| A | B |
|---|
| Social Responsibility | the duty to do what is best for the good of society. |
| Responsibility to Customers | Businesses should offer a good, safe product or service at a reasonable price. |
| FDA (Food and Drug Administration) | a federal government agency that protects consumers from dangerous or falsely advertised products. |
| Fair competition | This is a major component of a market economy and is necessary for the marketplace to operate effectively |
| Effects of companies restricting competition | consumers have fewer choices in what they can buy and how much they pay. The effect on the company is that it becomes less productive. |
| Responsibility to employees | provide safe working conditions, equal treatment, and fair pay. |
| Responsibility to society | One of the biggest ways a business demonstrates this responsibility is by protecting the environment and controlling pollution. |
| EPA (Environmental Protection Agency) | This agency enforces rules that protect the environment and control pollution. |
| Responsibility to creditors and owners | This biggest way a company can demonstrate this is through truthful financial reporting |
| Sarbanes-Oxley Act | This law mandates truthful financial reporting and hold the CEO more accountable for the actions of the financial managers of a firm. |
