Chapter Assessment - Introduction To Business - ثاني ثانوي

ليم Chapter 5 Review Business Concepts 5.1 Business Ethics Assessment A socially responsible business engages in ethical business practices. Ethics are principles of morality or rules of conduct. Ethical behavior involves conforming to these rules. Unethical behavior violates them. Business ethics are rules about how businesses and their employees should behave in business situations. A code of business ethics is a guide for behavior within an organization. A conflict of interest can occur when an action by a company or individual results in an unfair benefit. Corporate governance is the system of rules, practices, and processes that outlines how companies are directed and controlled. Corporate governance must balance the interests of a company's many stakeholders, or those who have an interest in the corporation. 5.2 Ethical Behavior in Organizations ⚫ Ethical behavior within an organization is influenced by the larger national legal and cultural environments, an organizational culture, and individual factors. • A contract is an agreement to exchange goods or services for something of value, usually money. Contract enforcement is typically through a nation's court system. • Three types of intellectual property are patents, copyrights, and trademarks. ⚫ An organizational culture provides the norms of behavior established by leaders that shape employee values, perceptions, and behaviors within an organization. ⚫ Individual factors that influence the level of ethical behavior in an organization include personal knowledge, values, and goals. An ethical dilemma is when there is a conflict between alternative choices, where each decision can violate ethical principles. • Whistle-blowing is informing government officials and related parties about unethical practices within an organization. • Trade associations are an association of people or companies in a particular business or trade that promote the common interests of the members. Trade associations can and often do provide ethical guidelines for their members. 5.3 Social responsibility The consumer movement is an effort to protect the rights of consumers through organized social action. ⚫ Fraud is any act involving deceit to obtain a direct or indirect financial benefit by the perpetrator causing a loss to the deceived party. • A warranty is a promise by the manufacturer or dealer, usually in writing, that a product is of a certain quality. • Corporate Social Responsibility (CSR) is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. Social responsibility refers to the duty of a business to contribute to the well-being of a community. In considering its responsibility to society, a business must weigh the interests and concerns of many groups. • A social audit is a comprehensive report of what an organization has done and is doing with regard to social issues that affect it. This document provides the information the firm needs to evaluate and revise its social responsibility program. 168 Chapter 5 | Social Responsibility of Business Ministry of Education 2024-1446

Think Critically About Business 1. What are some of the Islamic concepts and pillars that govern business ethics related to labor relations? How can businesses apply those concepts and pillars? 2. A code of ethics is a set of rules for guiding the actions of employees or members of an organization. Name some of the areas businesses cover in their code of ethics. 3. What guidelines should a worker follow to evaluate ethical behavior? 4. Corporate governance must balance the interests of a company's many stakeholders. Identify stakeholder groups for businesses. Why would these stakeholders have an interest in the behavior of the corporation? 5. What are the influences on ethical behavior within an organization? Which of these influences is most important in Saudi Arabia? Explain your answer. 6. Whistle-blowing is informing government officials and related parties about unethical practices within an organization. If you saw wrongdoing in a business, would you be a whistle-blower? Why or why not? 7. Saudi Arabia is working on policies and laws that will align consumer rights in accordance with United Nations guidelines. Why would this be important for Saudi Arabia? 8. Identify some common benefits of socially responsible activities taken by businesses. Why would these benefits outweigh the costs? وزارة التعليم Ministry of Education 2024-1446 Assessment | 169

Develop Your Business Language Match the terms listed with the definitions. Term Your Choice Definition 9. business ethics 10. code of ethics 11. conflict of interest 12. consumer movement 13. contract 14. corporate governance corporate social responsibility 15. 16. ethical dilemma 17. ethics 18. fraud 19. intellectual property 20. organizational culture 21. social audit 22. social responsibility 23. trade associations 24. warranty 25. whistle-blowing a. Principles of morality or rules of conduct. b. Rules about how businesses and their employees should behave in business situations. c. Rules for guiding the actions of employees or members of an organization. d. An action by a company or individual that can result in an unfair benefit. e. The system of rules, practices, and processes that outlines how companies are directed and controlled. f. An agreement to exchange goods or services for something of value, usually money. g. Creative work or technical knowledge such as patents, copyrights, and trademarks. h. The norms of behavior established by leaders that shape employee values, perceptions, and behaviors within an organization. i. A conflict between alternative choices, where each decision can violate ethical principles. j. Informing government officials and related parties about unethical practices within an organization. k. An association of people or companies in a particular business or trade that promotes the common interests of the members. I. An effort to promote consumer protection through organized social action. m. Any act involving deceit to obtain a direct or indirect financial benefit by the perpetrator causing a loss to the deceived party. n. A promise by the manufacturer or dealer, usually in writing, that a product is of a certain quality. o. A management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. p. The duty of a business to contribute to the well-being of a community. q. A comprehensive report of what an organization has done and is doing with regard to social issues that affect it. Make Academic Connections 26. Communication Interview at least three people to ask them for a definition and an example of "conflict of interest." Prepare a summary report of two to three paragraphs. P170 Chapter 5 | Social Responsibility of Business Ministry of Education 2024-1446

27. Math A Saudi manufacturing company has an annual operating budget of SAR 2,800,000. Each year it budgets for the following expenses: pollution control equipment, SAR 140,000; contributions to community projects, SAR 84,400; employee fitness/sports programs, SAR 28,100. What percentage of the annual budget is allocated to each socially responsible action (pollution control, community projects, fitness/sports)? What is the total spent? b. What will be the amount budgeted for each expense category next year if there is a 15% increase? What will be the total spent? 28. Technology Explain how new technology is making it more difficult to protect IP rights. 29. Visual Art Look for examples of trademarks and logos of products from companies based inside and outside of Saudi Arabia. Design a brand name or trademark that might be effective in several countries around the world. 30. Culture Explain how history and culture can affect business regulations and business ethics in various countries. 31. Science Research a Saudi Arabian patent on a product. Identify the inventor, the year the patent was granted, and the product's function. Prepare a summary report of your findings. وزارة التعليم Ministry of Education 2024-1446 Assessment | 171

32. Speech Prepare a speech on how good corporate governance policies can have a direct impact on a company's brand image. 33. Career Planning Investigate the skills required for a job position as a corporate business ethics officer. 34. Research Use the Internet to find examples of businesses that have violated the rights of consumers. Identify how these issues were handled by the business or by government. Make Your Case A Saudi Arabian business wants to build a new sports complex near the center of its town for its workers and the people of the town. The complex will cost SAR 5 million. 35. What are the advantages of building this complex for the company, its employees, and the people of the town? 36. Managers of the company want to justify the Riyals spent on this project. How can you assign specific Riyal values to the benefits of this project? P172 Chapter 5 | Social Responsibility of Business Ministry of Education 2024-1446

Global warming is a hot topic. There is strong consensus that the world is getting warmer. At the time of writing, the warmest seven years ever have all been since 2015, with 2016, 2019, and 2020 constituting the top three (source: World Meteorological Organization). Although the warming trend is well documented, there is considerable debate about the cause. Could it be part of a natural cycle? Or, is it due to human activity? Scientists, environmentalists, and policymakers who believe that human activity is the cause of global warming point to the reduction of carbon emissions as part of the solution. 37. Use the Internet to learn more about global warming and get some different perspectives on the issue. Visit at least one website for each of the following categories: government agency, environmental advocacy organization, large manufacturer, and energy company. In a short report, summarize what you find and offer an opinion about what should be done to combat global warming. 38. Use the Internet to identify actions and strategies that businesses, governments, and individuals could adopt to limit carbon emissions. Report your findings in a table. 39. Choose three actions or strategies that could help reduce carbon emissions and write a short explanation of how they might impact business practices. Interactions and Connections 40. Interview someone in your community who owns a business or works for a large company or organization. Obtain information about actions that need to be considered when hiring people, designing products, and making other business decisions. Ask them how ethics might affect their daily lives and the lives of others. 41. Based on their answers and what you have learned in this chapter, create a short code of ethics that might be used to guide the decisions made by managers and employees in a company. وزارة التعليم Ministry of Education 2024-1446 Assessment | 173

Prepared Speech Event Some employees in companies around the world are spending part of their workday making personal phone calls and using their work computers for shopping online, playing games, sending personal e-mails, and visiting social networking sites. This unethical behavior results in decreased productivity. Today's focus on technology has many people thinking about personal interests over dedication to their employer. Business leaders are challenged to monitor employees in the workplace for ethical use of their time. You will prepare a speech that identifies current ethical challenges and offers strategies to encourage respect and ethical conduct in the workplace. Your speech must emphasize the expectation of employee productivity in the workplace and how attention must be shifted from personal interests of employees to customer service and ethical use of work time. You will have three to five minutes to present your plan to improve ethical conduct in the workplace. Audiovisual equipment and visual aids may be used in this presentation. Performance Indicators Evaluated Define ethical conduct in the workplace. • Explain the relationship between the employee's commitment to the workplace and productivity. Describe strategies to improve ethical conduct in the workplace. Explain how ethical standards will be implemented and monitored in the workplace. Describe a work environment that requires and rewards sound ethical behavior. You will be evaluated for your • Knowledge of the topic Organization of the presentation Confidence, quality of voice, and eye contact ● Presentation of the plan Think Critically 1. Why must businesses have standards and rules for employees? 2. Why are many ethical issues associated with technology in the workplace? 3. How can businesses increase employee dedication? 4. What has contributed to the lack of productivity in the workplace? 5. What should happen to employees who have demonstrated unethical behavior in the workplace? 174 Chapter 5 | Social Responsibility of Business Ministry of Education 2024-1446