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CHAPTER 5: SOCIO ECONOMIC STUDY

The companys goal does not only focus on profit-maximization but also considers the positive externalities towards the society. It contributes in the countrys growing economy, aids in solving some social problems, and responds to the consumers needs for healthier products at reasonable prices and others. This study helps in the determining the potential socio-economic impacts in the society. 1. Employment Opportunities to some Individuals The initial employees of the company are 4 which mean that four individuals are provided with a source of income. They are given corresponding reasonable wages. Employment alleviates the social and economic standing of these individuals and their families. As the company grows, the number of employees will then increase and more and more employment opportunities will be available for other individuals. This helps in reducing the unemployment rate of the country. 2. Production The production of the Naturals Shampoo Bar also opened an opportunity for other business units such as the suppliers. The suppliers of raw materials such as the goat milk, strawberry, and others also benefit because it increase their sales through our purchases of these raw materials. This makes the selling price of the shampoo bar reasonably cheaper because the raw materials are purchased in lower prices from direct suppliers. Moreover, the production of Naturals Shampoo Bar makes the Beauty and Cosmetics Industry grow.

3. Taxes and Licenses Taxes are revenue to the government. Taxation is necessary in raising funds for government expenses and projects allotted for the public. In putting up a business, registration with business permits and licenses are necessary. The company will strictly comply with these requirements in its operations. Business taxes such as VAT, monthly percentage taxes, income taxes and taxes will be paid to the Bureau of Internal Revenue. In this regard, the public is benefitted through the revenue derived from taxes and licenses. 4. Households The product is offered at a cheaper price than those of competitors. However, the quality is not compromised; instead, it is a good quality product because it is made of natural ingredients that nourishes the hair. Apportioning a smaller amount for such necessary expenses is a way of saving the family budget of the households. 5. Environment There is an opportunity cost in harming the environment. And this cost is being borne by the society in such a way that cost of pollution in production negatively affects the health of the people, as well as the environmental conditions. On the other hand, the company assures that the production of the shampoo bars is safe in the environment since the ingredients used are natural. The product is produced and distributed using biodegradable materials.