Impact on Social & Technological changes on decision-making Flashcards
What are 3 technological changes in the last 100 years?
Digital marketing
Barcode
Globalisation
Why is digital marketing good for businesses? 3 reasons
Access new markets
Can be quicker
Can be cheaper sometimes
Why does digital marketing decrease costs?
Due to the easy nature of promoting a product
What is a downside to digital marketing?
Having to keep up to date with constant trend and changes
What is CSR?
Corporate Social Responsibility
What is Corporate Social Responsibility?
A self regulated business practice that organisations adopt to demonstrate their commitment to social ethics and sustainability, in addition to profits
What approach do businesses that practice CSR take?
Triple Bottom Line - Elkington’s
What is Elkington’s TBL?
People, Planet and Profit
What are 4 key areas of CSR?
Carroll’s Pyramid
Economic
Legal
Ethical
Philanthropic
What are 2 advantages of businesses using CSR?
Competitive advantage by reducing costs through more sustainable practices
Increased staff productivity - increased output, reduces unit costs
What are 2 disadvantages of businesses using CSR?
Resistance from stakeholders as some may prioritise short-term profits
Time-consuming
What is the stakeholder concept?
The concept argues that the purpose of a business is to create value of all stakeholders not just shareholders
What do businesses need to consider - stakeholder concept?
Customers, suppliers, employees etc when making decisions not just shareholders
What is the shareholder concept?
The concept argues that the primary responsibility of businesses to act in the interest of its owners.
What do businesses need to consider - shareholder concept?
Decisions should be taken based on potential impact on shareholders rather than other stakeholders
