Business & SocietyBusiness & Society

Mr. JohnsonMr. Johnson

ObjectivesObjectives

Define Social ResponsibilityDefine Social Responsibility Evaluate the types of Social ResponsibilityEvaluate the types of Social Responsibility Identify the Receivers of Social Identify the Receivers of Social

ResponsibilityResponsibility Identify the categories of business serving Identify the categories of business serving

society todaysociety today

Objective AObjective A

Define Social ResponsibilityDefine Social Responsibility

BUSINESS & BUSINESS & SOCIETYSOCIETY

In order to SUCCEEDIn order to SUCCEED

Maximizing ProfitsMaximizing Profits

&&

Contributing to Public InterestsContributing to Public Interests

MUST

SOCIAL RESPONSIBILITYSOCIAL RESPONSIBILITY The The DUTYDUTY of business to of business to CONTRIBUTECONTRIBUTE to the to the WELL-WELL-BEINGBEING of of SOCIETYSOCIETY

DUTY – moral obligation – a service designed or demanded of someone – an act or course of action that is required of someone/thing in that position

Contribute – share responsibility – to give or supply in common with others

Well-Being – state of being healthy, happy or prosperous

Society – our town/city/county/state/region/country

Objective BObjective B

Evaluate the types of Social ResponsibilityEvaluate the types of Social Responsibility

Minding the StoreMinding the Store

Quality productsQuality products Competitive pricesCompetitive prices Customer needsCustomer needs Minimum costsMinimum costs Minimum expensesMinimum expenses MAXIMIZE THEIR PROFITSMAXIMIZE THEIR PROFITS

Contributing to Public InterestsContributing to Public Interests

WhyWhy– Creates GoodwillCreates Goodwill– Foster’s positive image Foster’s positive image

for companyfor company ExamplesExamples

– ScholarshipsScholarships– PGA Tour Drive to $ 1 PGA Tour Drive to $ 1

BillionBillion– Corporate Sponsorship Corporate Sponsorship

of Art, Education, of Art, Education, ResearchResearch

Why Be Socially ResponsibleWhy Be Socially Responsible

All businesses have an impact on societyAll businesses have an impact on society All businesses should try to maximize their All businesses should try to maximize their

profitsprofits Some businesses have added responsibility Some businesses have added responsibility

due to the type of business they aredue to the type of business they are– Automobile Companies Automobile Companies

» Emission ControlsEmission Controls

» Gas MileageGas Mileage

Objective CObjective C

Identify the Receivers of Social Identify the Receivers of Social ResponsibilityResponsibility

To Whom are Businesses To Whom are Businesses Socially Responsible to?Socially Responsible to?

Product PurchasersProduct Purchasers– Must offer safe quality productsMust offer safe quality products– Must conduct research, in order to develop Must conduct research, in order to develop

quality, safe, desired productsquality, safe, desired products Stakeholders in BusinessStakeholders in Business

– Stock HoldersStock Holders» Maximize Profits & Return on InvestmentMaximize Profits & Return on Investment

To Whom are Businesses To Whom are Businesses Socially Responsible to?Socially Responsible to?

Stakeholders in BusinessStakeholders in Business– Employee’sEmployee’s

» Safety ConcernsSafety Concerns

» Is work challengingIs work challenging

» Is work satisfyingIs work satisfying

» Does employer contribute to the well being of Does employer contribute to the well being of employeesemployees

To Whom are Businesses To Whom are Businesses Socially Responsible to?Socially Responsible to?

How Businesses Provide for Overall Well – How Businesses Provide for Overall Well – Being of EmployeesBeing of Employees– CounselingCounseling– Day – Care centers for workersDay – Care centers for workers– Career PlanningCareer Planning– Retirement PlanningRetirement Planning– Flex SchedulingFlex Scheduling– TrainingTraining

To Whom are Businesses To Whom are Businesses Socially Responsible to?Socially Responsible to?

The Company itselfThe Company itself– Maximize profits so company can grow & Maximize profits so company can grow &

prosperprosper– Assist Company owners make as much as Assist Company owners make as much as

possible on their investmentpossible on their investment

Objective DObjective D

Identify the categories of business serving Identify the categories of business serving society todaysociety today

Types of Businesses Operating in Types of Businesses Operating in society todaysociety today

ProducersProducers

Trade IndustriesTrade Industries

Service BusinessesService Businesses

ProducersProducers

Def: Someone that Def: Someone that makes or produces makes or produces thingsthings

TypesTypes– Raw GoodsRaw Goods

» FarmersFarmers

» MinersMiners

» Lumber JacksLumber Jacks

Producers, Con’tProducers, Con’t

Manufacturers Manufacturers – Def: Producers who Def: Producers who

change the shapes or change the shapes or forms of materials so forms of materials so that they be useful to that they be useful to consumersconsumers

– Exp: Exp: » CarsCars

» Glass BlowerGlass Blower

» Paper IndustryPaper Industry

Producer’s, con’tProducer’s, con’t

BuildersBuilders– Producers who construct roads, bridges, buildings, or Producers who construct roads, bridges, buildings, or

houseshouses

Trade Industry’sTrade Industry’s

Def: Businesses that buy & sell goods to Def: Businesses that buy & sell goods to

each othereach other Firms do not change / alter form of good in Firms do not change / alter form of good in

the processthe process Two types Two types

– WholesalerWholesaler– RetailerRetailer

Trade Industry’s, con’tTrade Industry’s, con’t

WholesalersWholesalers– Middle man between Middle man between

producing company & producing company & retailerretailer

– Examples:Examples:» Queen City WholesaleQueen City Wholesale

» Pepsi Pepsi

» Coca - ColaCoca - Cola

Trade Industry’s, con’tTrade Industry’s, con’t

Retailer’sRetailer’s Def: Sell to end Users Def: Sell to end Users

of productof product Examples:Examples:

– JC Penney’sJC Penney’s

– TargetTarget

– Wal MartWal Mart

– StarbucksStarbucks

Evolution of Retail BusinessEvolution of Retail Business

SizeSize– 80 % operate with less than 20 employees80 % operate with less than 20 employees

Variety of ProductsVariety of Products– Super Wal – MartsSuper Wal – Marts– Super Target’sSuper Target’s

PricesPrices– Lowest Price (reflected in image of store)Lowest Price (reflected in image of store)– High – End Price (reflected in image of store)High – End Price (reflected in image of store)

Evolution of Retail Business, Evolution of Retail Business, (con’t)(con’t)

OwnershipOwnership– Sole ProprietorSole Proprietor– PartnershipPartnership

» Owned by two or more peopleOwned by two or more people

– FranchisesFranchises– CorporationsCorporations

» Have stock holdersHave stock holders

Evolution of Retail Business, Evolution of Retail Business, (con’t)(con’t)

Delivery of ProductDelivery of Product– Brick & Mortor StoreBrick & Mortor Store– Over PhoneOver Phone– In customer’s homeIn customer’s home– By mailBy mail– Vending MachineVending Machine– On street cornersOn street corners– By computerBy computer

Trade Industry’sTrade Industry’s

Service BusinessService Business– Sell intangible activities Sell intangible activities – Customers buy service not goodsCustomers buy service not goods– No title / ownership / good passes to customerNo title / ownership / good passes to customer– ClassificationsClassifications

» HousingHousing

» Household OperationsHousehold Operations

» RecreationRecreation

» Personal CarePersonal Care

Trade Industry’sTrade Industry’s

Classification’s (con’t)Classification’s (con’t)– Medical & Health CareMedical & Health Care– Private EducationPrivate Education– Business ServicesBusiness Services– Insurance & FinancialInsurance & Financial– TransportationTransportation– CommunicationsCommunications

75 % of non – farm labor employed in 75 % of non – farm labor employed in service industryservice industry