1. Social Responsibility of Business and Government
CHAPTER 4
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Social Responsibility of Business and Government
ITB

2. SOCIAL RESPONSIBILITY ISSUES
Environmental protection
Conservation – saving scarce resources
Non-renewable resources
Pollution
EPA – environmental Protection Agency
Workplace diversity
Women~Ethic~Mature Worker~Physically challenged
How to manage a diverse work force
ADA – Americans with Disabilities Act
Age Discrimination
Chapter 4

3. SOCIAL RESPONSIBILITY ISSUES
Job safety
Protected from hazards
OSHA – Occupational Safety and Health Administration
Employee wellness
Healthy = Productive
Programs to help employees
Conditions of Work
Chapter 4

4. 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
Chapter 4

5. 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
Chapter 4

6. BUSINESS ETHICS Ethics – Principles of morality or rules of conduct
Rules how businesses/employees behave
Ethical behavior conforms to these rules
Chapter 4

7. BUSINESS ETHICS Code of ethics Ethical conduct guidelines
Set of rules of guiding the actions of employees
Ethical conduct guidelines
Worded in acceptable behavior
Determined by top management
Programs designed to promote ethical conduct
How to make ethical decisions
Legal ? Violate Standards? Whose Affected?
conflict of Interests
Chapter 4

8. 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
Chapter 4

9. FEDERAL GOVERNMENT
Oversees the activities that involve two or more states or other countries.
Regulates foreign and interstate commerce
Interstate-between states
Chapter 4

10. STATE GOVERNMENTS Regulate business actions within their own borders
Intrastate = business within one state
Assign some of their legislative power to local governments
Chapter 4

11. LOCAL GOVERNMENTS Include county boards and city or town councils
Provide services needed for an orderly society, such as police and fire protection
Chapter 4

12. GOVERNMENT PROTECTION ACTIVITIES
Citizen protection
Police ~ Armed Forces ~ National Guard
Worker protection
Basic rights ~ Safe Working Environment
Chapter 4

13. GOVERNMENT PROTECTION ACTIVITIES
Contract enforcement
Contract = agreement to exchange goods/services for something of value
Contract Requirements
Agreement offer & accepted
Competent parties
Consideration
Legal
Examples
Lease ~ Credit Card ~ Documents that states terms of purchase
Chapter 4

14. PROTECTION OF INTELLECTUAL PROPERTY
Patents
Gives the inventor sole rights to make, use, or sell for 17 years
Copyrights
Protects creative work of authors, composers, artists for life +50years
Trademarks
Protects word, letter or symbol linked with specific company/product
Chapter 4

15. Government Regulation and Assistance
Regulation of utilities
Public Utilities ~ Organization that supplies a service or product vital to all people.
(power ~ phone ~ water)
Most privately owned by government closely regulates these businesses
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16. Government Regulation and Assistance
Prevent unfair business practices
Monopoly ~ business has control of the market for a product or service
(Microsoft ~ Clear Lake Telephone)
Antitrust Laws ~ to prevent unfair business practices such as false advertising, deceptive pricing and misleading labeling.
Chapter 4

17. GOVERNMENT ASSISTS BUSINESS
Government buys goods and services
Government employs workers
Chapter 4

18. GOVERNMENT RAISES MONEY
Government Income = Revenue
Taxes ~ Fees ~ Fines ~ Licenses
Income tax ~ levied on individuals income
Corporate income tax – levied on companies
Property tax ~ levied on real estate
For schools and local government services
such as police, community parks
Sales tax ~ state/local on goods/services collected by the seller and then pays the state.
Chapter 4

19. GOVERNMENT RAISES MONEY
Borrowing
Needed to construct new buildings
Bonds – sold to citizens
Bonds – sold to banks or large businesses
Least risky way to earn interest
Chapter 4