How Political, Legal and Social Factors Are Impacting Upon the Business Activities Essay Sample

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The political environments which include political stability , government support for different types of organisation, fiscal, direct support, providing infrastructure, enhancing skills of the working population, organisations to support businesses and membership of international trading communities. Political factors can affect a business in the following ways: Political stability affects a business because taxation, legal framework, policies and laws are all under threat of drastic changes. Government support can affect a business by whether or not they fund the business and introduce subsidies. For example if they subside farmers. Fiscal policies are the policies that determine taxes and interest rates by the government depending on public expenditure. Direct supports are where they have to support a specific range of business services. Providing infrastructure is the government’s responsibility to provide all necessary things for a business to run which they are not responsible for, such as water, roads, electricity, phone lines etc.

Enhancing skills of the working population is the government’s responsibility to ensure all of the upcoming population has the right to an education and ensure all youngsters are being educated to a good standard. Organisations to support businesses and membership of international trading communities where the government has an agreement with foreign countries across the world to form a community which allows members within the countries to trade with each other. For the organisation to achieve its purpose is to recruit members of staff, product design, transport of goods, and promotion of products of the organisation. The different types of influence of legal environments are providing framework for business, protecting consumers and employees and ensuring fair and honest trading. The legal factors affecting businesses are laws and guidelines put in place by the government and the associations Providing framework for business- The Government’s objective for company law is to provide a framework that gives companies the flexibility to compete and grow effectively.

An important part of this is ensuring that creditors, customers and suppliers have the information they need in order to be able to do business with a company with confidence. Protecting consumers and employees- To protect consumers by regulating many of the following businesses transactions and practises for example advertising, sales and business practises etc. Ensuring fair and honest trading- Enhancing the economic welfare of the communities and improving standards of fair and honest trading. For the social influence are demographic issues, changes in structure, households and families, education, attitude to work, religions, attitudes to female and male roles and ethics. They could affect a business by Demographic issues- It affects the business as you have to target your population to the majority of age and gender etc.

Changes in structure- As your business changes and grows you need to ensure that you manage these changes successfully. Growth can lead to significant changes that affect your business structure and tax requirements. If you have made significant changes to your business, remember to also update your advertising materials, such as business cards, signage and logos.

Households and families- This affects the business as the people in the household are a common target for many businesses. Many products are targeted at families and children’s items needing parents’ consent. If the product is not suitable for families and doesn’t meet the customers’ needs this could result in a loss of customers and customer complaints and social taboos could make the business look bad.

Education- In general, training and education will improve productivity because they will make workers better able to do their jobs. With training, the connection is clear. A worker who has been trained on the proper use of a machine, for example, will use it well and will work quickly. This will increase productivity.

Attitude to work- Attitude to work in general affects the business as if the worker has to deal with problems and is stressed this could affect the colleagues work. Likewise if the colleague is ill and it is affecting their work then they will not be able to concentrate on their work and will rush or do the work wrong.

Religions- Religions has an effect on the business as they should not discriminate and treat all colleagues equally. This could have an effect on peoples lifestyles, products need to stand out from the crowd for different religions.

Attitudes to male and female roles- Changes in gender roles could have an effect on the business by affecting at home and in the work place as women should be treated no different to men and vice versa. If it is a line of work and mostly men do it then that does not mean that women cannot have a job in that line of work. This could affect people’s feelings and feel degraded as they are treated different to the opposite sex.

Ethics- Ethics can have an effect on the business by affecting the peoples at works behaviour and will have a massive effect on the work place. If someone is slacking at work and dossing about not putting as much work as you are and are not getting caught and doing it in secret environments you may get annoyed at this and how much work you are doing and how much they are doing when getting the same amount of salary. Ethics is also a social factor as it could have an effect on career attitudes, health consciousness etc.

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