Chapter 4

Chapter 4
Social Responsibility
Social ResponsibilityIssue
SocialResponsibility: -refers to the duty of a business to contribute to the well-being of a community.In considering its responsibility to society, a business must weigh the interests and concerns of many groups.A broadened view of social responsibility of business calls for more attention to social concern.This includes protection of the environment, inclusion of minorities and women in the workplace, employment of physically challenged and older workers, and a healthy and safe work environment
EnvironmentalProtection
Conservation: -is saving scarce natural resources. It is a goal of many companies.Ex. Lumber companies that consume trees have forestation programs.Some natural resources cannot bereplaced.Anon-renewable resource: -is a natural resource that cannot be replaced when used up.Ex, gas, oil, and minerals, such as copper and iron ore.
Environmental Protection
Pollution: -occurs when the environment is tainted with the by-products of human actions.Some production methods cause pollution of lakes, rivers, and air.A socially responsible business takes action to improve or change operations that cause pollution.Ex. engineers design new equipment for reducing pollution.The federal government has set measurable standards for water and air quality.The Environmental Protection Agency (EPA):monitors and enforces those together to reduce pollution.They try to make the environmenthealthier
WorkplaceDiversity
Businesses are more and more sensitive to the role of women, ethnic groups, and physically challenged and older workers.The workforce of a business should reflect the group in a community.Members of these groups must have equal access to education, training, jobs, and career advancement.A major challenge facing businesses today involves learning how to manage a workforce made up of workers who represent the diverse cultures in society.
Workplace Diversity
Another issue involves the removal of employment barriers for women.Ex. employers are not allowed to exclude women applicants from a physically demanding job unless the business can prove the job requires physical skills that women do not have.Employers also have taken steps to accommodate individuals who are physically challenged.Passage and enforcement of the American with disabilities Act (ADA), along with other federal and state legislation, has resulted in major improvements in accommodating workers who are physically challenged.
Workplace Diversity
Buildings must have access for wheelchairs.People with sight or hearing limitation must be accommodated on the job.Other laws have been passed to eliminate bias against older workers. The passage of the Age Discrimination in Employment Act bars employers from using as a basis for employment decisions, including hiring, promotion, or termination form a job.The law protects persons aged 40 and older.
JobSafety
Having a safe place in which to work is important to all employees. They should be able to work in an office or factory free from risks that could cause accidents.The work environment should provide full protection from fire and other hazards.In addition to protection from physical harm, workers need to know how to manage the unexpected.Safety also involved employee training inhowto work safely and what to do in case of an emergency.
Job Safety
To ensure the right to safety, most employers have put a variety of programs into practice to protect workers.Federal and state governments have also passed law to make the workplace safer.Safety standards are regulated and enforced by agencies such asOSHA, the Occupational Safety and Health Administration.
EmployeeWellness
A healthy workforce is a productive workforce.Workers who have good physical health are valuable assets,Businesses today do a number of things to improve health of their workforce.Among programs offered for employees with drug problems, and weight-loss sessions,Your general well-being as anemployeeneeds to be protected, too. Clauses that relate to employee well-being are often included in labor contracts and company policy manuals.
EmployeeWellness
These clauses areconditions of work:that pertain to the health and safety of employees while on the job.Many companies offer programs to promote good health.Seminars on eating a balanced diet, getting proper exercise, and maintaining a healthy lifestyle are a few examples.Some businesses sponsor sports teams and encourage employees to takepart
Checkpoint
Whatare the four areas of social responsibility that may require the attention of businesses?
Social ResponsibilityEvaluation
Sociallyresponsible actions can cause controversy.While a number of benefits exist, these actions also have various costs
Benefits
Commonbenefits of socially responsible activities include the followingExpanded justice for groups of a societyEnhanced company imageReduced need for government actionsImproved quality of life in a community and around the worldIncreased awareness of social issues among workers, consumers, and others.
Costs
Thereare costs involved when a business takes socially responsible actions.Money must be spent for new non-polluting or safer equipment, for building repairs to remove risks, for wellness and rehabilitation programs, and for social projects sponsored by a company.A business must make a profit to stay open.If a business does not earn a profit, the business will close and employees will lose their jobs.Spending on social programs must be at a suitable level so a business can still earn a reasonable profit.
Checkpoint:
Whatare the main benefits of social responsibility?
BusinessEthics
Asocial responsible business engages in ethical business practices.Ethics: -are principles of morality or rules of conductBusiness Ethics:- are rules about how businesses and their employees ought to behave.Ethical Behavior involves conforming to these rules.Unethical behavior violates them.In dealing with Business ethics, a code of ethics can help a business identify proper employee behavior.
Code ofEthics
ACode of Ethics: -is a set of rules guiding the actions of employees or members of an organization.Code of Ethics addresses topics such as confidentiality of business information.See Figure 4-1 “Guidelines for Writing a Code of Ethics”Once established, the code should be a guide of values for all employees within that company.
Code ofEthics
A code must be worded in terms of acceptable behavior rather than forbidden action.Even with a code of ethics, the choice of proper behavior can cause dilemmas for decision-makers within a business. Here are some examples of ethical dilemmas.Should a company expand into a profitable market in another country where doing business requires giving expensive gifts to key government officials?Should a company continue to produce a popular product after it discovers a minor defect in it?
Ethical ConductGuidelines
Theethical conduct of a businessisgreatly determined by its top management.Companiesconcerned about ethical behavior in their employees have set up educational programs on ethical conduct.
Ethical ConductGuidelines
These programs are designed to promote employee honesty and integrity.Program topics range from making personal phone calls during work hours to taking supplies for personal use.Employers are also trained on how to make ethicaldecisionsonthe job.When considering the ethics of business situations, you could follow these guidelines,Is the action legal?Does the action violate professional or company standards?Who is affected by the action and how?
Checkpoint:
Whatis the purpose of a code of ethics?