Chapter 4Social Responsibility

Social Responsibility Issue Social Responsibility: - refers to the duty of a

business to contribute to the well-being of a community. In considering its responsibility to society, a

business must weigh the interests and concerns of many groups.

A broadened view of social responsibility of business calls for more attention to social concern.

This includes protection of the environment, inclusion of minorities and women in the workplace, employment of physically challenged and older workers, and a healthy and safe work environment

Environmental ProtectionConservation: - is saving scarce natural resources. It is a goal of many companies.

Ex. Lumber companies that consume trees have forestation programs.

Some natural resources cannot be replaced.A non-renewable resource: - is a natural resource that cannot be replaced when used up.

Ex, gas, oil, and minerals, such as copper and iron ore.

Environmental Protection

Pollution: - occurs when the environment is tainted with the by-products of human actions. Some production methods cause pollution of lakes,

rivers, and air. A socially responsible business takes action to

improve or change operations that cause pollution. Ex. engineers design new equipment for reducing

pollution. The federal government has set measurable

standards for water and air quality.The Environmental Protection Agency (EPA): monitors and enforces those together to reduce pollution.

They try to make the environment healthier

Workplace Diversity Businesses are more and more sensitive to

the role of women, ethnic groups, and physically challenged and older workers.

The workforce of a business should reflect the group in a community.

Members of these groups must have equal access to education, training, jobs, and career advancement.

A major challenge facing businesses today involves learning how to manage a workforce made up of workers who represent the diverse cultures in society.

Workplace Diversity Another issue involves the removal of

employment barriers for women. Ex. employers are not allowed to exclude women

applicants from a physically demanding job unless the business can prove the job requires physical skills that women do not have.

Employers also have taken steps to accommodate individuals who are physically challenged.

Passage and enforcement of the American with disabilities Act (ADA), along with other federal and state legislation, has resulted in major improvements in accommodating workers who are physically challenged.

Workplace Diversity Buildings must have access for wheelchairs. People with sight or hearing limitation must

be accommodated on the job. Other laws have been passed to eliminate

bias against older workers. The passage of the Age Discrimination in Employment Act bars employers from using as a basis for employment decisions, including hiring, promotion, or termination form a job.

The law protects persons aged 40 and older.

Job Safety Having a safe place in which to work is

important to all employees. They should be able to work in an office or factory free from risks that could cause accidents.

The work environment should provide full protection from fire and other hazards.

In addition to protection from physical harm, workers need to know how to manage the unexpected.

Safety also involved employee training in how to work safely and what to do in case of an emergency.

Job Safety

To ensure the right to safety, most employers have put a variety of programs into practice to protect workers.

Federal and state governments have also passed law to make the workplace safer.

Safety standards are regulated and enforced by agencies such as OSHA, the Occupational Safety and Health Administration.

Employee Wellness A healthy workforce is a productive workforce. Workers who have good physical health are

valuable assets, Businesses today do a number of things to

improve health of their workforce. Among programs offered for employees with

drug problems, and weight-loss sessions, Your general well-being as an employee needs

to be protected, too. Clauses that relate to employee well-being are often included in labor contracts and company policy manuals.

Employee Wellness

These clauses are conditions of work: that pertain to the health and safety of employees while on the job.

Many companies offer programs to promote good health.

Seminars on eating a balanced diet, getting proper exercise, and maintaining a healthy lifestyle are a few examples.

Some businesses sponsor sports teams and encourage employees to take part

CheckpointWhat are the four areas of social responsibility that may require the attention of businesses?1. 2. 3. 4.

Social Responsibility Evaluation

Socially responsible actions can cause controversy.

While a number of benefits exist, these actions also have various costs

Benefits Common benefits of socially responsible

activities include the following 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.

Costs There are costs involved when a business takes

socially responsible actions. Money must be spent for new non-polluting or

safer equipment, for building repairs to remove risks, for wellness and rehabilitation programs, and for social projects sponsored by a company.

A business must make a profit to stay open. If a business does not earn a profit, the business

will close and employees will lose their jobs. Spending on social programs must be at a

suitable level so a business can still earn a reasonable profit.

Checkpoint:What are the main benefits of social responsibility?

Business Ethics A social responsible business engages in ethical

business practices. Ethics: - are principles of morality or rules of

conduct Business Ethics: - are rules about how

businesses and their employees ought to behave.

Ethical Behavior involves conforming to these rules.

Unethical behavior violates them. In dealing with Business ethics, a code of ethics

can help a business identify proper employee behavior.

Code of Ethics A Code of Ethics: - is a set of rules guiding

the actions of employees or members of an organization.

Code of Ethics addresses topics such as confidentiality of business information.

See Figure 4-1 “Guidelines for Writing a Code of Ethics”

Once established, the code should be a guide of values for all employees within that company.

Code of Ethics A code must be worded in terms of acceptable

behavior rather than forbidden action. Even with a code of ethics, the choice of proper

behavior can cause dilemmas for decision-makers within a business. Here are some examples of ethical dilemmas. Should a company expand into a profitable

market in another country where doing business requires giving expensive gifts to key government officials?

Should a company continue to produce a popular product after it discovers a minor defect in it?

Ethical Conduct Guidelines

The ethical conduct of a business is greatly determined by its top management.

Companies concerned about ethical behavior in their employees have set up educational programs on ethical conduct.

Ethical Conduct Guidelines

These programs are designed to promote employee honesty and integrity.

Program topics range from making personal phone calls during work hours to taking supplies for personal use.

Employers are also trained on how to make ethical decisions on the job.

When considering the ethics of business situations, you could follow these guidelines, Is the action legal? Does the action violate professional or company

standards? Who is affected by the action and how?

Guidelines for Writing a Code of Ethics

1. Determine the purpose of the code

2. Tailor the code to the needs and values of the organization.

3. Consider involving employees from all levels of the company in writing the

code.

4. Determine the rules or principles that all members of the organization will

be expected to adhere to

5. Include information about how the code will be enforced

6. Determine how the code will be implemented and where it will be published

or posted

7. Determine how and when the code will be reviewed and revised

Checkpoint:

What is the purpose of a code of ethics?