OCR Business - Influences on a business

A way in which a business can be affected by consumer law is

• Having compensation claims because goods are high quality

• Losing reputation due to defective goods

• Having to sack staff who are always late for work

• Profits being reduced by paying higher wages

Who does consumer law protect?

• Banks that provide finance

• Businesses that provide services

• Purchasers of products

• Suppliers of raw materials

By law, a smart phone manufacturer must make phones which are:

• of high quality

• made of recycled materials

• reasonably priced

• safe

An example of an unethical business activity is when a firm buys products made using _________ labour

• No

• Adult

• Child

• Free

Another unethical practice would be a firm not providing its workers with a _____________ working environment. For example Amazon at its fulfillment centres.

• Child

• Pay

• Ethics

• Safe

Some businesses are not ethical so they can charge ______ for their products

• Less

• More

Being ethical can bring benefits to businesses...

• Higher costs to pay higher wages to workers and providing a safe working environment

• Workers trust their employer, increasing motivation, productivity and retention which reduces costs.

Advantage or disadvantage? - There is a greater chance the business will survive in the long run if it is ethical

• Advantage

• Disadvantage

Advantage or disadvantage? - A business that is honest in its marketing may find that its sales fall.

• Disadvantage

• Advantage

When income and employment rise, businesses can expect

• Sales to rise

• Prices to fall

• Profits to fall

• Immigration to fall