3.4 - Summary Flashcards
Why might a decision based on intuition be better than one that is based on evidence?
Evidence-based decisions require data to be collected which can be expensive and often unreliable
What factors may contribute to the culture of a business?
Motivation
The success of the company
Relationship between employees
What is a power culture?
A few or one person makes all the business decisions and decide on the business culture
Why might a business choose to change its culture?
New leader
Poor performance
Corporate objectives
Customer needs
Why is changing organisational culture difficult?
Long process
Deep set into the business
Employees won’t like change
State three stakeholder groups
Employees
Suppliers
Customers
Outline the interests of the local community?
Employment opportunities
Environmental impacts
What might determine the interests of any one stakeholder group?
Business long-term survival
Leadership
What is the most important stakeholder group for a business?
Customers, as they are what the business needs to make a profit and therefore their needs, are very significant
Give three examples of ethical business practices
Honesty with customers
Paying suppliers fairly
Exclusively trading with ethical corporations
What is the role of a pressure group?
Try to change business behaviour and operations so that they’re more ethical
What is CSR?
Corporate Social Responsibility - the belief that all businesses should act responsibly and protect the interests of all its stakeholders
Why is CSR important for all businesses?
Helps attract the best employees
Avoids bad reputation and publicity
Good for long-term sustainability
Ethically oriented customers may choose a business based on its CSR record
