Business Studies Paper 2: Contemporary Socio-Economic Issues

Vocabulary flashcards covering contemporary socio-economic issues, their impacts on business, and the relevant legislative and policy responses in South Africa.

Contemporary Socio-Economic Issues

Problems happening in society right now that negatively affect people, communities, businesses, and the economy of a country.

HIV

Stands for Human Immunodeficiency Virus; a virus that attacks the body’s immune system, which is the defense system that fights infections and diseases.

AIDS

Stands for Acquired Immune Deficiency Syndrome; a condition that can develop if HIV is not treated and the immune system is significantly weakened.

ARVs

Antiretroviral medicines that help control HIV and keep the immune system stronger.

Unemployment

When people are part of the economically active population and are able and willing to work but cannot find jobs in the formal or informal sector.

Productivity

The amount of goods and services produced over a certain period of time using the inputs available.

Inputs

Resources such as labour, money, technology, equipment, and time used to produce goods and services.

Outputs

The final goods and services produced by a business.

Low Productivity

When a business fails to produce the expected amount of outputs using the resources and inputs provided.

Effective

Doing the right thing, such as a manager helping the business reach its goals.

Efficient

Doing something in the best way with little waste of time, money, or resources.

Poverty

When people do not have enough income or resources to meet their basic needs.

Absolute Poverty

When people cannot afford the basic needs required for survival, including food, clean water, shelter, clothing, healthcare, and education.

Relative Poverty

When people can afford basic needs but live far below the average standard of living in the country.

Poverty Threshold

Also called the poverty line, it is the minimum level of income needed to sustain life used by the government to measure poverty.

Disposable Income

The money people have left over after paying for their basic needs.

Inequality

The unequal distribution of income, assets, and opportunities between people or groups in a country.

Inclusivity

Making sure all people have equal access to opportunities and resources and are not discriminated against because of gender, race, age, or beliefs.

Redress

To correct or fix something unfair from the past, specifically used in South Africa to address past disadvantages.

Discrimination

The unfair treatment of someone because of characteristics such as race, gender, age, disability, or HIV/AIDS status.

Violent Crime

Includes robbery, assault, murder, hijacking, and other serious acts of violence.

White Collar Crime

Business-related crime such as fraud, corruption, tax evasion, and money laundering.

Political Disturbance

A protest, demonstration, or unrest caused by political disagreement or dissatisfaction that can interrupt business operations.

Labour Disputes

Disagreements between employers and employees, such as strikes, go-slows, and lockouts.

Strike

When workers stop working to demand something from their employer.

Go-slow

When workers purposefully work slowly as part of a labour dispute.

Lockout

When an employer prevents employees from working during a dispute.

Gambling

Using money or something valuable to bet on an uncertain outcome to try and win more money.

Piracy

Copying, using, or reproducing someone’s original creative work, such as movies, music, or software, without permission.

Counterfeiting

Making fake versions of real branded products, such as shoes, bags, or perfumes, and selling them as if they are real.

RDP

Reconstruction and Development Programme (1994); aimed to improve living conditions after apartheid by providing housing and basic services.

GEAR

Growth, Employment and Redistribution (1996); aimed to grow the economy, create jobs, and improve access to health and education.

AsgiSA

Accelerated and Shared Growth Initiative for South Africa (2006); aimed for faster economic growth that more people could benefit from.

NDP

National Development Plan 2030; a long-term plan implemented in 2013 to reduce poverty and inequality by the year 2030.

BBBEE

Broad-Based Black Economic Empowerment; aims to increase the participation of previously disadvantaged people in the economy.

Employment Equity Act, 1998

Promotes fairness in the workplace by aiming to correct unfair discrimination and racial imbalances from the past.

Promotion of Equality and Prevention of Unfair Discrimination Act, 2000

Prohibits harassment, hate speech, and unfair treatment based on who a person is.

Procurement

The process of obtaining or buying goods and services that a business needs to operate.

Preferential Procurement Policy Framework Act, 2000

Helps Historically Disadvantaged Individuals (HDIs) and SMMEs gain access to government contracts and public-sector procurement.

Skills Development Levy (SDL)

A $1\%$ monthly payment to SARS by businesses with a payroll above $R500\,000$ per year to fund employee training.

SETAs

Sector Education and Training Authorities; they organize skills development and manage levy funds for specific industries like mining or manufacturing.

Skills Development Facilitator (SDF)

A person who helps a business plan and report on training to ensure employees receive proper education and the business can claim levy refunds.

Legislation

Official laws passed by the government.