Behavioural Economics 2 Flashcards
What are public sector organisations
Organisations that are wholly or partly owned and run by the state / government
Examples of public sector organisations in the U.K.
Network rail
Met Office
What is privatisation
Transfer of assets from the public (state or government) sector to the private sector of an economy
What are produced cooperatives
Owned and run by their members, who can be customers, employees or groups of businesses
Examples of producer cooperatives
Co-op
How are producer cooperatives run
On principles of shared ownership, shared voice and shared profits
What is a social enterprise
A not just for profit business created to address a social problem - profits are reinvested
What are not for profit businesses
Charities, community organisations that are run on commercial lines
Examples of not for profit businesses
Network rail
When does corporate social responsibility (CSR) occur
When companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders in a voluntary basis
Why do some firms embrace CSR
- altruism
- customer related benefits
- improved financial performance
- risk management
- improved access to capital
Business case against CSR
- the only social responsibility of business is to create shareholder wealth
- businesses cannot decide what is in society’s interest
