1. Essential Standard 2.00 Understand the nature of business. 1

2. Objective 2.05 Understand responsible actions for conducting business. 2

3. Topics Common socially responsible practices of businesses Government protection Consumer Bill of Rights Government regulation and assistance 3

4. Common socially responsible practices of businesses 4

5. Common Socially Responsible Practices of Businesses Socially responsible practices of businesses include practices that positively impact communities. Common social responsibilities addressed: −Environmental protection −Workplace diversity −Job safety −Employee wellness 5

6. Common Socially Responsible Practices of Businesses continued Companies can contribute to environmental protection by –Implementing actions to conserve natural resources –Minimizing pollution of air and water resources What is an example of an organization or action that protects the environment? 6

7. Environmental Protection Agency EPA enforces and provides standards for air and water quality. www.epa.gov 7

8. Cabarrus County www.cabarruscounty.us/waste/recycling.htm l 8

9. Common Socially Responsible Practices of Businesses continued Workplace diversity exists in a company when the employees represent a variety of groups including women, ethnic groups, physically challenged, and older workers. What is an example of an organization or action that enforces workplace diversity? 9

10. WORKFORCE DIVERSITY The American with Disabilities Act (ADA) enforces regulations to accommodate people with disabilities. The Age Discrimination in Employment Act protects employees 40 or over from employment decisions based on their age. The Equal Employment Opportunity Commission (EEOC) protects against workforce discrimination. Companies providing workforce diversity training to employees. 10

11. Common Social-responsible Practices of Business continued Job Safety is ensuring work environments are risk-free of accidents. What is an example of an organization or action that enforces job safety? 11

12. What is an example of an organization or action that enforces job safety? The Occupational Safety and Health Administration (OSHA) gives surety to safe and healthful working conditions for men and women. A company’s schedule cleaning of bathrooms used by employees three times a day. Employees who work in a plant that manufactures chemical are required to wear proper clothing to protect from skin irritations 12

13. Common Socially Responsible Practices of Businesses continued Employee Wellness programs are offered by employers to maintain a healthy workforce. What are some examples of employee wellness activities? Stop smoking and weight-loss counseling 13

14. Evaluation of Social Responsibility 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. –Increase awareness of social issues among workers, consumers, and others. 14

15. Evaluation of Social Responsibility The costs of providing social programs must be realistic to allow a business to earn a profit. 15

16. Ethics What is the purpose of business ethics? Business ethics address the conduct of business and employees. 16

17. Ethics Guidelines for responsible business conduct addresses the following questions: –Is the action illegal? –Does the action violate professional or company standards? –Who is affected by the action and how? 17

18. Government protection 18

19. Government Protection continued How are workers protected in their work environments by the government? Safe work conditions Minimum standards for buildings, machines, and chemicals 19

20. Government Protection continued A contract is an agreement usually between two parties to exchange goods or services for something of value, usually money. What are the elements of a contract? 20

21. 6 Elements of a Contract 1.Offer –Proposal by one party to another with intent to create a legal binding agreement 2.Acceptance –an unqualified willingness to go along with the offer 3.Genuine Agreement –if a valid offer is met by a valid acceptance then a genuine agreement exists –Can be destroyed by fraud, misrepresentation, duress, or undue influence 21

22. 4. Capacity –Legal ability to enter into a contract –Ex Minor, mentally ill, drunk, drugs 5. Consideration –Must exchange something of value in order to create a bond 6. Legality –Must be permitted by law –Courts will not enforce an illegal contract 22

23. Government Protection continued The government enforces contracts between businesses and individuals by ensuring agreed upon work and the exchange of money or other means are completed. Examples of when contracts are used: –Buying an automobile –Leasing a building –Buying inventory 23

24. Oral vs. Written Contracts Statute of Frauds – Requires that some contracts must be in writing Contracts to pay debts of others Contracts to pay debts of deceased persons Contracts requiring more than a year to perform Contracts to sell real property Contracts for sale of goods over $500 Prenuptial contract (contemplation of marriage) 24

25. Government Protection continued Intellectual property protected by the government are: –Copyrights (creative works of artists, authors) Lifetime + 70 years –Patents (right to make, use or sell the item for 17 years) –Trademarks (registered words, letters or symbols 25

26. Copyright: Published poem titled Still I Rise by poet Dr. Maya Angelou Patents: Nike’s production of the footwear Trademarks: Starbucks symbol found on coffee cups 26 Examples of Intellectual Property

27. Consumer Bill of Rights 27

28. Consumer Bill of Rights What is the purpose of the consumer bill of rights? The consumer bill of rights protects consumers from unfair business practices. 28

29. Consumer Bill of Rights continued The Right to Be Informed –Consumers have the right to be informed of what a product is and its functions. The Right to Safety –Consumers have the right to be protected from harm while using a product or service. 29

30. Consumer Bill of Rights continued The Right to Choose –Consumers have the right to choose what to buy among a variety of products and services. The Right to Be Heard –Consumers have the right to talk with businesses about products or services they offer. Consumers may share their comments, complaints, concerns, or questions. 30

31. Consumer Bill of Rights continued The Right to a Remedy –Consumers are assured that they can seek legal remedy when they encounter a problem or defective product. –What is a guarantee? (A promise that a product meets certain quality.) –What is the difference between an express and an implied warranty? 31

32. Consumer Bill of Rights continued The Right to Consumer Education –Consumers have the right to be informed about how their purchasing decisions impact them personally and the economy. The Right to Service –Consumers have the right to receive goods and services at the promised level by companies. 32

33. Express vs. Implied warranty An express warranty is a verbal promise by a company about the specific quality performance of a product. An implied warranty may not be verbally communicated but is understood to apply anyway. 33

34. Government regulation and assistance 34

35. Government Regulation and Assistance Why does the government regulate utility companies? The government regulates utility companies to promote business practices such as fair rates and services. Utility companies are usually a monopoly in the area it serves. Ex. Time Warner Cable, Duke Power 35

36. How does the government prevent unfair business practices? The antitrust laws encourage competition and fairness among businesses and avoid monopolies. These laws avert false advertising, deceptive pricing, and misleading labeling. www.ftc.gov 36

37. Government assist businesses by –Providing them demographic information –Buying goods and services from them –Employing workers who can buy goods and services from them 37