slide 1 4-1 4-1social responsibility and business ethics 4-2 4-2government protection activities 4-3...
TRANSCRIPT
SLIDE 1
4-1 Social Responsibility and Business Ethics
4-2 Government Protection Activities
4-3 Government Regulation and Assistance
4C H A P T E R
Social Responsibility of Business and Government
4-1 International Business Basics Goals
1.Describe social responsibility issues
2.Identify benefits and costs of social responsibility
3.Explain the purpose of a code of Ethics
Social Responsibility Issues
Social Responsibility – refers to the duty of a business to contribute to the well-being of a community A business must weigh the interests and concerns of
many groups. Protection of the environment Inclusion of minorities and women in the workplace Employment of physical challenged and older workers Healthy and safe work environments
Environmental Protection
Conservation – saving scarce natural resources. Some natural resources can not be replaced
Non-renewable Resource – a natural resource that cannot be replaced when used up. Gas, Oil, Minerals (Copper and Iron)
Pollution occurs when the environment is tainted with the by products of human actions
Work Place DiversityBusinesses are more and more
sensitive to the role of: Women
Ethnic Groups
Physically Challenged (ADA)
Older Workers
Members of these groups must have equal access to education, training, jobs, and career advancement
Job Safety The work environment should provide full
protection from fire and other hazards Workers need to know how to manage the
unexpected Employee Training
Safety standards are regulated and enforced by agencies Occupational Safety and Health Administration
(OSHA)
Employee Wellness A healthy workforce is a productive workforce Business do a number of things to improve the
health of a work forceStop-smoking seminars Counseling for Employees w/ drug problems Weight-loss sessions
Clauses are often included in labor contracts that relate to employees well-being
Checkpoint #1 What are four areas for social responsibility
that may require attention of business?1. Environmental Protection
2. Work place diversity
3. Job Safety
4. Employee Wellness
Social Responsibility Evaluation
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 Increased awareness of social issues among
workers, consumers, and others
Social Responsibility Evaluation
Costs New nonpolluting or safer equipment Building repairs to remove risks Wellness and rehabilitation programs Social projects sponsored by a company
Checkpoint #2 What are the main benefits of social
responsibility? 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
Business Ethics Ethics – principles of morality or rules of
conduct Business Ethics – rules about how
businesses and their employees ought to behave
A code of ethics can help a business identify proper employee behavior
Code of Ethics A set of rules for guiding the actions of
employees or members of an organizationAddress topics such as confidentiality of
business information Even with a code of ethics, the choice of
proper behavior cause dilemmas for decision makers within a business
Ethical Conduct Guidelines
Ethical conduct of a business is greatly determined by its top management
Ethical conduct 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 ETHICS1. 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 #3 What is the purpose of a code of
ethics?The purpose of a code of ethics is to guide
actions and decisions of employees or members of an organization.
4-2 Government Protection and Activities
Goals 1.Identify the roles and levels of
government
2.Explain the role of government protection and the legal system in business
3.Describe types of intellectual property
Government in Society Government plays a role in all economic
systems Our role as a citizen and voter has an effect
on the decisions and actions taken by government
The role of government in the economy often changes as newly elected officials take office.
Roles of Government Providing services for members of society
Protecting citizens, consumers, businesses, and workers
Regulating utilities and promoting competition
Providing information and support to businesses
Buying goods and services Hiring public employees Raising revenue
Levels of Government
Federal Government – to oversea the activities that involve two or more states or other countries Interstate Commerce – business dealings involving companies in
more than one state
State Government – regulate business actions within there own boarders Intrastate Commerce – business dealings involving companies that
do business in only one state
Local Government – include county boards and city or town councils
Checkpoint #4 What are the three levels of
government?LocalStateFederal
Government Protection Activities
Government protects your rights in a number of ways: Citizens are protected through police and fire-
fighting services The armed forces provide for national defense National security is a chief concern of the federal
government
Worker Protection As a worker, you have a basic right to safe
working conditions Government inspection and regulation of work areas help
reduce the number of job-related accidents
More government regulations result from the need to protect the basic human rights for workers
Contract Enforcement
Contract – an agreement to exchange goods or services for something of value, usually moneyContracts could be written or unwritten 4 basic elements to be enforceable:
1. Agreement
2. Competent Parties
3. Consideration
4. Legality
Legal System Enforces laws and government regulations Two types of cases:
1. Criminal Case – brought for violations of criminal laws
2. Civil Case – have a plaintiff who asks the courts to take action against a defendant
Checkpoint #5 What are the main elements of a
contract?AgreementCompetent partiesConsiderationLegality
Protection of Intellectual Property
Intellectual Property – is purely intangible, with no physical characteristics – a person can not touch it. Patent – gives the inventor the sole right to
make, use, or sell the item for 20 years Copyright – protects the creative work of
authors, composers, and artists Trademarks – a word, letter, or symbol linked
with a specific company or product.
Checkpoint #6 What are three types of intellectual
property? Patents Copyrights Trademarks
4-3 Government Regulation and Assistance
Goals 1. Explain actions by government
regulations
2. Discuss Efforts of government to assist businesses
3. Identify methods used by government to raise money
Regulatory Activities Business activity in the United States is
structured as a private enterprise or free market system Private organizations own the factors of productions
Government does not get involved in some areas of business activities. Regulating Utilities
Preventing Unfair Business Practices
Regulation of Utilities
Most goods and services you use come from private businesses (mostly free of gov’t regulation)
Public Utility – an organization that supplies a service or product vital to all people Local telephone service, water, and electricity
Government closely regulates utility companies
Prevent Unfair Business Practices
Monopoly – exists when a business has control of the market for a product or service When competition is present, consumers get best values
are fairest prices
Antitrust Laws – prevent unfair business practices such as false advertising, deceptive pricing, and misleading labeling.
Checkpoint #7 Why does government regulate
utilities? Reasons for government regulation of utilities
might include the assurance of fair prices, the conservation of resources, and to avoid overcrowding of utility poles and other facilities, such as power plants.
Government Assists Business
Government helps businesses by collecting and reporting valuable information. Incomes, prices, worker availability, and business failures.
Census can help a business decide where a majority of potential customers live.
Federal Government through the SBA, helps new businesses get started by guaranteeing private bank loans
Government Buys Goods and Services
Government spends a great deal of money each day on an array of products and services Total federal, state, and local government spending make up
about 20% of all goods and services produced in U.S.
Government is a key economic force
Many businesses depend on government contracts for their survival Government pays businesses to construct highways and
build schools
Government Employs Workers
Government is the single largest employer in the U.S. Economy About 16% of workers are public workers
Government also employs the same types of workers as private businesses Administrative assistants, lawyers, teachers, meat
inspectors, and data analysts
Checkpoint #8 How does government assist business?
The government assists businesses in a variety of ways, including providing demographic data, buying goods and services, and employing workers who then have the means to buy goods and services.
Government Raises Money
Government income is called Revenue Taxes and Borrowing
Governments can raise revenue by: Fines for traffic violations Fees and licenses
Taxes Government creates Tax policies to pay for the
services it provides Earnings, property, sale price of goods and services
Income Tax – levied on the income of individuals Largest source of revenue for government
Property Tax – based on the value of land and buildings
Sales Tax – state or local tax on goods and services that is collected by the seller.
Borrowing Government borrows money by selling
bonds Banks, insurance companies, and other financial
institutions help finance governments by purchasing bonds in large numbers
By borrowing money, the government becomes a debtor and must pay interest on its debt.
Checkpoint #9 What is the difference between tax
revenue and borrowing by government?Tax revenue is money the government
collects to cover the costs of services. This is money that the government is not
required to pay back. The government is required to pay back
money borrowed.