Time for Business | Chapter 17: Impact of Organisations | Quizlet

Positive impact

When an organisation benefits the community.

Negative impact

When the organisation causes a loss or cost to the community.

Economic perspective

How an organisation impacts on an economy, i.e. wealth, employment and profits.

Social perspective

How an organisation impacts on people, communities and society.

Environmental perspective

How an organisation impacts on our surroundings and natural resources.

Positive economic impacts of an organisation

1. Employment

2. Tax revenue

3. Improved standard of living

4. Economic growth

5. Promotes an enterprise culture

6. Multiplier effect

Negative economic impacts of an organisation

1. Pressure on resources

2. Housing

3. Crowding out local competition

4. Over-reliance on an organisation, especially for employment

Positive social impacts of an organisation

1. More local services

2. Sponsorship

3. Sustainable communities

4. More choice and lower prices for consumers

5. Better quality of life

Negative social impacts of an organisation

1. Increase in population

2. Traffic

3. Social tension

Positive environmental impacts of an organisation

1. Pollution controls

2. Recycling facilities

3. Energy efficiency

4. Land usage

Negative environmental impacts of an organisation

1. Pollution

2. Unsustainable use of resources

3. Habitat destruction

Economic growth

An increase in the amount of goods and services produced in the economy from one year to the next.

Multiplier effect

Money paid by an organisation to its employees and local suppliers leads to increased spending in the local community.