business and social responsibility unit 1, lesson 6 copyright texas education agency, 2012. all...

Business and Social Responsibility

Unit 1, Lesson 6

Copyright © Texas Education Agency, 2012. All rights reserved.

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Ethical and Social Responsibility

o Goalso Students will be able to

describe the legal issues affecting businesses.

o Students will know the nature of business and show its contribution to society.



o Terms to knowo Green Marketingo Ethicso Code of Ethicso Consumerismo Consumer Rights


Ethical and Social Responsibilityo Should businesses have any

responsibility other than following the law?o A prominent ice cream seller

donates 7.5% of its pre-tax earnings to disadvantaged and the needy.

o They also donate to groups that strive for social change and environmental protection.

o Ronald McDonald houses are funded by a major fast food chain.



o Environmental issueso Air and water pollution

oEnvironmental Protection Agency (EPA) was established to protect environment.

oRegulate emission standardsoBanned Chlorofluorocarbons

(CFCs)o Propellants used in spray products

such as hair spray, spray paint, insecticides.

o International agreement reached to phase out CFCs.


Ethical and Social Responsibilityo Conservation and Recycling

o Energy crisis of the 1970s o Oil consumption on rise

estimated to be 13 million barrels a day by the year 2020.

o Price of oil and availability an issue.

o Alternative fuel sources being investigated.

o Many car manufactures have hybrid alternatives.



o Green marketing involved companies making an effort to produce and market environmentally friendly products.



o Ethics are guidelines for good behavior.

o Laws are made to address ethical concerns involved products or marketing. o Price fixingo Bait and switcho Selling unsafe products



o To make the right ethical choices, marketers must answer three basic questions.o Is the practice right, fair, and

honest?o What would happen if the product

were marketed differently?o What practice will result in the

greatest good for the greatest number of people?



o The American Marketing Association has developed a Code of Ethics for marketers.o Detailed provisions about

truthfulness and fairness of marketing.oAdvertisingoSellingoPricingoMarketing researchoProduct development



o Consumerism is the societal effort to protect consumer rights by putting legal, moral, and economic pressure on businesses.



o Consumer Bill of Rights provides four basic rights. o To be informed and protected

against fraud, deceit, and misleading statements, and to be educated in the wise use of financial resources.

o To be protected from unsafe products.



o Consumer Bill of Rights continuedo To have a choice in goods and

serviceso To have a voice in product and

marketing decisions made by government and business.


Picture Sourceso http://www.sxc.hu/photo/13

35852o http://www.sxc.hu/help/7_2 o http://www.sxc.hu/photo/12

47058

o http://www.sxc.hu/photo/1197434




http://www.sxc.hu/photo/1335852


http://www.sxc.hu/help/7_2









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