Sustainability in Business Practices

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Questions and Answers

What primary function did the cellphone originally serve?

To function as a music player

To access the Internet

To serve as a high-megapixel camera

To enable immediate communication with a specific individual (correct)

What has contributed to the decline in traditional cellphone use in favor of smartphones?

The emergence of improved battery technology

Consumer needs evolving to require more features (correct)

Increased prices of traditional cellphones

Government regulations on cellphone use

What percentage of Internet traffic is generated by mobile devices according to the provided content?

56 percent

50 percent

80 percent

75 percent (correct)

Which economic system is characterized by collective ownership and decision-making by the state?

Command economy Signup and view all the answers

Which of the following is NOT one of the main approaches to solving fundamental economic problems?

Feudalism Signup and view all the answers

What form of technology has taken mobile communication to a new level?

Smartphones and tablets Signup and view all the answers

The increase in Internet usage in South Africa is reflected by what percentage of the population using the Internet?

56 percent Signup and view all the answers

What is a consequence of scarcity that communities must address?

Distribution of resources Signup and view all the answers

What is the core aspect of sustainability in business?

Meeting stakeholder needs while ensuring long-term survival Signup and view all the answers

How does excessive focus on short-term profits affect businesses?

It often leads to unsustainable practices Signup and view all the answers

What role does innovation play for entrepreneurs in context of sustainability?

It helps in creating economic and social prosperity Signup and view all the answers

What is the Wonderbag and its significance?

A heat retention cooker contributing to local employment Signup and view all the answers

Which sector is mentioned as having a history of anti-competitive behavior?

Bread industry Signup and view all the answers

Which of the following statements is true regarding corporate social responsibility in South Africa?

It is the result of voluntary compliance by businesses. Signup and view all the answers

What does the growth of corporate social responsibility indicate?

Increased awareness of stakeholder needs Signup and view all the answers

Why is the influence of society on the business world significant?

It ensures that businesses meet community expectations. Signup and view all the answers

What is the primary intention of the Employment Equity Act in South Africa?

To eliminate unfair discrimination and ensure employment equity Signup and view all the answers

Which of the following is NOT mentioned as a component of social responsibility?

Maximization of shareholder profits Signup and view all the answers

What is the goal of achieving employment equity?

To ensure a diverse workplace reflecting community demographics Signup and view all the answers

Which economic growth target was set by the AsgiSA strategy for South Africa from 2005 to 2009?

4,5 percent per year Signup and view all the answers

How many additional managers are needed annually to support a moderate economic growth rate in South Africa?

100,000 managers Signup and view all the answers

What was the GDP growth of South Africa in 2008?

3.1 percent Signup and view all the answers

Which of the following statements is true regarding the economic growth post-2007?

The economy suffered a recession in 2008 and saw a decline in GDP. Signup and view all the answers

Which of the following is emphasized as crucial for achieving economic growth targets in South Africa?

Developing skilled managers Signup and view all the answers

What distinguishes private businesses from government organizations in terms of service provision?

Private businesses charge for services with the goal of profit. Signup and view all the answers

Which of the following is an example of a product related to security?

Burglar alarms Signup and view all the answers

What is the primary aim of business management in relation to output and input?

Achieve the highest output with the least input. Signup and view all the answers

What does the task of business management primarily involve?

Determining how to achieve the highest possible output with limited resources. Signup and view all the answers

Which of the following best describes the relationship between economic principles and business organizations?

Every economic system, including businesses, must adhere to economic principles. Signup and view all the answers

In the context of healthcare, what is a key difference between public hospitals and private companies like Netcare?

Private companies aim to increase service quality for profit. Signup and view all the answers

Why is the study of environmental factors important for businesses?

It can affect an organization's success, survival, or profitability. Signup and view all the answers

What aspect of business management involves maximizing profits?

Ascertaining necessary principles for operational efficiency. Signup and view all the answers

What is the primary goal of business management according to the economic principle?

To achieve the highest possible income at the lowest possible cost Signup and view all the answers

Which of the following best describes the relationship between profit and the economic principle in business organizations?

Profit is the favorable difference between inputs and outputs Signup and view all the answers

How does business management study management problems?

By continuous research and examination of various approaches Signup and view all the answers

In a mixed-market economy, what role does a business organization play?

It acts as a need-satisfying institution within the economy Signup and view all the answers

How do government and non-profit organizations differ from business organizations in terms of desired outcomes?

They measure success in terms of surplus or higher productivity rather than profit Signup and view all the answers

What does the study of business management involve?

Comprehensive research and continuous evaluation of management approaches Signup and view all the answers

What is a major misconception about the task of business management?

It seeks to maximize profits irrespective of societal consequences Signup and view all the answers

What is the driving force behind the task of business management?

Maximizing profits Signup and view all the answers

Study Notes

Sustainability and Business

Businesses must strive for long-term survival and prosperity while considering the needs of their stakeholders (communities, environment).
Practices focused on short-term profits at the expense of stakeholders are often unsustainable and detrimental to the business in the long run.

Entrepreneurs and Innovation

Entrepreneurs play a vital role in driving innovation and economic growth through new ideas, products and technologies.
They influence the economy and prosperity of communities by making investment, production and employment decisions.
Sarah Collins, the inventor of the Wonderbag, exemplifies this entrepreneurial spirit and its positive impact. Her product, manufactured locally, provides employment, is environmentally friendly and has fostered entrepreneurship in various countries.

Society's Influence on Business

Society can influence business through regulations and legislation, especially when businesses fail to meet community expectations and desires.
The South African cement, bread and construction industries are examples of sectors where anti-competitive behavior was addressed through regulations.

Corporate social responsibility extends beyond profit maximization and includes various aspects like providing safe working conditions, housing, contributing to community issues, environmental awareness and empowering disadvantaged individuals.
Businesses often engage in corporate social investment to support social causes and upliftment.

Employment Equity in South Africa

Employment equity aims to ensure a workforce composition that reflects the diverse demographics of the community, creating equal opportunities and addressing historical inequalities.
The Employment Equity Act of 1998 promotes fair discrimination, equity and workforce diversity.
Inclusion of previously disadvantaged individuals and designated groups at managerial levels is crucial for economic growth.

South Africa's Economic Growth and Skilled Managers

The South African government aimed for an economic growth target of 4.5% per year (2005-2009) and 6% per year thereafter (AsgiSA strategy).
While experiencing some growth, South Africa's GDP has not consistently met these targets, achieving only 1.32% growth in 2017.
To achieve desired economic growth, South Africa requires a sufficient number of skilled managers.
Even a moderate 2.7% annual growth rate would necessitate an additional 100,000 managers each year.

Evolution of Mobile Technology

Cellphones were initially developed as immediate communication tools, addressing the limitations of traditional landlines.
The emergence of smartphones and tablets has revolutionized mobile communication, enabling a range of functionalities beyond voice calls, including cameras, music players, internet access, GPS and online banking.
South Africa saw a surge in cellphone usage, exceeding the population in 2018.
While cellphone use is declining, the adoption of smartphones and tablets is increasing as consumer needs evolve.
Internet access is on the rise, with mobile devices generating over 75% of internet traffic.

Economic Systems

All communities face resource scarcity and need mechanisms for production and distribution of goods and services.
The choice of economic system (market economy, command economy, socialism) is a core challenge for nations.
The government and private businesses both play roles in fulfilling societal needs through various sectors like healthcare, education, transport, and social security.
While both seek to address the needs of society, their motivations may differ (profit vs. public interest).

Business Management

The economic principle guides all economic systems and emphasizes maximizing output while minimizing input to satisfy unlimited needs with limited resources.
The purpose of business management is to achieve the highest possible output (products/services) at the lowest possible cost (inputs).
The task of business management involves analyzing factors, methods, and principles to optimize business efficiency, productivity, and profit maximization.
This field encompasses research, problem-solving, experimentation, and the continuous assessment of environmental factors.
Business management applies the economic principle by striving for maximum income with minimal cost, with profit as the difference between the two.
The profit motive is the driving force in business organisations, while non-profit and government organisations focus on surplus, savings, or increased productivity.
Although profit maximization is key, it should not come at the expense of societal well-being.

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Description

Explore the critical interplay between sustainability and business success. This quiz delves into how businesses can balance long-term viability with stakeholder needs, the role of entrepreneurs in driving innovation, and the societal influences on business practices. Understand key concepts, examples like Sarah Collins' Wonderbag, and the importance of sustainable decisions in today's economy.