Social and Technical changes Flashcards
What is demographic change
Changes in structure of the population over time eg age, race etc
Opportunities of demographic change
Market size for certain businesses
will increase
Examples: Private healthcare,
Travel firms for retired people
Threats of demographic change
Proportion of people available to
work decreases, growth may be
difficult if there is a labour shortage
Definition : urbanisation
increase in the proportion of the population living in cities
Opportunities of urbanisation
New markets = concentrated demand = businesses may focus distribution in these areas
More housing, infrastructure will be needed = more
opportunities for businesses in these industries to expand or new emerging businesses to start
Access to better education ? = more skilled workforce, business might move closer to these areas where there is a
supply of labour
Definition : migration
movement of population from area/country to another
Opportunities of migration
Shortage of labour = businesses struggle to grow
Migrants can create demand for certain products = creating new markets eg mobile phone operator offering
international calls
Threats of migration
If too many skilled people emigrate, businesses I that country may struggle as not enough skills
What is CSR
when businesses consider their impact on
society, the environment, and stakeholders, beyond just making a profit
Key areas of CSR
Environmental Impact:
• Reducing waste, carbon emissions, using renewable energy, and
sustainable sourcing.
Ethical Sourcing and Fair Labour:
• Fair wages, safe working conditions, and no exploitation in the
supply chain.
Stakeholder Consideration:
• Considering the needs of employees, customers, shareholders,
suppliers, and local communities
Advantages of CSR
Improved Reputation: Builds positive brand image.
•Customer Loyalty: Attracts customers who support ethical businesses.
•Employee Satisfaction: Increases morale and retention.
•Attracts Investment: Appeals to socially responsible investors.
•Market Edge: Differentiates from competitors.
•Risk Management: Reduces legal and reputational risks
Disadvantages of CSR
High Costs: Implementing CSR can be expensive.
•Time-Consuming: Requires significant effort and resources.
•Greenwashing Risk: False claims can harm reputation.
•Conflicts with Profit: CSR can conflict with profit-maximising goals.
•Delayed ROI: Benefits may not be immediate
