Anticipatory Set (May include pre-assessment for prior knowledge) 1. Ask students to write about a time when they were tempted to do something unethical at school, work, or in the business community. Then explain what influenced their decision. Discuss how individuals are faced with ethical issues on a daily basis. 2. Ask students to list two legal, two social, two customers, and two employee responsibilities for a business. Explain why each responsibility is important and what the business can do to accomplish the responsibilities. Direct Instruction * 1. The unemployment rate is an indication of how business-people, investors, and the government predict economic conditions. High unemployment figures usually indicate that the economy is contracting. Ask students to research current economic conditions to suggest what can be done to improve the rate of employment. 2. Recession can have an impact on the fashion industry. The public resulted in fashion designers scaling back on trendy lines because consumers had tight budgets. Many of the top-name designers like Ralph Lauren introduced classic lines and colors to satisfy people’s need to buy clothes that would stay fashionable for three or four years. Ask students to consider their wardrobes and to list items that will stay in style for three or four years. 3. Ask students for examples from their own life as a customer or as a worker of both good and bad ethical business practices. Then give students the following scenario. “You’re stranded on a small island with three other people. What personal traits would you want the other three people to possess? List the traits chosen by students. Then ask how this scenario relates to the workplace. Outline Notes to Instructor Economic Measurements in a Changing World Gross Domestic Product-total value of goods and services produced in a country in a given year consumer goods and services business goods and services government goods and services goods and services sold to other countries Unemployment Rate Rate of Inflation-rate at which the cost of goods and services rise Standard of Living-amount of goods and services the average citizen can buy Explain how international business has affected gross domestic product in both a positive and negative way. Ask students to explain how an increasing unemployment rate has a domino effect on the economy.
Deflation-when the supply of goods is greater than the demand National Debt Budget deficit-when the government spends more on programs than it collects in taxes National debt-total amount of money a government owes Budget surplus-when a government’s revenue exceeds its expenditures during a period Four Phases of the Business Cycle Prosperity-peak of economic activity Recession-economic slowdown Depression-a deep recession that affects the entire economy and lasts for several years Recovery-the rise in business activity after a recession or depression Give each student a piece of construction paper that they divide into four window panes. Each window pane should illustrate the four phases of the business cycle, using pictures and text. Ethics-set of moral principles by which people conduct themselves personally, socially, or professionally Businesses have a legal responsibility to do what is right for society’s welfare Business Ethics-a set of laws about how a business should conduct itself Unethical Business Practices bad for business affects a business’s profits, customer base, and employee loyalty sweatshops-factories that have unsafe working conditions, treat workers badly, and pay poorly Important Ethical Questions Is it against the law? What if everyone did this? Am I sacrificing long-term benefits for short-term gains? Making Decisions on Ethical Issues Identify the ethical dilemma. Discover alternative actions. Decide who might be affected. Explain how bribery is expected in business transactions for some countries. Then ask students if U.S. businesses should resort to bribery to increase the GDP. Ask students to list three ethical issues that they have made decisions about. Then explain how ethics involves doing the right thing when it is more attractive to do the unethical activity.