a) List four elements that make up the external environment of business
b) State two responsibilities each that a business owes the following:
- Customers;
- Employees;
- Investors;
- Society.
Explanation
(a) Elements that form the external environment of a business:
(i) Political
(ii) Social
(iii) Economic/financial
- Technological
- Cultural and Religious
(vi) Infrastructural
(vii) Legal
(viii) Demographical
(ix) Natural/ecological condition
(b) (I) Responsibilities of business to customers
- Prompt attention to customers’ complaints.
- Provision of safe and quality products that satisfy customers’ needs and wants.
- Provision of adequate information on the use of a product.
- Provision of after-sales services to customers especially technical products.
(II) Responsibilities of business to employees
- Compliance with legal requirements relating to the employer-employee relationships.
- It must pay employees their wages and salaries timely.
- It must ensure that enabling and conducive atmosphere prevails at workplaces to enhance productivity.
- It must assist employees to advance on their jobs by providing good training programmes and facilities.
- The welfare of employees must be adequately taken care of.
(III) Responsibilities of business to investors
- Engaging in profitable ventures that will generate the needed dividend or returns on investors’ money.
- Ensuring that investors have a good return on their investment.
- Conducting annual general meetings as contained in the articles of association.
- Preparation and publication of all statutory records i.e. balance sheet and statement of income.
(IV) Responsibilities of business to society
- Creation of employment opportunities to the host community.
- Provision of social amenities such as hospitals, pipe-borne water and electricity.
- Awarding scholarship to deserving individuals in society.
- Organizing sports and games to promote good neighbourliness.
- Provision of quality goods and services to society.
- Maintaining a good environment by controlling pollution and enabling proper waste disposal.