Understand the nature of business. Essential Standard 2.00 Understand the nature of business.

EQ: What are responsible actions for conducting business? Objective 2.05 EQ: What are responsible actions for conducting business?

Before we begin… What are some benefits of business involvement in community activities? What are some examples of businesses that are heavily involved in the community? How would preserving the environment benefit businesses?

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

Common socially responsible practices of businesses

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

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? Environmental Protection Agency enforces and provides standards for air and water quality. Computer Manufacturing Company refurbishes computers What is an example of organization or action that protects the environment? Environmental Protection Agency enforces and provides standards for air and water quality. Computer Manufacturing Company refurbishes computers

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? The American with Disabilities Act (ADA) enforces regulations to accommodate people with disabilities. The Age Discrimination in Employment Act protects employees of the age 40 and over from employment decisions based on their age. The Equal Employment Opportunity Commission (EECOC) protects applicant and employees against workplace discrimination. Companies providing workforce diversity training to employees.

What is an example of an organization or action that enforces workplace diversity? The American with Disabilities Act (ADA) enforces regulations to accommodate people with disabilities. The Age Discrimination in Employment Act protects employees of the age 40 and over from employment decisions based on their age. The Equal Employment Opportunity Commission (EECOC) protects applicant and employees against workplace discrimination. Companies providing workforce diversity training to employees

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 (OSHA) gives surety to safe and healthful working conditions for men and women. A company’s schedule cleaning of bathrooms used by employees three times a day. Employees who work in a plant that manufactures chemical are required to wear proper clothing to protect from skin irritations.

What is an example of an organization or action that enforces job safety? The Occupational Safety and Health Administration (OSHA) gives surety to safe and healthful working conditions for men and women. A company’s schedule cleaning of bathrooms used by employees three times a day. Employees who work in a plant that manufactures chemical are required to wear proper clothing to protect from skin irritations.

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? Businesses today assist employees with programs such as stop-smoking seminars, counseling for employees with drug problems, and weight-loss counseling. What are some examples of employee wellness activities? Businesses today assist employees with programs such as stop-smoking seminars, counseling for employees with drug problems, and weight-loss counseling.

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.

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

The most socially responsible companies… http://www.forbes.com/sites/jacquelynsmith/2013/10/02/the-companies-with-the-best-csr-reputations-2/

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

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?

Government protection

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. 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.

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: offer must be made, and accepted Competent parties: legal age and mentally competent Consideration: something of measurable value must be exchanged Legality: must be for product/service that can be legally sold; no fraud or deception exists in agreement

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

Government Protection continued Intellectual property protected by the government are: Copyrights Patents Trademarks What is an example of each intellectual property? Copyrights protect the creative works of artists, authors, and composers. In the United States, originators are protected during their lifetime plus 70 years to publish and exhibit their works. Patents provide originators the exclusive right to make, use, or sell the item for 17 years. Trademarks protect registered words, letters, or symbols connected with a company or product. What is an example of each intellectual property? Examples: Copyright: Published poem titled Still I Rise by poet Dr. Maya Angelou Patents: Nike’s production of the footwear Trademarks: Starbucks symbol found on coffee cups

Definitions Copyrights protect the creative works of artists, authors, and composers. In the United States, originators are protected during their lifetime plus 70 years to publish and exhibit their works. Patents provide originators the exclusive right to make, use, or sell the item for 17 years. Trademarks protect registered words, letters, or symbols connected with a company or product. What is an example of each intellectual property? Examples: Copyright: Published poem titled Still I Rise by poet Dr. Maya Angelou Patents: Nike’s production of the footwear Trademarks: Starbucks symbol found on coffee cups

Consumer Bill of Rights

Guess.. Copyright, trademark, or patent? 3M ergonomic mouse Artists water paintings Broadway play McDonald’s logo Dance troop’s choreographed routine Lenox china collectibles MSN’s butterfly Musician’s song Salem Baking Company tin cans Segway

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

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.

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.

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? An express warranty is a verbal promise by a company about the specific quality performance of a product. Where as an implied warranty may not be verbally communicated but is understood to apply anyway. What is a guarantee? Is a promise that a product meets certain quality. What is the difference between an express and an implied warranty? An express warranty is a verbal promise by a company about the specific quality performance of a product. Where as an implied warranty may not be verbally communicated but is understood to apply anyway.

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.

Consumer Responsibilities Be honest: Be as honest with a business as you want it to be with you. Be reasonable: Complain in a reasonable way. Only complain if you are sure you have a cause for complaint (did you use the product the way it should be used?) Be active: Report unethical practices to prevent other consumers from becoming victims.

Consumer Responsibilities Be informed: You must find and use the information available to you. Know your rights! Be involved: Vote. Use resources wisely.

Government regulation and assistance

Government Regulation and Assistance Why does the government regulate utility companies? The government regulates 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? The antitrust laws encourage competition and fairness among businesses and avoid monopolies. These laws avert false advertising, deceptive pricing, and misleading labeling. Why does the government regulate utility companies? The government regulates 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? The antitrust laws encourage competition and fairness among businesses and avoid monopolies. These laws avert false advertising, deceptive pricing, and misleading labeling.

Government Regulation and Assistance Government assist businesses by Providing them demographic information Buying goods and services from them Employing workers who can buy goods and services from them