3.7.6 Flashcards
What is demography and why is it important for businesses?
Demography is the study of human populations, including their size, growth rates, and movements. It is important for businesses because demographic changes can influence costs of production, demand for products, and market opportunities.
What is migration, and how can it impact businesses?
Migration is the movement of people between countries or regions. Businesses may be impacted by migration as it can affect labor supply, consumer demand, and market expansion opportunities, especially in areas with a high number of migrant workers.
What is urbanisation and how does it impact businesses?
Urbanisation is the movement of people from rural areas to cities. It impacts businesses by increasing demand for goods and services in urban areas, which may lead to market growth for businesses located in cities.
What is a pressure group and how can they influence businesses?
A pressure group is a group of people with common interests who organize to influence public opinion and decisions for businesses and governments. They can impact businesses by advocating for policies or changes that affect how companies operate.
What is Corporate Social Responsibility (CSR)?
Corporate Social Responsibility (CSR) refers to a business’s duties towards employees, customers, society, and the environment. It involves going beyond legal obligations to positively impact society and improve the business’s image and reputation.
What are the key arguments for and against CSR?
For CSR:
Improves brand image and reputation
Helps develop a unique selling point (USP)
Justifies higher prices
Against CSR:
Can be expensive
May not be important to key stakeholders like shareholders
Can be seen as a PR stunt if inconsistent
What is the difference between the shareholder concept and the stakeholder concept?
The shareholder concept focuses on maximizing profits to benefit shareholders, often leading to short-term decision making. The stakeholder concept considers the needs of all stakeholders (e.g., employees, customers, suppliers), leading to long-term, socially responsible decisions.
What are the layers of Carroll’s Corporate Social Responsibility Pyramid?
Carroll’s CSR Pyramid includes four layers:
Economic responsibilities – Businesses must be economically profitable.
Legal responsibilities – Businesses must follow the law.
Ethical responsibilities – Businesses should do the right thing beyond legal requirements.
Philanthropic responsibilities – Businesses should actively improve society and quality of life.
Why are businesses under pressure to behave socially responsibly?
Consumers are more informed about businesses’ environmental and social impact, and socially responsible behavior influences consumer spending decisions. It also helps businesses attract top talent, enter new markets, and enhance brand reputation, especially in a globalized market.
How has the growth of online businesses impacted consumer buying behavior?
The growth of online businesses, e-commerce, and apps has made it easier for consumers to shop, compare prices, and purchase goods and services from home. This shift influences consumer behavior by increasing convenience and broadening access to products.
What are some impacts of technological change on business functions?
Technological change impacts all functional areas of a business, including:
Marketing: More online advertising, social media, and e-commerce.
Finance: Investment in technology, potential outsourcing, and improved sales.
Operations: More efficiency, automation, JIT processes, and improved customer service.
HR: Potential redundancies, need for new skills, and outsourcing for technological expertise.
