Topic 7 Contemporary Socio Economic Isssue Flashcards
Socio economic issues meaning
Aspects have a negative effect on the individual communities and business.
Why socio economic issues pose a challenge to businesses
Counterfeiting bootlegging and crime may lead to profit loss 4 business.
Absenteeism of employees affected by HIV / AIDS will result in decrease of productivity
Inequality
Contributes to poverty in the country.
Some people have more money than other can therefore access education, basic health care and social services
Poverty
Defined as lack of resources to meet basic human needs.
Poverty can often rise to crime.
Impact of inequality and poverty
Businesses may not grow because of reduces sales figures.
Limited customer spending means that business record lower sales figures.
Inclusivity meaning
Means everyone should have access to equal opportunities , irrespective of their race , gender , sexual orientation, disabilities , religion and education.
Purpose of inclusivity
It seeks to redress the inequalities of the past.
Try to ensure that the physical business setting makes provision for individual with disabilities.
Negative impact HIV / AIDS
Reduce productivity of affected employees.
Increased employee absenteeism because of medical appointments for doctor or clinic visits
Types of gambling
Pyramid Schemes
illegal gambling
Money laundering
Pyramid schemes
Refers to business that may potentially yield high revenues for people who invest their money in them.
Illegal gambling
When unlicensed business offer gambling to the public.
Activities can take place in poor communities.
Money laundering
Process by which unlawful profits from are invested in valid business to cover up their wrong doing
Impact of gambling
Employees who gamble themselves into financial difficulties may be absent from work regularly.
Gambling duch money laundering promotes corruption in the business.
The employees may suffer from depression and thereby not be able to focus on work task and responsibilities
Meaning of piracy
Illegal copying of reproduction of somebody’s products that affects business operations.
Negative impact of piracy
Businesses will spend money if they need to take legal action against people who cooy their products or music.
Methods of dealing with piracy
Copy right
Patent
Trademarks
Copyright
Business can take legal action against people who copy their products.
Businesses can sue someone who infringes the copyright.
Patent
They can bring legal proceedings against anyone who uses their invention.
The invention must comply with patent act no. 57 ofn1978
Trademarks
Damages may be claimed from someone who infringes the trademark.
A registered trademark may not be used by another person / business
Copy right meaning
Legal protection given to og inventor of an idea so that it cannot be reproduced without his or her permission.
Patent meaning
Right granted to the owner or inventor to prevent anyone from producing , using or importing the invention for a limited period of 20 years
Trademarks
Name , representation or design used by a company for its product so that it cannot be used by anyone else
Counterfeiting
Losses are incurred by businesses of the og product leading to and increase in prices
E.g branded clothing , shoes , soccer jerseys
Neg impact of counterfeiting
Business may be forced to increase their prices to reduce impact of illegal products.
Business profits will be reduced because customers buying cheaper products .
Due to circulation of counterfeited products a decline in sales may be experienced in businesses
Bootlegging
Unlawfully manufacturing fake goods for sale.
Refers to the recording of live broadcasting performances without permission.
E.g fake Nike sneakers, fake ray ban
Neg impact of bootlegging
Business will be affected negatively due to loss of sales.
Business expenditure may be increased due to legal costs if legal action needs to be implemented
Strikes
Goslows , lockouts
The result of a dispute such as employee grievances or fear of being retrenched.
Trade union must give notice to employer when to strike
Neg impact of strikes
Production losses and reduction in sales
Business may be forced to close operations after a strike
Bus may incur damages to premises Due to protests or legal action
Political disturbances
Occurs when groups of people voice their objection to show their disapproval of handling of different situations in the country.
