Power point chap_6
- 1. Chapter 6 Government and Laws Legal and Ethical Issues • Section 6.1 Government and Laws • Section 6.2 Social Responsibility and Ethics
- 2. Government and Laws Key Terms Food and Drug Administration (FDA) Consumer Product Objectives Safety Commission (CPSC) • Explain the role of government in a free Equal Employment enterprise system Opportunity Commission (EEOC) • Identify federal regulatory agencies and laws Occupational that protect consumers, workers, investors, and Safety and Health the environment Administration (OSHA) Securities and • Provide examples of the impact of government Exchange regulations on business Commission (SEC) Environmental Protection Agency (EPA) Federal Trade Commission (FTC) Marketing Essentials Chapter 6, Section 6.1
- 3. Government and Laws Study Organizer Use a chart like this one to take notes about the U.S. government and its role in the free enterprise system Marketing Essentials Chapter 6, Section 6.1
- 4. The Roles of Government The stability of a government, of its structure, and of its legal system is always a key part of a business’s environmental scan. The government plays the roles of: • Provider of services • Customer • Regulator • Enforcer of free enterprise • Monitor of the economy Marketing Essentials Chapter 6, Section 6.1
- 5. Structure of the United States Government In the U.S. each of the three branches of government limits the power of the other two to prevent any branch from becoming too powerful. All three divisions affect business. They are: • Executive • Legislative • Judicial Marketing Essentials Chapter 6, Section 6.1
- 6. Structure of the United States Government The executive branch includes: • The Office of the President • Executive departments (agriculture, commerce, defense, etc.) • Independent agencies and corporations • Boards • Commissions • Committees Marketing Essentials Chapter 6, Section 6.1
- 7. Structure of the United States Government The legislative branch is the U.S. Congress, made up of the Senate and the House of Representatives. These people debate and vote on laws and regulations, while lobbyists try to influence them. Marketing Essentials Chapter 6, Section 6.1
- 8. Structure of the United States Government The judicial branch is responsible for the laws of the U.S., specifically in the areas of: • Interpretation • Application • Administration The judicial branch can repeal the regulatory actions of the other two branches if a company appeals a ruling and wins the case. Marketing Essentials Chapter 6, Section 6.1
- 9. The Role of Customer Service Provider The government must spend a lot of money to carry out its responsibility to ensure the safety and general welfare of people within the U.S. The Department of Homeland Security spends money on: • Border protection • Disaster recovery • Airport security Local governments fund the construction of roads and bridges, all the while adhering to government standards because these projects are paid for by tax dollars. Marketing Essentials Chapter 6, Section 6.1
- 10. The Role of Regulator In the U.S., most laws are designed to protect the individual’s: • Safety • Health • Welfare Marketing Essentials Chapter 6, Section 6.1
- 11. The Role of Regulator At the state and local levels, government agencies are involved with consumer protection by: • Issuing licenses to people who sell services (hairstylists, electricians, etc.) • Requiring zoning laws for building homes, businesses, or farms • Maintaining health standards for restaurants and other food-handling businesses Marketing Essentials Chapter 6, Section 6.1
- 12. The Role of Regulator Food and Drug Administration (FDA) The Food and Drug Administration (FDA) Federal agency regulates the labeling and safety of food, drugs, that regulates and cosmetics sold in the U.S. The FDA also labeling and approves new products and reviews products safety of food, already on the market. drugs, and cosmetics sold in the United States. Marketing Essentials Chapter 6, Section 6.1
- 13. The Role of Regulator Consumer Product and Safety Commission The Consumer Product Safety Commission (CPSC) (CPSC) oversees the safety of products such as: Federal agency responsible for • Toys overseeing the safety of all products except • Electronics food, drugs, cosmetics, medical • Household furniture devices, tobacco products, firearms Established under the Consumer Product Safety and ammunition, Act of 1972, this commission can recall dangerous motor vehicles, or hazardous products. Its prime concern is the pesticides, aircraft, boats, and fixed safety of children. site amusement rides. Marketing Essentials Chapter 6, Section 6.1
- 14. The Role of Regulator Equal Employment Opportunity Commission The Equal Employment Opportunity (EEOC) Commission (EEOC) is responsible for the fair Federal agency and equitable treatment of employees with regard responsible for to: the fair and equitable • Hiring treatment of employees with • Firing regard to hiring, • Promotions firing, and promotions. Marketing Essentials Chapter 6, Section 6.1
- 15. The Role of Regulator Occupational Safety and Health Administration The Occupational Safety and Health (OSHA) Administration (OSHA) provides guidelines for Federal agency workplace safety and enforces those regulations. that provides guidelines for workplace safety and enforces those regulations. Marketing Essentials Chapter 6, Section 6.1
- 16. The Role of Regulator Securities and Exchange Commission (SEC) The Securities and Exchange Commission Federal agency (SEC) regulates the sale of securities (stocks that regulates and bonds). It monitors and investigates any the sale of corporate actions that affect stock values to securities (stocks protect both the investors and the companies. and bonds), licenses brokerage firms and financial advisers, and investigates dealings among corporations. Marketing Essentials Chapter 6, Section 6.1
- 17. The Role of Regulator Environmental Protection Agency (EPA) The Environmental Protection Agency (EPA) Federal agency that protects protects human health and the environment. It human health oversees: and our environment. • Reducing air and water pollution • Hazardous waste disposal • Recycling Marketing Essentials Chapter 6, Section 6.1
- 18. The Role of Regulator Environmental laws cover such problem areas as: • Acid rain • Asbestos • Lead poisoning • Mercury • Mold • Ozone depletion • Pesticides • Littering Marketing Essentials Chapter 6, Section 6.1
- 19. Enforcer of the Free Federal Trade Enterprise System Commission (FTC) The Federal Trade Commission (FTC) Federal agency responsible for enforces the principles of a free enterprise system enforcing the and protects consumers from unfair or deceptive principles of a business practice. It has three bureaus: free enterprise system and • The Bureau of Consumer Protection protecting consumers from • The Bureau of Competition unfair or • The Bureau of Economics deceptive business practices. Marketing Essentials Chapter 6, Section 6.1
- 20. Enforcer of the Free Enterprise System The Bureau of Consumer Protection has six specialized divisions: • Advertising • Enforcement • Financial • Marketing • International • Planning and information Marketing Essentials Chapter 6, Section 6.1
- 21. Enforcer of the Free Enterprise System The Bureau of Competition prevents anti- competitive mergers and business practices. Distribution also falls under the FTC’s jurisdiction and the following letter is an example of federal sales restrictions on tobacco. The Bureau of Economics studies the impact of its actions on consumers and reports its findings to Congress, to the Executive Branch, and to the public. Marketing Essentials Chapter 6, Section 6.1
- 22. Monitor of Our Economy To ensure economic stability, the government monitors our economy and controls our monetary supply through the Federal Reserve System, our central bank. Marketing Essentials Chapter 6, Section 6.1
- 23. Business Supporter The Small Business Administration (SBA) provides counseling and educational material to prospective business owners. Marketing Essentials Chapter 6, Section 6.1
- 24. International Issues Foreign governments generally have different levels of restrictions when it comes to business practices, so the U.S. must analyze its role in promoting free enterprise and its ability to do so internationally. Marketing Essentials Chapter 6, Section 6.1
- 26. SECTION 6.1 REVIEW - click twice to continue -
- 27. Social Responsibility and Ethics Key Terms flextime telecommuting Objectives Ad Council • Provide examples of business’s social responsibilities green marketing • Explain the concept of business ethics ethics • Apply guidelines for ethical behavior Better Business Bureau price gouging whistle-blowing Marketing Essentials Chapter 6, Section 6.2
- 28. Social Responsibility and Ethics Study Organizer As you read, jot down an outline of the concept of social responsibility, ethics in business, and the guidelines for ethical behavior. Marketing Essentials Chapter 6, Section 6.2
- 29. Business and Social Responsibility Social responsibility and ethics have become important business topics as trust has deteriorated due to corporate scandals. Corporate scandals and unethical behavior have a very negative effect on consumer confidence and the image of a company. Some businesses believe their role in society includes actions affecting: • The workplace • The marketplace • Their communities • The environment Marketing Essentials Chapter 6, Section 6.2
- 30. In the Workplace flextime A program that allows workers to Many business try to accommodate employee choose their work hours. needs by creating a user-friendly workplace environment. telecommuting A program that Flextime allows workers to choose their work involves working hours from pre-determined options. at home, usually on a computer, Telecommuting involves working at home, with completed usually on a computer. Completed jobs are jobs transmitted transmitted by e-mail or by mailing in disks. by e-mail or mail-in disk. Marketing Essentials Chapter 6, Section 6.2
- 31. In the Workplace Other benefits are: • Extended family leave • On-site child care • Health care benefits • Time off with pay Marketing Essentials Chapter 6, Section 6.2
- 32. In the Marketplace Socially responsible companies cooperate with the government and consumer groups to provide important information to consumers. Through its advertising, the Almond Board of California informs consumers about the health benefits of almonds. Marketing Essentials Chapter 6, Section 6.2
- 33. In the Marketplace Ad Council A nonprofit organization that The Ad Council is a nonprofit organization that helps produce public service helps produce public service advertising campaigns advertising for government agencies and other qualifying campaigns for groups. government agencies and other qualified sponsors. Marketing Essentials Chapter 6, Section 6.2
- 34. In the Marketplace In the broadcast industry, standards for acceptable material are established by the Federal Communications Commission (FCC). Network executives can also establish their own policies for self-regulation. Socially responsible companies also look for ways to respond to consumers’ concerns. This ad from McDonald’s shows the company’s efforts to promote its commitment to offering healthier menu options. Marketing Essentials Chapter 6, Section 6.2
- 35. In the Community • Local businesses try to support community efforts by funding teams or helping with food or toy drives. • Large companies have guidelines and initiatives that clearly define how they see their role in supporting community causes. • The World Business Council for Sustainable Development (WBCSD) is a coalition of international companies who try to use business leadership to bring about responsible economic development, improved efficiency, and corporate social responsibility. Marketing Essentials Chapter 6, Section 6.2
- 36. Business Ethics ethics Basic values and moral principles Ethics are guidelines for good behavior. Ethical that guide the behavior of behavior is based on knowing the difference individuals and between right and wrong and doing what is right. groups. Ethical businesses follow the laws established for their operations. Marketing Essentials Chapter 6, Section 6.2
- 37. Ethics and Consumerism Consumerism is the effort to protect consumer rights by putting legal, moral, and economic pressure on businesses. Marketing Essentials Chapter 6, Section 6.2
- 38. Ethics and Consumerism President John F. Kennedy’s Consumer Bill of Rights states four basic rights: 1. To be informed and protected against fraud, deceit, and misleading statements, and to be educated in the wise use of financial resources 2. To be protected from unsafe products 3. To have a choice of goods and services 4. To have a voice in product and marketing decisions made by government and business Marketing Essentials Chapter 6, Section 6.2
- 39. Ethics in Marketing Better Business Bureau (BBB) Ethical principles are important in business because One of the oldest nonprofit they reflect the management of a company and the organizations trust between a company and its stakeholders. that establishes self-regulation The Better Business Bureau (BBB) is one of among the oldest nonprofit organizations to set up self- businesses. regulation among businesses. It has a strict Code of Advertising that defines what is acceptable with regard to truth in advertising. Marketing Essentials Chapter 6, Section 6.2
- 40. Ethics in Marketing price gouging Pricing products unreasonably The American Marketing Association’s (AMA) Code high when there is a high demand of Ethics is a guideline for ethical professional resulting from a conduct. It addresses: monopoly or a natural disaster. • Honesty • Fairness • Rights and duties in marketing • Organizational relationships Price gouging is pricing products unreasonably high when the need is great or when consumers don’t have other choices. Marketing Essentials Chapter 6, Section 6.2
- 41. Ethics in Marketing Management of marketing information involves issues of privacy. Industries have to keep customer databases private and cannot share information unless the consumers give their direct permission. Selling practices that come under scrutiny because of ethical issues often involve: • Bribes • Kickbacks • Favors • High-pressure tactics used to close a sale Marketing Essentials Chapter 6, Section 6.2
- 42. Managerial and Personnel Issues whistle blowing Reporting an illegal action by From the top level of authority down, managers one’s employer. must take responsibility for establishing and creating a role model for ethical practices within a firm. Accounting and proper reporting of corporations’ financial situations are addressed by the Sarbanes- Oxley Act of 2002. Whistle-blowing involves reporting an illegal action by one’s employer. Marketing Essentials Chapter 6, Section 6.2
- 43. Guidelines for Ethical Behavior Companies with an interest in ethical business behavior should follow a decision-making process that includes the following: • Get the facts. • Identify all parties concerned. • Think of all your alternatives. Marketing Essentials Chapter 6, Section 6.2
- 44. Guidelines for Ethical Behavior Evaluate the alternatives by asking the following questions: • Is it lawful? • Does it go against company policy? • How does it affect those involved? • Will it build a good company reputation? Marketing Essentials Chapter 6, Section 6.2
- 46. SECTION 6.2 REVIEW - click twice to continue -
- 47. Section 6.1 • The government plays a critical role in enforcing the free enterprise system and providing for the health, welfare, and safety of its citizens. The three branches of the U.S. government are the executive, legislative, and judicial branches. The Food and Drug Administration (FDA) and the Consumer Product Safety Commission (CPSC) are two federal agencies that protect consumers. Employment protection at the federal level includes the Equal Employment Opportunity Commission (EEOC) and the Occupational Safety and Health Administration (OSHA). continued
- 48. Section 6.1 • The Securities and Exchange Commission (SEC) protects investors and the Environmental Protection Agency (EPA) protects the environment. The Federal Trade Commission (FTC) has the responsibility of enforcing the principles of a free enterprise system and protecting consumers from unfair or deceptive business practices. continued
- 49. Section 6.2 • Socially responsible businesses have policies and programs that address issues in the workplace, marketplace, community, and environment. Business ethics are guidelines for good behavior. Ethical businesses are community-conscious.
- 50. This chapter has helped prepare you to meet the following DECA performance indicators: • Describe the nature of selling regulations • Explain business ethics in selling • Determine the relationship between government and business • Explain the role of business in society • Orient new employees
- 51. CHAPTER 6 REVIEW
- 52. CHAPTER 6 REVIEW - click twice to continue -