Chapter 4
Business Ethics and Social
Responsibility
Section 4.1 Business Ethics
•
Define ethics and business ethics.
•
Describe why ethical behavior is good for business.
•
List the steps for dealing with an ethical dilemma.
Section 4.2 Social Responsibility
•
Define what is meant by the social responsibility of business.
After completing this chapter, you will be able to:
Ask
Q: This past summer I worked as a carpenter. I saved close to $4,000. I’m thinking
about buying a new computer with my savings. My father said that if I didn’t spend
the money, but let it sit in my savings account without touching it, I would be a
millionaire when I retire. Could that be true?
A: Your father is teaching you the time value of money. Because of compounding in-
terest, savings can grow substantially over time. That is why it is important to start
saving and investing money early in your life.
Mathematics The balance of your account in the future is known as the future value of
your starting principal. Calculate the future value of your $4,000 in 50 years at a 5%
interest rate.
Calculating Future Value To fi nd a formula for future value, write P for your
starting principal, r for the rate of return expressed as a decimal, and n for the number
of years in the future. (Assume that the interest rate is 5%, so r equals .05). Your bal-
ance will grow according to the following formula:
FV = P(1 + r)
n
The Time Value of Money
52 Unit 1 The Economy and You
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Duty-Bound
Businesses and customers
both have ethical responsibilities. What are
some of your ethical responsibilities?
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Section 4.1
Business Ethics
Think about an example of an ethical business you have read or
heard about and the reasons you consider it to be ethical.
Read to Learn
•
De ne ethics and business ethics.
•
Describe why ethical behavior is good for
business.
•
List the steps for dealing with an ethical
dilemma.
The Main Idea
Ethics are moral principles by which people
conduct themselves personally, socially, and
professionally. Business ethics are rules
that guide the behavior of a business and
its employees. Business ethics are generally
based on moral principles. In business, good
ethics is bene cial for long-term pro tability
and success.
Key Concepts
•
The Nature of Ethics
•
Ethics as Good Business
•
Ethical Questions
Vocabulary
Key Terms
ethics sweatshop
business ethics con ict of interest
code of ethics
Academic Vocabulary
You will nd these words in your reading and on
your tests. Make sure you know their meanings.
principles encounter
conduct alternative
Graphic Organizer
Print or draw a graphic like the one below. In
the left column, list three questions you need
to ask when facing an ethical dilemma. In
the right column, list the ve steps to take to
decide which choice to make.
Academic Standards
English Language Arts
NCTE 1 Read texts to acquire new information
NCTE 9 Develop an understanding of diversity in language use across cultures
Mathematics
Number and Operations Understand the meanings of operations and how they relate to one
another
Go to the Introduction to Business Online
Learning Center through glencoe.com for
a printable graphic organizer.
Ethical Questions Steps to Take
3.
2.
1.
1.
2.
3.
4.
5.
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The Nature of Ethics
Ethics are moral principles by which people conduct them-
selves personally, socially, or professionally. For example, you
do not cheat on a test or lie to friends or your family because of
your personal honor and integrity. For the good of society, you
may recycle to take care of the environment. Business ethics
are rules based on moral principles about how businesses and
employees ought to conduct themselves. Most businesses are
committed to providing safe products, creating jobs, treating
their employees fairly, protecting the environment, and being
truthful about their fi nancial situation.
The effects of unethical behavior by customers are not always
obvious. However, to make up for problems caused by unethical
behavior, businesses have to charge more for their products. As a
result, customers have to pay more.
Different cultures, businesses, and industries have different
ethical standards. For example, in some cultures, including the
United States, excessive gift giving is considered bribery, which is
unethical. Bribery occurs when gifts, money, or favors are offered
to encourage a business deal. In other cultures, excessive gift giv-
ing is overlooked or considered ethical.
Identify What are three kinds of ethics?
Business Ethics Businesses have a set of moral principles that they follow.
In what ways can a business behave ethically toward its employees?
Think about some
businesses that
you consider to
be run ethically. In
what ways are they
ethical?
Section 4.1 Business Ethics 55
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Law and Ethics
Ethics involve a system of moral principles that govern the
appropriate conduct for a person or group. Laws involve rules
for conduct that may be used to punish violators. In business,
people follow rules as well as a code of ethics. A code of ethics is
a set of guidelines for maintaining ethics in the workplace. Most
businesses follow their own code of ethics. Figure 4.1 includes
some fi ndings about how employees feel about ethical behavior
in their workplace.
Many unethical behaviors lead to the passage of legislation
that makes those behaviors illegal. In the United States, bad
working conditions are not only unethical, they are also ille-
gal. On March 25, 1911, a fi re at the Triangle Shirtwaist Factory
Company in New York City killed 146 workers—mostly young
female immigrants. The business’s inadequate exit doors and fi re
escapes along with overcrowded conditions led to the deaths of
the workers. This industrial tragedy brought about changes in
laws governing conditions in sweatshops. A sweatshop is a shop
or factory in which workers are employed for long hours at low
wages and under unhealthy conditions.
The Occupational Safety and Health Administration (OSHA)
is a division of the U.S. Department of Labor. OSHA sets and
enforces work-related health and safety rules. Other agencies
protect consumers, address discrimination in the workplace, and
promote truthfulness in fi nancial reporting.
Ethical Observations by Employees
Figure 4.1
A National Survey of Employees These are some of the key ndings of a
recent National Business Ethics Survey. Does American business seem to be
becoming more or less concerned about ethical behavior?
Cultural Etiquette
In Thailand, it is
customary to
exchange gifts during
a second business
meeting. In China,
however, gift giving is
considered a form of
bribery and is illegal.
Do you think it is
unethical for
businesspeople not to
observe another
country’s rules of
etiquette in the global
marketplace?
Real Real
World World
Source: National Business Ethics Survey,
Ethics Resource Center
observed at least one type of
misconduct
reported their organizations
implement ethics training
indicated their organizations
offer ethics advice
observed misconduct at work
and reported it
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Ethics as Good Business
Most businesses police themselves with codes of
ethics. Professionals such as doctors, lawyers, jour-
nalists, and teachers have their own codes of ethics.
A code of ethics can cover issues such as employee
behavior and environmental safety.
Unethical business practices include lying, offer-
ing merchandise known to be substandard, or treat-
ing customers or employees unfairly. If a business
violates government regulations, the owner can be
fi ned or go to jail. If an employee violates a com-
pany or professional code of ethics, the employee
might be fi red or lose his or her license. Not all
unethical practices are covered by the law. Unethical
business practices affect businesses indirectly.
Suppose you own an auto-body paint shop. To
increase your profi ts, you charge top price and use
the cheapest paint. One of your customers com-
plains about the quality of the paint, but you do not
care because she has already paid. What is one cus-
tomer, right? The fact is that most businesses (espe-
cially small businesses) rely on repeat customers and
word of mouth to get new customers. The amount
you make in profi ts from one unhappy customer
may not be worth the lost business.
Treating employees unethically can also backfi re.
Suppose you manage a small fi lm distribution company. You
hire Jaime fresh out of business school to run the offi ce. You
teach him how to use the computer system, how to deal with
customers, and how the business works. You also pay him very
little, make him do all your work, and treat him poorly. The fi rst
chance Jaime gets, he quits and ends up being hired by one of
your competitors. You now have to retrain a new employee to
take his place. Meanwhile, your competition now has a well-
trained employee, who is much more effi cient.
Confl icts of Interest
Another major ethical question that is generally not illegal
relates to confl ict of interest. A confl ict of interest is a confl ict
between self-interest and professional obligation. Suppose that
a manager of a small business hires his sister to do some work
in the fi rm, but she is clearly unqualifi ed to do the work. Giving
the position to the sister will help out the family but will create
morale problems with the other employees. It may also damage
the business if her work does not get done. When making busi-
ness decisions, employees have an ethical obligation to act in the
best interest of the company.
Trade Barriers
Before a business can enter a foreign
market, its managers must rst recog-
nize the barriers to trade that it faces.
For example, a fast-food hamburger
restaurant chain will face considerable
barriers if it tries to expand into India,
a place where beef is seldom eaten.
A U.S. company wanting to market its
products in Cuba will face prohibitions
and regulations from the U.S. govern-
ment. From cultural barriers to legal
and political barriers, there are a lot of
things a company needs to consider
when looking at expanding into interna-
tional markets.
Examples of Languages
Across Cultures
Q: In Bahasa-Indonesian, how do you
say: “Hello”?
A: Halo (pronounced: H -l w)
What are some cultural differences
that might create barriers to trade?
How can they be overcome?
Think about
how your school
operates and the
practices that
could be included
in a school code of
ethics.
Section 4.1 Business Ethics 57
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Ethical Questions
When you encounter an ethical decision and must choose a
course of action, ask yourself these important questions:
• Is it against the law? Does it violate company or professional
policies?
• Even if everyone is doing it, how would I feel if someone did
this to me?
• Am I sacrifi cing long-term benefi ts for short-term gains?
The Ethical Decision-Making Process
Here are some steps to take if you fi nd yourself in an ethical
dilemma:
1. Identify the ethical dilemma.
2. Discover
alternative actions.
3. Decide who might be affected.
4. List the probable effects of the alternatives.
5. Select the best alternative.
Using this process will enable you to make a more informed
ethical choice. Making an ethical decision involves more people
than just you.
Section 4.1
Review Key Concepts
1. What is the difference between personal and business ethics?
2. Describe some of the ways that unethical business practices can affect a business.
3. What is the relationship between illegal behaviors of business and unethical behaviors
of business?
Academic Skills
4. Mathematics A large company decided
it would give
of its pro ts to charity.
If the amount given was spread equally
among ve different charities, what frac-
tion of the company’s pro ts was given
to each? What percent of the company’s
pro ts is this?
Number and Operations: Dividing
Fractions
To divide a fraction, invert the
divisor and multiply.
Go to the Introduction to Business Online Learning Center through
glencoe.com to check your answers.
For math help, go to the
Math Appendix.
Consider a con ict
of interest you have
encountered in your
life. How did you
resolve it?
58 Chapter 4 Business Ethics and Social Responsibility
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Section 4.2
Social Responsibility
Think about some things a business can do to be socially
responsible.
Read to Learn
•
De ne what is meant by the social
responsibility of business.
The Main Idea
Social responsibility is the duty to do what is
best for the good of society. Producing goods
and services that are bene cial to society and
providing jobs for people are not suf cient
for a business to be considered socially
responsible. They are expected to do more.
Many businesses provide money for projects
that bene t society.
Key Concept
•
Business and Social Responsibility
Vocabulary
Key Term
social responsibility
Academic Vocabulary
You will nd these words in your reading and
on your tests. Make sure you know their
meanings.
integrity bene t
integral suf cient
Academic Standards
English Language Arts
NCTE 1 Read texts to acquire new information
NCTE 4 Use written language to communicate effectively
NCTE 12 Use language to accomplish individual purposes
Science
Content Standard F Students should develop an understanding of science and technology in local,
national, and global challenges
Go to the Introduction to Business Online
Learning Center through glencoe.com for
a printable graphic organizer.
Business Responsibilities
Graphic Organizer
In a gure like the one below, list four
responsibilities of each business.
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Business and Social Responsibility
Business ethics focus on decisions considered good or bad, cor-
rect or incorrect. The social responsibility of business takes into
consideration all that business does or does not do to solve the
problems of society. Social responsibility is the duty to do what
is best for the good of society. Businesses that follow ethical stan-
dards value
integrity and honesty in employees. Ethics are an
integral part of their business practices.
Some people believe that if a company produces goods that
benefi t society, it is fulfi lling its social responsibility. However,
many people and businesses do not think that is suffi cient. They
consider social responsibility to be more than that.
Some fi rms are very concerned about limiting the damage that
they do to the environment. The Los Angeles Times, a daily news-
paper with more than 1 million readers, uses recyclable paper
and environmentally friendly soy-based ink. Automakers such as
Honda and Toyota offer eco-cars, which reduce air pollution.
Explain What ways can a business ful ll its social
responsibilities?
Reader and Case Study
It’s Getting Easier Being Green
Interest in integrating business with the
needs of the environment is prompting a harder
look at achieving a sustainable economy.
Justin DeKoszmovszky, a rising second-
year student at the S.C. Johnson School of
Management at Cornell University in Ithaca,
N.Y., is spending his summer living and working
with small-scale farmers in Kenya. As part of
a six-person team, he’s exploring new opportu-
nities for communities, entrepreneurs, govern-
ment organizations, local universities, and S.C.
Johnson, the school’s benefactor. The team has
many goals, including nding ways to diversify
crops.
Many MBA students are following
DeKoszmovszky’s path and pursuing careers
involving sustainable development, which is
de ned as a job or project that meets the needs
of the present generation without compromis-
ing the ability of future generations to succeed.
Usually, sustainability is focused on the environ-
ment, but it can also include nding ways for
factories to reduce carbon emissions to fund-
raising for patients who need medicine in Africa.
It’s the latest “it” eld for MBAs.
CASE STUDY Go to the Introduction to
Business Online Learning Center through
glencoe.com for the BusinessWeek Reader
Case Study.
Form a group to explore new opportunities to
achieve a sustainable economy in your com-
munity. Write a brief presentation to present
to an entrepreneur, government of cial, or
local university professor to propose ways to
implement your group’s ideas.
Active Learning
Think about the
damage that is done
to the environment
when people do not
recycle.
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Responsibility to Customers
Customers are a business’s fi rst responsibility. Businesses should
offer a good, safe product or service at a reasonable price. The
Food and Drug Administration (FDA) is a federal government
agency that protects consumers from dangerous or falsely adver-
tised products. Most companies obey the government’s rules.
Some companies do not act responsibly in the marketplace,
especially when it comes to fair competition. Fair competition
between businesses is necessary for the marketplace to operate
effectively. It is a major component of a market economy. The
market economy relies chiefl y on market forces to allocate goods,
services, and other resources, and to determine prices. Some
companies use unethical tactics to eliminate competition. One
of the most common means is to conspire with other companies
to control the market for a product. Together, the companies can
control the supply of a product and the prices they charge.
When companies restrict competition, consumers are affected.
Consumers have fewer choices in what they can buy and how
much they have to pay. When a company does not have to com-
pete, its productivity decreases. This can backfi re on a business.
When the market changes or new markets open up, a company
can fi nd itself unprepared to compete. For example, in the 1940s,
a handful of entertainment studios controlled the fi lm indus-
try. They kept control by owning most of the theaters. Smaller
studios could make movies, but they could not get them shown
anywhere. The government sued the big studios and forced them
to sell their theaters. As a result, small studios were able to com-
pete in the marketplace.
Earth-Friendly
Products
Many
beauty-product
companies include
mission statements
regarding the
environment in their
advertising and on
their labels. Origins™,
for one, promises to
preserve the earth,
animals, and the
environment. What
products do you have
at home that promise
to be environmentally
friendly?
Real
Real
World
World
Biotechnology
Biotechnology is any technique that uses living organisms to
make or modify products, improve plants, or develop microorgan-
isms to serve a speci c purpose. The work scientists have done in
the biotechnology eld has impacted the agricultural industry, the
health-care and medical industries, and environmental protection.
Go to the Introduction to Business Online Learning Center through
glencoe.com for links to Web sites where you can research differ-
ent examples of how biotechnology has been used by businesses.
Write a few paragraphs describing the impact biotechnology has
had and the ethical issues, if any, that might arise.
Section 4.2 Social Responsibility 61
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Responsibility to Employees
Some businesses provide work experience for people with lim-
ited job skills. Many of these people are public assistance recipi-
ents. The purpose of such programs is to develop the skills and
confi dence levels necessary for success.
Volunteerism is another way businesses tackle societal prob-
lems. Some companies allow employees to take one or more paid
days off during the year to work on community projects.
Businesses have a social responsibility to provide employees
with safe working conditions, equal treatment, and fair pay. Less
than 100 years ago, however, workers had few rights. Over the
years the government has passed laws to protect workers from
a range of issues, from child labor abuses to the rights of work-
ers to organize. As the workplace has changed, the government
has passed new laws. The Equal Pay Act (passed in 1964) requires
that men and women be paid the same wages for doing equal
work. More than 40 years later, however, the gap still exists.
Another law, the Americans with Disabilities Act, bans discrimi-
nation against people with physical or mental disability. More
than 50 million workers are likely to be covered by this law.
It is in a company’s best interest to treat its workers fairly. Oth-
erwise, it may suffer from low morale, poor production, and a
high turnover rate.
Independent Films
Independent studios,
including Lions Gate,
Fox Searchlight,
Focus Features, and
Fine Line Features,
have ourished since
the 1940s. Some
of these studios are
subsidiaries of larger
studios. They focus
on developing less
commercial, more
character-driven lms.
What advantages or
disadvantages do you
think an independent
studio has compared
to a large studio?
Real Real
World World
A Community Concert People enjoy going to community concerts. How could a
business demonstrate social responsibility by participating in an event like this?
62 Chapter 4 Business Ethics and Social Responsibility
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Responsibility to Society
Businesses have responsibilities not only to customers and
employees but also to society. One of the biggest social issues
facing businesses today is environmental responsibility.
In 1970, the U.S. government created the Environmental Pro-
tection Agency (EPA), which enforces rules that protect the envi-
ronment and control pollution.
Identify What is one of the biggest social issues
facing businesses today?
Responsibility to Creditors and Owners
In the late l990s and the early part of the 21st century, a num-
ber of major corporations reportedly kept inaccurate accounting
records. Records showed that the fi rms had higher profi ts than
they reported. Their behaviors were unethical and unlawful.
Such behaviors are harmful to creditors (those who loan money)
and outside shareholders (those who are owners but do not work
in the business). Because of these behaviors, the federal govern-
ment passed additional legislation. The Sarbanes-Oxley Act man-
dates truthful reporting and makes the CEO more accountable
for the actions of the fi nancial managers of a fi rm.
Think about owning
a business. What
type of project
would you like
your employees to
do to bene t your
community?
Section 4.2
Review Key Concepts
1. How is producing a good or service a way of being socially responsible?
2. What is the mission of the Food and Drug Administration?
3. What is one of the biggest social issues that businesses face today?
Academic Skills
4. English Language Arts Situations
involving ethics and social responsibil-
ity are not found only in the business
world. They come up in everyone’s day-
to-day life. Write a paragraph explain-
ing an ethical decision made by you or
someone you know. Explain what made
it an ethical decision and the steps that
were taken to make the nal decision.
5.
English Language Arts The terms
below all relate to business ethics.
Imagine that you are asked to explain
these terms to a group of sixth-grade
students who are just beginning to
study how businesses work. Plan a
talk designed to de ne each term. Give
examples that might help a sixth grader
understand the ideas.
code of ethics con ict of interest
social responsibility volunteerism
Go to the Introduction to Business Online Learning Center through
glencoe.com to check your answers.
Section 4.2 Social Responsibility
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Chapter 4 Review and Activities
Section 4.2 Summary
Section 4.1 Summary
Business Ethics Ethics are the set
of moral principles by which people
conduct themselves personally, socially,
and professionally. Business ethics are
guidelines for how businesses should
conduct themselves. Many unethical
business practices are against the law.
The guidelines that can be used when
facing ethical dilemmas are similar to
the steps of the problem-solving process.
Good ethics can be bene cial for the
long-run pro tability and success of a
business.
Social Responsibility Social
responsibility is the duty to do what is
best for the good of society. In today’s
society, producing goods and services
that are bene cial to society is not
enough for a business to be considered
socially responsible. Businesses must
also be ethical and fair to consumers,
workers, creditors, and society in general.
Businesses also have a responsibility
to the environment. In a corporation,
management must be truthful about the
nancial health of the rm.
Key Terms
1. On a sheet of paper, use each of these key terms and academic vocabulary terms in a
sentence.
Academic Vocabulary
principles
conduct
encounter
alternative
integrity
integral
benefi t
suffi cient
ethics
business ethics
sweatshop
code of ethics
confl ict of interest
social responsibility
Vocabulary Review
2. Defi ne ethics and business ethics.
3. Describe why ethical behavior is good behavior for business.
4. Using the ethical decision-making process, list the steps for dealing with an ethical
dilemma.
5. Defi ne what is meant by the social responsibility of business.
Review Key Concepts
64 Chapter 4 Review and Activities
Critical Thinking Write About It
6. Give an example of an unethical
decision that is not illegal. Can a legal
decision also be an unethical one?
7. Do you think the United States should
trade with countries that have a poor
human rights record? Why or why not?
8. Why do you think businesses with
written codes of ethics and ethics
programs for their employees have
fewer ethical problems than other
companies?
9. One study showed that young,
inexperienced managers are twice as
likely to feel pressured to compromise
ethical standards as their older
counterparts. Why do you think that
is true?
10. Why do you think that some employees
tell their managers about unethical
behaviors of other workers? Do you
think this is a good development?
11. Imagine that your manager says she
cannot give you a raise but will allow
some personal items in your travel
expense report. What impression does
that give you of her professional ethics?
12. Is ethical behavior always easy? Why
or why not? What can a person do to
make the best decision regarding an
ethical dilemna?
13. Some people believe that to solve social
problems, money should come from
government, not businesses. Write
a letter to the editor of your local
newspaper about your opinion of this
stance.
14. Imagine that you discover your
company is cheating the government
out of thousands of dollars each year.
Write a short essay about your options
in this case.
15. In a paragraph or two, describe a
situation in which you showed ethical
behavior that resulted in some positive
reactions from others.
16. Think of a business that you believe
shows ethical behavior. Write a letter
to the business owner about your
observations.
17. Write an e-mail to your teacher
discussing whether the drive to
maximize profi ts is the reason some
businesses are ethical and others are
unethical.
18. Businesses have an ethical responsibility
to their employees. Describe the type
of ethics you would look for in an
employer.
19. Write at least two paragraphs detailing
ways that the government has helped
working people.
Business Ethics
Technology Applications
Internet
20. Using the Internet, select three codes
of ethics from various professions (such
as the medical, legal, educational,
and accounting fi elds) or businesses.
Compare and contrast the codes of
ethics. Report your fi ndings to the class.
Making Ethical Decisions
21. What would you do if a friend at
work was making about $100 worth
of personal phone calls each month?
Would your answer be different if the
cost were $10 a month? Use the ethical
decision-making process to determine
what you should do.
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Chapter 4 Review and Activities
Applying Academics to Business
Business in the Real WorldActive Learning
Dealing with a Dilemma
26. Ask a family member if he or she
has ever been faced with an ethical
issue at work. If so, fi nd out what
happened and how it was resolved.
Ask that person to explain the steps in
making an ethical decision. Write two
paragraphs listing what you learned
from your conversation.
Interview a Businessperson
27. Interview a manager of a business in
the local community. Ask the manager
if the business has a code of ethics
and how it is enforced. What are some
common violations of the code? Ask
for at least three experiences in which
ethical behavior was benefi cial to the
fi rm. Then prepare a report based on
your fi ndings.
English Language Arts
22. Each of the following sentences
contains a grammatical mistake.
Identify the errors, and rewrite the
sentences to make them correct.
A. Businesses must concerned with
environmental issues.
B. Most nonprofi t organizations are
social responsible.
Mathematics
23. Jimmy’s company had a code of
ethics that only allowed its sales
representatives to accept gifts from
clients if they cost less than
of the
employee’s yearly bonus. The bonuses
were equal to
of the employee’s total
sales for the year. If Jimmy’s total sales
equaled $58,000, could he ethically
accept a $250 TV from a client?
Number and Operations:
Multiplying Fractions
Multiply fractions
by multiplying the numerators and
then multiply the denominators. To
fi nd how much Jimmy’s bonus will be,
multiply $58,000 by
. Then multiply
that product by
.
English Language Arts
24. Read the following phrases and note
the underlined words. Write a sentence
describing what they have in common
and naming their part of speech.
decision-making process
short-term goals
Mathematics
25. A manufacturing company with
8 million shareholders normally pays
a $2 dividend per share at year-end.
Because of an unexpected $20 million
windfall in profi ts, one member of the
board of directors proposes raising the
dividend by 40 percent and reserving
$15 million for future environmental
cleanup operations. Is there enough
extra money to do both?
Problem Solving Solving word
problems sometimes requires several
mathematical steps. Read the situation
described carefully in order to fi gure
out what the steps should be. To better
understand the problem, you might try
restating the question: Is $20 million
greater than the additional dividend paid
to shareholders plus the $15 million
reserve?
66
Chapter 4 Review and Activities
Role
Play
Business
CAREERS
READING Go to the Introduction to Business Online Learning Center through glencoe.com for a list
of outside reading suggestions.
DEVELOP ETHICAL SKILLS
28. As a class, create a formal code of
ethics for the classroom. Be sure to
include the purpose of the code, the
rules for classroom behavior, the steps
for making ethical decisions, and the
consequences of breaking the code. Use
the code of ethics in the class for the
remainder of the year. Revise as needed.
BUILDING ON A HISTORIC SITE
30. Situation Your fi rm wants to put up
an apartment building on a site where
the oldest building in town currently
rests. The people in the area are very
interested in historical preservation.
Activity When the initial planning
for the apartment building was made,
there was no idea that this property was
historically signifi cant. Prepare a report
to the president of your fi rm with
recommendations for the project.
Evaluation Your report will be evaluated
on how well you meet the following
performance indicators:
• Explain alternate courses of action.
• Explain the ethical implications of
proceeding with the project.
• Describe the community’s reaction to
the project.
• Demonstrate an understanding of the
ethical decision-making process.
FIND YOUR DREAM JOB
29. Go to the Introduction to Business
Online Learning Center through
glencoe.com for a link to the
Occupational Outlook Handbook Web
site. Click on the “OOH Search/A-Z
Index” link and enter the job title
“paralegals and legal assistants.” Then
write a one-page report about this type
of occupation. Conclude your report
with a list of things you could do
now to prepare yourself to pursue the
occupation.
1. Consider your values and goals when determining the advantages and disadvantages
of alternatives: you can use this information to compare and evaluate your choices.
A alternatives, you can
B alternatives; you can
C alternatives. You can
D Leave as is
TEST-TAKING TIP Budget your time.
Make sure you have suf cient time to
study so that you are well prepared for
the test.
Standardized Test Practice
Directions Choose the answer that is the most effective substitute for the
underlined part of the sentence. If no substitution is necessary, choose “Leave as is.”
glencoe.com Chapter 4 Review and Activities 67
Real-World Business and Career Profi le
Keri Barney
Ken Hall
Jodene Jensen
Co-Founders, P.B.Loco Holdings
P.B.Loco Holdings is a company that produces gourmet peanut butter
and has cafés, franchises, an online store, and other ventures.
Q & A
Describe your job responsibilities.
Jodene: Right now Keri handles the day-to-day operations and takes care of our production
facility. Ken and I support our franchisees and handle the nances and the Web site.
Ken: For the rst three months, the three of us actually made the peanut butter just so we
would know how.
Keri: We have a daily meeting in the morning. We always have multiple task lists.
What skills are most important in your business?
Keri: Knowing how to wear different hats and deal with different people. I was a
communications studies major in college; it is a nice skill to have for dealing with people.
Basic business knowledge and analytical skills also help.
Ken: You have to assimilate a great deal of facts and make sure everything works together
as far as your strategy goes.
Jodene: So much of what we do involves making decisions. Relationships with other people
are also important.
What is your key to success?
Ken: When we have a new idea,
we’re able to implement it quickly.
Keri: We’re constantly juggling things
and staying in communication.
Jodene: There’s almost a cult-
like feeling about peanut butter,
because people feel very nostalgic
about it. We have a premium
product.
What advice would you give
students interested in starting
a business?
Jodene: Learning how to juggle
tasks is critical. It’s important
to do different things. So take a
class, play a sport, and if you can,
get a job.
Keri: Educate yourself in all aspects related to the business. And put
in sweat equity, the hard work.
Ken: Keep an open mind. There’s always something great if you use
your imagination.
Critical Thinking Why is it important to conduct market research before starting a
business?
68 Unit 1 Real-World Business and Career Pro le
Photo Credit: Benjamin Clasen
Photo Credit: Courtesy of P.B.Loco
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Some Qualifi cations of a Food Services
Business Owner
Academic Skills and Abilities
Mathematics; verbal and written communication skills;
general business management; creativity; interpersonal
skills; multitasking, organizing, and planning skills.
Academic Skills Required to
Complete Tasks at P.B.Loco
Tasks Math Science
English
Language
Arts
Hold meetings
◆
Assign duties
◆
Develop recipes
◆
Customer service
◆◆
Contact vendors
◆
Schedule employees
◆◆
Order supplies
◆◆
Analyze nancials
◆◆
Education and Training
At least a high school diploma, with coursework in basic
math and work experience within the food industry or
other service-oriented eld.
Career Path
Retail careers often begin with entry-level positions
in established stores. Niche businesses, such as
P.B.Loco, often spring from a personal hobby or
interest.
Preparing for a Career
Self-Assessment Checklist
Use this self-assessment
checklist to help determine
your career path.
✔ Think about your skills,
the things that you do
well, such as being
organized, solving
problems, or getting
along with people.
✔ Write down your interests
or favorite activities.
✔ Think about the kind of
lifestyle you want in the
future. What do you want
to accomplish? Where
would you like to live?
✔ Consider your values, the
beliefs and principles by
which you live. You can
determine your values
by taking a close look
at what you feel is truly
important.
✔ Write down your
aptitudes and abilities.
An aptitude is your
potential for learning
a skill. An ability is a
skill you have already
developed.
✔ Consider your personality.
Your personality is the
combination of your
attitude, behaviors, and
characteristics.
✔ Determine your learning
styles. Learning styles
are the different ways
people naturally think
and learn.
✔ Consider the types of
careers that might match
your skills, interests,
lifestyle goals, values,
aptitudes, abilities,
personality, and learning
styles.
69
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Unit 1 Thematic Project
Trends in the World of Business
The business world is constantly changing. To meet the challenges of the dynamic
business environment, businesses and workers need to understand and react to trends.
Thematic Project Assignment
In this project, you will research trends that are affecting businesses and careers and
write a report about them. These trends include the rise of globalization, the evolution of
technology, and the increasing importance of cultural diversity.
Step 1
Brainstorm Skills You Need to Complete This Activity
Your success in business will depend on your skills. Preview the activity, then brain-
storm a list of the skills you will need to use to complete the activity and describe how
you will use them. Skills you might use include:
Academic Skills reading, writing, math, and science skills
Basic Skills speaking, listening, thinking, problem-solving, and interpersonal
skills
Technology Skills word processing, keyboarding, database, spreadsheet,
presentation, telecommunications, and Internet skills
SKILLS PREVIEW Go to the Introduction to Business Online Learning Center through
glencoe.com for a graphic organizer you can use to brainstorm the skills you will use
to complete the project.
Step 2
Choose a Business and a Career That Interest You
Think of a business that you nd interesting. Then think of a career that interests you.
As you investigate trends in business, you will research the effects of globalization,
technology, and cultural diversity on the business and career of your choice.
Step 3
Build Background Knowledge
Preview the business trends you will research.
T
he globalization of the world’s econo-
mies has increased competition for
businesses and jobs. Globalization is the
process by which the world economy is
becoming a single interdependent system.
Globalization has been spurred by the
evolution of technology. New technology has
resulted in the growth of certain jobs and
businesses and the decline of others.
Cultural diversity has become increasingly
important to businesses. The blending of
people with different skills and perspectives
in the workplace can help businesses
understand and react to an increasingly
diverse population.
Business Trends
Step 4
Connect with Your Community
Interview an adult family member about how the business world has changed. Find out
what the workplace was like when he or she rst entered the workforce.
70 Unit 1 Thematic Project glencoe.com
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Step 5
Research Business Trends
Use library and Internet resources to research business trends. Use the Preview Project
checklist as a guide to your research. Keep records of your sources of information.
Step 6
Develop a Report
Use word processing and other software to develop a two-page report that includes all
of the information described in this checklist.
Business Trends
✔
Describe globalization and the factors that have promoted globalization.
✔ Describe the effect of globalization on businesses and the job market.
✔ Create a time line showing the technological innovations that have promoted
globalization.
✔ Describe how technology has changed the global business environment.
✔ Explain how technological change has created new businesses and affected
existing businesses and jobs.
✔ Describe how diversity creates an advantage for businesses.
✔ Use information from the U.S. Census Bureau to create a chart that compares the
U.S. population today with projections for the population in 2050.
Self Connections
✔
Describe the results of your interview with an adult family member.
✔ Describe how technology, globalization, and diversity have affected the business
and career in which you are interested.
✔ Explain what the investigation and its results mean to you.
Step 7
Evaluate Your Report
RUBRIC Go to the Introduction to Business Online Learning
Center through glencoe.com for a rubric you can use to evaluate
your nal report.
71
Photo Credit: Royalty-Free/Corbis
