Business Studies Grade 10 Notes: Socio-Economic Issues PDF

GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 6 BUSINESS STUDIES GRADE 10 TERM TWO CHAPTER 6 CONTEMPORARY SOC...

GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 6 BUSINESS STUDIES GRADE 10 TERM TWO CHAPTER 6 CONTEMPORARY SOCIO-ECONOMIC ISSUES POST COVID-19 REVISED 2020 TABLE OF CONTENTS TOPICS PAGES The meaning of socio-economic issues 2 Reasons why they pose a challenge to 2 Businesses Types of socio-economic issues 2 The meaning and impact of inequality and 3 poverty The definition of inclusivity 3 The purpose of inclusivity in the workplace 3 The meaning and the negative impact of 4 HIV Aids on business The meaning and type of gambling 4 The impact of gambling on businesses 5 The meaning and impact of counterfeiting 5-7 /bootlegging/strikes /political disturbance &crime This chapter consists of 7 pages 1 GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 6 CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES  Explain the meaning of socio-economic issues and the reason why they pose a challenge to businesses.  Define/Give the meaning of inequality and poverty.  Explain/Discuss/Describe the impact of inequality and poverty on businesses.  Define the term “inclusivity” and explain the purpose of inclusivity in the workplace.  Evaluate the negative impact of HIV/Aids on businesses.  Outline the different types of gambling and explain their impact on businesses  Explain the meaning of counterfeiting /bootlegging/strikes /political disturbance &crime  Explain/Discuss the impact of the above-mentioned socio-economic issues on businesses.  Identify socio-economic issues from given scenario/statements. Support your answer by quoting from the scenario.  Explain the impact of socio-economic issues identified in scenarios/statements on businesses. 1.1 Meaning of socio-economic issues  Socio-economic challenges are issues that affect people and the economy in a negative way.  They are problems that come from social/people and economic/money circumstances. 1.2 Reason why they pose a challenge to businesses  Socio-economic issues affect consumer spending due to poverty and unemployment.  These issues place extra burdens and expenditure on businesses as they have to develop policies/support systems/ informative programs to address them.  Businesses are expected to create as many job opportunities as possible to assist government address these issues which places a financial burden on them.  They must also educate employees on social issues and how to become involved in the community to address these social issues. 1.3 Types of socio-economic issues  Inequality and poverty  Inclusivity  HIV/Aids  Gambling  Piracy  Counterfeiting  Bootlegging  Strikes /political disturbance  Crime 2 GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 6 2 Inequality and poverty 2.1 Meaning of inequality  Inequality is the degree to which people do not have the same opportunities and are treated differently because of their social status.  It means that people are not equal e.g. some have lots of money/access to education, while others are desperately poor. 2.2 Meaning of poverty  Poverty is the state in which people have little or no money to buy their basic needs.  People in poverty usually have poor living conditions, hunger and increased susceptibility disease. 2.3 Impact of inequality and poverty on businesses  People cannot participate fully in the economy.  Businesses spend more money on social responsibility programmes to address inequality and poverty.  Poverty shrink the market because people cannot afford to buy luxuries.  Poverty lead to crime such as shoplifting and robberies on businesses.  Increases violence as groups scramble for better status and social positions.  Businesses spend money on improving security due to robberies and shoplifting.  More money is spent on relieving poverty through their social responsibility programmes.  Inequality results in lack of skills and job opportunities. 3 Inclusivity 3.1 Meaning of inclusivity  Inclusivity means giving everyone opportunities without discriminating based on age, race, gender, sexual orientation, disabilities/HIV status etc.  Inclusivity means valuing the differences between people and consciously encouraging diversity in the workplace. 3.2 Purpose of inclusivity in the workplace  Inclusivity enables businesses to make the best use of all human resources.  Promotes equal opportunity for every employee to obtain skills that will lead to promotion and career path.  Promotes respect for each person and their contributions in the workplace.  Promotes healthy/happy working environments, which in turn increase job satisfaction and productivity.  Increase tolerance of each other’s ideas and beliefs.  Increase communication in the workplace so that business goals/objectives are achieved.  Businesses are able to use a variety of talents and skills.  Inclusivity increases education and training resulting to a decrease in poverty.  Increases the number of middle-class people participating in the economy. 3 GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 6 4 HIV/Aids 4.1 Meaning of HIV/Aids  Aids is a disease caused by a virus called HIV.  When HIV gets into a person’s body, it attacks the immune system / lowering the body’s natural ability to fight infections. 4.2 Negative impact of HIV/Aids on businesses  Loss of skilled staff due to HIV related illnesses.  Profits will be lower as production decreases.  High absenteeism from illness resulting to a decrease in productivity.  Conflict can arise among staff if they discover that a worker is HIV positive.  Businesses find it difficult to keep up production levels and to meet deadlines because of poor staff morale.  Businesses face increased costs of finding/recruiting/training replacements.  The pool of available skilled workers is getting smaller due to the high rate of HIV infection.  The costs of finding replacement employees and recruiting are high.  Business need to invest money in programmes to educate the workers regarding AIDS.  Decrease in the number of consumers cause a drop in the demand for goods and services.  Costs such as insurance/retirement funds/health/safety are higher as a result of HIV for the business.  Businesses face increased costs of paying benefits like housing subsidies, medical care, funeral care and pension funds.  Staff morale might be low as they are concerned about their health thus lowering productivity. 5 Gambling 5.1 Meaning of gambling  Gambling means to bet on something of which the outcome is not sure.  It can take on form of playing games in the hope that some money could be won.  Although gambling is legal, it gives false hope. 5.1 Types of gambling  Pyramid schemes  Money laundering  Card games  Casino  National lottery  Scratch cards  Slot machines  Horse betting  Fafi/ Mochina  Unofficial lottery type schemes  Bingo halls  Unlicensed casino’s  Internet gambling, as it is sometimes linked to organised crime· animal fighting.  Unlicensed operations offering gambling to the public. 4 GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 6 5.2 Impact of gambling on businesses  Employees may not work overtime at short notice.  High rate of employee absenteeism.  Local businesses forced out of business.  Gambling hides criminal activities and can lead to workplace violence.  Compulsive gamblers cannot focus on work while preoccupied with gambling.  Compulsive gambling puts a strain on relationships in the workplace.  Addicted employees could also steal to get money for gambling.  Reduces productivity as it encourages crime and corruption.  When gamblers lose their money, they have less to spend on goods and services, which affects business negatively.  Decrease in savings leads to a decrease in future production.  Less buying power as people may lose their money on pyramid schemes, casino gambling etc. 6 Counterfeiting 6.1 Meaning of counterfeiting  Counterfeits goods are copies/imitations of genuine goods such as clothing/shoes that are marked with a fake logo/trade mark.  They are products that are imitated and packed to resemble the original, high priced goods. 6.2 Impact of counterfeiting on businesses  Counterfeits often result in price increases of original goods  Consumers are often tempted to buy counterfeits because of the considerable price differences  Counterfeits reduce the sales and profits of businesses  Businesses lose money that could have been used for expansion and the creation of job opportunities  Counterfeits often result in price increases of original goods  Consumers are often tempted to buy counterfeits because of the considerable price differences  Counterfeits reduce the sales and profits of businesses 7 Bootlegging 7.1 Meaning of bootlegging  It is the recording of live/broadcast performance without the permission of the performers/songwriters/ record company which are copied and sold.  The example of bootlegging is selling of illegal copied DVDs of latest movies on street corners.  Criminals go to great extremes to record movies with handheld devices during a live cinema screening. 5 GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 6 7.2 Impact of bootlegging on businesses  Businesses lose out on profit.  Businesses may experience decline in sales due to fake/imitated distribution of products.  Businesses may be forced to implement price adjustment strategies to minimise the impact.  Businesses expenses will increase if legal actions are taken. 8 Strikes 8.1 Meaning of strikes  A strike/labour dispute is a collective refusal of employees to work because of an issue in the workplace, aimed at forcing the employer to give in to demands.  It is a collective action taken by a group of unhappy employees to accept their demands.  Strikes may take form of a go slow, lock outs and sympathy strikes.  It is a dispute between the employer and employees when they cannot agree on wage increases/changes in working conditions, even after negotiations. 8.2 Impact of strikes on businesses  This could make the business to be unable to meet its contractual obligation and the business losing contracts.  The cost of making up all the working hours is too high.  Strikes can be violent because strikers intimidate those employees who do not want to go on a strike  Scares off potential investors.  May results in losses of production as employees stay absent from work during strikes.  Strike actions may lead to production losses and decline in sales.  Businesses may be forced to close down operations after strike actions.  May lead unhealthy working relationships between the management and workers.  May force businesses to retrench some of its skilled workers to recover from losses. 9 Political disturbance 9.1 Meaning of political disturbance  It is a form of protest by a group of people showing their displeasure on lack of service delivery/proper housing/poor pay/poor work conditions/etc.  Political disturbance reflects frustration on the part of communication who may not feel that they have an effective voice in formal political processes.  It is when a group of people protest against a socio-economic problem and feel that the government is not doing enough to solve the issue. 6 GDE BUSINESS STUDIES GRADE 10 NOTES CHAPTER 6 9.2 Impact of political disturbance on businesses  People in township/informal settlement areas may block roads preventing employed people from going to work due to service delivery protests.  Scares off potential investors.  Businesses may be forced to close especially those located in townships.  May results in losses of production as employees stay absent from work during political disturbances.  Many businesses suffer losses as a result of damage to property.  Riots can result in increased unemployment if shopkeepers are forced to shut down. 10 Crime 10.1 Meaning of crime  Any unlawful and harmful act related to loss of goods in a business due to burglaries/ robberies/theft/corruption/hijackings etc.  Theft is the unlawful taking of someone else's property to make it your own. 10.2 Impact of crime on businesses  Loss of staff and customers.  Insurance/security costs become expensive.  Loss of profits due to stolen goods from businesses.  Business loose skilled people resulting to a decline in productivity.  Increased medical expenses as workers are injured during the break ins  Businesses spent money on installing effective security measures e.g. alarms, burglar proofing.  Loss of goods in a business can happen as a result of burglaries, shoplifting, customer theft and employee theft.  Cost of damage to property increases as businesses pay higher insurance premiums to protect themselves.  High rate of absenteeism due to affected employees having to go for trauma counselling  Loss of essential equipment causing temporary closure of the business  Employees can become involved in fraud, bribery, corruption and kickbacks.  If there is an ensuing court case it can create negative publicity for the business.  Smaller businesses often cannot afford insurance and have to replace the stolen goods themselves at greater loss.  Lower profits affect the decision to expand and employ more people/pay higher wages.  Crime causes increase in health costs of employees due to injuries or stress.  Discourages foreign investment and reduces tourism which impacts negatively on business.  Crime brings about unfair competition from stolen goods resold at a lower price. 7