*

*
*
** The Dynamic
Business *

CHAPTER
Environment:
Taking Risks
and Making
Profits
1
Nickels
* McHugh
* McHugh

1-1
1-1
*
* Business & Entrepreneurship
*
• Business
• Profit
• Entrepreneur
• Match Risk With Profit
• Revenue
• Loss
• Standard of Living/Quality
of Life
• Stakeholders
• Nonprofit Organizations

1-2
*
* Objectives of Business
*

Survival

Profit Social
Growth Responsibility

1-3
*
* Creating Wealth:
* Factors of Production
• Land
• Labor
• Capital
• Entrepreneurship
• Knowledge

1-4
*
* Ethics vs. Law
*
• Ethics: Standards of moral behavior, that is
accepted by the society as right versus wrong.
• Law: Rules that a particular country or
community recognizes as regulating the
actions by its members and may enforce
penalties if broken.

1-5
*
* Cont.…
*

A behavior may be legal but unethical

A behavior may be illegal but ethical.

Ethical and Legal
Behaviors
A behavior may be both legal and ethical.

A behavior may be both illegal and

unethical.

1-6
*
*
*
Business Environment

Global Economic &

Business Legal

Technology
Social

Competitive

1-7
*
* Economic &
* Legal Environment
$ Minimum taxes and regulations
$ Freedom of ownership
$ Contract laws
$ Tradable currency
$ Elimination/minimization of
corruption
1-8
*
* Technological Environment
*

• Productivity

• E-Commerce

• Responsiveness
to Customer

1-9
*
* Competitive Environment
*

• Customer
Expectations

• Restructure/Empower

1-10
*
*
*
Social Environment
• Diversity/Multicultural
• Aging/Graying of
America
• Two-Income Families
• Single-Parent Families

1-11
*
* 21st Century
* Diversity Issues
• Race • Age
• Gender • Language
• Ethnicity • Religion
• Disability • Sexual
Source: U.S. Equal Employment Opportunity Commission

1-12
*
* Evolution of
* American Business
• Agricultural/Manufacturing

• Service Industries

• Future???

1-13
*
* Corporate Social Responsibility
* • CSR is the Business’s concern for the
welfare of the society.
• Examples:
 Grameenphone is committed to work closely with Bangladesh Government
and concerned development agencies to achieve that target, with the aim to
raise awareness and advocate for necessary policy reforms on HIV/AIDS
through different communication channels.

 To develop environment of Bangladesh Dutch-Bangla Bank t has taken tree

plantation programs across the country. It also provides a lot of scholarship to
underprivileged students for their education. It has given support many
students for higher education. It also arranges Olympiad of Mathematics to
develop students' mathematical knowledge.

 Unilever limited implements many programs on public health. They already

have taken initiative for free dental check up. They create consciousness
1-14
among the rural people about Health by their many activities.
*
* 4 Dimensions of CSR
*
• Corporate Philanthropy: The dimensions of social
responsibility that includes charitable donations. Ex.
Microsoft employees have donated over $1 billion to charitable organizations
since 1983.
• Corporate Social Initiatives: Enhanced forms of
corporate philanthropy directly related to the company’s
competencies. Ex. BC Hydro has influenced many of its consumers to
reduce their energy consumption through its Power Smart loyalty program.
• Corporate Responsibility: The dimension of social
responsibility that includes everything from hiring minority
workers to making safe (FDA tested) products. Ex. Body Shop
Beauty Products.
• Corporate Policy: The dimensions of social
responsibility that refers to the position a firm takes on social and
political issues. Ex. Bayer says, ‘We are committed to integrity in business
dealings – no corruption’.