1. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social and Ethical Environment of Business 7.1 7.1 Human Resources 7.2 7.2 Societal Values 7.3 7.3 Ethical Issues and Social Responsibility CHAPTER 7

2. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 7.1 7.1 Human Resources GOALS ● Describe the changing nature of the U.S. worker characteristics. ● Explain the issues that businesses face with the U.S. labor force. 2 CHAPTER 7

3. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Growing population ● Growth rate determined by birth rate, death rate, & immigration ● Standard of living increases, the birth rates fall in the U.S. 3 CHAPTER 7

4. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Changing population ● 25% of Americans racially classified as non-white ● Increases the need for better cross-cultural communication ● Baby boom – high birth rate between 1945-1965 ● Large pool of workers now retiring ● Generation X – people born in the low birth rate period between 1960-1980 (baby bust) ● Caused shortage of workers ● Generation Z – higher birth rate between 1991 and the end of the millennium (millennial) ● Larger pool of potential employees 4 CHAPTER 7

5. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. Population and Growth Rate in the United States 1940 to 2010 5 CHAPTER 7

6. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Characteristics of the Workers ● Moving population ● Every year 1 out of 7 Americans move ● Frost belt – colder states in the north and northeast ● Sun belt – warmer states in the south and southwest ● Rust belt – the north central and northeastern states (where manufacturing firms once dominated) 6 CHAPTER 7

7. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Labor force – includes most people age 16 or over who are available to work (employed or unemployed) ● Labor participation rate – the percentage of adult population in the labor force 7 CHAPTER 7

8. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. U.S. Labor Force and Labor Force Participation 2001 to 2011 8 CHAPTER 7

9. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Labor participation rate is higher for men than woman (gap is narrowing) ● 1950 – 35% of women work ● 2010 – 60% of women work ● American economy is flexible in workforce & creation of new jobs (mostly in service industries) 9 CHAPTER 7

10. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. U. S. Labor Force Participation Rates 10 CHAPTER 7

11. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Poverty – people who are poorly housed, clothed, & fed ● According to Bureau of the Census, 13-15 percent of people live in poverty ● Due to Social Security, poverty among elderly is lower today than previously ● Children live in poverty due to parents lack of education & skills, also lack of affordable day-care 11 CHAPTER 7

12. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Equal employment ● Laws on discrimination based on race, gender, national origin, color, religion, age, handicap & other characteristics ● Glass ceiling – an invisible barrier to job advancement (female or African-American supervisors) ● Sticky floor syndrome – inability of workers to move up from low-paying jobs that require little skill & education (restaurant servers, sales, clerks, nurses aides) 12 CHAPTER 7

13. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Labor Force ● Comparable worth – paying workers equally for jobs with similar but not identical job requirements ● Men earn more than women ● “equal pay for comparable work” ● Work is of equal value, compare skills, physical strength, job dangers, responsibility, & education 13 CHAPTER 7

14. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 7.2 7.2 Societal Values GOALS ● Discuss how the values of Americans have changed. ● Explain how businesses have adapted to changing values. ● Describe the dilemma posed by the need for business to grow and the need to protect the natural environment. 14 CHAPTER 7

15. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Changing American Values ● Values – are underlying beliefs and attitudes ● Modern family life ● Both parents working, rising divorce rate, single-parent homes ● Birth rates decline & women delay marriage to pursue career ● 40% of women are managers earning 81 cents per every dollar earned by men ● 66% of women have associates degrees and 57 % have bachelor degrees ● Women operate a majority of small businesses 15 CHAPTER 7

16. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Changing American Values ● Sexual harassment ● Men and women working side by side ● Workplace violence ● Guns in the workplaces, schools, shopping centers, entertainment venues, transportation ● Legal liabilities ● US is lawsuit - happy 16 CHAPTER 7

17. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses ● Redesigning jobs ● Learn variety of jobs within the organization ● Increases worker’s interest ● Fill in for co-workers for tomorrow ● Work teams improve morale & quality of work 17 CHAPTER 7

18. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses ● Improving health and safety ● Wellness and fitness programs ● Unfit employees are absent more & less productive ● Incentives to stop smoking ● Employee Assistance Programs (EAP) 18 CHAPTER 7

19. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employer Responses ● Family-friendly practices ● Law requires employers to provide unpaid leave for sick children or parents, birth or adoption to take care of newborns ● Flexible schedule to accommodate family needs and lifestyle and avoid rush hours ● Telecommute – work from home or on the road, stay in contact electronically with employers 19 CHAPTER 7

20. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● Managing the environment ● Society concern of disposing consumer and industrial waste ● Recycling – reusing products and packaging whenever possible ● Trying to conserve nonrenewable resources, such as oil, natural gas, & iron ore ● Pollution causes breathing problems ● Chemical products endangers waterways and farm land, some in places entered in food chain 20 CHAPTER 7

21. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Sustainability Issues ● Controlling environmental pollution ● Government created Environmental Protection Agency (EPA) in 1974 to help control and reduce pollution in air, water, solid, waste, pesticides, noise, and radiation 21 CHAPTER 7

22. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 7.3 7.3Ethical Issues and Social Responsibility GOALS ● Describe how ethics relates to business practice. ● Suggest ways in which businesses can be socially responsible. 22 CHAPTER 7

23. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Business Ethics ● Ethics – standards of moral conduct that individuals and groups set for themselves, value what is right or wrong ● Business ethics – collection of principles and rules that define right and wrong conduct for and organization ● Not all firms have the same ethical conduct ● Code of ethics – formal, published collection of values and rules that reflect firm’s philosophy and goals 23 CHAPTER 7

24. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Business Ethics ● Ethical dilemmas ● Issues of a particular action being legal or illegal ● Values differ among nations, problems with firms in international businesses 24 CHAPTER 7

25. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social Responsibility of Business ● Social responsibility – the duty of a business to contribute to the well-being of society ● Stakeholders – individuals or groups that are affected by the firm’s actions, such as owners, customers, suppliers, employees, creditors, government, and the public 25 CHAPTER 7

26. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social Responsibility of Business ● Obligation to communities ● Donations, scholarships, training gangs, daycares ● Nongovernmental organizations (NGOs) – the conduct of business is being increasingly and closely examined by various independent groups ● Examples: American Civil Liberties Union and Sierra Club 26 CHAPTER 7

27. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Social Responsibility of Business ● The future ● Difficult to predict trends ● Internet altering business operations ● Modern innovations ● Social media, cell phones 27 CHAPTER 7