Objective 2.05Understand responsible actions for

conducting business.

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Guidelines for responsible business conduct addresses the following questions:

◦Is the action illegal?

◦Does the action violate professional or company standards?

◦Who is affected by the action and how?

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Ethics

Socially responsible practices of businesses include practices that positively impact communities.

Common social responsibilities addressed:−Environmental protection−Workplace diversity−Job safety−Employee wellness

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Common Socially Responsible Practices of Businesses

◦Conserve natural resources◦Minimizing pollution of air and water

Environmental Protection Agency (EPA) enforces and provides standards for air and water quality.

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Socially Responsible Environmental Protection

Workplace Diversity Employees represent a variety of

groups including women, ethnic groups, physically challenged, and older workers.

The American with Disabilities Act (ADA) The Age Discrimination in Employment Act The Equal Employment Opportunity

Commission (EECOC)

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Socially ResponsibleWorkplace Diversity

What is job safety?◦ Ensuring work environments are risk-free of

accidents.

Occupational Safety and Health Administration (OSHA)

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Common Social-responsible Practices of Business continued

Why would a company offer employee wellness programs?◦ Maintain a healthy workforce.

Stop-smoking seminars Counseling for employees with drug

problems Weight-loss counseling.

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Socially ResponsibleEmployee Wellness

Enhanced company image.

Reduced need for government actions.

Improved quality of life in a community and around the world.

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Benefits of Social Responsibility

Go to the Company that you presented.

What are they doing to be Socially Responsible?

What advantage are the getting from each of their programs?

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How is your Company Socially Responsible?

What is a contract?◦ An agreement between two parties to exchange

goods or services for something of value, usually money.

What are the elements of a contract?◦Agreement◦Competent parties◦Consideration◦Legality

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Contracts

Intellectual property protected by the government are:

◦Patents (Make or Use)

◦Copyrights (Mickey Mouse Rule)

◦Trademarks (Words / Symbols) 11

Government Protection

Consumer Bill of Rights and

Government Regulation

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The Right to Be Informed◦Consumers have the right to be informed of what a product is and its functions.

The Right to Safety◦Consumers have the right to be protected from harm while using a product or service.

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Consumer Bill of Rights continued

The Right to Choose◦Consumers have the right to choose

what to buy among a variety of products and services.

The Right to Be Heard◦Consumers have the right to talk with

businesses about products or services they offer. Consumers may share their comments, complaints, concerns, or questions.

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Consumer Bill of Rights continued

The Right to a Remedy◦Consumers are assured that they can

seek legal remedy when they encounter a problem or defective product.

What is the difference between an express and an implied warranty?◦ An express warranty is a verbal promise◦ An implied warranty may not be verbally

communicated but is understood to apply

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Consumer Bill of Rights continued

The Right to Consumer Education◦Consumers have the right to be informed

about how their purchasing decisions impact them personally and the economy.

The Right to Service◦Consumers have the right to receive

goods and services at the promised level by companies.

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Consumer Bill of Rights continued

Why does the government regulate utility companies?◦ Utility companies are usually a monopoly in the

area it serves.

How does the government prevent unfair business practices?◦ Antitrust laws encourage competition and fairness

among businesses and avoid monopolies.

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Government Regulation and Assistance