The Impact Of Organisations Flashcards
Local organisations
operate in a specific local area e.g Wise Buys in Donabate
National Organisations
operate all over Ireland e.g the GAA
Global Organisations:
are very large and have operations all over the world e.g McDonalds
Economic Impacts of Organisations to Communities
From an economic outlook, organisations can have a positive and negative impact on the financial growth and wealth of a community
Positive Economic Impact on a Community
Employment
Tax Revenue
Improved Standard of living
Multiplier Effect
Employment
Direct employment in the organisation as well as jobs in related or spin-off businesses, such as transport, banking, suppliers and cleaning services
Tax Revenue
The organisation will contribute to local authority rates and taxes. The money collected is used to develop local services e.g roads, power supplies (known as infrastructure)
Improved Standard of Living:
Employees hired by the organisation will have disposable income, which will lead to an improved standard of living for these local people.
Multiplier Effect:
Extra income leads to increased spending in the local community, which supports other businesses such as shops and restaurants. The benefits are passed around the community.
Negative Economic Impact on a Community
Increased Pressure on Communities
Housing Shortage
Increase in the Cost of Living:
Increased Pressure on Communities
An increase in the number of organisations operating in an area can put pressure on existing local services and infrastructure and local government finances can be stretched.
Housing Shortage
An increase in the number of people living in an area can cause a shortage of suitable housing. Property and rental prices may increase which places a financial burden on local people.
Increase in the Cost of Living:
The cost of living can rise as more people enter the community and demand for goods and services increases
Stakeholders
is a term used to describe all those who belong to an organisation or are affected by its activities e.g employees, customers
Positive Social Impact on a Community
More local services
Increased Choice / Lower prices for consumers
Promotes Enterprise Culture
Improved quality of life
More Local Services:
There will be a growth in local services to meet the needs of local organisations (e.g transport services). Local people can also use these services.
Increased Choice / Lower Prices for Consumers:
New organisations provide extra goods and services as well as greater competition in the marketplace which leads to wider choice and lower prices for consumers.
Promotes Enterprise Culture:
Seeing local entrepreneurs establish businesses can lead to a culture of enterprise in an area and can encourage more businesses to develop in the local community.
Improved Quality of Life:
Social and cultural enterprises (such as clubs, libraries) improve community spirit and social interaction which leads to a better quality of life for local people.
Negative Social Impact on a Community
Closure of Businesses
Anti-Social Behaviour
Increase in Traffic on local roads
Job cuts
Closure of Businesses:
Some smaller local businesses may not be able to compete with other organisations operating in a local area and may be forced to close down.
Anti-Social Behaviour:
An increase in people living in a local area can sometimes result in an increase of anti-social behaviour which can affect other members of the community.
Increase in Traffic on Local Roads:
More people in an area can lead to more cars on the road and an increase in traffic jams in a local area.
Job Cuts:
If smaller businesses are forced to close down, they will have to make employees redundant which can lead to a negative feeling in the community.
Positive Environmental Impact on a Community
Pollution Controls
Recycling Facilities
Energy efficiency
Land usage
Pollution Controls:
New developments have to obey strict rules designed to limit pollution which forces organisations to use clean technologies that reduce the environmental impact.
Recycling Facilities:
Organisations may develop recycling facilities which serve their own needs and the needs of the local communities.
Energy Efficiency:
Organisations are increasingly using renewable energy, which helps to keep pollution levels low.
Land Usage:
Organisations make use of vacant land to develop community services and improve the local landscape e.g The Tidy Towns organisation
Negative Environmental Impact on a Community
Industrial Waste
Reduction in green spaces
Pressure on local services
Industrial Waste:
Many organisations create environmental problems through industrial waste and water, noise and air pollution.
Reduction in Green Spaces
The need for more housing as organisations grow can put pressure on local government to use land that would otherwise be there for conservation.
Pressure on Local Services:
Increased activity in a local area can put pressure on local services such as sewerage and water.
