Social Responsibility of Social Responsibility of Business and GovernmentBusiness and Government

Intro to BusinessIntro to Business

Chapter 4Chapter 4

Social Responsibility IssuesSocial Responsibility Issues

• ENVIRONMENTAL PROTECTIONENVIRONMENTAL PROTECTION

• WORKPLACE DIVERSITYWORKPLACE DIVERSITY

• JOB SAFETYJOB SAFETY

• EMPLOYEE WELLNESSEMPLOYEE WELLNESS

ENVIRONMENTAL ENVIRONMENTAL PROTECTIONPROTECTION• ConservationConservation

– Saving scarce natural resourcesSaving scarce natural resources– i.e. lumber companies with reforestation i.e. lumber companies with reforestation

programsprograms

• Non-renewable ResourceNon-renewable Resource– Cannot be replaced (oil, gas, minerals)Cannot be replaced (oil, gas, minerals)

• PollutionPollution– When environment is tainted with the by-When environment is tainted with the by-

products of human actionsproducts of human actions

WORKPLACE DIVERSITYWORKPLACE DIVERSITY

• The work force of a business should The work force of a business should reflect the range of groups in a reflect the range of groups in a communitycommunity

• EOEEOE = Equal Opportunity of Employment = Equal Opportunity of Employment

• Americans with Disabilities Act Americans with Disabilities Act (ADA) & Age Discrimination in (ADA) & Age Discrimination in Employment ActEmployment Act

JOB SAFETYJOB SAFETY

• OSHAOSHA – Occupational Safety and Health – Occupational Safety and Health AdministrationAdministration

• Workplace should provide full Workplace should provide full protection from fire and other hazards protection from fire and other hazards and trainingand training

• How to manage the unexpectedHow to manage the unexpected

EMPLOYEE WELLNESSEMPLOYEE WELLNESS

• Healthy = Productive!!Healthy = Productive!!

• Stop-smoking seminars, counseling Stop-smoking seminars, counseling for employees with drug problems, for employees with drug problems, weight-loss sessionsweight-loss sessions

• Exercise, gyms, sponsored teamsExercise, gyms, sponsored teams

Benefits vs. CostsBenefits vs. Costs

BENEFITSBENEFITS• Expanded justice for Expanded justice for

groups of societygroups of society• Enhanced imageEnhanced image• No need for No need for

government actionsgovernment actions• Improved quality of Improved quality of

lifelife• Increased Increased

awarenessawareness

COSTSCOSTS• Increased spendingIncreased spending• Decrease of profitsDecrease of profits

ETHICSETHICS

• Principles of morality or rules of Principles of morality or rules of conductconduct

• A A code of ethicscode of ethics is a set of rules for is a set of rules for guiding the actions of employeesguiding the actions of employees

• Must be worded in terms of acceptable Must be worded in terms of acceptable behavior rather than forbidden action. behavior rather than forbidden action. Why??Why??

ETHICAL GUIDELINESETHICAL GUIDELINES

• Is the action legal?Is the action legal?

• Does the action violate professional Does the action violate professional or company standards?or company standards?

• Who is affected by the action and Who is affected by the action and how?how?

Conflict of InterestConflict of Interest

• When an action by a company or individual When an action by a company or individual results in an unfair benefitresults in an unfair benefit

• Ex: Martha Stewart – stock conspiracyEx: Martha Stewart – stock conspiracy– She sold stock of ImClone a day before the FDA She sold stock of ImClone a day before the FDA

was to reject their application for a cancer drug was to reject their application for a cancer drug and after learning that the CEO dumped $7.5 and after learning that the CEO dumped $7.5 million of his stockmillion of his stock

– What’s the problem??? They were good friends!What’s the problem??? They were good friends!

Government and Government and CommerceCommerce• Interstate CommerceInterstate Commerce

– Business dealings involving companies in more Business dealings involving companies in more than one statethan one state

– The federal government would regulate a The federal government would regulate a trucking company that ships over many statestrucking company that ships over many states

• Intrastate CommerceIntrastate Commerce– Business dealings involving companies within Business dealings involving companies within

one stateone state– A trucking company that only ships within one A trucking company that only ships within one

state would be regulated by that statestate would be regulated by that state

ContractsContracts

• An agreement to exchange goods or An agreement to exchange goods or services for something of valueservices for something of value

• May be written or unwrittenMay be written or unwritten– AGREEMENTAGREEMENT– COMPETENT PARTIESCOMPETENT PARTIES– CONSIDERATIONCONSIDERATION– LEGALITYLEGALITY

Protecting Intellectual Protecting Intellectual PropertyProperty• Purely intangible (ideas, methods, Purely intangible (ideas, methods,

statements, etc…)statements, etc…)

• PatentPatent – inventor has sole right to make, – inventor has sole right to make, use, or sell the item for 17 yearsuse, or sell the item for 17 years

• Copyright Copyright – creative works of authors, – creative works of authors, composers, and artists for life of person composers, and artists for life of person plus 50 yearsplus 50 years

• TrademarkTrademark – word, letter, or symbol – word, letter, or symbol linked to a specific company or productlinked to a specific company or product

Can Gov’t Regulate Can Gov’t Regulate Business?Business?• Even though we have a “free market” Even though we have a “free market”

system, government can regulate certain system, government can regulate certain aspects of businessaspects of business

• Public Utility – an organization that supplies Public Utility – an organization that supplies a service or product vital to all peoplea service or product vital to all people– Telephone, water, electricityTelephone, water, electricity– Imagine what it would be like if there were 6 Imagine what it would be like if there were 6

different electric companies in Honeoye Fallsdifferent electric companies in Honeoye Falls

MonopolyMonopoly

• A monopoly exists when one business A monopoly exists when one business has total control of the market for a has total control of the market for a product or serviceproduct or service– Why is this illegal??Why is this illegal??– Is Microsoft a monopoly?Is Microsoft a monopoly?

Antitrust Laws = prevent unfair business Antitrust Laws = prevent unfair business practices such as false advertising, practices such as false advertising, deceptive pricing, and misleading labelingdeceptive pricing, and misleading labeling

Government Assisting Government Assisting BusinessBusiness• They collect data (census information)They collect data (census information)• They buy goods and services (20%)They buy goods and services (20%)• They employ workers – largest They employ workers – largest

employer in our economy (1 in 9 employer in our economy (1 in 9 people)people)

• They raise money (taxes)They raise money (taxes)– Income taxesIncome taxes– Property taxesProperty taxes– Sales taxesSales taxes