7.6a - The Social Environment (Ethics) Flashcards
Social environment definition
The relationship between the business and the people and areas around where it operates
What is the social environment split into?
- Demographic issues
- CSR
Demographic issues affect which two key stakeholder groups?
- Employees
- Customers
What key issues need to be considered under demographic issues?
- Impact of urbanisation and migration
- Changes in lifestyle and buying behaviour
- Growth of online business
Urbanisation definition
The increase in the proportion of people living in towns and cities as opposed to the countryside
What are the main causes of urbanisation?
- Natural increase caused by a decrease in death rates whilst birth rates remain high
- Rural to urban migration
Push factors definition
Factors that drive people away from an area
Pull factors
Factors that attract people to an area
Advantages of urbanisation:
- Wider consumer base
- Leads to development of shopping centres (opportunities to expand)
- Development of infrastructure
- External economies of scale
- More labour supply
Disadvantages of urbanisation:
- Crime and pollution increase
- Lots of unskilled staff
What is urbanisation a result of?
Migration
Migration definition
The permanent movement of people from one region to another
Advantages of migration:
- Increase in total AD via C so growth of GDP
- Wider labour force to choose from
- Develop and grow new markets
Disadvantages of migration:
- More demands on social services so rising taxes
- Need to develop marketing and branding in different languages
- Unskilled workers
Examples of changes in lifestyle and buying behaviour in the UK:
- Increase in single-person households
- Growth in retired people
- Increased awareness of environment
- Expectation of 24/7 access to the business
