6.2 Social and demographic influences Flashcards
How can significant changes in society, including demographic changes, influence business decisions?
They can influence decisions such as which products to supply.
What is Corporate Social Responsibility ?
Corporate Social Responsibility is when a business accepts its legal and moral obligations to all stakeholders, not just investors, considering the impact of its decisions on society and the environment.
What is ‘accounting window dressing’?
It refers to making accounts appear more favourable by reporting misleading profit figures or inflating the value of a business, which is widely considered socially irresponsible.
What is the general view on deliberately distorting profitability or company value?
It is considered socially irresponsible and should be illegal.
How does CSR(Corporate Social Responsibility) relate to illegal incentive payments (bribes)?
Awarding illegal incentives to win contracts or avoid penalties is considered socially irresponsible and is often illegal in many countries.
What is a social audit?
A social audit is an annual report on the social impact of a business, covering areas like health and safety, pollution, and community contributions.
What are some benefits of social audits?
Identifies met and unmet social responsibilities.
Improves public image, which can boost sales.
What are some limitations of social audits.
If not independently verified, they may not be taken seriously.
Detailed audits require time and money.
Why should businesses consider community needs?
Meeting community needs improves public image, increases chances for expansion acceptance, and reduces the risk of negative actions by pressure groups.
What are some major international pressure groups?
Greenpeace, Fairtrade Foundation, Amnesty International, and Extinction Rebellion.
What are the main goals of pressure groups?
To change business policies, influence consumer purchasing habits, and lobby governments for legal changes.
What is demographic change?
It refers to changes in the size and structure of the population at local, national, or global levels, such as birth rate fluctuations or an ageing population.
What are some recent global demographic changes?
An ageing population in high-income countries.
Increasing employment of women in responsible positions.
How does an ageing population impact business?
It affects demand patterns and the age structure of the workforce, requiring adjustments in workforce planning and product offerings.
What are the key features of changing employment patterns?
Increased part-time work, more women in employment, flexible work arrangements, and greater reliance on temporary contracts.
