Sustainability in Business Practices

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

• 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.

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.