1.3 Explain the responsibilities of an organization and strategies employed to meet them.
Responsibilities of the organization: -
Every organization is responsible towards its society, environment, its own organization and its employees, and its stakeholders.
Social responsibility
The social responsibility of an organization may be defined as the obligations that the organization has towards the people and the environment in which the company operates.
The actions of an enterprise and, therefore, management, have social consequences that affect several groups, often referred to as the stakeholders. No organization would ever admit to being socially irresponsible, and many organizations claim to act responsibly on social issues.
British
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Flying Start is a global charity partnership, with British Airways and COMIC RELIEF UK. They aim to raise money to help children live incredibly tough lives in the UK and around the world. Through the generosity of British Airways passengers and colleagues, have raised over £6 million in 3 years to help disadvantaged children in the UK and some of the world’s poorest countries. 2.1 Explain how economic systems attempt to allocate resources effectively.
What is an economic system?
“According to Loucks, the definition of economic systems is that it consist of those institutions which a given people or nation or group of nations has chosen or accepted as the means through which the resources are utilized for the satisfaction of human wants.”
An economic system should look over the following three aspects before allocating their resources: -
➢ What kind of goods and services should be produced?
➢ How will these goods and services be produced?
➢ To whom will these goods and services be distributed?
Allocation of resources:
A) What goods and services should be
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It is based on the concept of supply and demand. Firms or individuals make their own choices about - i) what to produce, ii) how to produce, and iii) for whom to produce. Producers aim to seek highest profit margins. Price rises if there is a shortage of goods and reduces if there is a surplus. Role of government in market economy: - There is very little or no government involvement in market economy. Their only role is to make sure that the firms or individuals operate via supply & demand.
Example of market economy is the U.S.
ADVANTAGES DISADVANTAGES
Responds quickly to consumer’s wants Products that do not give profit to the producer won’t be produced, hence not fulfilling all consumer wants
Large variety of goods and services are offered People with good skills will be hired to fast-track the production, hence higher chances of unemployment
Resources utilized for production are used efficiently
o Command Economy
Command economy is also known as planned economy. Decisions for the working of a firm, pricing of products, wages of the workers, etc. are taken by the government. The economic decisions are taken through the laws and regulations of that country and they do not keep profit as their primary