Influences on business (unit 2) Flashcards
Legislation
legislation is a set of laws put in place by the government to protect businesses, employees, and customers
Businesses must operate within these laws to ensure the fair and safe treatment of any party involved in a business
if a business does not comply with legislation, legal actions such as fines, restriction, and imprisonment can be actioned
What are the 3 types of legislation that a business must follow?
employment law
consumer law
intellectual property laws
What is employment law?
refers to any price of government legislation designed to protect employees from exploitation
There are a number of legislations that formed the basis for employee rights
3 employment laws
Recruitment- this legislation outlines what employers can and can’t do when recruiting staff and their responsibilities once a job offer has been made
pay - this legislation is designed to ensure that the pay workers receive is above minimum level
working conditions - employees must be provided with safe working conditions and must be protected against unfair discrimination
What is consumer law?
refers to any piece of government legislation designed to protect consumers from poor quality products and poor business practices
Trade descriptions act 1968
ensures that businesses accurately describe their goods and services
Health and safety act 1974
The piece of legislation governing workplace health and safety in the UK. It provides a legal framework designed to protect the well-being of employees, contractors and the general public from risk associated with work activities
The act aims to ensure all workplaces are safe, healthy and secure environments
What is intellectual property?
refers to intangible assets or creations owned, created or designed by an individual.
protecting intellectual property is important to ensure that Work is not stolen or copied and that the right people are rewarded for their work
What is copyright?
from the moment you create an original piece of work , you become the legal copyright holder
copyright gives the creators of media the right to control how media is used and distributed
Is copyright illegal?
copying material subject to copyright without permission is illegal
What is a trademark?
a trade mark is the protection of a logo, brand name or phrase
a company can register this with the government to make their company distinctive
Disadvantage of trademark
trademarks can be expensive but businesses are willing to invest a lot of money to protect their brand name and logo
What are the 4 things legislation can impact on a business?
costs / prices
Marketing and sales
production
human resource act
Disadvantages of legislation on costs and profits
Supply training and safety equipment which is expensive
make financial contributions to employee pensions
Advantages of legislation on costs and profits
Additional profits can be made through better brand image
employee retention is high
advantages of legislation on marketing and sales
less returns
higher sales
Disadvantages of legislation on marketing and sales
conforming to all laws can be expensive
Advantages of legislation on production
high quality products leads to more sales
employees have higher retention
Disadvantages of legislation on production
using high quality materials can be expensive
Advantages of legislation on human resource act
happier employees - better productivity
lower level of complaints
Disadvantages of legislation of human resource act
can be expensive to ensure that all legal requirements are adhered to
Benefits of a business being more ethical
public image increases leading to more sales
could charge a higher price leading to increased profit
How can a business being ethical
by being environmentally responsible
Drawbacks of being more ethical
Being ethical will often result in a business incurring higher costs. This is because ethically sourced supplies are often more expensive to buy.
