1. 4 Social Responsibility of Business and Government
C H A P T E R 4
Social Responsibility of Business and Government
4-1 Social Responsibility and Business Ethics
4-2 Government Protection Activities
4-3 Government Regulation and Assistance

2. 4-1 International Business Basics
Goals
Describe social responsibility issues
Identify benefits and costs of social responsibility
Explain the purpose of a code of Ethics

3. Social Responsibility Issues
Social Responsibility – refers to the duty of a business to contribute to the well-being of a community
A business must weigh the interests and concerns of many groups.
Protection of the environment
Inclusion of minorities and women in the workplace
Employment of physical challenged and older workers
Healthy and safe work environments

4. Environmental Protection
Conservation – saving scarce natural resources.
Some natural resources can not be replaced
Non-renewable Resource – a natural resource that cannot be replaced when used up.
Gas, Oil, Minerals (Copper and Iron)
Pollution occurs when the environment is tainted with the by products of human actions

5. Work Place Diversity
Businesses are more and more sensitive to the role of:
Women
Ethnic Groups
Physically Challenged (ADA)
Older Workers
Members of these groups must have equal access to education, training, jobs, and career advancement

6. Job Safety
The work environment should provide full protection from fire and other hazards
Workers need to know how to manage the unexpected
Employee Training
Safety standards are regulated and enforced by agencies
Occupational Safety and Health Administration (OSHA)

7. Employee Wellness A healthy workforce is a productive workforce
Business do a number of things to improve the health of a work force
Stop-smoking seminars
Counseling for Employees w/ drug problems
Weight-loss sessions
Clauses are often included in labor contracts that relate to employees well-being

8. Checkpoint #1
What are four areas for social responsibility that may require attention of business?
Environmental Protection
Work place diversity
Job Safety
Employee Wellness

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

10. Social Responsibility Evaluation
Costs
New nonpolluting or safer equipment
Building repairs to remove risks
Wellness and rehabilitation programs
Social projects sponsored by a company

11. Checkpoint #2 What are the main benefits of social responsibility?
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

12. Business Ethics Ethics – principles of morality or rules of conduct
Business Ethics – rules about how businesses and their employees ought to behave
A code of ethics can help a business identify proper employee behavior

13. Code of Ethics
A set of rules for guiding the actions of employees or members of an organization
Address topics such as confidentiality of business information
Even with a code of ethics, the choice of proper behavior cause dilemmas for decision makers within a business

14. Ethical Conduct Guidelines
Ethical conduct of a business is greatly determined by its top management
Ethical conduct guidelines
Is the action legal?
Does the action violate professional or company standards?
Who is affected by the action and how?

15. 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.

16. Checkpoint #3 What is the purpose of a code of ethics?
The purpose of a code of ethics is to guide actions and decisions of employees or members of an organization.

17. 4-2 Government Protection and Activities
Goals
Identify the roles and levels of government
Explain the role of government protection and the legal system in business
Describe types of intellectual property

18. Government in Society Government plays a role in all economic systems
Our role as a citizen and voter has an effect on the decisions and actions taken by government
The role of government in the economy often changes as newly elected officials take office.

19. 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

20. Levels of Government
Federal Government – to oversea the activities that involve two or more states or other countries
Interstate Commerce – business dealings involving companies in more than one state
State Government – regulate business actions within there own boarders
Intrastate Commerce – business dealings involving companies that do business in only one state
Local Government – include county boards and city or town councils

21. Checkpoint #4 What are the three levels of government? Local State
Federal

22. Government Protection Activities
Government protects your rights in a number of ways:
Citizens are protected through police and fire-fighting services
The armed forces provide for national defense
National security is a chief concern of the federal government

23. Worker Protection
As a worker, you have a basic right to safe working conditions
Government inspection and regulation of work areas help reduce the number of job-related accidents
More government regulations result from the need to protect the basic human rights for workers

24. Contract Enforcement
Contract – an agreement to exchange goods or services for something of value, usually money
Contracts could be written or unwritten
4 basic elements to be enforceable:
Agreement
Competent Parties
Consideration
Legality

26. Legal System Enforces laws and government regulations
Two types of cases:
Criminal Case – brought for violations of criminal laws
Civil Case – have a plaintiff who asks the courts to take action against a defendant

27. Checkpoint #5 What are the main elements of a contract? Agreement
Competent parties
Consideration
Legality

28. Protection of Intellectual Property
Intellectual Property – is purely intangible, with no physical characteristics – a person can not touch it.
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
Trademarks – a word, letter, or symbol linked with a specific company or product.

29. Checkpoint #6 What are three types of intellectual property? Patents
Copyrights
Trademarks

30. 4-3 Government Regulation and Assistance
Goals
Explain actions by government regulations
Discuss Efforts of government to assist businesses
Identify methods used by government to raise money

31. Regulatory Activities
Business activity in the United States is structured as a private enterprise or free market system
Private organizations own the factors of productions
Government does not get involved in some areas of business activities.
Regulating Utilities
Preventing Unfair Business Practices

32. Regulation of Utilities
Most goods and services you use come from private businesses (mostly free of gov’t regulation)
Public Utility – an organization that supplies a service or product vital to all people
Local telephone service, water, and electricity
Government closely regulates utility companies

33. Prevent Unfair Business Practices
Monopoly – exists when a business has control of the market for a product or service
When competition is present, consumers get best values are fairest prices
Antitrust Laws – prevent unfair business practices such as false advertising, deceptive pricing, and misleading labeling.

34. Checkpoint #7 Why does government regulate utilities?
Reasons for government regulation of utilities might include the assurance of fair prices, the conservation of resources, and to avoid overcrowding of utility poles and other facilities, such as power plants.

35. Government Assists Business
Government helps businesses by collecting and reporting valuable information.
Incomes, prices, worker availability, and business failures.
Census can help a business decide where a majority of potential customers live.
Federal Government through the SBA, helps new businesses get started by guaranteeing private bank loans

36. Government Buys Goods and Services
Government spends a great deal of money each day on an array of products and services
Total federal, state, and local government spending make up about 20% of all goods and services produced in U.S.
Government is a key economic force
Many businesses depend on government contracts for their survival
Government pays businesses to construct highways and build schools

37. Government Employs Workers
Government is the single largest employer in the U.S. Economy
About 16% of workers are public workers
Government also employs the same types of workers as private businesses
Administrative assistants, lawyers, teachers, meat inspectors, and data analysts

38. Checkpoint #8 How does government assist business?
The government assists businesses in a variety of ways, including providing demographic data, buying goods and services, and employing workers who then have the means to buy goods and services.

39. Government Raises Money
Government income is called Revenue
Taxes and Borrowing
Governments can raise revenue by:
Fines for traffic violations
Fees and licenses

40. Taxes
Government creates Tax policies to pay for the services it provides
Earnings, property, sale price of goods and services
Income Tax – levied on the income of individuals
Largest source of revenue for government
Property Tax – based on the value of land and buildings
Sales Tax – state or local tax on goods and services that is collected by the seller.

41. Borrowing Government borrows money by selling bonds
Banks, insurance companies, and other financial institutions help finance governments by purchasing bonds in large numbers
By borrowing money, the government becomes a debtor and must pay interest on its debt.

42. Checkpoint #9
What is the difference between tax revenue and borrowing by government?
Tax revenue is money the government collects to cover the costs of services.
This is money that the government is not required to pay back.
The government is required to pay back money borrowed.