1. Social Responsibility of Business and Government
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Social Responsibility of Business and Government
4-1 Social Responsibility
4-2 Government Protection Activities
4-3 Government Regulation and Assistance
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2. 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.
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3. Key Terms social responsibility non-renewable resource ethics
business ethics
code of ethics
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4. SOCIAL RESPONSIBILITY ISSUES refers to the duty of a business to contribute to the well being of a community. A broadened social responsibility of business calls for more attention to social concerns such as:
Environmental protection
Conservation- saving scarce natural resources (Goal for many companies)
Some can’t be replaced which is called a non-renewable resource (IE: Gas, Oil, Copper)
A socially responsible business takes action to improve or change operations that cause pollution.
The Environmental Protection Agency (EPA) monitors and enforces water and air quality standards set forth by the government.
Workplace diversity
Businesses are more and more sensitive to the role of women, ethnic groups, the physically challenged, and older workers.
Major challenge involves learning how to manage a work force made up of the diverse cultures in society
American with Disabilities Act (ADA) has caused major improvements to be made toward accommodating workers who are physically challenged.
Age Discrimination in Employment Act bars employers from using age as a basis for employment decisiongs (hiring, promotions, or terminations). Protects persons aged 40 and older.
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5. SOCIAL RESPONSIBILITY ISSUES cont.
Job safety
Workers should be able to work in an office or factory free from the risks that could cause accidents.
Work environment should provide full protection from fire and other hazards.
Workers need to know how to manage the unexpected.
Safety also involves employee training in how to work safely and what to do in case of an emergency.
Most employers have put a variety of programs into practice to protect workers
Federal and State governments have passed laws to make the workplace safer.
Occupational Safety and Health Administration regulates and enforces safety standards.
Employee wellness
A healthy workforce is a productive workforce
Businesses do a number of things to promote a healthy lifestyle like stop smoking seminars, weight loss programs, and counseling for employees with drug problems
Clauses that relate to employee well-being are often included in labor contracts and company policy manuals.
These clauses are conditions or work that pertain to the health and safety of employees while on the job.
Some companies sponsor sports teams and encourage employees to take part.
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6. >> C H E C K P O I N T
What are four areas of social responsibility that may require the attention of business?
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7. 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
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8. SOCIAL RESPONSIBILITY EVALUATION
(continued)
Costs
New nonpolluting or safer equipment
Building repairs to remove risks
Wellness and rehabilitation programs
Social projects sponsored by a company
Spending on social programs must be at a suitable level so a business can still earn a reasonable profit!
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9. >> C H E C K P O I N T
What are the main benefits of social responsibility?
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10. BUSINESS ETHICS- rules about how businesses and their employees ought to behave. Ethics are rules of conduct
Code of ethics- a set of rules for guiding the actions of employees or members of an organization.
Code must be worded in terms of acceptable behavior rather than forbidden action. Can be tricky!
Ex: Should a company expand into a profitable market in another country where doing business requires giving expensive gifts to key government officials? Ex: Should a company continue to produce a popular product after it discovers a minor defect in it?
American Express Blue Box Values
Ethical conduct guidelines
Executives who show strong moral character and make ethical business decisions set the ethical standards for a business.
Companies set up educational programs to promote honesty and integrity ranging from personal phone calls during work hours to taking supplies for personal use (Stealing)
Guidelines to follow when considering if something is ethical: Is the action legal? Who is affected by the action and how? Does the action violate professional or company standards?
Conflict of interest is when an action by a company or person results in an unfair benefit.
EX: Person serving on the board of directors required that the company buy items only from businesses that he owns or controls.
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11. >> C H E C K P O I N T What is the purpose of a code of ethics?
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12. LESSON 4-2 Government Protection Activities
Goals
Identify the roles and levels of government.
Explain government protection activities.
Describe types of intellectual property.
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13. Key Terms
contract
patent
copyright
trademark
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14. GOVERNMENT IN SOCIETY Roles of government (continued)
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
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15. GOVERNMENT IN SOCIETY Levels of government (continued)
Federal government
State government
Local government
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16. FEDERAL GOVERNMENT
Oversees the activities that involve two or more states or other countries.
Regulates foreign and interstate commerce
Interstate Commerce dealings involves companies in more than one state. (I 95)
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17. STATE GOVERNMENTS Regulate business actions within their own borders
Assign some of their legislative power to local governments
Intrastate Commerce- refers to business dealings involving companies that do business in only one state. (PA-512)
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18. LOCAL GOVERNMENTS Include county boards and city or town councils
Provide services needed for an orderly society, such as police and fire protection
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19. >> C H E C K P O I N T What are the three levels of government?
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20. GOVERNMENT PROTECTION ACTIVITIES
Worker protection
As a worker you have a basic right to safe working conditions.
Government inspections and regulations or work areas help reduce the number of job-related accidents.
Prejudices and personal biases must NOT affect a hiring decision.
Contract enforcement
Contract is an agreement to exchange goods or services for something of value, usually money.
May be written or unwritten
Contract Basics
Cont on next slide
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21. Contract Basics cont.
Agreement- an offer must be made and an acceptance must occur.
Competent Parties- must be legal age and mentally competent
Consideration- something of measurable value must be exchanged.
Legality- product or service legally sold. No fraud or deception exists in the agreement
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22. >> C H E C K P O I N T What are the main elements of a contract?
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23. PROTECTION OF INTELLECTUAL PROPERTY- is purely intangible with no physical characteristics
Patents- gives the inventor sole right to make, use, or sell the item for 17 years.
Copyrights-protects the creative work of authors, composers, and artists.
Trademarks- word letter or symbol linked with a specific company or product.
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24. >> C H E C K P O I N T
What are three types of intellectual property?
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25. 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.
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26. Key Terms
public utility
monopoly
antitrust laws
revenue
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27. REGULATORY ACTIVITIES Business activity in the US is structured by the producers and consumers but government DOES get involved in some areas such as:
Regulation of utilities
Public utility is an organization that supplies a service or product vital to all people (EX: water and electric)
Government regulates these companies and the rates they charge have to be approved by government agencies.
Moving toward a deregulation where competition can be introduced.
Prevent unfair business practices
Government attempts to promote fair competition.
Monopoly exists when a business has control of the market for a product or service (PRICES ---HIGH)
When competition is present then the consumers get the best values at a fair price.
Antitrust laws- prevent unfair business practices such as false advertising, deceptive pricing, misleading labeling
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28. >> C H E C K P O I N T Why does government regulate utilities?
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29. Government buys goods and services
GOVERNMENT ASSISTS BUSINESS -Data gathered by government such as census can help businesses with planning or potential customers in a certain area. -Can also help provide loans or financial aid due to flooding, hardship, droughts.
Government buys goods and services
All levels of government make up about 20% of all the goods and services produced in the US
Many businesses depend on government contracts (EX: govt. pays businesses to construct highways and build schools)
Government employs workers
Single largest employer in US
1 of every 9 workers is a public employee
Public defenders, meat inspectors, teachers are all examples
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30. >> C H E C K P O I N T How does government assist business?
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31. GOVERNMENT RAISES MONEY -must have a way to fund operations and pay wages to workers -Fines for traffic violations; fees and licenses provide revenue
Taxes
Income tax- the more you make the more they take
Property tax- value of land and buildings
Sales tax- tax on goods and services (PA –6%)
Paying taxes is a duty of citizens and businesses
Borrowing
Government borrows by selling bonds.
When you buy a bond, you are helping to fund services provided by the government.
Bonds issued by the government are backed by the “full faith and credit” of the federal government and they become a debtor and must pay back bond with interest.
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32. >> C H E C K P O I N T
What is the difference between tax revenue and borrowing by government?
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