6-Domestic Environment Flashcards
Social Responsibility
Business’s duty to treat all those it comes into contact with honestly and fairly.Business has an obligation to make a positive contribution to people and environment.
Stakeholders businesses are socially responsible for
Investors e.g. worldcom Suppliers e.g. Body shop Customers e.g. Nurofen Local community e.g. IKEA Employees e.g. LIDL Government e.g. National Irish Bank
Community Development
Local people come together to identify main problems for their area and develop a plan to solve these problems
E.g. Rathgormack Co. Wexford
SOLAS (Fás)
training and employment programme that helps long term unemployed people return to work.
Helps them develop technical and personal skills.
Training in practical industries
Courses in local colleges
Advice and support
Advertise jobs
Rural Development Programme (LEADER)
Funded by the EU and helps rural communities develop
Aims to reduce poverty and promote social inclusion-broadband and tourism
Advice + grants
Advantages of being socially responsible
Increased sales e.g. body shop
reduced costs e.g. volkswagen
Attract and retain employees e.g.Google
easier to raise capital e.g. Green Investment Funds
Effects of environment on business costs
increased wage bill
increased manufacturing costs
lower legal costs
lower energy bill
Benefits of a code of ethics
improved repuation
employee guidance
encourages ethical behaviour
Code of ethics
formal written document that sets out rules employees and managers must follow when making decisions.What is right/wrong.Should be part of staff training. e.g. employees keep information confidential and treat customers with respect
Challenges of a code of ethics
Resistance to change
Enforcement
Training
Local Enterprise Office
help small local businesses with aim of creating a strong local economy e.g. Fingal LEO Advice Grants Workshop Mentor
Area Partnership Company
help local people set up a business in their area e.g Dublin Inner City Partnership Grants Workshops Premises Mentor
Importance of community development (social)
Community spirit
Less migration
Importance of community development(Economic)
Job creation
Taxes
Entrepreneurship encouraged
Local spending
Environmental responsibilities
1) Climate Change
2) Waste management
3) Pollution
4) Sustainable development
Effects of environment on business
Increased sales
Increased costs
Damage to reputation
Increased regulation
Characteristics of an environmentally conscious business
Sensitive to environment
Open to change e.g. Spar audit
Sustainable development e.g. Velvet
Consult others e.g. Tesco
Sustainable Development
meet needs of present without compromising ability of future generations to meet their needs e.g. Velvet
Effects of environmental decisions on revenue
Increased sales
Easier to raise capital
New markets
Economic Variables
Inflation Interest rates Unemployment Exchange rates Levels of tax
Inflation
annual percentage increase in general level of prices
measured using CPI
Impact of high interest rates on business
higher loan repayments
borrowing discouraged
higher mortgage repayments
impact of inflation on business
wage demands
industrial relations issues
expensive products
increased costs
Interest rates
cost of borrowing expressed as a percentage
determined by ECB
