Societal Expectations and Ethical Influences ALL: Understand what are current social influences. Most: Explain how social influences and ethics affect a business’ decision making
Societal Factors Fashions and Trends Environmental and social awareness Attitudes to a range of issues
Social Influences Demographic effects – this is the study of a country’s populations. - age, race, sex, marital status, no. of children, living situations, homeownership, car ownership, weath, income, education…………… Increase in populations = increase in demand, increase in available employees. Decrease in populations = decrease in demand + decrease in employees. The population is getting older, this means that there will be less people working and supporting the economy. Changes in demographics create changes in a businesses market.
Lifestyle People are eating healthier People want to recycle their rubbish Businesses look to attract customers by operating ethically (morally) Changes in lifestyle are caused by education, travel TV and cinema, increased free time
Social - Enterprise Culture In society an enterprise culture has been developing This is a focus for individuals and groups to take the initiative and develop activities and enterprise for money making purposes and for the good of the community / iwi Using skills of innovation and risk taking This reflects the Maori term - whakawhiti whakaaro
Business responses to social influences Business managers must decide how to use theor resources available to respond to changes in social influences. These responses could be….. changing products, marketing strategies or the target market adjusting the production process, factory locations or HR procedures identifying new opportunites from changing social factors
Ethics Moral code by which decisions are guided. Legal acceptance is not always ethically accepted. Ethical practices go beyond legal compliance and are voluntary
Community Expectations Businesses may have their own guideline but this must also fit with the local communities expectations. Ethical behaviour includes: fair or living wage fair prices to suppliers buying from ethical suppliers providing appropriate working conditions transparency in procedures