Chapter 4: Ethics and Social Responsibility - McGraw-Hill Introduction to Business

Non-Traditional Lenders Fund Risky Ventures

October 11, 2014

During the recession that began in 2008, traditional banks became wary about awarding risky loans. Not only had bad deals come back to hurt many institutions, but also new regulations required many banks to increase their capital reserves. With less money to lend, banks largely stopped financing risky endeavors like commercial real estate and small business loans.

To fill this void in the market, non-traditional lenders like real estate investment trusts (REITs) and online outlets increased their presence. Fueled by Continue reading →

Banking, Finance, Venture Capital, Real Estate

Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 18: Financial Management, Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media, Bonus Chapter C: Managing Risk

Multi-Level Marketing: Safe or Scam?

October 5, 2014

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Since the onset of the financial crisis of 2008, millions of Americans have looked for ways to earn additional income. For some, multi-level marketing companies like Avon and Herbalife presented a good avenue for making extra cash. In these types of operations, individuals pay the company for a bulk amount of goods that they then sell to other people. According to multi-level marketing firms and their trade groups, the system allows consumers to purchase their favorite products at a Continue reading →

Distribution, Direct Selling, Marketing, Herbalife, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 15: Distribution, Bonus Chapter A: Business Law, Bonus Chapter C: Managing Risk

Oversaturation Leads to Casino Closings

September 30, 2014

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In 1988, just two states allowed casino gambling. Today, New Jersey and Nevada are joined by more than 35 other states that have legalized casinos. Over the years, local governments across the nation promoted gambling as a way to generate additional tax revenue. Plenty of municipalities bought into the idea, leading to a rush of casino construction throughout the 1990s and 2000s.

Like so many other industries, business was good until the recession hit in 2008. Since then, not only Continue reading →

Entertainment, Regulation, Oversaturation, Gambling, Ethics, Branding

Chapter 4: Ethics and Social Responsibility, Bonus Chapter A: Business Law

The Gradual Return of American Manufacturing

September 23, 2014

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In the 1950s, more than 150 television manufacturers called the U.S. home. Today, not even component parts for TVs are produced on American soil. Still, that hasn’t stopped Wal-Mart from slapping “Assembled in the USA” stickers onto many flat screen TVs stocked in its stores. That’s because the company buys the televisions from South Carolina’s Element Electronics Corporation, which imports all their items from China.

That doesn’t mean Element is simply a middleman operation though. TVs that arrive at the Continue reading →

Distribution, Wal-Mart, Element Electronics, Global, Manufacturing

Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 15: Distribution

Corporations Fill Foreign Aid Void

September 2, 2014

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In the mid-20^th century, many struggling nations around the world relied heavily on outside governments for assistance. Foreign aid of this nature accounted for 71 percent of all worldwide capital flows as recently as 1960. As the years progressed, however, governments largely removed themselves from the global development game. Today, foreign aid accounts for less than 1 percent of the U.S. budget and only 9 percent of current capital flows.

To fill this void, non-governmental organizations and groups such Continue reading →

Finance, Corporate Social Responsibility, Foreign Aid, Coca-Cola, Global, Ethics

Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 10: Motivation, Chapter 15: Distribution, Chapter 16: Place and Promotion

Keeping the NFL Green in Sustainable Stadiums

August 14, 2014

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With preseason football already under way, it won’t be long now until the NFL season officially kicks into full gear. And although the intensity of the gridiron will undoubtedly remain the same, some fans might notice big changes around their local stadiums. That’s because after years of outcry to green up the game, a number of NFL teams have revamped their arenas with a variety of energy-saving and cost-cutting measures.

In San Francisco’s Levi’s Stadium, for instance, an 18,000-square-foot Continue reading →

Sports, Branding, Sustainability, San Francisco, Philadelphia, NFL, Marketing

Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Bonus Chapter B: Technology and New Media

The NCAA’s Image Issues

August 11, 2014

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In 2014 a judge granted Northwestern University’s football players collective bargaining rights. Although it was later overturned, this landmark decision heightened the debate about compensation for college athletes to a whole new level, and it didn’t take long for another major legal ruling to follow it. In early August a U.S. district judged found in favor of former UCLA basketball star Ed O’Bannon and 19 others regarding the image rights of athletes. According to the ruling, the NCAA violates anti-trust Continue reading →

Sports, Copyright, College, NCAA, Ethics, Labor Relations

Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 12: Labor Management and Unions, Bonus Chapter A: Business Law

EU Nations Add Underground Economies to GDP

August 5, 2014

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Even though the U.S. has a gross domestic product (GDP) valued at nearly $17 trillion, that huge figure still doesn’t come close to providing a complete picture of the American economy. Each year billions upon billions of transactions go undocumented, untaxed, and ultimately unrecorded by official GDP statisticians. Whether it’s earning a few bucks by mowing a neighbor’s lawn or by selling drugs, these concealed deals all form what’s known as the underground economy.

Many economists have said that it’s Continue reading →

Europe, Finance, GDP, Financial Data, Underground Economy, Regulation, Ethics

Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility

Tax Dodging Corporations Cost the U.S. Billions

August 1, 2014

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For decades big companies have done their best to avoid hefty corporate tax rates levied by Uncle Sam. The U.S. government collects 35 percent of a domestically based corporation’s income, a figure based on the entirety of the company’s worldwide revenue. This mighty bite from the bottom line leads many firms to reincorporate their companies in places like the Cayman Islands or Ireland, where the corporate tax rate is just 12.5 percent. While this process of “inversion” is entirely legal, Continue reading →

Regulation, Taxes, Ireland, Cayman Islands, Global, Ethics

Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 17: Accounting, Bonus Chapter A: Business Law

Led Zeppelin’s Stairway to Controversy

July 31, 2014

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Led Zeppelin’s 1971 epic “Stairway to Heaven” is widely regarded by music critics as one of the greatest rock songs of all time. It’s also been one of the most profitable. Clocking in at nearly eight minutes long, the band refused to release the song as a single, which forced fans to shell out more cash to buy the album it appeared on. When coupled with the song’s substantial royalties from radio play, “Stairway to Heaven” has earned at least Continue reading →

Ethics, Product Development, Copyright, Entertainment, Regulation, Music

Chapter 4: Ethics and Social Responsibility, Bonus Chapter A: Business Law