Chapter 22 - Business and the Social Environment

AQA business studies for A2 - Hodder Education notes on chapter 22

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Chapter 22 -Business and the social environment
Stakeholders are individuals or groups within society who have an interest in an organisations
operation and performance.
Stakeholders include Local
Communities -
shareholders, employees, residents, other
customers, suppliers, creditors businesses,
local coucils
and the local community. The Customers - Suplliers -
interest that stakeholders have in final providing raw
consumers, materials,
a business will vary according to wholesalers, componets,
pressure groups services etc
the nature of the group.
Social Responsibility
Social responsibility is a business
philosophy that emphasises that Employees -
Agenices -
firms should behave as good individuals ,
customers and
trade unions,
excise, HMRC,
citizens. They should not merely works councils
local councils
operate within the law, but they
Shareholders -
should consider the effects of indviduals,
their activities on society as a investors
Meeting social responsibilities has many implications for business including:
Taking into account the impact of their activities on the local community.
Producing in a way that avoid pollution or the reckless use of finite resources
Treating employees fairly and not simply meeting the demands of employment legislation.
Considering the likely sources of suppliers and the ways in which suppliers meet their social
Stakeholder Possible Nature of Stakeholders
Group Interest
Shareholders Expectation of regular dividends
Rising share price
Employees Steady and regular income
Health and safe working conditions
Job security
Promotion and higher incomes
Customers Certain and reliable supply of goods
Stable prices
Safe products
After-sales service and technical support

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Stakeholders Interests
Suppliers Frequent and regular orders
A sole supplier agreement
Fair prices
Creditors Repayment of money owed at agreed
Business and Social Responsibilities times
High returns on investments
The importance of social responsibility to
Minimal risk of failure to repay money
businesses is a matter of considerable debate. The Local Community Steady employment
Businesses accept the need to make a profit for Minimal pollution and noise
provision of facilities (arts centres,
their owners and the need to operate within the scholarships)
law.…read more

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Changes in the composition of the UK population: the UK is subject to large migrationary flows.
The UK's ageing population: the population of the UK is steadily ageing with larger numbers of
people in the older age groups.
The rise in the number of single person households: people in the UK are increasingly living alone
meaning that the country is comprised of more, smaller households. This has significant implications
for business of all types.…read more


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