOULD YOU RATE THE UNITED STATES’ STANDARD OF LIVING?

6. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. 6 CHAPTER 7

7. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Growing population ● U.S. population has grown steadily ● Growth rate largely determined by birth rate, death rate, level of immigration into the U.S. ● Generally, as the standard of living increases, the birth rate falls. ● What?! Why?! 7 CHAPTER 7

8. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers -Let’s look at birth rate: 8 CHAPTER 7 Google.com Dictionary.com

9. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Thanks to factors such as improved public health systems and better health care, the standard of living is increasing ● This results in longer life spans ● Immigration also accounts for much of the population increase ● Migrationpolicy.org: 41.3 million immigrants lived in the U.S. in 2013 ● Accounted for 13% of overall U.S. population 9 CHAPTER 7

10. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Changing population ● Nature of the population has been changing ● More than 25% classified as non-white ● Higher birth rates than white population ● Proportions in population have been changing ● Results in growing diversity in the workforce 10 CHAPTER 7

11. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Changing population ● Baby Boom: generation born in the high birthrate years between 1945 – 1965 ● Baby Bust: generation born in low birthrate years between 1960-1980 (aka GENERATION X) ● Millennials: generation born in higher birthrate years between 1991 & end of millennium (aka GENERATION Z) 11 CHAPTER 7

12. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Changing population ● What do you think caused the Baby Boom? 12 CHAPTER 7

13. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Changing population ● Population size and birthrate affect businesses ● Influences number of people available to work and consume goods & services ● Managers must deal with workers from multiple generations ● These workers are influenced by the time in which they were raised (example: millennials don’t know a world in which internet and global competition didn’t exist 13 CHAPTER 7

14. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Millennials in the Workplace Training Video ● https://www.youtube.com/watch?v=Sz0o9 clVQu8&index=2&list=RDC1a6M3dBNwc https://www.youtube.com/watch?v=Sz0o9 clVQu8&index=2&list=RDC1a6M3dBNwc 14 CHAPTER 7

15. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Changing population ● What do you think is happening right now to many of the older “baby boomers”? ● How do you think this is affecting the workforce? 15 CHAPTER 7

16. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Changing population: The “Belts” ● Frost Belt: colder states in the north and northwest ● Sun Belt: warmer states in the south and southwest ● Rust Belt: north central and northeastern states ● Major manufacturing firms once dominated 16 CHAPTER 7

17. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Moving population ● Each year, 1 of 7 Americans change his/her address ● These moves can be either short or long distances…duh! ● As businesses relocate to where customers are located, they affect where other people move to in order to find jobs 17 CHAPTER 7

18. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Moving population: Consequences ● When families and businesses leave cities, city loses money ● Cities lose the financial ability to provide high- quality services ● Crime and poverty can increase ● Leaves behind unemployed workers, empty factories, decaying towns, homeless, etc. 18 CHAPTER 7

19. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Moving population: Consequences ● Exploring America’s Ghost Town: Gary, Indiana ● https://www.youtube.com/watch?v=BkTAYzbB IOA https://www.youtube.com/watch?v=BkTAYzbB IOA 19 CHAPTER 7

20. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Labor Force: those available to work, whether employed or unemployed ● Those actively looking for work (why?) ● 16 years old or above ● Full-time students, full-time homemakers, retirees not considered part of labor force 20 CHAPTER 7

21. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Labor Participation Rate: percentage of adult population that is in the labor force ● Calculated by dividing the labor force by the adult population 21 CHAPTER 7

22. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. U.S. Labor Force and Labor Force Participation 2001 to 2011 22 CHAPTER 7 *U.S. LABOR FORCE INCREASED BY MORE THAN 9 MILLION FROM 2001-2011, BUT LABOR FORCE PARTICIPATION RATE FELL BY 2.6% https://www.youtube.com/watch?v=b0Mw-HVyuFQ

23. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. U. S. Labor Force Participation Rates 23 CHAPTER 7 *THE LABOR FORCE PARTICIPATION RATE FOR WOMEN IN THE U.S. HAS INCREASED DRAMATICALLY. *WHY DO YOU THINK THIS HAS HAPPENED?

24. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. 24 CHAPTER 7

25. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Poverty ● 13 – 15% of the population in any given year live in poverty ● Poorly housed, clothed, fed ● Gap between the rich and poor is widening 25 CHAPTER 7

26. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Poverty ● Poverty rate among elderly is lower today ● This is due to some programs such as Social Security ● Many children live in poverty ● Live in households where parents don’t have the education and skills to hold high-paying jobs ● Many parents can’t participate in labor force due to lack of access to child care 26 CHAPTER 7

27. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Equal Employment ● Equality for all is a basic principle on which the U.S. was founded ● Yet some groups have found it difficult to obtain jobs or be promoted on an equal basis ● Several laws have been passed to outlaw discrimination on basis of race, gender, national origin, color, religion, age, handicap, and others 27 CHAPTER 7

28. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Equal Employment ● Numbers of women and racial minorities are few in many occupations ● People in these groups may encounter difficulties in being promoted above a certain level ● What’s this known as? 28 CHAPTER 7

29. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Equal Employment ● Glass Ceiling: an invisible barrier to job advancement ● Many women and minorities are employed in entry-level positions with little hope for career advancement ● What’s this called? 29 CHAPTER 7

30. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Equal Employment ● Sticky Floor Syndrome: the inability of these workers to move up from these jobs ● Low-paying jobs that require little skill and education ● Higher education is one solution to help workers escape from this predicament 30 CHAPTER 7

31. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Comparable Worth ● This means paying the workers equally for jobs with similar but not identical job requirements ● Studies show that men tend to earn more than women ● Is it discrimination or a result of the nature of the jobs women do?? 31 CHAPTER 7

32. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Comparable Worth ● Wages tend to be lower in jobs that employ lots of women than in jobs held primarily by men ● Example: most dental hygienists are female, more airline pilots are men (pilots earn more) 32 CHAPTER 7

33. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Comparable Worth ● Concept of comparable worth (paying workers equally for jobs with similar but not identical job requirements) is also called “equal pay for comparable work” ● Jobs may be different, but pay scale should be the same if determined that they require about the same level of training and responsibility 33 CHAPTER 7

34. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. Labor force ● Gender Pay Gap ● https://www.youtube.com/watch?v=1ASTL_j q1q4&index=10&list=PL5-I-OajMPVe- Fqs54vXk81MsBGF4JGM8 https://www.youtube.com/watch?v=1ASTL_j q1q4&index=10&list=PL5-I-OajMPVe- Fqs54vXk81MsBGF4JGM8 34 CHAPTER 7

35. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 7.2 7.2 Societal Values GOALS ● Discuss how the values of Americans have changed. ● Explain how businesses have adapted to changing values. 35 CHAPTER 7

36. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Changing American Values ● Change is constant ● Values: underlying beliefs and attitudes ● What shapes your values? ● How are they developed? ● How might your values differ from those of your parents or grandparents? ● https://www.youtube.com/watch?v=h8kJzBJrOkU https://www.youtube.com/watch?v=h8kJzBJrOkU ● https://www.youtube.com/watch?v=5V0N_aryGqY https://www.youtube.com/watch?v=5V0N_aryGqY 36 CHAPTER 7

37. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. Changing American Values ● Societal values  changing at a fast pace ● Ex. Transformation of the family ● Children living in 2-parent homes continues to fall ● Rising divorce rates and rising numbers of single parents *What do you think about these facts? *What do you feel this says about current societal values? 37 CHAPTER 7

38. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Changing American Values ● Modern Family Life ● Birth Rate declining ● Women delaying marriage and family to pursue careers outside the home ● Common today: ● Stay-at-home dads, blended families, multi- generational households 38 CHAPTER 7

39. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e The Social Environment and Business ● http://study.com/academy/lesson/how-the-social-environment-affects-business.html http://study.com/academy/lesson/how-the-social-environment-affects-business.html CHAPTER 7 39

40. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Changing American Values ● Employer-employee relationship ● Workplace romance has increased with so many men and women working side by side ● Sexual harassment ● As workplace romance has increased, so has sexual harassment 40 CHAPTER 7

41. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Changing American Values ● Workplace violence ● Disturbing aspect of workplace violence ● Workplaces, schools, shopping centers, entertainment venues, transportations systems… ● All susceptible to this random killing and injuring ● Legal liabilities ● Live in a lawsuit-happy society 41 CHAPTER 7

42. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses - A changing society affects individuals as well as organizations. - Many social issues transfer to work settings - Managers and employees arrive each day thinking about personal problems - *To attract and retain competent workers, employers have responded to these changes by taking action to improve the way work is done, to assure healthier and safer working conditions, and help workers deal with some personal problems 42 CHAPTER 7

43. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses ● Redesigning jobs ● To retain workers, employers redesign jobs to make them varied and challenging ● Also improves job satisfaction through empowering workers 43 CHAPTER 7

44. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses ● Improving health and safety ● In response to concerns over health and safety, businesses operate wellness and fitness programs ● Physically unfit employees are absent more and less productive than healthier employees 44 CHAPTER 7

45. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses ● Family-friendly practices ● Given changing nature in family structure, employers are making efforts to address this aspect to their employees’ lives ● Ex. Provide unpaid leave to take care of sick family ● Some offer on-site day care facilities 45 CHAPTER 7

46. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses ● Advances in communication technology (internet, email, cell phones, fax) ● Led many businesses to allow workers to telecommute ● Telecommute  working from home or on the road, staying in contact with their employers electronically 46 CHAPTER 7

47. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability ● Answer these questions on a sheet of paper (do not turn in yet): ● What is sustainability? ● Why is it important? 47 CHAPTER 7

48. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● Growing population = more people to buy more things ● More purchases = more boxes and packaging and old products to throw away ● Increasing demand for products places great pressure on natural resources ● Some products take a long time to break down in landfills 48 CHAPTER 7

49. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● Sustainability  using strategies that consider the needs of the environment, society, and economy to meet present needs without compromising the ability of future generations to meet their needs ● Many companies make a commitment to sustainable practices 49 CHAPTER 7

50. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● Managing the environment ● Preserving natural environment and properly disposing of waste have become major sustainability concerns ● As landfills become full, we’ve shifted our focus to reducing growth of waste, and recycling ● Recycling  reusing products and packaging whenever possible 50 CHAPTER 7

51. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● Controlling environmental pollution ● Many groups have pressured government and companies to tighten pollution standards and to conserve natural resources 51 CHAPTER 7

52. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● https://www.youtube.com/watch?v=RSDnAVkdaAM https://www.youtube.com/watch?v=RSDnAVkdaAM 52 CHAPTER 7 https://www.youtube.com/watch?v=ingoKWX6VKE

53. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● Laws against pollution and demands for conserving natural resources are costly to businesses ● Why? ● Other countries have weaker laws and concern ● Companies in these countries can make goods cheaper 53 CHAPTER 7

54. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● 1. Sustainability is sort of a double- edged sword for businesses (good and bad). Explain why that is. ● 2. Why is it important for businesses to commit to sustainable practices? 54 CHAPTER 7

55. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 7.3 7.3Ethical Issues and Social Responsibility GOALS ● Describe how ethics relates to business practice. ● Suggest ways in which businesses can be socially responsible. 55 CHAPTER 7

56. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Business Ethics ● Ethics  refers to standards of moral conduct that individuals and groups set for themselves, defining what behavior they value as right or wrong ● Closely linked to personal values ● Underlying beliefs and attitudes that individuals or groups possess 56 CHAPTER 7

57. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. Business Ethics ● Business Ethics  a collection of principles and rules that define right and wrong conduct for an organization ● Any action that doesn’t conform to these moral principles is unethical behavior ● Not all firms have the same rules of ethical conduct ● Right and wrong varies from manager to manager, country to country ● Generally, moral conduct that’s favorable to the largest number of people is considered ethically desirable 57 CHAPTER 7

58. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. Business Ethics ● Code of ethics  a formal, published collection of values and rules that relfect the firm’s philosophy and goals ● Having this code removes/reduces opportunities for unethical conduct ● Examples: accepting business gifts, respecting employee privacy, using company property for private use, confidentiality, etc. 58 CHAPTER 7

59. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. Business Ethics ● Ethical Dilemmas ● This often arises when it’s not clear whether a particular action is legal or illegal ● Answers often are not clear cut 59 CHAPTER 7

60. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social Responsibility of Business ● Social problems ● What is businesses’ responsibility to help solve society’s problems? 60 CHAPTER 7

61. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social Responsibility of Business ● The answer is not simple ● The profit motive of a company often collides with what is good for society 61 CHAPTER 7

62. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social Responsibility of Business ● Social problems ● Obligation to communities ● The future 62 CHAPTER 7