Dacanay, April B.

BSHRM601P

Section 6. Ethics and Social Responsibility

6.1 Potential Ethical and Social Responsibility Challenges.

The social responsibility and ethics applies in both individual and group capacities. It should be
incorporated into daily actions/decisions, particularly ones that will have an effect on other persons
and/or the environment. In the larger, group capacity, a code of social responsibility and ethics is
applied within said group as well as during interactions with another group or an individual.
Businesses have developed a system of social responsibility that is tailored to their company
environment. If social responsibility is maintained within a company than the employees and the
environment are held equal to the company’s economics. Maintaining social responsibility within a
company ensures the integrity of society and the environment are protected.
Often, the ethical implications of a decision/action are overlooked for personal gain and the benefits are
usually material. This frequently manifests itself in companies that attempt to cheat environmental
regulations. When this happens, government interference is necessary.

 INDUSTRY
is a good used by a company for business consumption. It is distinct from a consumable good, which is
purchased by individuals for personal and family consumption. One company selling goods to another
for business consumption is a prime example of business-to-business, or B2B.

 SUPPLY CHAIN
Well! Small Businesses that work with suppliers can find it challenging to address socially irresponsible
business practices. Similarly, it came under intense pressure from its shareholders to disclose and
monitor their workers.

 COSTUMER
We must also make sure that our consumer and employee’s safety are our priority so that our goods
and services can be provided safely and responsibly.

6.2 Ethics And Social Responsibilities Plan

 McDonald's Corp. today releases its fourth Corporate Responsibility Report, themed "Responsible
food for a sustainable future." The highly interactive, all-digital report, unveils McDonald's
progress in six key areas: governance and ethics, environmental responsibility, nutrition and well-
being, sustainable supply chain, employment experience and community.

Highlights include:
Environmental responsibility -- focus on energy efficiency, sustainable packaging, waste management
and green restaurant design

Environmental Scorecard for McDonald's suppliers to measure and reduce their water, energy, air and
waste impact

Sustainable fish supply -- in 2007, more than 91 percent of fish for McDonald's originated from
sustainable fisheries

Rainforest Protection Policy -- in place since 1989, commitment to refuse beef sourced from rainforest
areas

Evolution of nutrition information disclosure which began in 1973 -- completed rollout of Nutrition
Information Initiative

Workplace recognition -- recognized by the Great Place to Work Institute in over 30 countries where we
operate

 Johnson and Johnson ethics and social responsibility

Around 70 years ago, Johnson and Johnson developed a credo of Corporate Social Responsibility. ... We
believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all
others who use our products and services. In meeting their needs everything we do must be of high
quality.

We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all
others who use our products and services. In meeting their needs everything we do must be of high
quality. We must constantly strive to reduce our costs in order to maintain reasonable prices.
Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have
an opportunity to make a fair profit.

We are responsible to our employees, the men and women who work with us throughout the world.
Everyone must be considered as an individual. We must respect their dignity and recognize their merit.
They must have a sense of security in their jobs. Compensation must be fair and adequate, and working
conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family
responsibilities. Employees must feel free to make suggestions and complaints. There must be equal
opportunity for employment, development and advancement for those qualified. We must provide
competent management, and their actions must be just and ethical.

Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment
with new ideas. Research must be carried on, innovative programs developed and mistakes paid for.
New equipment must be purchased, new facilities provided and new products launched. Reserves must
be created to provide for adverse times. When we operate according to these principles, the
stockholders should realize a fair return
Section 7. Operations And Management

7.1 Ownership And Business Type

1. Sole Proprietorship
 A business owned and operated by a single individual, There are disadvantages, however, including
unlimited liability all business debts are personal debts, meaning you could lose everything you own if the
business fails or loses a major lawsuit; limited sources of financing based on your creditworthiness; limited
skills the sole proprietor really must be a “jack-of-all-trades,” part manager, marketer, accountant, etc.; and
limited lifespan the business ends when the owner dies.

The advantages with a sole proprietorship include ease and cost of formation simply announcing you are in
business and requesting any licenses and permits you may need; use of profits since all profits from the business
belong exclusively to you, the owner; flexibility and control you make all the decisions and direct the entire
business operations; very little government regulations; secrecy; and ease of ending the business.

2. Partnership
 There are two basics forms of partnerships, general and limited. In a general partnership, all partners have
unlimited liability, while in a limited partnership, at least one partner has liability limited only to his or her
investment while at least one other partner has full liability.

 The advantages of a partnership include ease of organization simply creating the articles of partnership;
combined knowledge and skills using the strengths of each partner for better business decision-making;
greater availability of financing; and very little government regulations.

 There are disadvantages, however, including unlimited liability all business debts are personal debts;
reconciling partner disagreements and action each partner is responsible for the actions of all the others;
sharing of profits all money earned has to be shared and distributed to the partners per the articles of
partnership; and limited lifespan the partnership ends when a partner dies or withdraws.

3. Private Corporation

A business that is a legal entity created by the state whose assets and liabilities are separate from its owners.
While there are also public corporations who stock (and ownership) are traded on a public stock exchange most
small businesses are (or at least start as) private corporations.

A private corporation is owned by a small group of people who are typically involved in managing the business.
Forming a corporation requires developing a legal document called the “Articles of Incorporation” and submitting
them to the state in which the corporation wishes to reside.

 The advantages of a corporation include limited liability an owner (stockholder) can only lose up to the
amount s/he invested; unlimited lifespan a corporation is charted to last forever unless its articles of
incorporation state otherwise; great sources of funding; and ease of transfer of ownership.

 Disadvantages include double taxation the corporation, as a legal entity, must pay taxes, and then
shareholders also pay taxes on any dividends received.