Business and Social
Responsibility
Unit 1, Lesson 6
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Copyright
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2
Ethical and Social Responsibility
o Goals
o Students will be able to describe
the legal issues affecting
businesses.
o Students will know the nature of
business and show its contribution
to society.
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3
Ethical and Social Responsibility
o Terms to know
o Green Marketing
o Ethics
o Code of Ethics
o Consumerism
o Consumer Rights
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4
Ethical and Social Responsibility
o Should businesses have any
responsibility other than following
the law?
o A prominent ice cream seller
donates 7.5% of its pre-tax earnings
to disadvantaged and the needy.
o They also donate to groups that
strive for social change and
environmental protection.
o Ronald McDonald houses are
funded by a major fast food chain.
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5
Ethical and Social Responsibility
o Environmental issues
o Air and water pollution
oEnvironmental Protection Agency
(EPA) was established to protect
environment.
oRegulate emission standards
oBanned Chlorofluorocarbons (CFCs)
o Propellants used in spray products such as
hair spray, spray paint, insecticides.
o International agreement reached to phase
out CFCs.
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6
Ethical and Social Responsibility
o Conservation and Recycling
o Energy crisis of the 1970s
o Oil consumption on rise estimated
to be 13 million barrels a day by
the year 2020.
o Price of oil and availability an issue.
o Alternative fuel sources being
investigated.
o Many car manufactures have
hybrid alternatives.
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Ethical and Social Responsibility
o Green marketing involved
companies making an effort to
produce and market
environmentally friendly
products.
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8
Ethical and Social Responsibility
o Ethics are guidelines for good
behavior.
o Laws are made to address
ethical concerns involved
products or marketing.
o Price fixing
o Bait and switch
o Selling unsafe products
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9
Ethical and Social Responsibility
o To make the right ethical
choices, marketers must answer
three basic questions.
o Is the practice right, fair, and
honest?
o What would happen if the product
were marketed differently?
o What practice will result in the
greatest good for the greatest
number of people?
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Ethical and Social Responsibility
o The American Marketing
Association has developed a
Code of Ethics for marketers.
o Detailed provisions about
truthfulness and fairness of
marketing.
oAdvertising
oSelling
oPricing
oMarketing research
oProduct development
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Ethical and Social Responsibility
o Consumerism is the societal
effort to protect consumer rights
by putting legal, moral, and
economic pressure on
businesses.
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12
Ethical and Social Responsibility
o Consumer Bill of Rights provides
four basic rights.
o To be informed and protected
against fraud, deceit, and
misleading statements, and to be
educated in the wise use of
financial resources.
o To be protected from unsafe
products.
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13
Ethical and Social Responsibility
o Consumer Bill of Rights continued
o To have a choice in goods and
services
o To have a voice in product and
marketing decisions made by
government and business.
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Picture Sources
o http://www.sxc.hu/photo/133585
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o http://www.sxc.hu/help/7_2
o http://www.sxc.hu/photo/124705
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o http://www.sxc.hu/photo/119743
4
o http://www.sxc.hu/photo/956664
o http://www.sxc.hu/photo/494936
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