7.6a The Social Environment: Ethics Flashcards
What does the social environment consider?
The relationship between the business and the people and areas around where it operates
The social environment is split into what two key areas?
- Demographic issues
- Corporate Social Responsibility
What does demographics involve?
Looking at the characteristics of the population
What two key stakeholder groups do demographic issues effect?
- Employees
- Customers
What are the three key issues that we need to look at under demographic issues?
- Impact of urbanisation and migration
- Changes in lifestyle and buying behaviour
- Growth of online business
Urbanisation definition
The increase in the proportion of people living in towns and cities as opposed to the countryside
Two main causes of urbanisation:
- Natural increase
- Rural to urban migration
What do push factors do?
Drive people away from something - usually due to a lack of resources or facilities
What do pull factors do?
Attract people to an area
Opportunities of urbanisation:
- Wider consumer base
- Leads to development of shopping centres
- External economies of scale
Threats of urbanisation:
- Crime and pollution increase
- Lots of staff will be unskilled or unregistered leading to a weakening of the labour force
What is urbanisation a result of?
Migration
What is migration?
The permanent movement of people from one region to another
Opportunities of migration:
- Increase in total AD via more C, so growth of GDP
- Wider labour force to choose from
- Develop and grow new markets
Threats of migration:
- More demands on social services such as housing = increase G = raise taxes
- Need to develop marketing and branding in different languages
- Skill of labour may be diluted
- Labour shortage
