CHAPTER 4
Social Responsibility
Business Ethics
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Definition:
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System of moral principles
Values related to human conduct (rightness or wrongness of
certain actions
To Promote ethical behavior a business will develop a
code of ethics.
Code of Ethics
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Ethical conduct guidelines
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Is the action legal?
Does the action violate professional or company standards?
Who is affected by the action and how?
Code of Ethics:
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A set of rules
Are used by businesses to guide the actions of the employees or
members of an organization.
Should be worded in terms of acceptable behaviors, to best serve as
a guide of values for employees within the company.
Values
Checkpoint 
A Question of Ethics
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Read
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How would you answer question #1?
Is there a limit to how valuable a gift a teacher may
receive?
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page 57
SLIDE 4
Small Businesses
 Large Organizations
 Schools – teachers and students
 Professional associations
 Clubs, or recreational
organizations
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Shared Values
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Think about how this conflict, problem or the decision
will impact customers, employees, and the
community.
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Thinking about and making decisions “ with shared
values” of the society in mind is social responsibility.
Social Responsibility of Business
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Social Responsibility – the duty of the business to
contribute to the well being of a community.
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A business must weigh the interests and concerns of
many groups when considering it’s responsibility and
contributions to society.
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Businesses generally aim their efforts toward addressing
social, environmental, and economical concerns.
Social Responsibility Cont.
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Refers to the duty of a business or individual to
contribute to the well-being of the community
Choice or Obligation?
NIKE’S UNETHICAL PRACTICES EXPOSED
Nike Sweatshops
1.
Reactions to videos
2.
Opinions-Is this right or wrong?
3.
How does .20 cents an hour affect how people live, do they
live like Kings and Queens?
4.
Power as a consumer  What does that mean for you and
for Nike?
5.
Is social Responsibility a choice or an obligation?
Does, Nike and other companies have a choice to be socially
responsible ?
Shared Values in United States’ Businesses
Social
 Creating and supporting workplace diversity
 Providing appropriate labor conditions
 Job safety
 Fair pay
 Wellness programs
Environmental
 Conservation of natural resource, and non-renewable resources
 Limiting/eliminating pollution
 Finding new and improved energy sources (solar paneling)
Economical
 Creating and supporting local jobs
 Financial accountability
Brainstorm
What are ways that companies promote the following values
in their companies?
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workplace diversity
appropriate labor conditions
Job safety
Fair pay
Wellness programs
Conservation of natural resource, and non-renewable resources
Limiting/eliminating pollution
Finding new and improved energy sources
*HINT: think about even here at Shaker(We are an organization too).*
Diversity
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Workforce should reflect groups in the community
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Members of these groups must have equal access to
education, training, jobs, and career advancement
Diversity
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The Equal Employment Opportunity Act of 1972 is the
act which gives the Equal Employment Opportunity
Commission (EEOC) authority to sue in federal courts
when it finds reasonable cause to believe that there has
been employment discrimination based on of race,
color, national origin, sex, religion, age, disability,
political beliefs, and marital or familial status.
Diversity
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Eliminate bias against older workers
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Removal of barriers of women
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Age Discrimination (Equal Employment Opportunity Act)
 Bars using age as a basis for employment decisions, including hiring,
promotions, or termination
Gender discrimination (Equal Employment Opportunity Act)
 Can’t exclude women from physically demanding jobs
Gender equality for pay, (Equal Pay Act)
Need to provide accommodations for individuals who are
physically challenged
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Buildings must have access for wheelchairs
People with sight and hearing disabilities must be accommodated
(Americans with Disabilities Act)
Job Safety/Labor Conditions
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Work environment should have full protection from fire
and other hazards
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Involves training to handle the unexpected and how to work
safely (OSHA—Occupational Safety and Health
Administration)
Child Labor Restrictions
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Hours that youth under 16 years of age can work
Safe work experiences for young workers by listing tasks youth
can’t perform or hazardous occupations classified as too
dangerous for young workers to perform
Employee Wellness
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Healthier workers are more productive
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Companies can provide
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Stop smoking seminars
Counseling for drug problems
Counseling for weight problems
Reward/incentives for healthy lifestyle choices
(Included in conditions of work in labor contracts)
Environmental: Limiting pollution
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Limit Carbon Footprint ("the total sets of greenhouse gas emissions
caused by an organization, event, product or person)
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Company can limit emissions of air pollutants coming from
sources like chemical plants, utilities, and steel mills. 9 ( Clean
Air Act)
Safer procedures for oil rigs
Manufacture in the U.S. verses internationally less travel for
product distribution
Organize company wide recycling program (bottles, cans, paper,
ect.)
Conservation – is the saving of natural resources.
Ex: water, lumber(wood)
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Non- renewable resources – natural resources that can
not be replaced when used up.
Ex: Gas, oil, minerals (copper and iron ore)
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Sustainability
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Sustainability is based on a simple principle: Everything that we need
for our survival and well-being depends, either directly or indirectly,
on our natural environment.
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Sustainability has emerged as a result of significant concerns about
the unintended social, environmental, and economic consequences
of rapid population growth, economic growth and consumption of
our natural resources
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Sustainability is important to making sure that we have and
will continue to have, the water, materials, and resources to
protect human health and our environment.
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Protecting our natural resources
Starbucks
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https://www.youtube.com/watch?v=kdrFXFMFqB0
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https://www.youtube.com/watch?v=svVrejwVlkY
SOCIAL RESPONSIBILITY EVALUATION
Benefits – Costs = Action/No Action
 Benefits
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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
SLIDE 25
SOCIAL RESPONSIBILITY EVALUATION
(continued)
Benefits – Costs = Action/No Action
 Costs
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Building repairs to remove risks
Wellness and rehabilitation programs
Social projects sponsored by a company
New safer or nonpolluting equipment
SLIDE 26
Checkpoint 
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Read page 27 Business Improving Society
How would you answer question #1?
 Can you think of other ways to apply this
idea?
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Have you heard of a Shaker person who is doing similar
work?
SLIDE 27
What are four areas of social responsibility
that may require the attention of business?
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Environmental protection
Workplace diversity
Job safety
Employee wellness
Choice or Obligation
The following laws are set up to help companies be…..
 Equal Employment Opportunity Act
 Americans with Disabilities Act
 OSHA—Occupational Safety and Health Administration
 Clean Air Act
Ethics
Social Responsibility
Shared Values
Ethics
Social Responsibility
Shared Values
Build your own diagram using Microsoft’s Smart Art to
explain how a business(of your choice) is being socially
responsible?
You should have at least two examples for each category
– Social, Environmental, Economic.
Social Responsibility Project
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Step 1:
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Collect and save all research in a word document.
Narrow research down to find specific information for your
SmartArt diagram.
Step: 2
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Create SmartArt diagram and input titles (Categories: Social,
Economic, Environmental) and corresponding info for each
social responsibility category.
Edit diagram to make sure that all information is readable.
Examples of where to start your research
Examples of where to start your research
Examples of where to start your research
Helpful Websites
The 25 Best Companies for Employee Compensation and
Benefits
 http://www.entrepreneur.com/article/234183
America's Most Reputable Companies
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http://www.forbes.com/sites/jacquelynsmith/2013/04/24/americasmost-reputable-companies-2/
Top 50 socially responsible corporations: 2014
 http://www.macleans.ca/work/bestcompanies/top-50-sociallyresponsible-corporations-2014/
Governmental Involvement in Promoting
Social Responsibility
Social
 Americans with Disabilities Act (ADA)
 Age Discrimination in Employment Act
 Occupational Safety and Health Act & Occupational
Safety and Health Administration
 Family and Medical Leave Act
Environmental
 NYS Department of Environmental Conservation
 Clean Air Act(CAA)
 The United States Environmental Protection Agency
Governmental Involvement in Promoting
Social Responsibility
Economic
 Sarbanes-Oxley Act
 The federal Trade Commission(FTC)
 Securities and Exchange
Commission
 Food and Drug Administration
Social Responsibility Around the World
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In our international economy, what happens when
American companies “outsource”- produce products and
manage organizations abroad?
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United States our values are very different based on:
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Culture
Traditions
Economy
Social Responsibility Around the World
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The Inter-American Convention Against Corruption (IACAC) was adopted by the
member countries of the Organization of American States (OAS) in March 1996; it
came into force in March 1997. It was the first international convention to address
the question of corruption. It gives a wide and inclusive interpretation to what
constitutes 'corruption offences' including bribery, domestic and foreign; illicit
enrichment; money laundering and concealment of property.
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According to Article II of the Convention's text, it has two goals:
 To promote and strengthen the development by each of the States Parties of
the mechanisms needed to prevent, detect, punish and eradicate corruption;
and,
 To promote, facilitate and regulate cooperation among the States Parties to
ensure the effectiveness of measures and actions to prevent, detect, punish
and eradicate corruption in the performance of public functions and acts of
corruption specifically related to such performance.
Social Responsibility Around the World
U.S. Department of State
 The Office of Economic Policy Analysis and Public Diplomacy (EPPD), provides
guidance, promotion and support for responsible business practices, engaging the
private sector, civil society, and non-governmental organizations. EPPD leads the
U.S. relationship with the Organization for Economic Cooperation and
Development (OECD) on vital international economic issues.
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The mission of the Organization for Economic Cooperation and Development
(OECD) is to promote policies that will improve the economic and social well-being
of people around the world. We set international standards on a wide range of
things, from agriculture and tax to the safety of chemicals.
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OECD Guidelines
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ISO Standards
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The EPPD also manages the Secretary of State’s annual Award for Corporate
Excellence (ACE)program.