Business Foundation Chapter 2 review

Equal Employment Opportunity Comission

a government agency with the power to investigate complaints of employment discrimination and the power to sue firms that practice it

Affirmative Action Program

a plan designed to increase the number of minority employees at all levels within an organization

3 Types:Consumerism

(1) Environmental protection, (2) Product performance and safety, and (3) Information disclosure

Factors affecting ethical behavior

(1) Individual knowledge of an issue. The more you know, the better you'll be able to evaluate a situation. (2) Personal Values. An individual's morals and values cleary influence his or her choices. (3) Personal Goals. The goals bwing aimed to reach have a major impact on one's behavior.

6 Basic Rights of Consumers

(1) The Right To Safety - the products consumers purchase must be safe for their intended use, must include thorough and explicit directions for proper use, and must be tested by the manufacturer to ensure product quality and reliability (2) The Right To Be Informed - consumers must have access to complete information about a product before they buy it; manufacturers must inform consumers about the potential dangers of using their products (3) The Right To Choose - consumers must have a choice of products, offered by different manufacturers and sellers, to satisfy a particular need (4) The Right To Be Heard - means that someone will listen and take appropriate action when customers complain (5) The Right To Consumer Education - entitles people to be fully informed about their rights as consumers (6) The Right To Service - entitles consumers to convenience, courtesy, and responsiveness from manufacturers and sellers of consumer products

Arguments AGAINST Social Responsibility:

(1) Argue that businesses should earn a profit by manufacturing and marketing products that people want. (2) Business managers are responsible primarily to stockholders, so management must be concerned with providing a return on owners' investments. (3) Corporate time, money, and talent should be used to maximize profits, not to solve society's problems. (4) Social problems affect society in general, so individual businesses should not be expected to solve these problems. (5) Social issues are the responsibility of government officials who are elected for that purpose and who are accountable to the voters for their decisions

Employment practices

Everyone should have the opportunity to land a job for which he or she is qualified and to be rewarded on the basis of ability and performance

Arguments FOR Social Responsibility:

1) Because business is a part of our society, it cannot ignore social issues. (2) Business has the technical, financial, and managerial resources needed to tackle today's complex social issues. (3) By helping resolve social issues, business can create a more stable environment for long-term profitability. (4) Socially responsible decision making by firms can prevent increased government intervention, which would force businesses to do what they fail to do voluntarily. (5) Believe that businesses must do more than seek profits

Minority

a racial, religious, political, national, or other group regarded as different from the larger group of which it is a part and that is often singled out for unfavorable treatment

Economic Model of Social Responsibility

the view that society will benefit most when business is left alone to produce and market profitable products that society needs; the idea the social responsibilty is "someone else's job"

Types of pollution

a. Water Pollution b. Air Pollution c. Land Pollution d. Noise Pollution

Consumerism

all activities undertaken to protect the rights of consumers

Hardcore Unemployed

workers with little education or vocational training and a long history of unemployment

Business Ethics/Issues

the application of moral standards to business situations

Socioeconomic Model of Social Responsibility

the concept that business should emphasize not only profits but also the impact of its decisions on society

Pollution

the contamination of water, air, or land through the actions of people in an industrialized society

Social responsibility

the recognition that business activities have an impact on society and the consideration of that impact in business decision making