3.7.6. social and technological

Question 1

what is urbanisation?

Answer 1

the process of people moving from rural areas to urban areas

Question 2

what is the impact of urbanisation on businesses?

Answer 2

• can gain larger markets as population grows with higher incomes therefore can increase prices

Question 3

what is a downside to rapid urbanisation?

Answer 3

it can strain infrastructure which can cause operational costs to increase as congestion grows

Question 4

what is ageing population?

Answer 4

when population is growing older as people are living longer and birth rate decreases

Question 5

how does an ageing population impact businesses?

Answer 5

it increases health service clients as older people require more health but can struggle to have employees if majority of people are retiring

Question 6

what is net migration?

Answer 6

the difference between people entering/leaving a country

Question 7

how does net migration impact businesses?

Answer 7

• creates a diverse workplace
• can drain resources e.g.) housing, education and healthcare

Question 8

what are 3 statistics of UK lifestyle trends?

Answer 8

• 86.9% of adults report having made positive changes to improve environment
• 54% of adults drink alcohol at least once a week
• 64% of adults and 30% of children are considered obese

Question 9

what does Caroll’s CSR pyramid show?

Answer 9

it outlines the different possible aspects of social responsibility for a business

Question 10

what are the four sectors of Caroll’s pyramid?

Answer 10

-economic
-legal
-ethical
-philanthropic

Question 11

what is meant by corporate social responsibility?

Answer 11

• a self-regulated business practice, that demonstrates an organisations sustainability and social ethics commitments in addition to profits

Question 12

what are the benefits of CSR?

Answer 12

• employees are happier and more motivated so quality is improved
• improves reputation so widens opportunities
• there are bigger cost savings due to being more efficient

Question 13

what are the disadvantages of CSR?

Answer 13

• time consuming
• staff may be resistant to change
• can be expensive

Question 14

what is the stakeholder concept?

Answer 14

• a concept that argues the purpose of the business is to create value for all stakeholders and not shareholders

Question 15

what is the shareholder concept?

Answer 15

• a concept that argues that businesses should have a primary responsibility of acting in interest of owners (shareholders) and decision should be based on potential impact on shareholders not stakeholders