1. © 2012 Cengage Learning. All Rights Reserved. Objective 2.05 Understand responsible actions for conducting business. SLIDE 1 Objective 2.00 Understand the nature of business

2. © 2012 Cengage Learning. All Rights Reserved. How do businesses determine if its practices are socially responsible? Which services provided by the government protect businesses, individuals, and workers while they are conducting business? How does the Consumer Bill of Rights protect consumers? What are the actions of the government for regulating practices of businesses and providing them assistance? SLIDE 2 Objective 2.05 Essential Questions

3. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 3 4-1 4-1Social Responsibility and Business Ethics 4-2 4-2Government Protection Activities 4-3 4-3Government Regulation and Assistance 4 C H A P T E R Social Responsibility of Business and Government

4. © 2012 Cengage Learning. All Rights Reserved. SLIDE 4 4-1 Social Responsibility and Business Ethics Goal 1Describe social responsibility issues. Goal 2Identify benefits and costs of social responsibility. Goal 3Explain the purpose of a code of ethics.

5. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 5 KEY TERMS ●social responsibility ●non-renewable resource ●ethics ●business ethics ●code of ethics

6. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 6 SOCIAL RESPONSIBILITY ISSUES ●Environmental protection ●Workplace diversity ●Job safety ●Employee wellness

7. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 7 Checkpoint ●What are four areas of social responsibility that may require the attention of business? ●Environmental protection ●Workplace diversity ●Job safety ●Employee wellness

8. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 8 SOCIAL RESPONSIBILITY EVALUATION ●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 ●Increased awareness of social issues among workers, consumers, and others

9. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 9 SOCIAL RESPONSIBILITY EVALUATION ●Costs ●New nonpolluting or safer equipment ●Building repairs to remove risks ●Wellness and rehabilitation programs ●Social projects sponsored by a company (continued)

10. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 10 Checkpoint ●What are the main benefits of social responsibility? ●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 ●Increased awareness of social issues among workers, consumers, and others

11. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 11 BUSINESS 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?

12. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 12 GUIDELINES FOR WRITING A CODE OF ETHICS 1.Determine the purpose of the code. 2.Tailor the code to the needs and values of the organization. 3.Consider involving employees from all levels of the company in writing the code. 4.Determine the rules or principles that all members of the organization will be expected to adhere to. 5.Include information about how the code will be enforced. 6.Determine how the code will be implemented and where it will be published or posted. 7.Determine how and when the code will be reviewed and revised.

13. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 13 Checkpoint ●What is the purpose of a code of ethics? ●The purpose of a code of ethics is to guide actions and decisions of employees or members of an organization.

14. © 2012 Cengage Learning. All Rights Reserved. SLIDE 14 4-2 Government Protection Activities Goal 1Identify the roles and levels of government. Goal 2Explain the role of government protection and the legal system in business. Goal 3Describe types of intellectual property.

15. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 15 KEY TERMS ●contract ●patent ●copyright ●trademark

16. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 16 GOVERNMENT IN SOCIETY ●Government plays a role in all economic systems.

17. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 17 ROLES OF GOVERNMENT ●Providing services for members of society ●Protecting citizens, consumers, businesses, and workers ●Regulating utilities and promoting competition ●Providing information and support to businesses ●Buying goods and services ●Hiring public employees ●Raising revenue

18. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 18 LEVELS OF GOVERNMENT ●Federal government ●State government ●Local government

19. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 19 FEDERAL GOVERNMENT ●Oversees the activities that involve two or more states or other countries. ●Regulates foreign and interstate commerce

20. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 20 STATE GOVERNMENTS ●Regulate business actions within their own borders ●Assign some of their legislative power to local governments

21. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 21 LOCAL GOVERNMENTS ●Include county boards and city or town councils ●Provide services needed for an orderly society, such as police and fire protection

22. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 22 Checkpoint ●What are the three levels of government? ●Local ●State ●Federal

23. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 23 GOVERNMENT PROTECTION ACTIVITIES ●Worker protection ●Contract enforcement

24. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 24 CONTRACT BASICS Valid, enforceable contracts must contain: AgreementAn offer must be made, and an acceptance must occur. Competent PartiesThose entering into the contract must be of legal age and must be mentally competent. ConsiderationSomething of measurable value must be exchanged by the parties involved. LegalityThe contract must be for a product or service that may be legally sold; also no fraud or deception exists in the agreement.

25. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 25 Checkpoint ●What are the main elements of a contract? ●Agreement ●Competent parties ●Consideration ●Legality

26. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 26 PROTECTION OF INTELLECTUAL PROPERTY ●Patents ●Copyrights ●Trademarks

27. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 27 Checkpoint ●What are three types of intellectual property? ●Patents ●Copyrights ●Trademarks

28. © 2012 Cengage Learning. All Rights Reserved. SLIDE 28 4-3 Government Regulation and Assistance Goal 1Explain actions by government to regulate business. Goal 2Discuss efforts of government to assist businesses. Goal 3Identify methods used by government to raise money.

29. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 29 KEY TERMS ●public utility ●monopoly ●antitrust laws

30. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 30 REGULATORY ACTIVITIES ●Regulation of utilities ●Prevent unfair business practices

31. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 31 Checkpoint ●Why does government regulate utilities? ●Reasons for government regulation of utilities might include the assurance of fair prices, the conservation of resources, and to avoid overcrowding of utility poles and other facilities, such as power plants.

32. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 32 GOVERNMENT ASSISTS BUSINESS ●Government buys goods and services ●Government employs workers

33. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 33 Checkpoint ●How does government assist business? ●The government assists businesses in a variety of ways, including providing demographic data, buying goods and services, and employing workers who then have the means to buy goods and services.

34. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 34 GOVERNMENT RAISES MONEY ●Taxes ●Borrowing

35. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 35 Checkpoint ●What is the difference between tax revenue and borrowing by government? ●Tax revenue is money the government collects to cover the costs of services. ●This is money that the government is not required to pay back. ●The government is required to pay back money borrowed.

36. © 2012 Cengage Learning. All Rights Reserved. SLIDE 36 15-2Consumer Rights and Responsibilities Goal 1Explain the consumer movement. Goal 2Explain seven consumer rights. Goal 3Describe consumer responsibilities.

37. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 37 KEY TERMS ●consumer movement ●fraud ●guarantee ●express warranty ●implied warranty

38. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 38 CONSUMER MOVEMENT ●Ways businesses tried to take advantage of consumer ●False claims ●High prices ●Unsafe products ●Consumer response ●United to demand fair treatment

39. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 39 1994 1975 1969 1962 7. 7. The right to service. 6. 6. The right to consumer education. 5. 5. The right to a remedy. 4. 4. The right to be heard. 3. 3. The right to choose. 2. 2. The right to safety. 1. 1. The right to be informed. CONSUMER BILL OF RIGHTS

40. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 40 Checkpoint ●What are the seven rights of consumers? ●Right to be informed ●Right to safety ●Right to choose ●Right to be heard ●Right to a remedy ●Right to consumer education ●Right to service

41. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 41 RIGHT TO BE INFORMED ●You have a right to know what the product or service is and what it will do for you.

42. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 42 RIGHT TO SAFETY ●Consumers have a right to be safe from harm associated with using products or services. ●Food and Drug Administration (FDA) ●United States Department of Agriculture (USDA)

43. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 43 RIGHT TO CHOOSE ●Consumers have the right to choose from a variety of goods and services. ●Federal Trade Commission (FTC) ●Monopoly

44. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 44 RIGHT TO BE HEARD ●Federal Trade Commission (FTC) ●Office of the Attorney General ●Department of Consumer Affairs ●Better Business Bureau

45. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 45 RIGHT TO A REMEDY ●Consumers have the right to seek a legal remedy when a problem occurs. ●Guarantee ●Express warranty ●Implied warranty

46. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 46 RIGHT TO CONSUMER EDUCATION ●Educated consumers are aware that their decisions have economic and social implications.

47. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 47 RIGHT TO SERVICE ●Convenience ●Courtesy ●Responsiveness

48. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 48 Checkpoint ●How does an express warranty differ from an implied warranty? ●An express warranty is made orally or in writing and promises a specific quality of performance. ●An implied warranty is imposed by law and is understood to apply even though it has not been stated.

49. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 49 YOUR CONSUMER RESPONSIBILITIES ●Be honest ●Be reasonable ●Be active ●Be informed ●Be involved

50. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 50 Checkpoint ●What actions can be taken to be an involved consumer? ●To be an involved consumer, you should be honest, reasonable, active, informed, and involved.