For this assignment I had to research certain contemporary issues that affect the business industry. I attended various contemporary business sessions in which we discussed some topics that had effects on the business world. We formed small groups and collected a variety of information in which we had to put into a portfolio. We had meetings in which we debated about issues occurring in businesses today and how it relates to what we are doing now. The topics that we looked into that affected businesses are; 1. Corporate Social Responsibility. 2. Technological Paradigm Shift. 3. Financial. 4. Legislations. 5. Environmental Issues. 6.
Business Ethics. I will be discussing a bit about these topics but the main two topics I will discuss in more depth are environmental issues and technological paradigm shifts. Financial. Financial markets would be that of the stock market, bonds, commodities and the foreign exchange market. Financial markets allows people to buy and sell things such as stock and bonds more easily. It is also easier for agriculture and metals such as, oil, wheat sugar, coffee beans, and metals such as sliver gold, copper, aluminum etc. the reason why it is easier for buyers and sellers to exchange is because of the fact that they are placed in one place.
At this current time the UK is in a recession although it is not as bad as a few years ago. So at the moment the UK which means that there is a fall in Gross Domestic Product also knows as GDP, investments and spending go down as there is less disposable income. The only thing that goes up during recession is the unemployment rate as many employees are made redundant as companies cannot afford to keep them on. Legislations. Legislations are laws set by the government in which all businesses must stick to and follow at all times. Legislations are there to stop businesses exploiting their powers.
For example to protect customers there are certain laws such as the trade description act which was established to stop manufacturers misleading customers. All description of the product must fit the actual product and no false information must be inserted. To protect employees there are a few laws set to protect them such as the minimum wage act which states people of certain ages must be paid a minimum amount for their jobs. Another law is the sex discrimination act which protects both genders and states that a person should be judged on their skills and qualifications rather than their sex.
This doesn’t apply sometimes; when applying for certain jobs such as if u needed someone to model male clothing you will need a male rather than a female. Business Ethics. Business ethics is basically the behavior a company shows in the daily running’s. It is not only based of how it treats the world but also customer wise. Being a business people seem to think that they are only interested in one thing and that is the financial side and increasing its sales and revenue at all costs. This seems to give people the idea that companies are just looking after number one and are willing to do anything in the name of money.
In this case it can be said it is true as many business have been hit with major fines because they have acted unethically. Examples would be that many companies hire labour from abroad as it is cheaper and aids them in increase its profit margins. Also hiring small children to work for them is unethical. Companies must have morals and not abuse their power. This affects business by that if they are found out, not only are they hit with a hefty fine but it also gives them a bad reputation which will lead to many customers choosing to go elsewhere. Environmental Issues. Environment is a big issue when it comes down to business.
There are many environmental issues that affect businesses but the main one is global warming. It is beneficial for businesses to abide by environmental legislations as it keeps the earth clean and reduces any damages it causes. Abiding by the laws could cost the company more money by making use that waste is disposed of properly. But this makes the customers think more by that they would like the fact that the companies are trying to take care of the environment rather than just the financial side. This may encourage some people to turn around and go towards that company in the future.
An article I found in the Financial times, “Government green light boosts low carbon vehicle market” written by Chris Tighe and Andy Bounds. The article is all about electric vehicles. Grey charging posts are being put up in roads and in parking bays in NE England and although they do not look like anything special they are there to do the environment good. There will be incentives for drivers using this charging points as One NorthEast, a regional development agency is looking to link up with Tesco, British gas, CE Electric UK, The AA and Capital shopping centers, in installing more of these charging posts.
The Sunderland area is focusing on low carbon vehicles, and is declared the UK’s first low carbon economic area. The Nissan car plant located in Sunderland is pushing itself to be elected for the European production center for the development of Nissans new project of an electrical car called the leaf which has already started a trial in Japan. Nissan in Sunderland have invested a 180 million pound and 350 new job investment plant in making batteries for the new electrical cars.
Environmental issues have a big effect on how businesses run as they must comply with environmental legislations, which were created to help reduce the harm a business is doing to the environment, such as air pollution and watch the amount of emissions that are being put out, wastage and disposing of it in a correct manner. By not complying with environmental legislation businesses can face a major fine or even be forced to shut down. By complying with the legislations can lead to benefits within the company by that it can help reduce the costs within the business.
It will cut down the use of wastage of raw materials and energy used by the company, simple things such as switching of unused lights will be good for the environment and also reduce energy use and save money. So with Nissan trying out the production of its new car, the leaf, which will be powered by electricity, will be good as it will be more environmentally friendly by the fact that it produces very low Co2 emissions. I think this will appeal to people as it is being environmentally friendly so people who care a lot about the environment will be looking to make the step closer in building a healthy environment.
Also as people see that companies such as Nissan are taking close look at global warming and seeing the effects of it, and are doing something to changing the way life is lived, by making improvements in helping keeping the environment safe. They are more likely to take a likely to the company as it is comply with the environmental legislations and care about the world, and not show that they are there for their own selfish needs and just to make money. So with companies such as Nissan deciding to be more environmentally friendly