Chapter Three Flashcards
Meanings and impact of contempoary socio-economic issues on bussiness’s
- low income levels
- inflations
Low income levels
-Greatest inequalities in income in the world
Impact of income levels in bussiness
- Consumers shift to cheaper brands of certain products
- Poverty can lead to crimes such as shoplifing and robberies
- Bussiness will have few profits and wont be able to expand
Inflation
-refers to the general increase in prices in products in the country
Impact of inflation
- Increases the costs of raw materials and other inputs
- it decreases consumer spending resulting in decreased sales and profitablility
- employees may be retrenched, unomlyment, less buying
Meanings and impact of contempoary socio-economic issues on bussiness’s
- Economic crime
- Ethinicial misconduct
Economic crime
=Economic crime is also known as whote collar crime, it includes the following activites
- Fraud =unauthorised use of funds
- Money laundering= which refers to hiding the source of money that was obtained illgally
Impact of economic crime
- Loss of income if money was stolen from bussiness
- Loss of jobs, if bussines closes down
- Bussinesses lose investors
Ethincal misconduct
Ethincial misconduct can be defined as any behaviour by employees of the bussiness that is not consistent with the values of the bussiness.
Types of eithical misconduct
-Sexual harrasment
Sexual harrasemnt involves unwanted conduct of sexual nature from someone at work that causes discomfort.
-Corruption
Refers to any act of dishonesty such as bribery/theft/collussion etc
Mismanagement of funds
-Mismangment of funds refers to the wrongful use of funds that do not belong to a person.
Impact of ethinical misconduct on bussinesses:
- It may result in bad publicity and loss of loss of costumers
- Corruption and mismangemnt will lead to lose of income
- Bussiness owners involved will face criminal charges
Meanings and impact of contempoary socio-economic issues on bussiness’s
Population growth
Lliteracy
Lack of skills
Population growth
-Its a percentage change in the population resulting from births, deaths and migration
Impact of population growth on bussiness :
-Excessive growth increases umemployment and crime
-Consumers will have less income and bussiness will have a decrease in sales
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Lliteracy
-lliteracy refers to a persob who cannot read or write
Impact of illitacy on bussinesses
- Traning of these employess are very costly and bussiness suffers a finanicial loss.
- Diffucult to market products to people who cannot read or write
- Employees that dont have correct skills cab also be the cause of accidents in the workplace and this could image of the bussiness.
Impact of lack of skills on bussiness
- Bussinesses cannot find candidates with adequate skills and experiences
- Ends up appointing a candidate who lack skills resulting in poor products services
- Tranining expensive productivity will be affected
Meanings and impact of contempoary socio-economic issues on bussiness’s
Unavailability of natural resources
Exhaustion of natural resources
Dumping
Unavaliability of natural resources
-oil/water/coal/gold are scarce
Impact of unavaliability in natural resources for bussiness
- Unavaliablity of coal leads to shortage of electricity in South africa
- Lack of transport due to unavaliablity of oil which is used to manufacture fuel
Exhaustion of natural resources :
- Over use of natural resources
- Supply and quality of natural resources may decline.
Dumping
Is when goods enter south africa from other countries at a price that is cheaper than normal, because more was produced than usual
Impact of dumping on bussiness
- loss of profits as local producers can not compete with lower prices
- Business might lose revnue and may be forced to shut down operations.
- Loss of jobs and decrease in local productions
Meanings and impact of contempoary socio-economic issues on bussiness’s
Strikes
Piracy
Solutions of piracy
STRIKES
are when a collective group of employees have a refusal to work, to force employers to accept demands
Impact of strikes on bussiness
- Scares off potential investors
- Bussiness lose income because productivity is low
- Many bussiness suffer losses as a result of damage to property
- Economy maybe jeopardised since production is lost
Piracy
- Pircay is unauthorised use of another persons original work
- products associated with piracy are computer software DVD/CDs
Impact of piracy
- Leads to job loses in the industry
- Bussiness lose out on productivity and profits
- May cause damage to the value of the bussinesses
- It undermines music/movie industry as they lose money
Possible solutions to piracy :
Patent
A patent prevents bussinesses not to produce and sell the same product/service
-Can bring legal proceedings against anyone who uses the invention
-must register a patent with patents office in south africa
Trademarks
- Bussiness use trademarks to identify themselves and their products
- Can claim damages from someone who infringes trade mark
Copyright
-Bussines can sue someone who infringes copyright
Meanings and impact of contempoary socio-economic issues on bussiness’s
Industrial relations
Purpose of the Labour Relations Act
Industrial relations
= refers to the relationship between the employee and employer
Types of industrial actions :
Strikes
=are a collective of employees who refuse to work, to force employer to give demands
-Employees do not get paid for the days spent on strikes
-forces employers to give into demands
Go-slows
=is when employees purposely work slowly as possible
-employees still get paid as they are still doing the work
Lockouts
Its when a employer lockout employees from workplace
-during strike to ensure safety
Purpose of Labout relations Act
- Outlines relationship between employees and employers
- Promotes fair employment pratices
- Promotes resolution of labour disputes
Meanings and impact of contempoary socio-economic issues on bussiness’s
Trade unions
Reasons for esb trade unions
Roles of trade unions
Functions of trade unions
Trade unions
=is an organisation that protects the rights and interests of employees by negotiating with employees
Reasons for establishment trade unions :
- Providing protection for their members
- Engaging in industrial action such as protests and strikes
- Taking a political action to influence the government strategy.
Roles of trade unions
- Ensure employees are treated fairly and respected
- Ensure that employers include employees in their decision making process
- serves as mechanism through which employees have a collective voice in the workplace
Functions of trade unions
- Improves conditions of employemnet
- Influences government decisions
- Ensures employees are treated equally in the workplace
- Take legal action on behalf of members
