CHAPTER
4
SLIDE 1
Social Responsibility of
Business and Government
4-1
Social Responsibility and Business
Ethics
4-2
Government Protection Activities
4-3
Government Regulation and
Assistance
4-1
Goal 1
Goal 2
Goal 3
Social Responsibility and
Business Ethics
Describe social responsibility issues.
Identify benefits and costs of social
responsibility.
Explain the purpose of a code of ethics.
SLIDE 2
Social Responsibility
• social responsibility- the duty of a business to
contribute to the well-being of a community
(doing the right thing regardless of costs)
SLIDE 3
Environmental Protection
• Conservation- saving scarce natural
resources
Example: Recycling paper
• Non-renewable resource- a natural
resource that cannot be grown or
replaced
Example: Oil
Government Agencies
• EPA- Environmental Protection Agency
that protects the environment from
pollution.
• OSHA- Occupational Safety and Health
Administration- protects workers
(employees) at their jobs by setting
standards and guidelines for employee
safety.
Benefits vs Cost- Spending money now
for the future benefits
• 3 BENEFITS OF SOCIAL RESPONSIBILITY:
– To improve the quality of life for everyone
– Enhance company image
– Avoid government actions
– THE COSTS INVOLVED- SPENDING MONEY & TIME
safer equipment, environmentally safe products,
and wellness projects to improve employee and
community.
Key Terms
• Ethics- Principles of morality or rules of
conduct.
• Business ethics- rules about how
businesses and their employees ought to
behave.
• Code of ethics- a set of rules for guiding
the actions of employees or members of
an organization
BUSINESS ETHICS
• Ethical conduct guidelines
–Is the action legal?
–Does the action violate professional or
company standards?
–Who is affected by the action and
how?
Conflict of Interest- when an action by a
company or individual results in an
unfair benefit.
SLIDE 8
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
SLIDE 9
LEVELS OF GOVERNMENT
• Federal government
• State government
• Local government
• Interstate commerce- business dealings
involving companies in more than one
state
• Intrastate commerce- business dealings
in one state only.
SLIDE 10
CONTRACT BASICS
SLIDE 11
A contract is an agreement to exchange goods
or services for a fee.
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.
Legal System
Criminal vs Civil
Criminal is a violation of a
law where Civil is a
disagreement between 2
parties
PROTECTION OF INTELLECTUAL PROPERTY
(intangible property with no physical
characteristics)
• Patents- gives the inventor the sole right to
make, use, or sell an item for 20 years.
• Copyrights- protects the creative work of
authors, composers, and artist
• Trademarks- a word, letter, or symbol the links
to a product or company
SLIDE 13
Government Regulations & Assistance
• Public Utility- an organization that supplies a
service or product vital to all people.
Example- Electric company
• Monopoly- when a business has complete
control of the market for a product.
Monopolies are illegal in the US
• Antitrust Laws- government enforcement of
business fairness and competition.
SLIDE 14
How does the government make
money?
• TAXES on various levels:
– Local, State, and Federal
ONLINE RESEARCH IS ON THE BOTTOM
OF PAGE 4 A & all of 4 B.
USE THE BOOK CH. 4 FOR ANY
QUESTIONS NOT ANSWERED ON THIS
PPT.