CHAPTER 4
SOCIAL RESPONSIBILITES
& GOVERNMENT
SECTION 4-1: Social Responsibility
SOCIAL RESPONSIBILITY
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Social responsibility refers to the duty of a business
to contribute to the well-being of a community.
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In considering its responsibility to society, a
business must weigh the interests and concerns of
many groups.
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A broadened social responsibility of business
calls for more attention to social concern.
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This includes:
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Protection of the environment
Minorities and women in the workplace
Employment of the physically challenged and older
workers
A healthy and safe work environment
ENVIRONMENTAL PROTECTION
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Conservation is saving
scarce natural resources.
This is a goal for many
companies.
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A non-renewable resource
is a natural resource that
cannot be replaced when
used up.
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Lumber companies, for
example, that consume
trees have reforestation
programs.
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Some examples of this are:
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Gas
Oil
Minerals
Copper
• Iron
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Pollution occurs when the
environment is tainted
with the by-products of
human actions.
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A socially responsible business takes action to
improve or change operations that cause pollution.
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Engineers design new equipment for reducing
pollution.
THE ENVIRONMENTAL PROTECTION
AGENCY
The federal government has
set measurable standards for
water and air quality. The
Environmental Protection
Agency (EPA) monitors and
enforces those standards.
WORKPLACE DIVERSITY
Businesses now are much more sensitive to the
role of women, ethnic groups, the physically
challenged, and older workers.
THE AMERICANS WITH DISABILITIES ACT
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Employers also have taken steps to
accommodate individuals who are
physically challenged.
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The Americans with Disabilities Act (ADA),
along with other federal and state
legislation, has caused major improvements
to be made toward accommodating workers
who are physically challenged.
JOB SAFETY
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Having a safe place to work is important
to all employees.
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Workers should be able to work in an
office or factory free from the risks that
could cause accidents.
EMPLOYEE WELLNESS
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A healthy workforce is a productive
workforce.
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Workers who have good physical health are
valuable assets.
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Businesses today do a number of things to
help improve the health of their workforce.
Some programs offered by employers are:
Stop Smoking Seminars
• Counseling for employees with drug problems
• Weight loss sessions/groups
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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:
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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.
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Money must be spent for non-polluting or
safer equipment, for building repairs, to
remove risks, for wellness and rehabilitation
programs, and for social projects sponsored
by a company.
BUSINESS ETHICS
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A socially responsible business engages in
ethical business practices.
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Ethics are principles of morality or rules of
conduct.
CODE OF ETHICS
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A code of ethics is a set of rules for guiding
the actions of employees or members of an
organization.
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A code must be worded in terms of
acceptable behavior rather than forbidden
action.
American
Express
Blue Box
Values
When considering the ethics of business
situations, you could follow these guidelines.
1.
2.
3.
Is the action legal?
Does the action violate professional or company
standards?
Who is affected by the action and how?
CONFLICT OF INTEREST
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A common concern in ethical decision-making
involves a conflict of interest.
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This can occur when an action by a company or
individual results in an unfair benefit.
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For example, it would be a conflict of interest if a
person serving on a board of directors required that
the company buy items only from businesses that
he owns or controls.