legislation Flashcards
what is consumer protection?
government legislation that ensures consumers are not being exploited or scammed
how does consumer legislation affect businesses?
cost
improving the safety of a good for consumers is expensive (measures, procedures etc), for example, an electronic good needs to abide by safety standards
how does consumer legislation affect businesses?
quality control
businesses must not sell damaged products, and the produts need to be of good quality
how does consumer legislation affect businesses?
dealing with customer complaints
many businesses now have a customer complaints department to deal with problems due to gov legislation
how does consumer legislation affect businesses?
changes in business practice
many businesses will become more market orientated rather than product orientated to ensure customers are treated fairly and their needs are met
what is employee protection?
legisltion that businesses have to abide by to keep workers safe and happy, e.g wages and working conditions
employee protection
employment contract
workers are entitled to a contract of employment, which states the start date, term of employment, job title and duties, hours of work, pay and holiday/ sick pay
employee protection
discrimination
when employing, businesses have to only consider the candidates skills, not their race or gender, and there must not be discrimination within the work place (equality act 2010)
employee protection
unfair dismissal
employment relations act 1999: employees working for someone for over a year is entitled to not be unfairly dismissed
employee protection
equal pay
equal pay act 1970: staff doing the same work must be paid fairly- both genders
how does employee legislation affect businesses?
compliance costs
- employee must be entitled to work in the UK (passport) and must make copies of documents
- employers are responsible for employee wellbeing at work
- businesses must provide employees with a P60 tax form every year from HMRC
how does employee legislation affect businesses?
higher labour costs
businesses must at least meet the minimum wage, and as it increases, labour costs also increase
how does employee legislation affect businesses?
loss of flexibility
staff are entitled to ask for their hours, and this often puts the business at a disadvantage as it is difficult to work arounf all employees’ hours
how does employee legislation affect businesses?
penalties
if a business fails to comply with legislation, they are charged with penalties and fines, which is expensive to the business
environmental protection
pollution
there are different types of pollution, water pollution, air pollution, noise pollution (noise from clubs or factories)
environmental protection
destruction of wildlife habitats
many businesses source raw materials that destroys wildlife habitats, like nutella using palm oil
how does environmental legislation affect businesses?
marketing
environmental issues are highly effective when marketing, like sustainable/environmentally friendly packaging, this can add value to products
how does environmental legislation affect businesses?
finance
responding to new environmental laws can come at a cost to a business, as they have to change suppliers to higher cost suppliers and install expensive environmentally friendly equipment
competition policy
without gov legislation, some businesses will attempt to exploit customers and reduce competition in the market by:
* increasing prices
* restricting consumer choice
* raise barriers to entry
* market sharing
positive impact of competition policy on businesses
- smaller businesses are given more opportunities to break into the market as the barriers are outlawed
- more competition encourages innovation and improve the efficiency of a business
- competition polict encourages businesses to develop more products, reduce costs and make progress in overseas markets
- it will also raise income and employment in the UK
negative impact of competition policy on businesses
- some businesses claim that competition policy acts as a constraint on their activities
- for example, if there was a proposed merger or takeover, the investigation into it would delay the whole process
health and safety
- provide safety equipment
- ensure workers are in safe working conditions
- hygenic environments
- providing protection
how does health and safety legislation affect businesses?
costs
expensive to keep up with standards and inspections etc
how does health and safety legislation affect businesses?
penalties
failure to comply with health and safety can be serious, as it can cause injuries and incidents at work, and these would lead to fines/penalties
how does health and safety legislation affect businesses?
benefits
- a good health and safety record improves the image of the business
- attracts and retains staff
- workers feel protected and more secure- better motivation and more loyalty
