Contemporary Socio-Economic Issues Flashcards
Provide the definition of Socio-economic issues.
Aspects that have a negative effect on the individual, communities and business. These issues are societal and economic factors in the macro environment.
Give 4 reasons why Socio-economic issues pose a challenge to businesses.
- Can lead to decreased business costs and decreased profitability.
- Businesses may not be weel supported by customers because of their limited disposable income.
- Counterfeitng, bootlegging and crime may lead to loss of profit.
- Absenteeism of employees affected by HIV/AIDS will result in a decrease of productivity.
What is the meaning of Inequality?
- It arises when some individuals are more prosperous than other or are given better opportunities than other individuals in society.
- Some have more money, which provides access to education, basic health care and social services.
- Contributes to poverty
What is the meaning of Poverty?
- Lack of resources to meet basic human needs.
- Low level of education and limited stocks.
- Gives rise to crime.
- Can’t meet basic human needs.
Give 3 impacts of Inequality and Poverty on businesses.
- Businesses may not grow because of reduced sales figures.
- Limited customer spending means that businesses record lower sales figures.
- Businesses are pressurised by media attention to poverty into investing in poor communities.
What is the meaning of Inclusivity?
- Everyone should have equal opportunities irrespective of race, gender, sexuality, disability, religion and education.
- Aims to address discrimination of persons based on gender and disability.
- Aims to address imbalances such as businesses only employing male staff members in management and top positions.
Give 3 purposes of Inclusivity in workplaces.
- Goal is to ensure that the business implements fair labour practices.
- Seeks to address the inequalities of the host.
- Tries to ensure that the physical business setting makes provision for individuals.
What is unemployment?
Situation that individuals find themselves in when they are willing and able to work but unable to find work.
What term do we use to measure unemployment?
Unemployment rate
What is the impact of Unemployment?
- Businesses become less profitable and lack resources to continue growing which stagnate the economy.
- Uncertainty, decreses in competition, high crime rates and poverty are some consequences.
- Youth unemployment negatively affects the broader community.
What does Unproductive Workforce means?
- Some employees aren’t making sufficient physical or mental effort to produce enough work to justify their wage.
- Business can’t dismiss unproductive workers.
- Affects profit of business as less work is done.
Give 3 impacts of an Unproductive labour force.
- Sales may not be made
- Customers may not be cared for properly
- Distracted employees decrease the company’s performance.
Give 3 solutions for an Unproductive labour force.
- Clear communication and good management improves productivity.
- Incentitives motivate employees to work more efficiently.
- Skills training increases worker morale and loyalty.
Give 3 negative impacts of HIV/AIDS on businesses.
- Increased employee absenteeism
- Reduced productivity
- Additional expenses.
What are the 2 types of Gambling?
Legal and Illegal gambling
What is Illegal gambling?
Unlicensed businesses offer gambling to the public. Can take place in poor communities.
What is Legal gambling?
If it’s been authorised in terms of National Gambling act 7 of 2004 and respective provincial legislation.
What is the impact of gambling on businesses?
- Individuals losing cash display lower morale levels
- Promotes corruption in business
- Employees may be absent regularly
What is Money laundering?
- Process by which unlawful profits from crime are invested in valid businesses to cover up their wrongdoing.
- Source of money is camouflaged.
What is a Pyramid Scheme?
- Businesses that may potentially yield high revenues for people who invest their money in them.
- Only individuals at the top of the pyramid recieve large sums of money.
What is Piracy?
- Illegal copying or reproduction of somebody’s product that affects business operations.
- Illegal copying of music, videos, mvies or computer programs registered by another company.
What is the negative impact of Piracy on businesses?
- Decline in sales
- Spend money taking legal action
- Forced to implement price adjustment strategies.
Name the 3 methods of dealing with Piracy?
Copyright, Patents and Trademarks
What is Copyright?
Businesses can sue someone who infringes the copyright.
