CHAPTER
4
SLIDE 1
CHAPTER
4
Social Responsibility of
Business and Government
4-1
Social Responsibility and Business
Ethics
4-2
Government Protection Activities
4-3
Government Regulation and
Assistance
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
4-1
Social Responsibility
and Business Ethics
Goal 1 Describe social responsibility
issues.
Goal 2 Identify benefits and costs of social
responsibility.
Goal 3 Explain the purpose of a code of
ethics.
© 2012 Cengage Learning. All Rights Reserved.
SLIDE 2
CHAPTER
4
SLIDE 3
KEY TERMS
● social responsibility
● non-renewable resource
● ethics
● business ethics
● code of ethics
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Principles of Business, 8e
CHAPTER
SOCIAL RESPONSIBILITY
ISSUES
4
SLIDE 4
● Environmental protection
● Workplace diversity
● Job safety
● Employee wellness
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Principles of Business, 8e
CHAPTER
4
SLIDE 5
Checkpoint 
● What are four areas of social
responsibility that may require the
attention of business?
● Environmental protection
● Workplace diversity
● Job safety
● Employee wellness
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
SOCIAL RESPONSIBILITY
EVALUATION
4
SLIDE 6
● 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
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Principles of Business, 8e
CHAPTER
SOCIAL RESPONSIBILITY
EVALUATION
4
SLIDE 7
(continued)
● Costs
● New nonpolluting or safer equipment
● Building repairs to remove risks
● Wellness and rehabilitation programs
● Social projects sponsored by a company
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 8
Checkpoint 
● 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
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 9
BUSINESS ETHICS
● Code of ethics
● Ethical conduct guidelines
● Is the action legal?
● Does the action violate professional or
company standards?
● Who is affected by the action and how?
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Principles of Business, 8e
CHAPTER
GUIDELINES FOR WRITING
A CODE OF ETHICS
4
SLIDE 10
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.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 11
Checkpoint 
● 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.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
4-2
Government
Protection Activities
Goal 1 Identify the roles and levels of
government.
Goal 2 Explain the role of government
protection and the legal system in
business.
Goal 3 Describe types of intellectual property.
© 2012 Cengage Learning. All Rights Reserved.
SLIDE 12
CHAPTER
4
SLIDE 13
KEY TERMS
● contract
● patent
● copyright
● trademark
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Principles of Business, 8e
CHAPTER
4
SLIDE 14
GOVERNMENT IN SOCIETY
● Government plays a role in all economic
systems.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 15
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
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 16
LEVELS OF GOVERNMENT
● Federal government
● State government
● Local government
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Principles of Business, 8e
CHAPTER
4
SLIDE 17
FEDERAL GOVERNMENT
● Oversees the activities that involve two or
more states or other countries.
● Regulates foreign and interstate
commerce
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 18
STATE GOVERNMENTS
● Regulate business actions within their own
borders
● Assign some of their legislative power to
local governments
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Principles of Business, 8e
CHAPTER
4
SLIDE 19
LOCAL GOVERNMENTS
● Include county boards and city or town
councils
● Provide services needed for an orderly
society, such as police and fire protection
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
Checkpoint 
4
SLIDE 20
● What are the three levels of
government?
● Local
● State
● Federal
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Principles of Business, 8e
CHAPTER
GOVERNMENT PROTECTION
ACTIVITIES
4
SLIDE 21
● Worker protection
● Contract enforcement
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 22
CONTRACT BASICS
Valid, enforceable contracts must contain:
Agreement
An offer must be made, and an acceptance must
occur.
Competent Parties
Those entering into the contract must be of legal
age and must be mentally competent.
Consideration
Something of measurable value must be
exchanged by the parties involved.
Legality
The contract must be for a product or service
that may be legally sold; also no fraud or
deception exists in the agreement.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
Checkpoint 
4
SLIDE 23
● What are the main elements of a
contract?
● Agreement
● Competent parties
● Consideration
● Legality
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
PROTECTION OF
INTELLECTUAL PROPERTY
4
SLIDE 24
● Patents
● Copyrights
● Trademarks
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 25
Checkpoint 
● What are three types of intellectual
property?
● Patents
● Copyrights
● Trademarks
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
4-3
Government Regulation
and Assistance
Goal 1 Explain actions by government to
regulate business.
Goal 2 Discuss efforts of government to
assist businesses.
Goal 3 Identify methods used by
government to raise money.
© 2012 Cengage Learning. All Rights Reserved.
SLIDE 26
CHAPTER
4
SLIDE 27
KEY TERMS
● public utility
● monopoly
● antitrust laws
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Principles of Business, 8e
CHAPTER
4
SLIDE 28
REGULATORY ACTIVITIES
● Regulation of utilities
● Prevent unfair business practices
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 29
Checkpoint 
● 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.
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Principles of Business, 8e
CHAPTER
GOVERNMENT ASSISTS
BUSINESS
4
SLIDE 30
● Government buys goods and services
● Government employs workers
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 31
Checkpoint 
● 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.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
GOVERNMENT RAISES
MONEY
4
SLIDE 32
● Taxes
● Borrowing
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 33
Checkpoint 
● 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.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e