1. Introduction to Business
Social Responsibility Of
Business and Government

2. Social Responsibility Issues
Social Responsibility refers to the duty of a business to contribute to the well-being of a community.
Current issues to consider:
Environmental Protection
Workplace Diversity
Job Safety
Employee Wellness

3. Environmental Protection
Conservation
Saving scarce natural resources
Some natural resources cannot be replaced (non- renewable resources)
Pollution
Occurs when the environment is tainted with the by- products of human actions.
Socially responsible businesses find ways to improve or change operations that cause pollution.
Environmental Protection Agency (EPA) sets measurable standards for water and air quality.

4. Workplace Diversity
The workforce of a business should reflect the groups in a community.
A major challenge for businesses is learning how to manage a workforce made up of workers who represent the diverse cultures in society.
Challenge is not just about cultures/ethnicity.
Role of females in the workforce.
Workers with disabilities.
The aging labor force.

5. Job Safety Employees have the right to expect a safe work environment.
Work environment should provide full protection from fire and other hazards.
Employees need to know how to handle the unexpected (accidents do happen)
Businesses should provide employee training in how to work safely and what to do in case of an emergency.
Occupational Safety and Health Administration (OSHA) regulates and enforces safety standards

6. Employee Wellness A healthy workforce is a productive workforce.
Many businesses offer programs to their employees to help improve their health.
Stop-smoking seminars
Counseling for alcohol and drugs
Weight-loss sessions
Many labor contracts and company policy manuals include clauses (conditions of work) that pertain to the health and safety of employees while on the job.

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.
Costs
Money must be spent for new equipment.
If a business doesn’t make enough profit, it will close and employees will lose their jobs.

8. Business Ethics Ethics are principles of morality or rules of conduct.
Business ethics are rules about how businesses and their employees ought to behave.
Code ethics is a set of rules for guiding the actions of employees or members of an organization.
Should be worded in terms of acceptable behaviors rather than forbidden actions.
Even with a code of ethics, choice of proper behavior can cause dilemmas for decision-makers within a business.

9. Ethical Conduct Guidelines
Ethical conduct is determined by its top management.
Companies concerned about ethical behavior of their employees will set up educational programs on ethical conduct.
Designed to promote employee honesty and integrity.
When considering the ethics of a business situation, ask yourself:
Is the action legal?
Does the action violate professional or company standards?
Who is affected by the action and how?

10. Guidelines continued……
Common concern involves a conflict of interest
When an action by a company or individual results in an unfair benefit.
Many professionals also have codes of professional conduct established by their professional associations
Lawyers
Accountants
Doctors
They also participate in continuing education related to ethical issues specific to their professions.

11. Guidelines for Writing a Code of Ethics
Determine the purpose of the code.
Tailor the code to the needs and values of the organization.
Consider involving employees from all levels of the company in writing the code.
Determine the rules or principles that all members of the organization will be expected to adhere to.
Include information about how the code will be enforced.
Determine how the code will be implemented and where it will be published or posted.
Determine how and when the code will be reviewed and revised.

12. Is it ethical?
Don Sutton applied for a payroll clerk job with Search Services, a market research firm. To improve his chances in getting the job, he exaggerated his work experience on his resume. Based on his resume, Don was hired. After one year, he received above-average ratings during his annual performance review. Shortly thereafter, his boss met Don’s former supervisor and learned the truth.
Is the action illegal?
Does the action violate company or professional standards?
Who is affected, and how, by the action?

13. What about this one?
Eva Torres is a receptionist for Media Technologies. After the company installed voice mail, Eva’s workload became lighter, so her supervisor assigned additional responsibilities, including some accounting tasks. Even with these assignments, Eva is not always busy. To fill the time, she plays computer games.
Is the action illegal?
Does the action violate company or professional standards?
Who is affected, and how, by the action?

14. Last one…..
National Automotives assembles a safety system for passenger automobiles. This system substantially reduces sever injuries to drivers involved in accidents. In an effort to increase profits, National recently took steps to cut costs and increase production. National has begun using some less expensive components. These components increase the system’s estimate failure rate from 12 to 15 failures per 10,000 accidents. Despite this increase, the company continues to meet the government’s safety standard of 20 failures per 10,000 accidents.

15. Government in Society Government plays a role in ALL economic systems.
As a citizen with the right to vote, you have an effect on the decisions and actions taken by government.
In private enterprise, government has a less extensive role than in other economic systems.
The role of government often changes when new officials are elected.

16. Roles of Government Government is mainly concerned with these areas:
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.

17. Levels of Government
Federal Government – main goal is to oversee the activities that involve two or more states or other countries (interstate and foreign commerce).
State Government – regulate business within their own borders (intrastate commerce).
All states have assigned some of their legislative power to local governments.
Local governments control services needed for an orderly society (police and fire protection).

18. Government Protection Activities
Government protects your rights in many ways:
Police and fire-fighting services.
National security.
Worker protection.
Contract enforcement.

19. Contracts
An agreement to exchange goods or services for something of value.
May be written or unwritten.
Certain elements must be included to be enforceable.
Four main elements for a valid contract:
Agreement
Competent Parties
Consideration
Legality

20. Protection of Intellectual Property
Patents
Gives the inventor the sole right to make, use, or sell the item for 20 years.
Copyrights
Protects the creative work of authors, composers, and artists.
Lasts the lifetime of the person receiving the copyright plus 70 years after their death.
Trademarks
A word, letter, or symbol linked with a specific company or product.

21. Government Regulation
Government does not get involved in most areas of business activities. However, it is necessary for government to be involved in regulation of some business activities.
Regulation of Utilities
Prevent Unfair Business Practices

22. Regulation of Utilities
Public utility is an organization that supplies a service or product vital to all people.
Includes: local telephone services, water, & electricity.
Difficulties of having competitive utility companies
Many utility companies are privately owned, but closely regulated by the government.
Rates have to be approved by government agencies.
Trend towards deregulation to generate competition

23. Prevent Unfair Business Practices
Government attempts to promote fair competition.
Want companies to treat all of their customers fairly.
Want fair competition between businesses.
Antitrust Laws
Prevent unfair business practices such as false advertising, deceptive pricing, and misleading labeling.

24. Government Assists Business
They collect and report valuable information.
This data can help businesses plan.
Examples: census information, Bureau of Labor Statistics, Department of Agriculture, Department of Commerce
They help new businesses get started.
Small Business Administration (SBA) guarantees private bank loans.
Programs are designed to promote the financial well- being of society.

25. More Government Assistance
Government Buys Goods and Services
Total government spending makes up about 20% of all the goods and services produced in the U.S.
Government Employs Workers
Government is the single largest employer in the U.S.
Above 16% of workers are public employees

26. Government Raises Money
Government income is called revenue.
Obtain revenues through:
Taxes
Borrowing
Fines (for traffic and other violations)
Fees and licenses
Income tax, property tax, sales tax
Selling bonds