1. Introduction to Business © Thomson South-Western ChapterChapter Social Responsibility of Business and Government 4-1 4-1Social Responsibility 4-2 4-2Government Protection Activities 4-3 4-3Government Regulation and Assistance 4

2. Introduction to Business © Thomson South-Western Chapter 4 Slide 2 LESSON 4-1 LESSON 4-1 Social Responsibility Goals Describe social responsibility issues. Identify benefits and costs of social responsibility. Explain the purpose of a code of ethics.

3. Introduction to Business © Thomson South-Western Chapter 4 Slide 3 Key Terms social responsibility non-renewable resource ethics business ethics code of ethics

4. Introduction to Business © Thomson South-Western Chapter 4 Slide 4 What is social responsibility? Refers to the duty of a business to contribute to the well being of a community

5. Introduction to Business © Thomson South-Western Chapter 4 Slide 5 SOCIAL RESPONSIBILITY ISSUES Environmental protection Workplace diversity Job safety Employee wellness

6. Introduction to Business © Thomson South-Western Chapter 4 Slide 6 Environmental Protection Conservation: saving scarce natural resources Non-renewable resource: a natural resource that cannot be replaced when used Examples? Gas, oil, minerals

7. Introduction to Business © Thomson South-Western Chapter 4 Slide 7 Environmental Protection Pollution: when the environment is tainted with the by-products of human actions Environmental Protection Agency: sets and enforces measurable standards for water and air quality

8. Introduction to Business © Thomson South-Western Chapter 4 Slide 8 Work Place Diversity Workforce of a business should reflect the range of groups in a community? Why is this not easy? Learn how to manage a workforce made up of the diverse cultures in society Employment barriers for women should be removed

9. Introduction to Business © Thomson South-Western Chapter 4 Slide 9 Workplace Diversity Americans with disabilities act: businesses must accommodate physically challenged workers Age Discrimination in Employment Act: bars employers from using age as a basis for employment decisions

10. Introduction to Business © Thomson South-Western Chapter 4 Slide 10 >> C H E C K P O I N T What are four areas of social responsibility that may require the attention of business?

11. Introduction to Business © Thomson South-Western Chapter 4 Slide 11 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

12. Introduction to Business © Thomson South-Western Chapter 4 Slide 12 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)

13. Introduction to Business © Thomson South-Western Chapter 4 Slide 13 >> C H E C K P O I N T What are the main benefits of social responsibility?

14. Introduction to Business © Thomson South-Western Chapter 4 Slide 14 BUSINESS ETHICS Ethics: principles of morality or rules of conduct Business Ethics: rules about how businesses and their employees ought to behave Ethical behavior: conforming to ethical rules

15. Introduction to Business © Thomson South-Western Chapter 4 Slide 15 BUSINESS ETHICS Code of Ethics: a set of rules for guiding the actions of employees or members of an organization Conflict of Interest: occurs when an action by a company or individual results in an unfair benefit

16. Introduction to Business © Thomson South-Western Chapter 4 Slide 16 >> C H E C K P O I N T What is the purpose of a code of ethics?

17. Introduction to Business © Thomson South-Western Chapter 4 Slide 17 LESSON 4-2 LESSON 4-2 Government Protection Activities Goals Identify the roles and levels of government. Explain government protection activities. Describe types of intellectual property.

18. Introduction to Business © Thomson South-Western Chapter 4 Slide 18 Key Terms contract patent copyright trademark

19. Introduction to Business © Thomson South-Western Chapter 4 Slide 19 GOVERNMENT IN SOCIETY 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 (continued)

20. Introduction to Business © Thomson South-Western Chapter 4 Slide 20 GOVERNMENT IN SOCIETY Levels of government Federal government State government Local government (continued)

21. Introduction to Business © Thomson South-Western Chapter 4 Slide 21 FEDERAL GOVERNMENT Oversees the activities that involve two or more states or other countries. Regulates foreign and interstate commerce

22. Introduction to Business © Thomson South-Western Chapter 4 Slide 22 STATE GOVERNMENTS Regulate business actions within their own borders Assign some of their legislative power to local governments

23. Introduction to Business © Thomson South-Western Chapter 4 Slide 23 LOCAL GOVERNMENTS Include county boards and city or town councils Provide services needed for an orderly society, such as police and fire protection

24. Introduction to Business © Thomson South-Western Chapter 4 Slide 24 Interstate vs. Intrastate Interstate commerce: business dealings involving companies in more than one state Intrastate commerce: business dealings involving companies that do business in only one state

25. Introduction to Business © Thomson South-Western Chapter 4 Slide 25 >> C H E C K P O I N T What are the three levels of government?

26. Introduction to Business © Thomson South-Western Chapter 4 Slide 26 GOVERNMENT PROTECTION ACTIVITIES Worker protection- safety standards and equal opportunity employment Contract enforcement Contract: an agreement to exchange goods or services for something of value, usually money; either written or unwritten

27. Introduction to Business © Thomson South-Western Chapter 4 Slide 27 What makes a contract valid? Agreement: an offer must be made, and an acceptance must occur Competent parties: must be of legal age and mentally competent Consideration: something of measurable value must be exchanged by the parties involved Legality: must be for a product or service that may be legally sold; no fraud exists

28. Introduction to Business © Thomson South-Western Chapter 4 Slide 28 >> C H E C K P O I N T What are the main elements of a contract?

29. Introduction to Business © Thomson South-Western Chapter 4 Slide 29 PROTECTION OF INTELLECTUAL PROPERTY Intellectual property: purely intangible with no physical characteristics Patents: gives the inventor the sole right to make, use, or sell the item for 17 years

30. Introduction to Business © Thomson South-Western Chapter 4 Slide 30 PROTECTION OF INTELLECTUAL PROPERTY Copyrights: protects the creative work of authors, composers, and artists; lasts for the life of the author plus 50 years Trademarks: a word, letter, or symbol linked with a specific company or product

31. Introduction to Business © Thomson South-Western Chapter 4 Slide 31 >> C H E C K P O I N T What are three types of intellectual property?

32. Introduction to Business © Thomson South-Western Chapter 4 Slide 32 LESSON 4-3 LESSON 4-3 Government Regulation and Assistance Goals Explain actions by government to regulate business. Discuss efforts of government to assist businesses. Identify methods used by government to raise money.

33. Introduction to Business © Thomson South-Western Chapter 4 Slide 33 Key Terms public utility monopoly antitrust laws revenue

34. Introduction to Business © Thomson South-Western Chapter 4 Slide 34 REGULATORY ACTIVITIES Regulation of utilities Public utility: an organization that supplies a service or product vital to all people Rates and quality have to be approved by the federal government Prevent unfair business practices Monopoly: exists when a business has control of the market for a product or service

35. Introduction to Business © Thomson South-Western Chapter 4 Slide 35 REGULATORY ACTIVITIES Antitrust laws: prevent other unfair business practices such as false advertising, deceptive pricing, and misleading labeling

36. Introduction to Business © Thomson South-Western Chapter 4 Slide 36 >> C H E C K P O I N T Why does government regulate utilities?

37. Introduction to Business © Thomson South-Western Chapter 4 Slide 37 GOVERNMENT ASSISTS BUSINESS Collect and report valuable information Information about incomes, prices, worker availability, business failures Bureau of labor and statistics, dept. of agriculture, dept. of commerce New businesses can obtain government loans

38. Introduction to Business © Thomson South-Western Chapter 4 Slide 38 GOVERNMENT ASSISTS BUSINESS Farmers may receive financial aid during hard times Govt. buys products and services Total govt. purchases make about 20% of all goods and services Govt. is the single largest employer 1 in 9 is a government employee

39. Introduction to Business © Thomson South-Western Chapter 4 Slide 39 >> C H E C K P O I N T How does government assist business?

40. Introduction to Business © Thomson South-Western Chapter 4 Slide 40 GOVERNMENT RAISES MONEY Taxes Borrowing

41. Introduction to Business © Thomson South-Western Chapter 4 Slide 41 >> C H E C K P O I N T What is the difference between tax revenue and borrowing by government?