Presentation is loading. Please wait.

Presentation is loading. Please wait.

CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)1 This chapter describes the importance of fulfilling.

Similar presentations


Presentation on theme: "CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)1 This chapter describes the importance of fulfilling."— Presentation transcript:

1 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)1 This chapter describes the importance of fulfilling legal, ethical, and social obligations. Laws and regulations that affect businesses Guidelines for establishing an ethical workplace Business response to changes in society

2 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)2 UNDERSTAND YOUR LEGAL REQUIREMENTS Employees Suppliers Customers As an entrepreneur, you will have to become familiar with the government regulations that affect your business dealings: Know when to contact a lawyer!

3 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)3 Sherman Act (discussing prices with competitors) To make sure that competition is fair, federal, state, and local governments have enacted various laws (antitrust legislation). Clayton Act (requirement to purchase one good in order to be able to buy another good) Regulations That Promote Competition UNDERSTAND YOUR LEGAL REQUIREMENTS

4 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)4 Robinson-Patman Act (charge different prices to different groups of non-retail consumers) To make sure that competition is fair, federal, state, and local governments have enacted various laws (antitrust legislation). Wheeler-Lea Act (unfair or deceptive business practices--advertising) Regulations That Promote Competition UNDERSTAND YOUR LEGAL REQUIREMENTS

5 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)5 Justice Department (the Antitrust Division takes legal action against businesses involved in monopoly.) Govt Agencies That Protect Competition There are two major government agencies that make sure competition remains fair: Federal Trade Commission (administers most laws dealing with fair competition) Regulations That Promote Competition UNDERSTAND YOUR LEGAL REQUIREMENTS

6 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)6 Price setting by competitors Govt Agencies That Protect Competition The Federal Trade Commission monitors such activities as: False or misleading advertising Regulations That Promote Competition UNDERSTAND YOUR LEGAL REQUIREMENTS Price discrimination Misrepresentation about the quality, composition, or place of origin of a product

7 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)7 Patent (sole right to produce, use, and sell an invention for 20 years as of June 1995) Laws That Protect Businesses Three special govt regulations give legal rights to creators of inventions, literary or artistic works, and brand names Copyright (exclusive publication, production, sale, or distribution of a literary or artistic work for 70 years after the death of the author) UNDERSTAND YOUR LEGAL REQUIREMENTS Regulations That Protect Businesses and the Public

8 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)8 Trademark (name, symbol, or special mark that can be used only by certain businesses) Laws That Protect Businesses Three special govt regulations give legal rights to creators of inventions, literary or artistic works, and brand names. Examples are Band-Aid and Kleenex UNDERSTAND YOUR LEGAL REQUIREMENTS Regulations That Protect Businesses and the Public

9 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)9 Licenses Laws That Protect Consumers Several types of govt regulations protect consumers: Zoning Laws UNDERSTAND YOUR LEGAL REQUIREMENTS Consumer Protection Laws Regulations That Protect Businesses and the Public

10 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)10 Beauty Salons Laws That Protect Consumers… State and local governments require some businesses to have licenses: Restaurants UNDERSTAND YOUR LEGAL REQUIREMENTS Health and Fitness Center Regulations That Protect Businesses and the Public

11 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)11 Residential Laws That Protect Consumers… Local governments often establish zoning regulations that control what types of buildings can be built in what areas: Commercial UNDERSTAND YOUR LEGAL REQUIREMENTS Multiple Purpose Regulations That Protect Businesses and the Public

12 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)12 Food and Drug Administration (FDA) Laws That Protect Consumers… A variety of laws and government agencies protect the public (consumer laws): Consumer Product Safety Act of 1972 UNDERSTAND YOUR LEGAL REQUIREMENTS Regulations That Protect Businesses and the Public

13 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)13 The FDA is a government agency established in 1906 with the passage of the Federal Food and Drugs Act. The agency oversees food, drugs, cosmetics, animal food, dietary supplements, medical devices, biological goods, and blood products. According to the Sanitation Defect Levels Handbook the FDA allows a certain amount of impurities in our food.Sanitation Defect Levels Handbook UNDERSTAND YOUR LEGAL REQUIREMENTS

14 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)14 Can you name recent food issues concerning the FDA? Spinach (Salmonella) Peanut Butter (Salmonella) Cantaloupes Pet Food UNDERSTAND YOUR LEGAL REQUIREMENTS ConAgra Foods Inc. recalled Peter Pan peanut butter and other peanut items. The CDC said in a March 7, 2007 statement that 425 people in 44 states were infected with the strain of salmonella also found in the peanut products. The CDC said a salmonella outbreak potentially linked to spinach produce, sickened at least 172 people in 18 states in October 2006. Castle Produce recalled roughly 2,560 cartons of cantaloupes delivered on or after Feb. 16 to wholesalers in California for distribution in the western states. The Dole Fresh Fruit Co. recalled 6,100 cartons of cantaloupes between Feb. 5 and Feb. 8 2007. Although the FDA reports only 16 confirmed deaths, 4,427 pet deaths have been reported to the Pet Connection Blog database. Contamination is due to melamine, a chemical used to produce durable, heat- resistant plastic.

15 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)15 UNDERSTAND YOUR LEGAL REQUIREMENTS http://www.cfsan.fda.gov/~lrd/pestadd.html The FDA is responsible for such things as the former food pyramid (currently the food plate) and nutrition food labels. The Center for Food Safety and Applied Nutrition, one of six product-oriented centers of the FDA, provides free pamphlets on food and nutrition. http://www.cfsan.fda.gov/list.html

16 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)16 http://www.cfsan.fda.gov/~lrd/pestadd.html FORMER FOOD PYRAMID

17 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)17 http://www.cfsan.fda.gov/~lrd/pestadd.html THE NEW FOOD PLATE The food pyramid now belongs to the ancient world as of Nov. 21, 2011. The new wonder of the modern age of healthy eating is the "food plate," a graphic that represents portions of desirable foods such as fruits and vegetables on a plate that nutritionists hope will be easier to understand Read more: http://www.choosemypl ate.gov/ http://www.choosemypl ate.gov/

18 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)18

19 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)19 Consumer Product Safety Act of 1972 The U.S. Consumer Product Safety Commission (CPSC) is an independent federal regulatory agency created by Congress in 1972. ( http://www.cpsc.gov/cpscpub/pubs/178.html) They protect the public against unreasonable risks of injuries and deaths associated with consumer products. Report an unsafe product Report a product-related injury Find out whether a product has been recalled Get information on what to look for when buying a consumer product Receive information about ordering CPSC safety publications

20 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)20 Consumer Product Safety Hotline

21 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)21 Hiring The government has enacted laws that protect employees in various areas: Firing Regulations That Protect Employees UNDERSTAND YOUR LEGAL REQUIREMENTS Time Away From Work Working Conditions Minimum Wages ($5.15 per hour in GA)

22 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)22 Minimum Wage: Some states are over, under, or at the federal level of $7.25 per hour. http://www.dol.gov/esa/minwage/america.htm http://www.dol.gov/esa/minwage/america.htm Alabamanone Regulations That Protect Employees… UNDERSTAND YOUR LEGAL REQUIREMENTS Alaska$7.75 California$8.00 Connecticut$8.25 Florida$7.67 Hawaii$7.25 Kansas$7.25 Louisiananone Michigan$7.40 Oregon$8.80 Georgia$5.15

23 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)23

24 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)24 Subminimum Wage There some other employees who can be paid at hourly rates below the minimum wage according to the Fair Labor Standards Act (FLSA). Young workers under 20, workers who earn tips, and some other categories of employees can be legally paid at rates below the hourly minimum wage according to the Fair Labor Standards Act (FLSA).Fair Labor Standards Act Regulations That Protect Employees… UNDERSTAND YOUR LEGAL REQUIREMENTS

25 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)25

26 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)26 Equal Employment Act (age, race, color, national origin, religion, gender) Workplace Discrimination Laws exist to guard against discrimination in the workplace: Americans With Disabilities Act (accommodation by employers with 15 or more employees UNDERSTAND YOUR LEGAL REQUIREMENTS Regulations That Protect Employees…

27 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)27 Employers must keep safety records. Safe Working Conditions The Occupational Safety and Health Administration (OSHA) enforces safe working conditions for employees. Employers must provide workers with special training. UNDERSTAND YOUR LEGAL REQUIREMENTS Regulations That Protect Employees…

28 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)28 Family Medical Leave Act Businesses with more than 50 employees must provide up to 3 months (12 weeks) of unpaid leave if a serious health condition affects the employee, their child, or parent or spouse. Employees must have been employed for 1 year to be eligible. UNDERSTAND YOUR LEGAL REQUIREMENTS Regulations That Protect Employees…

29 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)29 Wages The Fair Labor Standards Act establishes the maximum number of hours employees can work. Other provisions include: Rules for children working under age 16 UNDERSTAND YOUR LEGAL REQUIREMENTS Regulations That Protect Employees… Overtime rates National minimum wage rate ($7.25 per hour)

30 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)30 Rules for Employing Youth in Restaurants and Quick-Service Establishments under the Fair Labor Standards Act (FLSA) http://www.dol.gov/whd/regs/compliance/whdfs2a.htm 18 Yrs. no longer subject to the federal youth employment provisions. 16 & 17 Yrs. unlimited hours in any occupation other than hazardous (motor vehicles or power-driven machinery) 14 & 15 Yrs. outside school hours; no more than 3 hours on a school day, including Fridays; no more than 8 hours on a nonschool day; no more than 18 hours during a week when school is in session; no more than 40 hours during a week when school is not in session; between 7 a.m. and 7 p.m. - except between June 1 and Labor day when the evening hour is extended to 9 p.m.

31 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)31 Under 14 Yrs. Children under 14 years of age may not be employed in non-agricultural occupations covered by the FLSA, including food service establishments. Permissible employment for such children is limited to work that is exempt from the FLSA (such as delivering newspapers to the consumer and acting). Children may also perform work not covered by the FLSA such as completing minor chores around private homes or casual baby-sitting Rules for Employing Youth in Restaurants and Quick-Service Establishments under the Fair Labor Standards Act (FLSA) http://www.dol.gov/whd/regs/compliance/whdfs2a.htm

32 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)32 Learn About Laws Affecting Your Business With the proper information, there are some issues you can handle yourself. Check zoning laws. UNDERSTAND YOUR LEGAL REQUIREMENTS Get Legal Advice Check land-use restrictions. Take a course in business law with Ms. Hawkins Check the Internet.

33 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)33 Hire A Lawyer At some point you will need legal advice. Check with your Chamber of Commerce for a list of lawyers who specialize in small businesses. UNDERSTAND YOUR LEGAL REQUIREMENTS Get Legal Advice… Check with other businesses in your community. Purchase a prepaid legal plan.

34 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)34 As an entrepreneur, you will have to make ethical decisions about how you run your business. ETHICAL ISSUES IN BUSINESS

35 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)35 Ethics is the study of moral choices and values. It involves choosing between right and wrong. ETHICAL ISSUES IN BUSINESS What Is Ethics? It means behaving in an honest manner.

36 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)36 Can something be unethical yet legal? Give some examples... Slavery was legal until the 13th Amendment abolished it in 1865. Children were allowed to work in mines, glass factories, and textile and other industries instead of going to school until the Fair Labor Standards Act was passed in 1938. Women didn't have the right to vote until 1920. ETHICAL ISSUES IN BUSINESS What Is Ethics?

37 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)37 Workplace Example of Unethical Behavior http://smallbusiness.chron.com/examples-unethical-behavior- workplace-10092.html The COO and primary manager of the company recently hired a relative of his wife's friend. This person is in a 40 hour a week job. However, she is in the office anywhere from only 6 to 7 1/2 hours per day, sometimes less. She does not put any time off on her time card, so she is stealing time/pay. While in the office she is on her cell phone 80 % of the time, she watches movies streamed in through her computer, and will be on the internet shopping/surfing all other times. If she produces 4 hours of honest work a week that is a lot. This situation is bothering a lot of people in the area in which she sits. The complaints have been brought to the department lead from another supervisor. Because of the employee's relationship with the COO, the department lead will not speak to her or deal with the issues.

38 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)38 Culture And Ethics Different cultures define ethical behavior differently. For example: Bribes are an accepted business practice in some cultures. ETHICAL ISSUES IN BUSINESS What Is Ethics? Community elders must sometimes be consulted about business transactions.

39 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)39 Codes of Ethics Even within the same culture, individuals develop different standards or codes. A code of ethics is the level of ethical behavior demanded by an individual, a business, or a culture. ETHICAL ISSUES IN BUSINESS What Is Ethics? Some individuals have very high standards of ethics.

40 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)40 Business Ethics is the application of the principles of right and wrong to issues that come up in the workplace. Some believe that entrepreneurs need not concern themselves with ethical issues. ETHICAL ISSUES IN BUSINESS Ethics And Business Businesses must show consumers that they concern themselves with ethics.

41 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)41 Establish An Ethical Workplace There are several reasons to do so: You want to do the right thing. ETHICAL ISSUES IN BUSINESS Ethics And Business… You want to serve as a role model to others. You want to be proud of the way you conduct yourself, and you want others to be proud of you. Ethical behavior is good for business.

42 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)42 Establish An Ethical Workplace… There are several reasons to do so: Employees are more likely to act ethically if they see the business owner acting in an ethical manner. ETHICAL ISSUES IN BUSINESS Ethics And Business… Acting ethically reduces the possibility of being sued.

43 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)43 Create A Written Code Of Ethics Even if you are your businesss only employee, you should create a written code of ethics. ETHICAL ISSUES IN BUSINESS Ethics And Business… Such guidelines help employees know how to behave in certain situations.

44 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)44 Entrepreneurs have responsibilities to the people they work and deal with, to the communities in which they are located, and to the environment. MEET YOUR SOCIAL RESPONSIBILITIES Economist, Milton Friedman, said the business of business is business. What did he mean by this?

45 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)45 Responsibilities To Customers MEET YOUR SOCIAL RESPONSIBILITIES Treat all customers with respect. Social Responsibilities Be honest. Avoid exaggerating the merits of your products or services. Inform customers of possible dangers of products you sell. Handle all disputes fairly.

46 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)46 Responsibilities To Suppliers MEET YOUR SOCIAL RESPONSIBILITIES Treat all suppliers with respect. Social Responsibilities… Refuse to participate in dishonest schemes. Give suppliers time to fill your order. Handle all disputes fairly. If you change suppliers, let your current supplier know the reasons.

47 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)47 Respond To Changes In The Workplace In general, become sensitive to the needs of the people who work for you. MEET YOUR SOCIAL RESPONSIBILITIES Accommodate your employees family needs (doctor appt., parent/teacher conference, etc.). Social Responsibilities… Consider flexible work hours.

48 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)48 MEET YOUR SOCIAL RESPONSIBILITIES Protect the environment from pollutants. Respect The Environment Conserve nonrenewable resources, such as coal and oil, by using them efficiently. Environmental Responsibilities Reduce waste and dispose of waste responsibly. Use environmentally safe and sustainable energy sources. Sell products that cause little damage.

49 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)49 MEET YOUR SOCIAL RESPONSIBILITIES Respect The Environment… In 1970, the federal government created an agency to enforce the laws governing the environment. The Environmental Protection Agency (EPA) enforces federal laws concerning clean air and water; businesses handling hazardous materials should become familiar with EPA laws.

50 CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)50 The End!


Download ppt "CHAPTER 14 MEET YOUR LEGAL, ETHICAL, & SOCIAL OBLIGATIONS February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)1 This chapter describes the importance of fulfilling."

Similar presentations


Ads by Google