Introduction to Business - Chapter 4 |64 questions and answers.

4 social responsibility issues Environmental protection Workplace diversity Job safety Employee wellness social responsibility the duty of a business to contribute to the well - being of a community (A business must weigh the interests and concerns of many groups) environmental protection -Lumber companies have reforestation programs trees can be renewed -takes action to improve of change the operations that cause population Non - renewable a resource than cannot be replaced when used up (Ex: gas, oil, and minerals) Pollution when the environment is negatively affected from the by - product Environmental Protection Agency (EPA) -Government has set standards for the water and air quality -They monitor and enforce those standards -Work with local businesses to reduce pollution Workplace Diversity -Workforce of a business should reflect the groups in a community -Must have equal access to education, training, jobs, and career advancement workplace diversity challenges -learning how to manage a workforce that is diverse -removal of employment barriers for women -making sure accommodations are met in accordance with the ADA Age Discrimination Act Protects people 40+ from discrimination Job Safety Requirements -Right to work in a risk free environment -Protection from fire and hazards -Employee Training on safety Job Safety rules enforced by Occupational Safety and Health Administration Employee Wellness Healthy employees are an asset to a company Social Responsibility Benefits -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 Social Responsibility Costs -New non polluting or safer equipment -Building repairs to remove risks -Wellness and rehabilitation programs -Social projects sponsored by a company Ethics are principles of morality or rules (Gain ethics through experience, parent's influence, peers so you can make decisions later in life) Business Ethics are rules about how business and their employee ought to behave (Involved conforming to rules Helps identify employee behavior) Code of Ethics are the set of rules for guiding the actions of employees (Need to be written for acceptable actions) Ethical conduct guidelines: Is this 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: Determine the purpose of the code. Tailor the code to the needs and values of the organization. Consider involving employees from all levels of the company in writing the code. Determine the rules or principles that all members of the organization will be expected to adhere. Include information about how the code will be enforced. Determine how the code will be implemented and where it will be published or posted. Determine how and when the code will be reviewed and revised. Government in Society Government plays a role in all economic systems (Private enterprise systems, governments role is much less extensive than other economic system) 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 Buying goods and services Hiring public employees Raising revenue Levels of Government Federal, state, and local Federal Government role is to oversee that activities involving 2 or more states or other countries Interstate Commerce business dealings involving companies in more than 1 state State Government Intrastate Commerce Intrastate Commerce regulates business transactions within a state Local Government oversees local police, fire departments, city and town councils and provides order Government Protection Activities - Worker Protection laws have been established to keep employees safe Government inspection and regulation of work areas reduce the number of job-related accidents Contract -is an agreement to exchange a good or service for something of value (usually money) -are a basic part of business -can be written or unwritten Contract Basics Valid, enforceable contracts must contain: Agreement Competent Parties Consideration Legality Agreement in Contract Basics An offer must be made, and an acceptance must occur Competent Parties in Contract Basics Those entering into the contract must be of legal age and must be mentally competent Consideration in Contract Basics Something of measurable value must be exchanged by the parties involved Legality in Contract Basics The contract must be for a product or service that may be legally sold; also no fraud or deception exists in the agreement Legal Systems Criminal and civil cases Examples of Criminal Cases shoplifting, charges brought on an employee of business, a business breaking regulation laws Examples of Civil Cases unauthorized use of trademarks, being sued for breach of contract Protection of Intellectual Property Patents, Copyrights, and Trademarks Intellectual Property intangible with no physical characteristics, cannot physically touch this Patents -individuals or companies create a new product, they may obtain a patent -gives the inventor the sole right to make, use, or sell the item for 20 years Copyrights protects the creative work of authors, composers, and artist lasts entire life of person Trademarks -a word, letter, or symbol -business register name, team emblems, and label designs -Symbols can be identified at a logo (Nike Swoosh, Golden Arches) Regulation of utilities -Chosen to serve a community -Privately owned but government regulated -Rates for these services are decided by the government Public Utility an organization that supplies a service or product vital to all people (EX: telephone companies, water and electric services) Prevent unfair business practices -When there is competition, consumers get the best prices -To prevent monopolies, a passage of antitrust laws are passed Monopoly when a business has control of the market for a product or service Antitrust Laws prevent unfair practices with advertising, pricing, and misleading labels United States is structured as a private enterprise or free market system Reasons for government regulation of utilities might include -the assurance of fair prices -the conservation of resources -to avoid overcrowding of utility poles and other facilities, such as power plants Government Assists Business Government collects data and valuable information Government provides the Small Business Administration (SBA) Government buys goods and services Government employs workers Government collects data and valuable information This helps businesses make wiser choices (EX: income, prices, worker availability) Small Business Administration (SBA) will guarantee business loans Government buys goods and services total federal, state, and local government spending make up about 20% of all the goods and services produced in the US Government employs workers 16% of workers are public employees Government Raises Money Need money to fund operations and pay wages to workers Revenue Government income obtained through taxes and borrowing