1.1) The role of a business in society: To supply needs and wants by scanning the environment. Create jobs which will bring about a high standard of living in developed countries and create wealth which helps with economic development.
Social Responsibility: Is measured by its contribution to creating job opportunities and how it benefits the economy. Protecting the community, in such a way they can help enhance your image within the community. Participating in CSR (corporate social responsibilities) projects e.g. KFC raising hope for children where people are able to donate R2 when purchasing their products. This sort of initiatives show the community that the business has an interest and does car about society and their children. The company will be enhanced by the community.
Business ethics: This focuses on ethical behaviour of employers and employees. The business must be respectful and honest with their stakeholders. The manager has to be professional. Professionalism is the way in which a person act, works, talk’s, dresses and generally conducts his/her work life with enthusiasm and commitment. This is why code of conducts have been drawn up and put in place, as they keep members aligned and place order in a work place. They are guidelines that inform members what is and isn’t appropriate in a work place environment.
Consumerism: These are the social forces that protect consumer’s rights. The consumer rights act was placed in order to ensure that their products and services comply with standards. No false advertising e.g. when you advertise by a “one get one fee every Monday” special, ten when you arrive at wimpy they charge you double the amount. By not false advertising, the image of the business will improve by abiding to the consumer act as well as producing goods and services that are good for consumers to utilize.
Employment equity act: This is one where they redress the economic inequalities of the past and allowing for more equal job opportunities. Its implemented to create more diverse workforce with better representation from all people is ensured. This will help with the upliftment of the previous standards and must benefit all people in the economy.
Environmental damage: protecting the community in every aspect that is possible .e.g. going green. Implementing environment initiatives gets you great publicity.
1.2) South Africa is importing steel from China which has affected the local economy and country’s economy. As they stop supporting local businesses, they decrease the job creation, this decrease causes a low economic growth rate. This causes other steel factories such as the Vereeniging steel works to close down causing a 1200 in job loss.
Human resources: you are not employing the people with the correct skills and knowledge. Therefore you will not produce the right quality and quantity of product, which means no customers, no income or profit, company plummets. Waste of resources, time and money because you would have to train the individuals you have recruited.
Supply and demand: everybody wants a good quality product at a fair price. The South African steel industry is making it hard for potential buyers to purchase their steel as, their price isn’t fair. The high prices are due to the fact that the steel has been imported instead of being produced locally. They need to satisfy the needs and wants of the consumers. Better quality, satisfied consumers.
Competitors: out buying the business to be exact. This industry in South Africa has been volatile and difficult as the global market has been tough as china’s steel have increased their exports and reduced their prices to respond to the slow domestic growth. South Africa’s distance from major export markets that means South African steel producers are not cost competitive in these markets and that only 2.8 mt of that excess steel capacity was able to be exported in 2008.Growth opportunities are limited in the steel sector due to its current large size structural lack of export competitiveness of South Africa’s steel manufacturing industry. The majority of South Africa’s steel operations are currently either only marginally profitable or are in a loss making position due , to the fact that they struggling with the structural lack of export competitiveness of South Africa’s steel manufacturing industry.
1.3) Environmental damage: protecting the community in every aspect that is possible .e.g. Stop polluting environment. Since they are importing goods from China, the pollution within the vicinity decreases due to the fact they don’t need to use the factories to create the steel. That means the nearby river won’t be flushed with chemical waste and toxins. The water will be more hygienic for the society that lives there. This will also stop fish from being poisoned plus we will be protecting their habitat. Looking after the eco system.
Business ethics: trading with other countries to better the economy, how this benefits society is that it allows for the country to develop and exploit their scares resources which can enable them to produce surplus and trade them for resources needed. With surplus comes many benefits as it can be used to fix the roads, build RDP houses, build more health care vicinities etc. This in essence will get more people interested, therefore more stakeholders who are interested in the company.