Principles of Business, Marketing, and Finance Economic and Ethical Activity in a Changing World...

Principles of Business, Marketing, and Finance

Economic and Ethical Activity in a Changing World

Copyright © Texas Education Agency, 2011. All rights reserved

Economic Measurementsfor a Changing World

• Gross Domestic Product-total value of goods and service produced in a country in a given year• Consumer goods and services• Business goods and services• Government goods and services• Goods and services sold to other

countries

Copyright © Texas Education Agency, 2011. All rights reserved2


• Unemployment Rate• Rate of Inflation

-rate at which the cost of goods and services rise

• Standard of Living

-amount of goods and services the average citizen can buy

• Deflation

-when the supply of good is greater than the demand



• National Debt

-total amount of money a government owes

• Budget Surplus

-when a government’s revenue exceeds its expenditures during a one-year period


Basic Business Cycle

Prosperity

Recession

Depression

Recovery

Four Phases of the Business Cycle


Ethics

• A set of moral principles by which people conduct themselves personally, socially, or professionally• Businesses have a legal

responsibility to do what is right for society’s welfare

• Business Ethics-a set of laws about how a business should conduct itself


Unethical Business Practices

• Bad for business• Affects a business’s profits,

customer base, and employee loyalty

• Sweatshops

-factories that have unsafe working conditions, treat workers badly, and pay poorly


Important Ethical Questions

• Is it against the law?• What if everyone did this?• Am I sacrificing long-term benefits for short term

gains?Copyright © Texas Education Agency, 2011. All rights reserved

8

Making Decisions on Ethical Issues

• Identify the ethical dilemma.• Discover alternative actions.• Decide who might be affected.• List the probable effects of the alternatives.• Select the best alternative.


Social Responsibility

• Duty to do what is best for the good of society

• Businesses have a responsibility to consumers, workers, and society


Government’s Responsibility to Customers

• FDA (Food and Drug Administration)• FTC (Federal Trade Commission• CPSC (Consumer Product Safety

Commission)• USDA (United States Department of

Agriculture)Copyright © Texas Education Agency, 2011. All rights reserved

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Business’ Responsibility to Employees

• Equal Pay Act

• OSHA-division of the Department of Labor (sets and enforces work-related health and safety rules)


Business’ Responsibility to Society

• EPA (Environmental Protection Agency)• Saving energy• Recycling

• Conflict of Interest-when a business is tempted to put profits before social welfare


Adapting to Current Markets

• Meeting the challenges of international competition

• Overcoming economic conditions

• Adjusting to changing government demands

• Adjusting the workforce to different economic conditions


Principles of Business, Marketing, and Finance Economic and Ethical Activity in a Changing World...

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