1. Read to Learn
Describe social responsibility issues
Identify benefits and costs of social responsibility
Explain the purpose of a code of ethics
Essential Question: What is social responsibility?

2. The Main Idea
This chapter offers a basic understanding of social responsibility along with discussion of the various roles of government in relation to business

3. Social Responsibility
When considering its responsibility to a society, a business must weigh the interests and concerns of many groups
Social responsibility
Refers to the duty of a business to contribute to the wellbeing of a community

4. Graphic Organizer Responsibility to Customers
Responsibility to Employees
Responsibility
Responsibility to Society
Responsibility to Creditors and Owners

5. Businesses must pay attention to:
1. Protection of the environment
2. Minorities and women in the workplace
3. Employment of the physically challenged and older workers
4. Healthy and safe work environment

6. 1. Environmental Protection
Conservation is saving scarce natural resources. Ex – lumber companies planting trees
Non-renewable resource
A natural resource that cannot be replaced when used up
Ex – gas, oil, minerals

7. Pollution-
Occurs when the environment is tainted with the by-products of human actions
EPA – Environmental Protection Agency enforces govt’s measurable standards for water and air quality.

8. Workplace diversity and Job Safety
Businesses are more and more sensitive to the role of women, ethnic groups, the physically challenged, and the older workers.
OSHA – Occupational Safety and Health Administration

9. 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
Costs:
-Money

10. The Nature of Ethics
When you are guided by ethics, you do not cheat on a test or lie to friends or family.
ethics
Principles of morality or rules of conduct

11. Social Responsibility
Most businesses are guided by business ethics.
Different cultures, businesses, and industries have different ethical standards
business ethics
Rules about how businesses and their employees ought to behave.

12. Graphic Organizer Business Ethics Fair treatment of employees
Creating safe products
Creating jobs
Truthful about financial status
Environmental protection

13. Social Responsibility
In business, people follow rules as well as a code of ethics (aka code of conduct)
Codes of ethics address topics such as confidentiality of business information to how to treat customers.
Code of ethics
Is a set of rules for guiding the actions of employees or members of an organization

14. Ethics as Good Business
Unethical business practices include:
Lying
Offering merchandise known to be substandard
Treating customers or employees unfairly

15. Ethics as Good Business
If a business violates government regulations, the owner can be fined or go to jail.
If an employee violates a company or professional code, the employee might be fired or lose his or her license.

16. Guidelines to ask yourself dealing with business ethics:
Is the action legal?
Does the action violate professional or company standards?.
Who is affected by the action and how?

17. Ex – Ms. Wall FH ref for MVC
Conflicts of Interest
Conflict of interest is a major ethical question that is generally not illegal.
Ex – Ms. Wall FH ref for MVC
conflict of interest
Can occur when an action by a company or individual results in an unfair benefit.

18. Partner Activity – Conflict of Interest
Pair up
On a sheet of paper, come up with three conflict of interest examples

19. Ethical Observations by Employees
Figure 4.1
Ethical Observations by Employees

20. What is the difference between personal and business ethics?
Personal ethics: moral principles that guide an individual; business ethics: rules, based on moral principles, used by a business.

21. Describe some of the ways that unethical business practices can affect a business.
Customers will not patronize the business.
It is hard to retain employees. If the behavior is illegal, the business might be fined.

22. What is the relationship between illegal behaviors of business and unethical behaviors of business?
Generally, illegal behaviors of business are also considered unethical but there are some unethical behaviors that are not illegal.

23. Chaper 4.2 page 82
Identify the roles and levels of government
Explain government protection activities
Describe types of intellectual property
Essential Question: How does government protect business?

24. Government in Society
Government plays a role in all economic systems.
Your role as a citizen and voter has an effect on the decisions and actions taken by government

25. Roles of Government Provide services for members of society
Protect citizens, consumers, businesses, and workers
Regulate utilities and promote competition
Provide information and support to businesses
More on page 82

26. What are the three levels of government?
Federal
State
Local

27. Three Levels of Government
Graphic Organizer
Three Levels of Government
Federal Government
State Government
Local Government
Country
State
Counties
Townships
Cities
Towns 27

28. Levels of government
Main goal of the fed. Gov’t is to oversee the activities that involve two + states or other countries
Interstate commerce = federal government
Trucking company that goes outside of PA
Intrastate commerce = state government
Trucking company that stays in PA
Local gov’ts – provide services for an orderly society like police and fire fighters.

29. Government Protection Services
The government protects our rights in a number of ways:
Worker Protection
Contract Enforcement

30. Laws established to help provide a safe work environment.
Worker Protection
Laws established to help provide a safe work environment.
Workers have rights such as:
Safe buildings, machines, no bad chemicals
Human rights
Can’t be denied work because of race, religion, sex or age

31. Contract Enforcement
Contracts are another example of government protection.
Contracts can be written or unwritten.
4 main parts of a contract must happen for it to be valid:
contract
An agreement to exchange goods or services for something of value, usually money

32. Contract Basics
1. Agreement - An offer must be made, and acceptance must occur. 2. Competent Parties – Those entering into the contract must be of legal* age and must be mentally competent. * 47 states must be18 years old. Nebraska and Alabama 19, America Samoa (a US territory) – 14! Mississippi – 21!

33. Contract Basics
Consideration – Something of measurable value must be exchanged by the parties involved.
Legality – The contract must be for a product or service that may be legally sold; also, no fraud or deception exists in the agreement.

34. Again – Main parts of a contract
Agreement
Competent Parties
Consideration
Legality

35. Protection of Intellectual Property
Git off mah yaard!
Protection of Intellectual Property
Intellectual Property – is purely intangible with no physical characteristics – no one can touch it. But it still is someone’s property.
Examples are patents, copyrights and trademarks.

36. In your quad pod…
First learn the characteristics of a patent, copyright and trademark
Prepare a list of various patents, copyrights, and trademarks owned by companies and nonprofit organizations.
Explain how these assets contribute to the success of the organization.
Be able to discuss why intellectual property is important

37. Patents
When individuals or companies create new products, they may obtain a patent.
patent
Gives the inventor the sole right to make, use, or sell the item for 20 years.

38. Copyrights
Copyright protection lasts for the life of the person receiving the copyright.
It also extends 50 years after the person’s death!
Ice Ice Baby vs Queen!
copyright
Protects the creative work of authors, composers, and artists.

39. Trademarks
Businesses register company names, team emblems, and label designs with the government.
Trademarks can be very valuable.
They are also called logos
trademark
A work, letter, or symbol linked with a specific company or product.

40. Examples of Trademarks

41. Chapter 4.3 pg. 87 Explain actions by government to regulate business
Discuss efforts of government to assist businesses
Identify methods used by government to raise money.
EQ - How does government regulate business? 41

42. The Main Idea
Our government’s role is to foster success in the economy. One way it does that is by creating rules and regulations that organizations and consumers must follow. Laws cover three aspects of the economy. They protect competition. They protect business agreements and creative properties. They are also used to regulate the production process. 42

43. How Government Regulates Business
The government is responsible for fostering economic success and protecting people by regulating businesses. 43

44. Regulatory Activities
Business activity in the US is structured as a private enterprise or free market system. Private organizations own the factors of production (natural, human and capital resources)
Making money is all on the business to do, but gov’t does get involved sometimes…

45. Regulation of Utilities
Public utility companies provide local phone service, water, electricity, sewage
Public utility companies are usually privately owned but gov’t regulates prices.
Public utility
An organization that supplies a service or product vital to all people 45

46. Prevent Unfair Business Practices
For the most part, businesses are fair and honest.
Gov’t attempts to promote fair competition – meaning they try and make sure everyone is being charged the same prices

47. Prevent Unfair Business Practices
When a monopoly occurs, consumer choice is limited.
Ex – if one person owns all the food stores in Lehighton, what are we going to see with those products?
monopoly
When a business has control of the market for a product or service 47

48. Monopoly, the Board Game
Lizzie Magie, a young Quaker woman from Virginia, created a game that became Monopoly® in 1903.
It was developed as a way to teach people about the monopoly of land ownership. 48

49. Protecting Competition
The U.S. government formed the Federal Trade Commission (FTC) to enforce antitrust laws and regulate interstate trade and break monopolies up.
antitrust laws
Laws that prevent other unfair business practices such as false advertising, deceptive pricing, and misleading labeling. 49

50. Promoting Competition (cont’d)
Antitrust laws are a government action meant to promote competition and fairness to avoid monopolies.

51. Government Assists Business pg 88
Small Business Administration (SBA)- New businesses can obtain government loans to help them get started.
SBA is a key source of businesses loans

52. Government buys goods and Services
Our gov’t spends a great deal of money each day to buy an array of product and services.
Total federal, state and local gov’ts purchases of goods/services make up about 20% of all the goods/services produced in the US.

53. Government Employs workers
*Our Gov’t is the largest employer in the US economy.
About 1 in 9 workers is a public employee.
Administrative assistants, lawyers, teachers, meat inspectors, and data analysts are all employed by the government.

54. Taxes Income taxes Property tax Levied on the income of individuals
Largest source of revenue for the fed. Gov’t
Property tax
Based on the value of land and buildings
Major source of revenue for local govt’s
Use to pay for schools. Go Lehighton!

55. Sales tax (6% in PA on non-necessities)
Taxes
Sales tax (6% in PA on non-necessities)
State or local tax on goods and services that is collected by the seller
Goes to the state

56. Borrowing
Gov’t income from taxes and other sources may not always be enough
Gov’t borrows money by selling bonds.
They promise to give your money back plus interest
Bonds are backed by the “full faith and credit” of the fed. Gov’t.