Presentation on theme: "2 BUSINESS LAW Social Responsibility of Business and Government"— Presentation transcript:
1 2 BUSINESS LAW Social Responsibility of Business and Government C H A P T E R2BUSINESS LAWSocial Responsibility of Business and GovernmentSocial Responsibility and Business EthicsGovernment Protection ActivitiesGovernment Regulation and Assistance
2 Social Responsibility social responsibility- the duty of a business to contribute to the well-being of a community(doing the right thing regardless of costs)
3 Environmental Protection Conservation- saving scarce natural resourcesExample: Recycling paperNon-renewable resource- a natural resource that cannot be grown or replacedExample: Oil
4 Government AgenciesEPA- Environmental Protection Agency that protects the environment from pollution.OSHA- Occupational Safety and Health Administration- protects workers (employees) at their jobs by setting standards and guidelines for employee safety.
5 Benefits vs Cost- Spending money now for the future benefits 3 BENEFITS OF SOCIAL RESPONSIBILITY:To improve the quality of life for everyoneEnhance company imageAvoid government actionsTHE COSTS INVOLVED- SPENDING MONEY & TIMEsafer equipment, environmentally safe products, and wellness projects to improve employee and community.
6 Key Terms Ethics- Principles of morality or rules of conduct. Business ethics- rules about how businesses and their employees ought to behave.Code of ethics- a set of rules for guiding the actions of employees or members of an organization
7 BUSINESS ETHICS Ethical conduct guidelines Is the action legal? Does the action violate professional or company standards?Who is affected by the action and how?Conflict of Interest- when an action by a company or individual results in an unfair benefit.
8 ROLES OF GOVERNMENT Providing services for members of society Protecting citizens, consumers, businesses, and workersRegulating utilities and promoting competitionProviding information and support to businesses
9 LEVELS OF GOVERNMENTFederal governmentState governmentLocal governmentInterstate commerce- business dealings involving companies in more than one stateIntrastate commerce- business dealings in one state only.
10 CONTRACT BASICS A contract is an agreement to exchange goods or services for a fee. Valid, enforceable contracts must contain:AgreementAn offer must be made, and an acceptance must occur.Competent PartiesThose entering into the contract must be of legal age and must be mentally competent.ConsiderationSomething of measurable value must be exchanged by the parties involved.LegalityThe contract must be for a product or service that may be legally sold; also no fraud or deception exists in the agreement.
11 Legal System Criminal vs Civil Criminal is a violation of a law where Civil is a disagreement between 2 parties
12 PROTECTION OF INTELLECTUAL PROPERTY (intangible property with no physical characteristics) Patents- gives the inventor the sole right to make, use, or sell an item for 20 years.Copyrights- protects the creative work of authors, composers, and artistTrademarks- a word, letter, or symbol the links to a product or company
13 Government Regulations & Assistance Public Utility- an organization that supplies a service or product vital to all people.Example- Electric companyMonopoly- when a business has complete control of the market for a product. Monopolies are illegal in the USAntitrust Laws- government enforcement of business fairness and competition.
14 How does the government make money? TAXES on various levels:Local, State, and FederalONLINE RESEARCH IS ON THE BOTTOM OF PAGE 4 A & all of 4 B.USE THE BOOK CH. 4 FOR ANY QUESTIONS NOT ANSWERED ON THIS PPT.