business influence Flashcards
how can IT help with finance
-easy to change/update
- can draw graphs and charts
ICO
exists to empower you through information, upholds information rights in the public interests, all organisations register with them
GDPR
General data protection legislation, to protect individuals rights and freedoms.
data protection act
controls how your personal information is used by organisations, all workplaces and businesses
B-corp
Businesses that meet the highest standard of verified social and environmental performance, public transparancy
why would a company want to go b corp
to save money for your company in the long run, have access to the certification process
advantages of b corp
- faster growth in turnover and employee headcount
-higher expectations about future growth
disadvantages to b corp
- there are no tax breaks
- you need to consider the non financial impact of your actions
- youre open to ongoing security
examples of bcorp
ben and jerrys
patagonia
ethical policy
a document outling a companys values, principals and expectations for employees behaviouro
social responsibility
people behaving and conducting business ethically and sensitive to issues around the world
animal rights
the entitlement of non human animals to ethical treatment
why act ethically?
companies that act ethically can attract loyal clients, hire top talent and even win awards.
what happens if you dont act ethically?
bad reputation
bad publicity
gentrification
the process where middle and upper class individuals move into traditionally working class areas in the city
social enterprise
businesses that put the interests of people and planet ahead of shareholder gain, these businesses are driven by a social or environmental mission
conscious coporation
- those which choose to follow a multiple stakeholder approach
- making sure the business acts in a responsible way
unethical behaviour in businesses
- misleading communication
- knowledge hiding
- anticompetitive activity
- violence
- lying
TBL- triple bottom line
- includes social, environmental and financial factors
- they use TBL to evaluate their economic value and their importance
- helps businesses move towards a more sustainable future
how can businesses act ethically?
-treat suppliers right
- environment
-fair trade
- b corps
- food miles
- responsible marketing
-workers rights
what are the costs of a new building
- increased traffic
- could be seen as ugly
- decrease in tourism
- increase pollution
- unsociable hours of delivery
- loss of greenfield space
what are the benefits of a new building
- more jobs , positive impact on economy
- different levels of jobs
-brownfield sites can be vandalized so will reduce crime - auxiliary jobs will be created
environmental influences on a business
- noise pollution
- air pollution
- water pollution
- light pollution
- litter
- congestion
- waste
- climate change
- use of finite resources
what actions can be taken to reduce these negative impacts?
- clean air zone
- employing litter patrol in areas close to the business
- installing noise barriers near busy roads
- research into alternative fuels/energy
- reduction in packaging on products
corporate social responsibility FOR
- improve brand image
- increased sales
- easier for talent acquisition
- growth in ESG funds
- improved ‘ economic performance’
- reduce unemployment
corporate social responsibility AGAINST
- increased costs
- decreased profits
- less feasible in recession
globalisation
refers to companies operating internationally or on a global scale
international trade
the process of buying from and selling to overseas countries
multi national companies (MNCS)
companies that operate in a number of countries around the world
advantages of globalisation
- bigger market
- economies of scale
- wider range of customers
- exchange rate
disadvantages of globalisation
- higher transport costs
- other transport problems
- language
- currency
- cost of different laws
- lack of knowledge
- trade barriers
- political factors
home market economic factors
- no currency
- secure economic environment
home market cultural factors
- no language problems
- known social structure
- purchasing habits understood
home market technological factors
familiar standards
home market legal factors
known laws and regulations
home market demographic factors
size and structure of population known
home market marketing and competition factors
- distribution channels established
- known brand
- activities of competition understood
overseas market economic factors
- fluctuation of currency value, affecting pricing and profitability
- costs of currency transactions
overseas markets cultural factors
- language barriers, costs of translation
- different social structure
- ## unknown purchasing habits
overseas markets technological factors
- different standards
- product adaptation required
overseas markets legal factors
- different laws regulation
- political influence
- high levels of bureaucracy
overseas markets demographic factors
lack of understanding of population
overseas markets marketing and competition factors
- need to establish distribution channel
- high spending required to establish brand
- unknown competition
- need to adapt pricing strategies
economies of scale
when the average cost falls as output increases
risk bearing
the more markets youre in the wider risk is spread
financial
as a business grows they are able to get a better rate on borrowing
managerial
as a business grows support departments can give specialised support
technical
as a business grows they can invest in better machinery
marketing
as a market growws a business can use mass marketing which are less per customer
purchasing and buying bulk
