CHAPTER 7

Social & Ethical

Environment of
Business
Fernandez,
Mishelle B.
  Human Resource

 Societal Values

 Ethical Issues and Social

Responsibility

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 HUMAN
RESOURC
ES

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What is Human Resources?

 Human resources (HR) is the

division of a business that is
charged with finding,
screening, recruiting, and
training job applicants, as
well as administering
employee-benefit programs.

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 Human • Population
Resource Issues • Labor Force
• Poverty
• Equal
Employment
• Comparable
Worth
• Societal Values 5
1. Growing
Population
The growth rate is largely
determined by the birth rate,
the death rate, and the level
of immigration into the
country.

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Philippines's Population from 1950 to
2020

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  The low birth rate period that followed the
2. Changing boomer period is called the baby bust
period. The baby bust period has created a
Population
Changes in the birth rate have caused shortage of young workers, called “busters.”
shifts in the number of people in different
age groups. For example, because of the
high birth rate during 1945-1965, there are
more people in the 35–55 age group.
 Because of this baby boom, the number of
people who are aged 55 and over today
has increased substantially.

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  Frost Belt – refers to the colder
3. Moving states in the north and northeast
Population  Sun Belt - refers to the warmer
states in the south and southwest
 Rust Belt – refers to the north
central and northeastern states
where major manufacturing firms
once dominated.

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 The labor force includes most
people aged 16 or over who are
available for work, whether
employed or unemployed.

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 The labor participation rate
is the percentage of the
labor force that is either
employed or actively
seeking employment.

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  The government has several programs to
reduce poverty.
 Businesses increasingly offer training
 Since prosperity is not equally distributed to
programs to provide skills that enable
the population 12-15% live in poverty in any
people to find and hold jobs.
given year.
 Statistics suggest that 20% of the population
have continued to earn more over the past
30 years, while the income of the lowest fifth
has remained about the same.
 The gap between the rich and poor widens

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 E NT  sticky floor syndrome – is
M PL OYM the inability of the workers
E to move up from low-
 glass ceiling—an paying jobs that require
invisible barrier to little skill and education
job advancement.

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COMPARABLE WORTH

Comparable worth means

paying workers equally for jobs
with similar but not identical job
requirements. The concept is
also called “equal pay for
comparable work.”

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 Values are  Transformation of the Family
underlying -Divorce
beliefs and -Single Parenting
attitudes. -Low birth rates
-Delayed marriages

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 Employer practices
 Redesigning Job
 Improving health and safety
 Family friendly practices
Telecommute means staying in contact with
the employer electronically while working from
home or on the board.

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 Natural • Managing
Resource Issues Environment
• Controlling
Environmental
Pollution

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 Managing
Environment

 Recycling is reusing products

and packaging whenever
possible.

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Controlling Environmental
Pollution
 Environmental Protection Agency (EPA)
-Clean Air Act
-Clean Water Act
-Resource Recovery Act
-Federal Water Pollution Control Act
-Federal Environmental Pesticide Control Act
-Noise Control Act
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Controlling Environmental
Pollution

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Ethical • Business Ethics
Issues • Ethical
Dilemmas

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 What is Ethics?

 refers to standards of moral

conduct that individuals and
groups set for themselves,
defining what behavior they value
as right or wrong.

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 Business Ethics
A collection of principles
and rules that define right
and wrong conduct for an
organization is called
business ethics

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A code of ethics is a
formal, published
collection of values and
rules that reflect the
firm’s philosophy and
goals.

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 Business confidentiality
means keeping sensitive
company information secret.

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 Ethical Dilemmas
 The issue of ethics
often arises when it is
not clear whether a
particular action is
legal or illegal.

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 Social
Responsibility • Social
of the Responsibility
Business • Stakeholders

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 Social responsibility
refers to the duty of a
business to contribute
to the well being of
society.

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 Stakeholders are any individuals or
groups that are affected by the
firm’s actions, such as owners,
customers, suppliers, employees,
creditors, government, and the
public

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THANK
YOU
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