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

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 2 SOCIAL RESPONSIBILITY ISSUES ●Environmental protection ●Workplace diversity ●Job safety ●Employee wellness

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 3 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

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

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 5 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?

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 6 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 7 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.

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

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 9 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

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 10 LEVELS OF GOVERNMENT ●Federal government ●2 or more states ●Interstate commerce ●State government ●Intrastate commerce ●Local government ●Police, Fire, Chamber of Commerce

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 11 FEDERAL GOVERNMENT ●Oversees the activities that involve two or more states or other countries. ●Regulates foreign and interstate commerce

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 12 STATE GOVERNMENTS ●Regulate business actions within their own borders ●Assign some of their legislative power to local governments

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 13 LOCAL GOVERNMENTS ●Include county boards and city or town councils ●Provide services needed for an orderly society, such as police and fire protection ●Chamber of Commerce

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 14 Checkpoint ●What are the three levels of government? ●Local ●State ●Federal

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 15 GOVERNMENT PROTECTION ACTIVITIES ●Worker protection ●Contract enforcement

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 16 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 17 Checkpoint ●What are the main elements of a contract? ●Agreement ●Competent parties ●Consideration ●Legality

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 18 PROTECTION OF INTELLECTUAL PROPERTY ●Patents ●20 years ●Copyrights ●70 years after death ●Trademarks

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 19 Checkpoint ●What are three types of intellectual property? ●Patents ●Copyrights ●Trademarks

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 20 Government Regulation REGULATORY ACTIVITIES ●Regulation of utilities ●Public utilities ●Prevent unfair business practices ●Monopoly & Antitrust laws (false advertising)

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 21 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 22 GOVERNMENT ASSISTS BUSINESS ●Government buys goods and services ●Government employs workers

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 23 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 24 GOVERNMENT RAISES MONEY ●Taxes ●Borrowing

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 4 SLIDE 25 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.