OBJECTIVE 2.05 Understand responsible actions for conducting business. 1

Topics Common socially responsible practices of businesses Government protection Consumer Bill of Rights Government regulation and assistance 2

Common socially responsible practices of businesses 3

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 4

Common Socially Responsible Practices of Businesses continued How can companies contribute to environmental protection? 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, recycling parts of computers. 5

Common Socially Responsible Practices of Businesses continued What is included in workplace diversity? 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. 6

Common Social-responsible Practices of Business continued What is job safety? 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. 7

Common Socially Responsible Practices of Businesses continued Why would a company offer employee wellness programs? 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. 8

Evaluation of Social Responsibility What are some benefits of a company being social responsible? 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. 9

Evaluation of Social Responsibility Why should a business explore the costs of being socially responsible? The costs of providing social programs must be realistic to allow a business to earn a profit. 10

Ethics – Morality and Rules of Conduct 11 What is the purpose of business ethics? Business ethics address the conduct of business and employees It is centered around the morality or rules of conduct performed within the business

Ethics Businesses follow a code of ethics which are: Guidelines or rules for responsible business conduct and addresses the following questions: Is the action illegal? Does the action violate professional or company standards? Who is affected by the action and how? 12

Government protection 13

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. 14

Government Protection continued What is a contract? – 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 How does the government protect businesses and consumers involved in a contract? - The government enforces contracts between businesses and individuals by ensuring agreed upon work and the exchange of money or other means are completed. 15

Government Protection continued Intellectual property protected by the government are: 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 (inventors) the exclusive right to make, use, or sell the item for 17 years. Trademarks - Protect registered words (name), letters, or symbols connected with a company or product 16

What is an example of each intellectual property? 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 17

Consumer Bill of Rights and Government Regulation 18

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. 19

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. 20

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. This prevents monopolies from forming which prevent consumers from being able to choose. A monopoly is when a business has full control of the market. 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. 21

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. 22

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. 23

Government Regulation and Assistance Why does the government regulate public 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. 24

Government Regulation and Assistance Government assists businesses by: Providing them demographic information Buying goods and services from them Employing workers who can buy goods and services from them 25