SOCIAL RESPONSIBILITY ISSUES
Social responsibility 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.
Environmental ProtectionConservation is saving scarce natural resources. It is a goal of many companies. For example, lumber companies that consume trees have reforestation programs. Some natural resources cannot be replaced. A non-renewable resource is a natural resource that cannot be replaced when used up. Examples are gas, oil, and minerals, such as copper and iron ore.
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. For example, 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 standards. Businesses and the EPA work together to reduce pollution. They try to make the environment healthier.
Workplace DiversityBusinesses 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 groups 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.
Another issue involves the removal of employment barriers for women. For example, 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 Americans with Disabilities Act (ADA), along with other federal and state legislation, has resulted in major improvements in accommodating workers who are physically challenged. Buildings must have access for wheelchairs. People with sight or hearing limitations 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 age as a basis for employment decisions, including hiring, promotions, or termination from a job. The law protects persons aged 40 and older.
Job SafetyHaving 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 involves employee training in how to work safely and what to do in case of an emergency.
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 laws to make the workplace safer. Safety standards are regulated and enforced by agencies such as OSHA, the Occupational Safety and Health Administration.
Social responsibility 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.
Environmental ProtectionConservation is saving scarce natural resources. It is a goal of many companies. For example, lumber companies that consume trees have reforestation programs. Some natural resources cannot be replaced. A non-renewable resource is a natural resource that cannot be replaced when used up. Examples are gas, oil, and minerals, such as copper and iron ore.
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. For example, 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 standards. Businesses and the EPA work together to reduce pollution. They try to make the environment healthier.
Workplace DiversityBusinesses 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 groups 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.
Another issue involves the removal of employment barriers for women. For example, 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 Americans with Disabilities Act (ADA), along with other federal and state legislation, has resulted in major improvements in accommodating workers who are physically challenged. Buildings must have access for wheelchairs. People with sight or hearing limitations 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 age as a basis for employment decisions, including hiring, promotions, or termination from a job. The law protects persons aged 40 and older.
Job SafetyHaving 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 involves employee training in how to work safely and what to do in case of an emergency.
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 laws to make the workplace safer. Safety standards are regulated and enforced by agencies such as OSHA, the Occupational Safety and Health Administration.
Employee Wellness
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 the health of their work-force. Among programs offered are stop-smoking seminars, counseling for employees with drug problems, and weight-loss sessions.
Your general well-being as an employee needs to be protected, too. Clauses that relate to employee well-being are often included in labor contracts and company policy manuals. These clauses are conditions 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 take part.
SOCIAL RESPONSIBILITY EVALUATIONSocially responsible actions can cause controversy. While a number of benefits exist, these actions also have various costs.
BenefitsCommon benefits of socially responsible activities include the following:
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.
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 the health of their work-force. Among programs offered are stop-smoking seminars, counseling for employees with drug problems, and weight-loss sessions.
Your general well-being as an employee needs to be protected, too. Clauses that relate to employee well-being are often included in labor contracts and company policy manuals. These clauses are conditions 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 take part.
SOCIAL RESPONSIBILITY EVALUATIONSocially responsible actions can cause controversy. While a number of benefits exist, these actions also have various costs.
BenefitsCommon benefits of socially responsible activities include the following:
- Expanded justice for groups of a society
- Enhanced company image
- Reduced need for government actions
- Improved quality of life in a community and around the world
- Increased awareness of social issues among workers, consumers, and others
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.
BUSINESS ETHICSA socially responsible business engages in ethical business practices. Ethics are principles of morality or rules of conduct. Business 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 of EthicsA code of ethics is a set of rules for guiding the actions of employees or members of an organization. Codes of ethics address topics such as confidentiality of business information. Figure 4-1 lists topics to consider when developing a code of ethics. Once established, the code should be a guide for all employees within that company.
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.
Companies concerned about ethical behavior in their employees have set up educational programs on ethical conduct. 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. Employees are also trained on how to make ethical decisions on the job.
When considering the ethics of business situations, you could follow these guidelines.
1. Is the action legal?
2. Does the action violate professional or company standards?
3. Who is affected by the action and how?
A common concern in ethical decision-making involves a conflict of interest . This can occur when an action by a company or individual results in an unfair benefit. For example, it would be a conflict of interest if a person serving on a company's board pressured the company to buy items only from businesses that the board member owns or controls.
In addition to workplace codes of ethics, many employees, including accountants and engineers, adhere to codes of professional conduct established by their professional associations. They also participate in continuing education related to ethical issues specific to their professions.
Code of EthicsA code of ethics is a set of rules for guiding the actions of employees or members of an organization. Codes of ethics address topics such as confidentiality of business information. Figure 4-1 lists topics to consider when developing a code of ethics. Once established, the code should be a guide for all employees within that company.
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 a country where doing business requires giving expensive gifts to government officials?
- Should a company continue to produce a popular product after it discovers a minor defect in it?
Companies concerned about ethical behavior in their employees have set up educational programs on ethical conduct. 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. Employees are also trained on how to make ethical decisions on the job.
When considering the ethics of business situations, you could follow these guidelines.
1. Is the action legal?
2. Does the action violate professional or company standards?
3. Who is affected by the action and how?
A common concern in ethical decision-making involves a conflict of interest . This can occur when an action by a company or individual results in an unfair benefit. For example, it would be a conflict of interest if a person serving on a company's board pressured the company to buy items only from businesses that the board member owns or controls.
In addition to workplace codes of ethics, many employees, including accountants and engineers, adhere to codes of professional conduct established by their professional associations. They also participate in continuing education related to ethical issues specific to their professions.