Outcome 2 Flashcards
Define CSR (Corporate Social Responsibility)
Corporate Social Responsibility is the ability for a business to go above and beyond their legal obligations to consider the impact of their operations on their employees, the community and the environment.
Internal Environment
Allows the business to manage the working environment for its employees and managers. It also focuses on the location and legal business structure. E.g. Westpac has a safe working environment for its managers and employees.
Elements of Internal Environment
The business structure, which is the size of the business, the location and the employee satisfaction.
Operating Environment
Gives the business less control over factors such as customers, competitors, suppliers and special interest groups. E.g. Maccas has a large number of customers, competitors, suppliers and groups, but the customer base is changing.
Macro Environment
Changed which are not in control, affecting your business such as political influences, societal issues, economic conditions, technological issues, global issues and CSR issues. E.g. Retail companies were affected by covid which was not in their control, affect business sales by closing their doors
Global Issues
Viruses and natural disasters, political issues, laws in the government, societal issues, change in lifestyle in the community, economical issues, interest rates, wages and employees and technological issues, tools or systems breaking.
Anti Discrimination Regulations
To ensure every employee is safe and given equal pay
Work health and safety regulations
To make sure no employee gets injured or ill at work
Taxing Regulations
To pay the government so they can improve infrastructure, health and safety.
Trade practises and consumer protection
To ensure product safety to the customer, giving them a refund or replacement
Environmental Protection Legislation
Have little to no environmental damage
Laws relating to location
Which zoning can your company be located in, is it residential, commercial or industrial?
Values and beliefs
Values and beliefs refer to what a group or community of people eat, wear, behave and where and how they live. This can affect planning by people not buying your product because of their beliefs
Trends
Business should consider peoples attitudes changing, a trend is an aging population. The age is rising to make customers older over the years, it could provide opportunities or challenges for your business. You could do an elderly discount at your shop to gain a larger customer base.
Technological issues
Issues relating to the growing use of its tools, techniques or systems by businesses to solve problems or serve a purpose.
Benefits of technological development
Improved productivity, less problems, more organised, easier to keep track of employee wages.
Limitations or costs of new technology
Less mobile, might break, expensive and heavy
Domains
May need to maintain the robots, also getting robots for each store will be expensive.
Economic Conditions
The set of influences that relate to economic activity, including interest rates, wages, unemployment, exchange rates and inflation
Expansion
Increasing consumer spending, sales and profits rising, unemployment falling.
Contraction
Decreasing consumer spending, sales and profits decreasing, unemployment rising
Peaks
Wages and salaries at highest levels, sales and profits at max, low level of unemployment
Troughs
Wages and salaries at lowest levels, sales and profits at lowest, high levels of unemployment
Interest Rates
The price changed or paid for the use of money. Used to calculate the proportion of a loan.
