Lesson Plan —Unit One International and Domestic Business
Course Title: Principles of Business, Marketing, and Finance
Session Title: Lesson Five -Economic and Ethical Activity in a Changing World
Performance Objective:
• Upon completion of this lesson, the student will recognize how changing
economic conditions, business ethics, and social responsibility impact
businesses.
Specific Objectives:
• Identify how economic activity is measured.
• Explain how inflation and deflation work.
• Discuss the four phases of the business cycle.
• Explain business ethics.
• Give reasons why ethical behavior is good for business.
• Define social responsibility.
• Describe the social responsibilities of businesses.
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to
the activities may result in the elimination of any or all of the TEKS listed.
• 130.112(c)(1)(G)
describe factors that affect the environment
• 130.112(c)(1)(H)
explain how organizations adapt to current markets
• 130.112(c)(2)(A)
distinguish between ethical and unethical business practices
• 130.112(c)(2)(B)
contrast ethical, moral, and legal choices that relate to the decision-making
process in business situations
• 130.112(c)(3)(B)
identify business cycles
• 130.112(c)(3)(E)
Investigate potential causes of economic decisions such as supply and demand
or consumer dollar votes
Interdisciplinary Correlations:
English
110.42(b)(6)(A) – Vocabulary Development
…expand vocabulary through wide reading, listening, and discussing
110.42(b)(6)(B) – Vocabulary Development
… rely on context to determine meanings of words and phrases such as figurative
language, idioms, multiple meaning words, and technical vocabulary
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110.42(b)(7)(F) – Reading/comprehension
…identify main ideas and their supporting details
110.42(b)(7)(G) – Reading/comprehension
…summarize texts
110.42(b)(7)(J) – Reading/comprehension
…read silently with comprehension for a sustained period of time
Interdisciplinary Correlations:
Mathematical Models with Applications
111.36(c)(1)(A) – Knowledge and Skills
…compare and analyze various methods for solving a real-life problem.
111.36(c)(1)(B) – Knowledge and Skills
…use multiple approaches (algebraic, graphical, and geometric methods) to solve
problems from a variety of disciplines
111.36(c)(1)(C) – Knowledge and Skills
…select a method to solve a problem, defend the method, and justify the
reasonableness of the results
111.36(c)(6)(A) – Knowledge and Skills
…analyze methods of payment available in retail purchases and compare relative
advantages and disadvantages of each option.
111.36(c)(7)(A) – Knowledge and Skills
…analyze types of savings options involving simple and compound interest and
compare relative advantages of these options.
Accommodations for Learning Differences:
It is important that lessons accommodate the needs of every learner. These lessons
may be modified to accommodate your students with learning differences by referring to
the files found on the Special Populations page of this website.
References:
1. Introduction to Business, Brown Clow, Glencoe McGraw-Hill
2. Intro to Business, Dlabay Burrow Klendl, South-Western Cengage Learning
3. Online Resources: globaledge.msu.edu, worldnetdaily.com/news/article
Instructional Aids:
1. “Economic and Ethical Activity in a Changing World” PowerPoint Presentation
2. Business Cycle Presentation Assignment #1
3. Business Cycle Presentation Assignment #1 Rubric
4. Code of Ethics Brochure Assignment #2
5. Code of Ethics Brochure Assignment #2 Rubric
6. Growing Debt Assignment #3
7. Growing Debt Assignment #3 Rubric
8. Internet
Materials Needed:
1. Construction paper
2. Scissors and glue
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3. Poster board
4. Newspapers
Equipment Needed:
1. Computers for students to complete projects
2. Projector for PPT
Learner Preparation:
1. Ask students to write about a time when they were tempted to do something
unethical at school, work, or in the business community. Then explain what
influenced their decision. Discuss how individuals are faced with ethical issues
on a daily basis.
2. Ask students to list two legal, two social, two customer, and two employee
responsibilities for a business. Explain why each responsibility is important and
what the business can do to accomplish the responsibilities.
Lesson Plan
Introduction (LSI Quadrant I):
1. The unemployment rate is an indication of how business-people, investors, and
the government predict economic conditions. High unemployment figures usually
indicate that the economy is contracting. Ask students to research current
economic conditions to suggest what can be done to improve the rate of
employment.
2. Recession can have an impact on the fashion industry. The recession-conscious
public resulted in fashion designers scaling back on trendy lines because
consumers had tight budgets. Many of the top-name designers like Ralph Lauren
introduced classic lines and colors to satisfy people’s need to buy clothes that
would stay fashionable for three or four years. Ask students to consider their
wardrobes and to list items that will stay in style for three or four years.
3. Ask students for examples from their own life as a customer or as a worker of
both good and bad ethical business practices. Then give students the following
scenario. “You’re stranded on a small island with three other people. What
personal traits would you want the other three people to possess. List the traits
chosen by students. Then ask how this scenario relates to the workplace.
Important Terms for this Lesson:
• Gross domestic product – the total value of the goods and services produced in a
country in one year
• Standard of living – the amount of goods and services the people of a country
can buy
• Inflation – a general increase in the cost of goods and services
• Deflation-a general decrease in the cost of goods and services
• Budget deficit-when the government spends more on programs than it collects in
taxes, or expenses exceed income
• National debt-the total amount of money owed by the federal government
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Budget surplus-when the government collects more in taxes than it spends on
programs, or income exceeds expenses
Business cycle-the rise and fall of economic activity over time
Recession-a decline in economic activity
Depression-a deep, long-term decline in economic activity
Recovery-a rise in business activity after a recession or depression
Ethics-a set of moral principles by which people conduct themselves personally,
socially, or professionally
Business ethics-the rules that govern how businesses should conduct
themselves
Sweatshops-factories that pay poorly, have unsafe working conditions, and treat
workers badly
OSHA-a division of the Department of Labor that sets and enforces work-related
health and safety rules
Code of ethics-a strict set of guideline in a profession or company for upholding
ethical behavior in the workplace
Social responsibility-the obligation to do what is best for the welfare of society
Conflict of interest-when a business puts its interests before the interests of
society
Food and Drug Administration-a government agency that protects consumers
from dangerous or falsely advertised products
Equal Pay Act-a federal law against denying credit on the basis of gender, age,
ethnicity, or other difference
Environmental Protection Agency (EPA)-a federal law that enforces rules to
protect the environment and control pollution
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Outline
Outline (LSI Quadrant II):
Instructors can use the PowerPoint presentation, slides, handouts, current events, the
Internet, and note pages in conjunction with the following outline.
MI
.
Outline
I. Economic Measurements in a Changing World
A. Gross Domestic Product-total value of
goods and services produced in a country
in a given year
1. consumer goods and services
2. business goods and services
3. government goods and services
4. goods and services sold to other
countries
B. Unemployment Rate
C. Rate of Inflation-rate at which the cost of
goods and services rise
D. Standard of Living-amount of goods and
services the average citizen can buy
E. Deflation-when the supply of goods is
greater than the demand
F. National Debt
1. Budget deficit-when the government
spends more on programs than it collects
in taxes
2. National debt-total amount of money a
government owes
3. Budget surplus-when a government’s
revenue exceeds its expenditures during
a one year period
II. Four Phases of the Business Cycle
A. Prosperity-peak of economic activity
B. Recession-economic slowdown
C. Depression-a deep recession that affects
the entire economy and lasts for several
years
D. Recovery-the rise in business activity after a
recession or depression
III. Ethics-set of moral principles by which people
conduct themselves personally, socially, or
professionally
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Notes to Instructor
Explain how
international
business has
affected gross
domestic product in
both a positive and
negative way.
Ask students to
explain how an
increasing
unemployment rate
has a domino affect
on the economy.
Give each student a
piece of construction
paper that they
divide into four
window panes. Each
window pane should
illustrate the four
phases of the
business cycle,
using pictures and
text.
Explain how bribery
is expected in
business
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A. Businesses have a legal responsibility to do
what is right for society’s welfare
B. Business Ethics-a set of laws about how a
business should conduct itself
C. Unethical Business Practices
1. bad for business
2. affects a business’s profits, customer
base, and employee loyalty
3. sweatshops-factories that have unsafe
working conditions, treat workers badly,
and pay poorly
D. Important Ethical Questions
1. Is it against the law?
2. What if everyone did this?
3. Am I sacrificing long-term benefits for
short-term gains?
E. Making Decisions on Ethical Issues
1. Identify the ethical dilemma.
2. Discover alternative actions.
3. Decide who might be affected.
4. List the probable effects of the
alternatives.
5. Select the best alternative.
F. Social Responsibility
1. duty to do what is best for the good of
society
2. businesses have a responsibility to
consumers, workers, and society
G. Government Responsibility to Customers
1. FDA (Food and Drug Administration)
2. FTC (Federal Trade Commission)
3. Consumer Product Safety Commission
(CPSC)
4. USDA (United States Department of
Agriculture)
H. Responsibility to Employees
1. Equal Pay Act
2. OSHA-division of the Department of
Labor (sets and enforces work-related
health and safety rules
I. Responsibility to Society
1. EPA (Environmental Protection Agency)
2. Saving energy, recycling
J. Conflict of Interest-when a business is
tempted to put profits before social welfare
Copyright © Texas Education Agency, 2011. All rights reserved.
transactions for
some countries.
Then ask students if
U.S. businesses
should resort to
bribery to increase
the GDP.
Ask students to list
three ethical issues
that they have made
decisions about.
Then explain how
ethics involves doing
the right thing when
it is more attractive
to do the unethical
activity.
Ask students to list
the four government
agencies listed
under G. Then have
students explain the
consumer protection
role for each agency.
Ask students to list
three responsibilities
that employers have
for employees. Then
ask students to list
three responsibilities
employees have to
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the employer.
IV. Adapting to Current Markets
1. meeting the challenges of international
competition
2. overcoming economic conditions
3. adjusting to changing government demands
4. adjusting the workforce to different
economic conditions
Ask students to list
one international,
economic,
governmental, and
workforce challenge
facing businesses in
today’s changing
marketplace.
Copy and paste Multiple Intelligences Graphic in appropriate place in left column.
Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
InterPersonal
Naturalist
Existentialist
Application
Guided Practice (LSI Quadrant III): Ask students to conduct research to learn about
the Code of Ethics for a chosen business. Students will share Ten Points about the
Code of Ethics with the class. Ask students to explain the social responsibility of
businesses to consumers and society.
Independent Practice (LSI Quadrant III):
1. Business Cycle Presentation Assignment: Ask students to prepare a
PowerPoint presentation that explains the four phases of the business cycle. The
presentation should not only describe each phase, but also give concrete
examples of activities that happen/don’t happen during each phase. The
presentation will be evaluated using the assigned rubric.
2. Code of Ethics Brochure Assignment: Ask students to design a concrete
Code of Ethics brochure for a selected business to distribute to employees. The
brochure should have at least 10 points for a solid Code of Ethics. The brochure
will be evaluated using the assigned rubric.
3. Growing Debt Assignment: Ask students to use the Internet to find the dollar
amount of the current national debt. Also look up the debt for the past ten years.
Then find the amount of projected debt for the next five years. Prepare a
PowerPoint presentation that explains the growing national debt, what needs to
be done to reduce the national debt, and the dangers associated with such a
large debt. The presentation will be evaluated using the assigned rubric.
Summary
Review (LSI Quadrants I and IV):
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Q:
A:
Q:
A:
What are the four phases of the business cycle?
The four phases are prosperity, recession, depression, and recovery.
What do economic indicators measure?
Economic indicators measure how much a country is producing, whether its
economy is growing, and how it compares with other countries.
Q: What is one very important measure of a country’s economic health?
A: Level of productivity is an important measure of the country’s economic health.
Q: What do changes in the unemployment rate indicate?
A: The unemployment rate indicates whether an economy is picking up or slowing
down.
Q: What is the main source of income for the U.S. government?
A: The main source of income is taxes.
Q: What is the difference between a recession and a depression?
A: Economic activity slows down for the short term with recession. High unemployment
and little productivity occur during a depression.
Q: What are ethics?
A: Ethics are principles you live by and conduct yourself.
Q: How do most businesses police themselves?
A: Businesses police themselves with a code of ethics.
Q: When does a conflict of interest occur?
A: Conflict of interest occurs when there is a conflict between social well-being and
personal gain.
Q: What is the purpose of the Food and Drug Administration?
A: The purpose of the FDA is to protect consumers from unsafe food and drugs and to
regulate the industry.
ENVIRONMENTAL RESPONSIBILITY
Ask students to choose a business and list environmental issues that challenge the
business. What is the business currently doing to address environmental issues and
what additional strategies can be implemented to protect the environment.
Evaluation
Informal Assessment (LSI Quadrant III):
1. Instructor will observe students during Independent Practice.
2. Instructor will assist students as needed.
Formal Assessment (LSI Quadrant III, IV):
Assigned Rubrics will be used to assess assignments 1, 2, and 3 for Independent
Practice (LSI Quadrant III).
Extension/Enrichment (LSI Quadrant IV):
1. Ask students to develop Top Ten Code of Ethics for the class. After the teacher
has approved the Code of Ethics, students will design a poster and make
multiple copies to display in classrooms throughout the school. The code of
ethics must include: (1) purpose of the code, (2) rules for classroom behavior, (3)
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8
rules for making ethical decisions, and (4) consequences for breaking rules.
2. Ask students to monitor the activities of their elected officials. Students must list
issues tackled by representatives and predict whether the actions taken will help
or hurt the economy. Students must give solid rationale for their point of view.
3. Ask students to research the NCAA to determine the code of ethics for college
athletes. Then type a two-page paper that explains the code of ethics and
temptations faced by college athletes, coaches, and contributors to athletic
programs.
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Economic and Ethical Activity in a Changing World
Independent Practice Assignment Sheet
Business Cycle Presentation Assignment #1: Prepare a PowerPoint presentation
that explains the four phases of the business cycle. The presentation should not
only describe each phase, but also give concrete examples of activities that
happen/don’t happen during each phase. The presentation will be evaluated
using the assigned rubric.
Code of Ethics Brochure Assignment #2: Design a concrete Code of Ethics
brochure for a selected business to distribute to employees. The brochure should
have at least 10 points for a solid Code of Ethics. The brochure will be evaluated
using the assigned rubric.
Growing Debt Assignment #3: Use the Internet to find the dollar amount of the
current national debt. Also look up the debt for the past ten years. Then find the
amount of projected debt for the next five years. Prepare a PowerPoint
presentation that explains the growing national debt, what needs to be done to
reduce the national debt, and the dangers associated with such a large debt. The
presentation will be evaluated using the assigned rubric.
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10
Economic and Ethical Activity in a Changing World
Business Cycle Presentation Assignment #1 Rubric
Student Name:
_____________________________________________________
20
15
10
5 or less
Content
Covers topic indepth with details
and examples.
Subject knowledge is
excellent.
Includes essential
knowledge about the
topic. Subject
knowledge appears
to be good.
Includes essential
information about
the topic but there
are 1-2 factual
errors.
Content is minimal
OR there are several
factual errors.
Organization
Content is well
organized using
headings or bulleted
lists to group related
material.
Uses headings or
bulleted lists to
organize, but the
overall organization
of topics appears
flawed.
Content is logically
organized for the
most part.
There was no clear
or logical
organizational
structure, just lots of
facts.
Attractiveness
Makes excellent use
of font, color,
graphics, effects,
etc. to enhance the
presentation.
Makes good use of
font, color, graphics,
effects, etc. to
enhance to
presentation.
Makes use of font,
color, graphics,
effects, etc. but
occasionally these
detract from the
presentation content.
Use of font, color,
graphics, effects etc.
but these often
distract from the
presentaion content.
Originality
Product shows a
large amount of
original thought.
Ideas are creative
and inventive.
Product shows some
original thought.
Work shows new
ideas and insights.
Uses other people's
ideas (giving them
credit), but there is
little evidence of
original thinking.
Uses other people's
ideas, but does not
give them credit.
Presentation
Well-rehearsed with
smooth delivery that
holds audience
attention.
Rehearsed with fairly
smooth delivery that
holds audience
attention most of the
time.
Delivery not smooth, Delivery not smooth
but able to maintain and audience
interest of the
attention often lost
audience most of the
time.
CATEGORY
Total Score _______
Maximum 100 Points
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11
Economic and Ethical Activity in a Changing World
Design a Code of Ethics Brochure Assignment #2
Student Name:
_____________________________________________________
CATEGORY
Content Accuracy
20
15
10
5 or less
All facts in the
brochure are
accurate.
99-90% of the facts
in the brochure are
accurate.
89-80% of the facts
in the brochure are
accurate.
Fewer than 80% of
the facts in the
brochure are
accurate.
Attractiveness & The brochure has
exceptionally
Organization
attractive formatting
and well-organized
information.
The brochure has
The brochure has
attractive formatting well-organized
and well-organized information.
information.
The brochure's
formatting and
organization of
material are
confusing to the
reader.
Writing Mechanics
Capitalization and
punctuation are
correct throughout
the brochure.
Capitalization and
punctuation are
correct throughout
the brochure after
feedback from an
adult.
There are 1-2
capitalization and/or
punctuation errors in
the brochure even
after feedback from
an adult.
There are several
capitalization or
punctuation errors in
the brochure even
after feedback from
an adult.
Knowledge
Gained
All students in the
group can accurately
answer all questions
related to facts in the
brochure and to
technical processes
used to create the
brochure.
All students in the
group can
accurately answer
most questions
related to facts in
the brochure and to
technical processes
used to create the
brochure.
Most students in the
group can accurately
answer most
questions related to
facts in the brochure
and to technical
processes used to
create the brochure.
Several students in
the group appear to
have little knowledge
about the facts or
technical processes
used in the brochure.
Sources
Careful and accurate
records are kept to
document the source
of 95-100% of the
facts and graphics in
the brochure.
Careful and
accurate records are
kept to document
the source of 9485% of the facts and
graphics in the
brochure.
Careful and accurate
records are kept to
document the
source of 84-75% of
the facts and
graphics in the
brochure.
Sources are not
documented
accurately or are not
kept on many facts
and graphi
Total Score _______
Maximum 100 Points
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12
Economic and Ethical Activity in a Changing World
Growing Debt Presentation Assignment #3 Rubric
Student Name:
_____________________________________________________
20
15
10
5 or less
Content
Covers topic indepth with details
and examples.
Subject knowledge is
excellent.
Includes essential
knowledge about the
topic. Subject
knowledge appears
to be good.
Includes essential
information about
the topic but there
are 1-2 factual
errors.
Content is minimal
OR there are several
factual errors.
Organization
Content is well
organized using
headings or bulleted
lists to group related
material.
Uses headings or
bulleted lists to
organize, but the
overall organization
of topics appears
flawed.
Content is logically
organized for the
most part.
There was no clear
or logical
organizational
structure, just lots of
facts.
Attractiveness
Makes excellent use
of font, color,
graphics, effects,
etc. to enhance the
presentation.
Makes good use of
font, color, graphics,
effects, etc. to
enhance to
presentation.
Makes use of font,
color, graphics,
effects, etc. but
occasionally these
detract from the
presentation content.
Use of font, color,
graphics, effects etc.
but these often
distract from the
presentaion content.
Originality
Product shows a
large amount of
original thought.
Ideas are creative
and inventive.
Product shows some
original thought.
Work shows new
ideas and insights.
Uses other people's
ideas (giving them
credit), but there is
little evidence of
original thinking.
Uses other people's
ideas, but does not
give them credit.
Presentation
Well-rehearsed with
smooth delivery that
holds audience
attention.
Rehearsed with fairly
smooth delivery that
holds audience
attention most of the
time.
Delivery not smooth, Delivery not smooth
but able to maintain and audience
interest of the
attention often lost
audience most of the
time.
CATEGORY
Total Score _______
Maximum 100 Points
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13