Social Responsibility
Chapter 4
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 Protection
Conservation: - 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.

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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.
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They try to make the environment healthier
Workplace Diversity
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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.
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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
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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
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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

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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
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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

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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
Checkpoint
What 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

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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
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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
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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

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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
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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?