Chapter 4.2 - Rose Tree Media School District
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Transcript Chapter 4.2 - Rose Tree Media School District
Chapter 4.2
Social Responsibility
Objectives
Define social responsibility
Describe the social responsibilities of
business
What is social responsibility?
The duty of a business to do what is best
for society.
Examples?
What is social responsibility? (ctd)
Example:
Los Angeles Times
1 million readers
Recycled paper
Responsibility to Customers
Customers = first responsibility of the
business
Businesses should offer a good, safe, product
or service at a reasonable price.
Responsibility to Customers (ctd)
Food and Drug Administration (FDA)
Government regulating agency
Protects consumers from dangerous or
falsely advertised products.
Responsibility to Customers (ctd)
Fair Competition
Healthy for the marketplace; however, not all
companies play fairly.
Responsibility to Employees
Two laws that are changing the workplace:
Equal Pay Act of 1964
men and women must be paid the same wages for
the same work
The American with Disabilities Act
bans discrimination against people with mental or
physical disability.
Responsibility to Society
Environmental Protection Agency (EPA)
1970
enforces rules that protect the environment and
control pollution
Companies are using biodegradable materials
in their products
buying recycled paper, and are following pollution
standards.
Responsibility to Creditors & Owners
1990s
Unethical and unlawful accounting errors
Sarbanes-Oxley Act
mandates truthful reporting and makes the CEO
more accountable
Ch. 4.2 Reinforcement Questions
1. How is producing a good or service a way
of being socially responsible?
2. What is the mission of the Food and Drug
Administration?
3. What is one of the biggest social issues
that businesses face today?
Activity!
Scenario
Tony and Scott are talking in the hallway
of Company A. Scott says in a hushed
voice, “Can you believe this? I’ve been
told it’s mandatory to do 25 hours
overtime every week. I missed Back-toSchool night last week. Tony says, “I
know what you mean, lately I only get to
see my family on the weekend!” Is
Company A acting ethically?
Activity! Continued
1. Discuss with the people around you.
2. You will be divided into four groups, two
pro and two con.
3. Be prepared to debate the statement,
“Company A’s actions are ethical.”