Slides in this set
THE SOCIAL ENVIRONMENT 2
The way in which changes in society affect a business' activities
Business philosophy that emphasises that firms should behave as good
A socially responsible business attempts to fulfil the duties that it has
towards its employees, customers and other interested parties. -
Employees The agencies
Customers Shareholders…read more
AREAS OF SOCIAL RESPONSIBILITY 3
· Better informed about products and services
· Prepared to complain when let down
· Raise of consumerism required to be more responsible by being interested
· Provide training to develop skills
· Right of employees in developing countries are fully protected ( e.g. higher wages, incurring
additional employment costs…read more
AREAS OF SOCIAL RESPONSIBILITY 4
· High quality customer service
· High quality products (designed, durable and at fair, reasonable prices)
· If satisfied repeat business
· Good relations paying promptly, regular orders, long-term contracts BUT this is not a legal requirement
and might result in higher prices for materials and components.
· Assist suppliers to meet their own responsibilities (e.g. maintenance of employment)
· Goodwill meeting responsibilities to particular stakeholder group.
· Provide secure employment
· Use local suppliers
· Environmentally friendly…read more
BUSINESSES AND SOCIAL 5
Body Shop Internationals refusal to use any materials that are unsuitable or any
components that have been tested on animals reflects a sense of responsibility to
many relatively poor communities in DC and to animals.
McDonalds prohibiting suppliers from using child labour and insisting upon basic
health and safety standards.
BT received an award for its support of the Childline charity. This action improved the
company's reputation and increased sales of the 1571 service by 25%…read more
BUSINESSES AND SOCIAL 6
Altering production processes can reduce or eliminate many forms of
pollution and could potentially cost more.
Socially responsible firms put employees before profits. Maintaining
employment even when the level of sales is not sufficient is an important
means of fulfilling social responsibilities.…read more