1. Social Responsibility of Business and Government Chapter 4

2. Lessons Social Responsibility Government Protection Activities Government Regulation and Assistance EQ: How do business and government actions affect society, workers, and consumers?

3. Social Responsibility Issues Social responsibility: the duty of a business to contribute to the well-being of a community Environmental protection Workplace diversity Job safety Employee Wellness Charitable contribution 4-1: Social Responsibility

4. Environmental Protection Conservation: saving scarce natural resources Non-renewable resources: a natural resource that cannot be replaced when used up Gas, oil, minerals such as copper and iron ore Pollution: when the environment is tainted with the by- products of human actions Environmental Protection Agency (EPA): monitors and enforces government environmental standards 4-1: Social Responsibility

5. Workplace Diversity Sensitivity to the roles of women, ethnic groups, physically challenged, and older workers Workforce of a business should reflect the groups in a community Must have equal access to education, training, jobs, and career advancement Americans with Disabilities Act (ADA): accommodations Age Discrimination in Employment Act: protects ages 40+ 4-1: Social Responsibility Interview Don'ts

6. Job Safety Workplace free from risks that could cause accidents Employee training How to work safely What to do in case of emergency Occupational Safety and Health Administration (OSHA) Regulates and enforces safety standards 4-1: Social Responsibility

7. Employee Wellness Healthy workforce = productive workforce Offer programs to promote good health Healthy eating Proper exercise Counseling Stop-smoking seminars 4-1: Social Responsibility

8. Charitable Contribution Support worthy community organizations by: Donating time, resources, or money Hosting special events / fundraisers Educating the general public

9. S.R. Evaluation Can cause controversy 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 Costs: Money spent on equipment, upkeep, and programs 4-1: Social Responsibility

10. Business Ethics Ethics: principles of morality or rules of conduct Business ethics: rules about how businesses and their employees ought to behave Code of ethics: a set of rules for guiding the actions of employees or members of an organization A guide of values Must be worded in terms of acceptable behavior rather than forbidden action 4-1: Social Responsibility

11. Ethical Conduct Guidelines Generally determined by top management Use employee educational programs to promote employee honesty and integrity as well as how to make ethical decisions on the job: Is the action legal? Does the action violate professional or company standard? Who is affected by the action and how? Concern: conflict of interest – when an action by a company or individual results in an unfair benefit In addition to workplace codes of ethics, many employees adhere to professional codes of ethics Ex. American Medical Association (AMA): doctors 4-1: Social Responsibility

12. 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 4-2: Govt. Protection Activities Has direct or indirect impact on business expansion, consumer affairs, and economic growth in the economy

13. Levels of Government Federal: regulate foreign and interstate commerce Interstate commerce: involves companies in more than one state State: regulates business actions within their own borders Intrastate commerce: involves business within a state Local: provide services for an orderly society (police, fire) Ex. County boards, city councils 4-2: Govt. Protection Activities

14. Government Protection Activities Worker Protection Safe working conditions Hiring, promoting, and terminating practices Contract Enforcement Contract: an agreement to exchange goods or services for something of value, usually money May be written or unwritten Valid, enforceable contracts must contain 4 elements 4-2: Govt. Protection Activities

15. Contract Basics 1. AgreementOffer made and acceptance occurred 2. Competent PartiesThose entering into contract must be of legal age and mentally competent 3. ConsiderationSomething of measurable value must be exchanged by parties involved 4. LegalityMust be for a product/service that may be legally sold; no fraud or deception exists in the agreement 4-2: Govt. Protection Activities

16. Protection of Intellectual Property 4-2: Govt. Protection Activities Patent: gives the inventor the sole right to make, use, or sell the item for 20 years Copyright: protects the creative work of authors, composers, and artists Protection lasts for the life of the person receiving the copyright plus 70 years afterward Trademark: a word, letter, or symbol linked with a specific company or product (ex. logo)

17. Govt. Regulation of Utilities 4-3: Govt. Regulation & Assistance Public utility: an organization that supplies a service or product vital to all people Ex. Local telephone service, water, electricity May be privately owned companies but closely regulated by the government Ex. Rates

18. Govt. Prevention of Unfair Business Practices 4-3: Govt. Regulation & Assistance Goal is to promote fair competition Monopoly: when a business has control of the market for a product or service Competition provides high-quality products at fair prices Antitrust laws: prevent unfair business practices such as false advertising, deceptive pricing, and misleading labeling Increases competition and consumer choice

19. Government Assists Business 4-3: Govt. Regulation & Assistance Collects and reports valuable information Ex. Incomes, prices, worker availability, business factors Small Business Administration (SBA) Helps new businesses get started: business plans, loans Buys goods and services Government spending makes up 20% of all produced in the U.S. Employs workers Single largest employer in the U.S. economy (16% of workers) Ex. Police, fire fighters, teachers, lawyers, data analysts, assistants

20. Government Raises Money 4-3: Govt. Regulation & Assistance Must raise money to fund operations and pay workers Revenue: government income Obtained through: Taxes Borrowing Government Fines Fees and Licenses

21. Taxes 4-3: Govt. Regulation & Assistance Taxes pay for services the government provides Income tax: tax levied on the income of an individual Largest source of revenue for the federal government Property tax: tax based on the value of land and buildings Major source of revenue for local government Sales tax: state or local tax on goods and services that is collected by the seller Businesses as well as individuals must pay taxes

22. Borrowing 4-3: Govt. Regulation & Assistance government borrows money by selling bonds to the public Government becomes a debtor and must pay the “loan” back in full plus interest Ex. May need additional funds to construct a new courthouse or convention center Very low risk investment for individuals, banks, insurance companies, and financial institutions