Environmental influences - External factors - Societal factors

11 important questions on Environmental influences - External factors - Societal factors

What is a society?

a large group of people who live together in an organized way, making decisions about how to do things and sharing the work that needs to be done. All the people in a country, or in several similar countries, can be referred to as a society

What is the stakeholders approach?

The stakeholders approach offers the possibility for stakeholders to exert an influence on company policy. Through dialogue with its stakeholders, a company can learn about the effects of its operational activities on certain groups.

What are the five themes in which societal elements can be subdivided?

  1. Social
  2. Cultural
  3. Political
  4. Ethical
  5. Environmental


more specific: climate change, biodiversity, employment, economic growth, human rights, environmentally friendly business, child labour, poverty reduction, and wealth distribution.
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What includes the people dimension of the triple bottom line?

The way an organisation deals with socio-ethical issues. How the company behaves towards its own staff and local community.

What includes the planet dimension of the triple bottom line?

The planet dimension looks at how a business interacts with its natural environment - from minimising damage to even benefitting the natural order.

What includes the profit dimension of the triple bottom line?

The focus is on the overall economic value generated by the business.

How can a company make the right decisions in pursuit of corporate social responsibility?

  • Incorporate a process based on the plan-do-check-act-cycle. This four-stage plan helps companies make choices about corporate social responsibility, and to set up and implement a suitable CSR policy. The four steps are: Analyse, Policy, Implement and Evaluate.

What is the analysis phase?

Offers a company insight into societal developments in its environment, its image, and the expectations of relevant stakeholders, the company drafts its mission and vision statements, and aligns or integrates these with the existing mission or vision.

What is the policy phase?

A number of important principles need to be detailed, including performance indicators, which can be used as the basis for setting objectives. Next comes the creation of a strategy, along with an action plan to ensure that the objectives are met. This is followed by the implementation. Specific projects should be set up to develop various key business processes. To ensure success, senior management needs to pay sufficient attention to the change process, and must be seen to take personal accountability for the outcome. The involvement of employees and stakeholders may also need to be expanded.

What is the challenge for the current generation?

To continue developing the economy while also ensuring a fair distribution of wealth and the protection of the environment in such a way as to preserve the planet for future generations.

What is a company's societal position?

A combination of image (how a company want to be seen) and identity (what a company really is).

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