Influences on business full set

What are ethical considerations in business?

Moral principles that affect business decisions and behaviour.

Give one example of an ethical business decision.

Paying fair wages or avoiding animal testing.

What is the benefit of behaving ethically?

Improves brand reputation and attracts ethical consumers.

What is a drawback of behaving ethically?

May increase costs or reduce competitiveness.

What is environmental impact?

The effect a business has on the planet.

Give one example of reducing environmental impact.

Recycling, reducing waste, using renewable energy.

What is sustainability in business?

Meeting current needs without damaging the ability of future generations to meet theirs.

One advantage of being environmentally responsible?

Positive image and customer support.

One disadvantage of being environmentally responsible?

Can increase production costs or reduce profit margins.

What is the economic climate?

The state of the economy at a given time, including inflation, interest rates, and unemployment.

How does rising interest rates affect businesses?

Makes borrowing more expensive and may reduce consumer spending.

How does falling interest rates affect businesses?

Encourages borrowing and investment; can boost demand.

How does high inflation affect businesses?

Increases costs and may reduce consumer purchasing power.

How does low inflation benefit businesses?

Allows stable pricing and easier financial planning.

What is the impact of high unemployment on businesses?

Larger pool of labour and lower wage pressure, but reduced consumer demand.

What is the impact of low unemployment on businesses?

Harder to recruit and may need to pay higher wages.

What is globalisation?

The process by which businesses and economies become interconnected worldwide.

How does globalisation affect businesses?

Creates more opportunities for trade and expansion.

One advantage of globalisation for businesses?

Access to wider markets, cheaper materials, and labour.

One disadvantage of globalisation for businesses?

Increased competition and potential ethical concerns with overseas suppliers.

How can globalisation affect customers?

More choice and lower prices.

How can globalisation affect employees in the UK?

Jobs may move abroad, reducing UK employment.

What is offshoring?

Moving production or services to another country to reduce costs.

What is outsourcing?

Contracting another business to perform tasks or services.

One advantage of outsourcing?

Reduces costs and allows focus on core business.

One disadvantage of outsourcing?

Loss of control over quality or customer service.

What are pressure groups?

Organisations that try to influence business decisions, often on ethical or environmental grounds.

How can pressure groups affect businesses?

Through campaigns or public pressure to change behaviour.

What is social media's role in business influence?

Can quickly spread opinions and reviews that affect business reputation.

How can legislation influence business behaviour?

Businesses must comply with laws on ethics, environment, and fair treatment.

What is the benefit of adapting to external influences?

Increases long-term survival and competitiveness.