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
● Social Responsibility: the duty of a
business to contribute to the well being of
a community including
1.
2.
3.
4.
Environmental Protection
Workplace Diversity
Job Safety
Employee Wellness
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Principles of Business, 8e
CHAPTER
Environmental Protection
4
SLIDE 5
● Conservation of scarce natural resources
● Manage Resources-Reforestation
● Nonrenewable Resources-can not be replaced
● Pollution is when by-products of human actions taint
the environment.
● Pollution-improve/change operations to reduce
pollution
● EPA: monitors government standards
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Principles of Business, 8e
CHAPTER
Workplace Diversity
4
SLIDE 6
● Workforce should reflect community
● Removal of barriers for women
● Accommodate individuals who are physically
challenged
● Eliminate Bias (discrimination)
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Principles of Business, 8e
CHAPTER
Job Safety
4
SLIDE 7
● Ensure a safe work environment
● Eliminate risks that could cause accidents, fire,
and or physical harm
● Employee Training Programs
● United States, work safety standards are regulated
and enforced by the OSHA (Occupational Safety &
Health Administration)
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Principles of Business, 8e
CHAPTER
Employee Wellness
4
SLIDE 8
● Healthy workforce = productive workforce
● Assorted programs offered including stop
smoking, weight loss, employees assistance
programs, exercise/diet, etc.
● “Conditions of Work” clauses in contracts
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 9
Checkpoint 
● What are four areas of social
responsibility that may require the
attention of business?
● Environmental protection
● Workplace diversity
● Job safety
● Employee wellness
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Principles of Business, 8e
CHAPTER
SOCIAL RESPONSIBILITY
EVALUATION
4
SLIDE 10
● 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 11
(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
Checkpoint 
4
SLIDE 12
● 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 13
BUSINESS ETHICS
● Ethics: principles of morality or rules of conduct
● Business Ethics: rules about how a business
and employees ought to behave
● 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?
● Top management must model this behavior
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Principles of Business, 8e
CHAPTER
4
SLIDE 14
Conflict of Interest.
● A common concern in ethical decisionmaking involves a conflict of interest. This
can occur when an action by a company
or individual results in an unfair benefit.
● For example, it would be a conflict of interest
if a person serving on a company’s board
pressured the company to buy items only
from businesses that the board member owns
or controls.
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
GUIDELINES FOR WRITING
A CODE OF ETHICS
4
SLIDE 15
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
Checkpoint 
CHAPTER
4
SLIDE 16
● 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.
● The Code of Ethics cannot cover all
specific potential situations
● The Code is stated with positive terms
● Be Kind
not
● DON’T BE UNKIND
© 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 17
CHAPTER
4
SLIDE 18
KEY TERMS
● contract
● patent
● copyright
● trademark
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Principles of Business, 8e
CHAPTER
4
SLIDE 19
GOVERNMENT IN SOCIETY
● Government plays a role
in all economic systems.
● Changes with newly
elected officials.
● How is the governments
role similar to an
umpires?
● Ensure a fair playing
field!
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Principles of Business, 8e
CHAPTER
4
SLIDE 20
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
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Principles of Business, 8e
CHAPTER
LEVELS OF GOVERNMENT
FEDERAL GOVERNMENT
4
SLIDE 21
● Oversees the activities
that involve two or more
states or other countries.
● Regulates foreign trade
● Interstate commerce
(business dealings
between companies in two
or more states)
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Principles of Business, 8e
CHAPTER
LEVELS OF GOVERNMENT
STATE GOVERNMENTS
4
SLIDE 22
● Regulate business actions
within their own borders
● Intrastate Commerce
(business dealings involving
companies that do business
in only one state)
● Assign some of their
legislative power to local
governments
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Principles of Business, 8e
CHAPTER
LEVELS OF GOVERNMENT
LOCAL GOVERNMENTS
4
SLIDE 23
● Include county boards and city or town
councils.
● Provide services needed for an orderly
society, such as police and fire protection
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Principles of Business, 8e
CHAPTER
Checkpoint 
4
SLIDE 24
● What are the three levels of
government?
● Local
● State
● Federal
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Principles of Business, 8e
CHAPTER
GOVERNMENT PROTECTION
ACTIVITIES
4
SLIDE 25
● Worker protection
● Safe work environment
● Basic human rights of workers
● Contract enforcement
● Agreement to exchange g/s for something of
value (usually money)
● Can be written or unwritten
● Contract elements: agreement, competent
parties, consideration, legality (figure 4-2)
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
CONTRACT BASICS
4
SLIDE 26
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.
Just because its written does not make it legal…..
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
Checkpoint 
4
SLIDE 27
● 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 28
● Intellectual Property: intangible, with not physical
characteristic
● Patents: gives the inventor the sole right to make, use, or
sell the item for 20 years
● Flash Of Genius
● http://www.youtube.com/watch?v=mS7O6sF2K10
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
PROTECTION OF
INTELLECTUAL PROPERTY
4
SLIDE 29
● Copyrights: protects the creative works of
authors, composers, and artists. Extends
for 70 years after person’s death.
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Principles of Business, 8e
CHAPTER
PROTECTION OF
INTELLECTUAL PROPERTY
4
SLIDE 30
● Trademarks: word, letter or symbol linked
with a specific company or product
● Logo
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 31
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 32
CHAPTER
4
SLIDE 33
KEY TERMS
● public utility
● monopoly
● antitrust laws
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Principles of Business, 8e
CHAPTER
4
SLIDE 34
REGULATORY ACTIVITIES
● US: Private Enterprise System
● Limited Government Involvement
● Regulation of utilities (supplies a
service/product vital to all people as a
monopoly)
● Telephone/water/electric/natural gas/cable
● Privately owned company chosen to serve
community
● Rates approved by government agencies
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 35
REGULATORY ACTIVITIES
● Prevent unfair business
practices
● Fair competition
● Monopoly: exists when a
business has control of
the market for a
product/service
● Antitrust laws: prevent
false advertising,
deceptive pricing,
misleading labeling ADS
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 36
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 37
● Government collects and reports data
● Income, prices, worker availability, business
failures, etc.
● Bureau of labor statistics, Department of
Agriculture, Department of Commerce
● Small Business Administration: services
related to starting a business & keeping it
running
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Principles of Business, 8e
CHAPTER
GOVERNMENT ASSISTS
BUSINESS
4
SLIDE 38
● Government buys goods and services
● 20% of all g/s produced in US
● File cabinets to buildings to military
jets
● Government employs workers
● Single largest employer in the US
economy
● Efforts to reduce/eliminate the
number of public employees
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 39
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 40
● Government Income = revenue
● Revenue pays for services provided
● Fines/fees/licensing
● Taxes
● Income tax, sales tax, property tax
● Borrowing
● Taxes do not always pay the bills
● Bonds are how the Govt. borrows money
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Principles of Business, 8e
CHAPTER
GOVERNMENT RAISES
MONEY
4
SLIDE 41
● Largest source of Revenue for the Govt. is
personal income taxes
● Property taxes (the tax on the value of
land or buildings) are used for local
services like schools, police and fire not
national services like Medicare / Medicade
● Sales tax is a tax on goods and services
purchased (State Revenue)
© 2012 Cengage Learning. All Rights Reserved.
Principles of Business, 8e
CHAPTER
4
SLIDE 42
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 when it sells BONDS.
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Principles of Business, 8e