0 Bewertungen0% fanden dieses Dokument nützlich (0 Abstimmungen)
295 Ansichten13 Seiten
This document discusses frameworks for analyzing the socioeconomic impacts of business operations. It examines how a business impacts its suppliers of inputs and buyers of outputs. It also considers externalities or spillover effects on third parties. The analysis traces impacts through sourcing of intermediate inputs, factor inputs, funds, land, and managers. It also considers impacts of distributing outputs. Recommendations are given to improve productivity, source locally, use environmentally friendly practices, and enhance social responsibility.
Originalbeschreibung:
Chapter 4 Socioeconomic Impart analysis . how the role of government in the economy, and strategies on how to maximize a business' positive impact on society.
This document discusses frameworks for analyzing the socioeconomic impacts of business operations. It examines how a business impacts its suppliers of inputs and buyers of outputs. It also considers externalities or spillover effects on third parties. The analysis traces impacts through sourcing of intermediate inputs, factor inputs, funds, land, and managers. It also considers impacts of distributing outputs. Recommendations are given to improve productivity, source locally, use environmentally friendly practices, and enhance social responsibility.
This document discusses frameworks for analyzing the socioeconomic impacts of business operations. It examines how a business impacts its suppliers of inputs and buyers of outputs. It also considers externalities or spillover effects on third parties. The analysis traces impacts through sourcing of intermediate inputs, factor inputs, funds, land, and managers. It also considers impacts of distributing outputs. Recommendations are given to improve productivity, source locally, use environmentally friendly practices, and enhance social responsibility.
Introduction • The focus of analysis is on the impacts of business operations on various sectors that it interacts with in its production and distribution activities • The effects are not only economic and commercial but can be social, cultural and environmental as the operation of a business firm has spillover effects on the environment where it operates Framework for Socioeconomic Impact Analysis • In the production and distribution activities of the firm, whether the firm is a buyer of inputs or a seller of its outputs, the firm creates an impact on its sellers and buyers • Direct impacts: felt by suppliers of inputs and owners of factor inputs • Externalities: (spillover effects) benefits and costs incurred by parties outside the transactions between firms and its suppliers; and firms and its buyers Tracing the Impacts Through the Sourcing of Inputs of a Business Firm • Intermediate Inputs – Internal vs External Sources – Independent Suppliers vs Subsidiary of Conglomerate – Raw vs Semiprocessed Inputs – Market Power of the Firm Tracing the Impacts Through the Sourcing of Inputs of a Business Firm • Factor Inputs – Within the Community vs Outside the Community – Direct Employment vs Subcontracting – Minimum Wage vs Market Rate – Organized vs Nonorganized – Human Resource Development – Temporal and Spacial Working Conditions Tracing the Impacts Through the Sourcing of Inputs of a Business Firm • Sourcing Funds for Capital Formation – Own Savings vs Capital Market – Foreign Borrowing vs Foreign Direct Investment – Market Determined vs Regulated rate of Return • Sourcing for Land Inputs – Land Intensity of Business – Location of Business and Opportunity Cost of Land Use Tracing the Impacts Through the Sourcing of Inputs of a Business Firm • Sourcing for Managers and Professionals – Insiders vs Outsiders – In-house vs Outsourced Training • Payment of Taxes Tracing the Impacts Through the Distribution of Outputs of a Firm • Output as Intermediate Inputs – Contributions on Industrial Integration – Contributions to the Productivity of Other Industries • Output as Final Demand – Personal Consumption – Investment – Government Consumption – Exports Accounting for Spillover Effects of a Business Firm • Positive Externality: if the spillover effects enhance the welfare of a third party • Negative Externality: if the third party’s welfare is reduced • We have to recognize that any business transaction will have positive and negative spillover effects to individuals, the immediate community, the society and the environment Viability of a Business Enterprise • All the 4 perspectives we discussed in Chapter 3 are focused on the profitability of a business but viability does not depend on profitability alone • Business viability also considers the impact of the firm’s operations on its stakeholders • Table 4.1 is a guide and checklist in identifying these direct and indirect impacts as well as the positive and negative effects arising from the productive and distributing activities of a firm Recommendations on Managing the Impacts of a Business Enterprise • Improve the productivity of firm’s workers • Source their raw materials, labor, and capital inputs from the community where they operate • Use environmentally friendly alternatives in the production process and distribution procedures • Be socially responsible as commercial enterprises Recommendations on Managing the Impacts of a Business Enterprise • Participate in the production of intermediate goods within the country • Enhance the productivity of the services sector • Carry out measures to protect consumers Synthesis • The socioeconomic impact of a firm can be analyzed in terms of its production and distribution process • The firm has impacts on its suppliers of intermediate and factor inputs • The firm has impacts on the buyers of its output • The firm also has impacts on third parties called spillover effects • Firms have to be conscious about their impacts on various stakeholders as well as third parties • Aside from profitability, proper management of a firm’s socioeconomic impacts can lead to an appropriate evaluation of business viability