socio-economic issues

• Meaning of socio-economic issues


  socio-economic issues are negative aspects that have an effect on communities, businesses and individuals. Socio-economic challenges are issues that effect the economy in a negative way.
• Reason why socio-economic issues pose a challenge to business

  Socio-economic issues effect consumer spending due to poverty. Businesses are expected to create many job opportunities as possible to assist government address the issue which places a financial burden on them.
• Types of socio-economic issues

  Inequality, crime
• Inequality


  Inequality arises when some individuals are more prosperous than others or are given better opportunities than other individuals in society. Inequality contributes to poverty.
• Poverty


  Poverty is defined as a lack of resources to meet basic human needs. People are not able to meet their basic human needs when they become unemployed or retrenched. This leads to poverty in society and families. Poverty often gives a rise to crime.
• Negative impact of inequality and poverty on businesses

  Businesses spend more money on social responsibility programs to address inequality and poverty. Poverty shrinks the market because people cannot afford to buy luxuries. Poverty leads to crime and shoplifting on businesses.
• Inclusivity


  means giving everyone a opportunity without discriminating on age, sexual orientation, disabilities, or HIV status. Inclusivity means valuing differences in people and consciously encouraging diversity in the workplace.
• Purpose of inclusivity in the workplace

  Promotes equal opportunity for every employee to obtain skills that will lead to promotion and career path. Increase communication in the workplace so that business goals are achieved. Inclusivity increases education and training which decreases poverty. Increases the number of middle-class people in a economy.
• HIV/AIDS


  Aids is a disease caused by a virus called Human immune deficiency virus. When HIV gets into a person's body it attacks the immune system lowering the body's natural ability to fight diseases.
• The negative impact of HIV/AIDS on businesses

  Loss of skilled staff due to HIV-related illness. High absenteeism because of medical appointments for a doctor or clinic visits resulting to decrease in poverty. Profits will lower as production decreases.
• Gambling


  Gambling refers to bet on something which the outcome is not sure. It can take on a form of playing games in the hope that money could be won.
• Types of gambling

  Pyramid schemes, illegal gambling, and money laundering.
• Pyramid schemes


  businesses that may potentially yield high revenues for people who invest their money in them
• illegal gambling 


  unlicensed businesses offer gambling to the public
• Money laundering


  Process whereby unlawful profits from crime are invested in legal businesses to cover up their wrongdoing. The source of money is camouflaged and made to seem like it was lawfully gained.
• Types of money laundering

  casino, scratch cards, horse betting, and slot machines
• The impact of gambling on businesses


  High rate of employee absenteeism, gambling hides criminal activities which can increase workplace violence, addicted employees could also steal to get money for gambling.
• counterfeiting


  counterfeits goods are copies/imitations of genuine products such as clothing/ shoes marked with a fake logo or trademark, they are products that are imitated and packed to resemble the original, high-priced goods.
• the impact of counterfeiting on businesses

  Counterfeits reduce sales and profits of businesses; businesses lose money that could be used for expansion or creating job opportunities.
• Bootlegging


  bootlegging refers to unlawful manufacturing fake goods for sale, recording of live performance without the permission of the performers which are copied and sold.
• Impact of bootlegging on businesses

  Businesses lose on profit; businesses may experience a decline in sales due to fake distribution of products