6 - External Influences Flashcards
Understand the external influences and constraints on businesses and how businesses could respond
What is the partnership Act?
Governs the rights and duties of people
6.1 As an employer, how can you act ethically?
Not exploiting workforce, no child labour, pay above minimum wage, living wage, fair working practices.
6.1 As a trader, how can you act ethically?
- Fair trade
- Fair prices
6.1 As a business, how can they be environmentally friendly?
Recycle, reduce carbon emissions, manage waste, cut down on transport miles and energy used.
If an individual falls over and injures themselves at work, what act would cover this?
The Health And Safety At Work Act
What is the equality act
A law which protects you from discrimination and unfair treatment
What year was the Companies Act set up?
2006
What is the purpose of the Companies Act?
Provide for the formation, operation and accountability of non-profit companies in a manner designed to promote, support and enhance the capacity of such companies to perform their functions.
What are the main factors of Employee Protection?
Health And Safety At Work Act, Equality Act, Working Time Directive, National Minimum Wage Act
What is the Working Time Directive?
Setting minimum requirement for working hours, rest periods and annual leave
6.1 What are the advantages of businesses not working ethically?
- They will be able to maximise profits
- They will be able to get more material and products, as they won’t have to find an ethical supplier
6.1 What are the disadvantages of a business not working ethically?
- Customers won’t want to shop at that business
- Profits might decrease
6.1 What are the advantages of a business acting ethically?
- Higher revenues – Demand from positive consumer support
- Improved brand image
- Business awareness and recognition
- Better employee motivation and recruitment
- New sources of finance – e.g. from ethical investors
6.1 What are the disadvantages of a business acting ethically?
- Higher costs – e.g. sourcing from Fairtrade suppliers rather than lowest price, training & communication of ethical policy
- A danger of building up false expectations
6.1 Some businesses organise corporate social responsibility (CSR) activities, give examples
- Charitable donations
- Humanitarian aid
- Health and welfare schemes
- Sponsorship of sport/educational/cultural events