Essential Standard 2.00 Understand the nature of business. 1

Objective 2.05 Understand responsible actions for conducting business. 2

Topics Common socially responsible practices of businesses Government protection Consumer Bill of Rights Government regulation and assistance 3

Common socially responsible practices of businesses 4

Common Socially Responsible Practices of Businesses Socially responsible practices of businesses include practices that positively impact communities. Common social responsibilities addressed: −Environmental protection −Workplace diversity −Job safety −Employee wellness 5

Common Socially Responsible Practices of Businesses continued Companies can contribute to environmental protection by –Implementing actions to conserve natural resources –Minimizing pollution of air and water resources What is an example of an organization or action that protects the environment? –EPA (Environmental Protection Agency enforces and provides standards for air and water quality. –Example: Computer Manufacturing Company refurbishes computers. 6

Common Socially Responsible Practices of Businesses continued Workplace diversity exists in a company when the employees represent a variety of groups including women, ethnic groups, physically challenged, and older workers. What is an example of an organization or action that enforces workplace diversity? –ADA (Americans with Disabilities Act) –Age Discrimination in Employment Act –EECOC (Equal Employment Opportunity Commission) 7

Common Social-responsible Practices of Business continued Job Safety is ensuring work environments are risk-free of accidents. What is an example of an organization or action that enforces job safety? –The Occupational Safety and Health Administration –Action Example: Cleaning bathrooms used by employees three times a day. 8

Common Socially Responsible Practices of Businesses continued Employee Wellness programs are offered by employers to maintain a healthy workforce. What are some examples of employee wellness activities? –Stop-Smoking seminars –Counseling employees w/drug problems –Weight loss counseling 9

Evaluation of Social Responsibility 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. –Increase awareness of social issues among workers, consumers, and others. 10

Evaluation of Social Responsibility The costs of providing social programs must be realistic to allow a business to earn a profit. 11

Ethics What is the purpose of business ethics? -Business ethics address the conduct of business and employees. 12

Ethics Guidelines for responsible business conduct addresses the following questions: –Is the action illegal? –Does the action violate professional or company standards? –Who is affected by the action and how? 13

Government protection 14

Government Protection continued How are workers protected in their work environments by the government? Worker’s protection provides safe work condition for employees. The government enforces minimum standards for buildings, machines, and chemicals. 15

Government Protection continued A contract is an agreement usually between two parties to exchange goods or services for something of value, usually money. What are the elements of a contract? –Agreement –Competent parties –Consideration –Legality 16

Government Protection continued The government enforces contracts between businesses and individuals by ensuring agreed upon work and the exchange of money or other means are completed. Examples of when contracts are used: –Buying an automobile –Leasing a building –Buying inventory 17

Government Protection continued Intellectual property protected by the government are: –Copyrights –Patents –Trademarks What is an example of each intellectual property? 18

Consumer Bill of Rights 19

Consumer Bill of Rights What is the purpose of the consumer bill of rights? The consumer bill of rights protects consumers from unfair business practices. 20

Consumer Bill of Rights continued The Right to Be Informed –Consumers have the right to be informed of what a product is and its functions. The Right to Safety –Consumers have the right to be protected from harm while using a product or service. 21

Consumer Bill of Rights continued The Right to Choose –Consumers have the right to choose what to buy among a variety of products and services. The Right to Be Heard –Consumers have the right to talk with businesses about products or services they offer. Consumers may share their comments, complaints, concerns, or questions. 22

Consumer Bill of Rights continued The Right to a Remedy –Consumers are assured that they can seek legal remedy when they encounter a problem or defective product. –What is a guarantee? A promise that a product meets certain quality. –What is the difference between an express and an implied warranty? Express warranty is a verbal promise and implied warranty may not be verbally communicated but is understood to apply anyway. 23

Consumer Bill of Rights continued The Right to Consumer Education –Consumers have the right to be informed about how their purchasing decisions impact them personally and the economy. The Right to Service –Consumers have the right to receive goods and services at the promised level by companies. 24

Government regulation and assistance 25

Government Regulation and Assistance Why does the government regulate utility companies? To promote business practices such as fair rates and services. Utility companies are usually a monopoly in the area it serves. How does the government prevent unfair business practices? Antitrust laws encourage competition and fairness among businesses and avoid monopolies. These laws avert false advertising, deceptive pricing, and misleading labeling. Government assist businesses by –Providing them demographic information –Buying goods and services from them –Employing workers who can buy goods and services from them 26