Impact of Fiscal and Monetary Policies on Social Media Sector

This assessment analyzes the impact of fiscal and monetary policies on the social media sector, as well as the role of corporate social responsibilities and ethics in shaping the activities of different organizations in the social media sector.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.Fiscal and monetary policies and its impact on social media sector.........................................3
2.Role of corporate social responsibilities and ethic in modifying activities of different
organizations in social media sector............................................................................................6
REFERENCES................................................................................................................................9

INTRODUCTION
Social media is the networking technology and the collection of websites and applications
for communication and entertainment (Voorveld and et.al, 2018). It implements the fiscal
policies which accelerate the economy and address modifications in taxes and spends of
government. This policy is decisive by the legislation of government. Monetary policy also
stimulates economy but it addresses changes in rate of interest, supply of money in circulation
and lead by central bank. Both influences customers and nation's economy. This assessment
analyse impact of these policies on the entire social media sector. It also analyses corporate
social responsibilities and ethics which shape-up activities of social media.
MAIN BODY
1.Fiscal and monetary policies and its impact on social media sector.
Fiscal policies
These policies are used by government of country to control tax revenues and expenses of
people's to stimulate nation's economy (Chugunov and Pasichnyi, 2018). Fiscal policy affects
directly on the profitability of Facebook. Some times this tax is used to make money for the
owners of different applications who can pay taxes for accessing bundles of data. This policy
influences to broad economy. Negativity of fiscal policy include possibility of recovery
ineffective and increased debts. It has the capability of affecting the total amount of services
which are provided by Facebook. Fiscal policies are of two types: Fiscal expansionary impacts
on demands of services and inspire economic growth of Facebook whereas contractionary aim is
to make economic growth lazy and used rarely. Fiscal policy is build to acquire certain goals as
follows:-
Growth by resources effective mobilization: Primary objective of fiscal policy is to assure growth
and development of economy rapidly and assure social justice to the individuals.
Fiscal policy objective is to balance and obtain full employment (Sow and Razafimahefa, 2017).
It is used to stabilize levels of price and economic growth rate. It's aim is to maintain equality
payments balance and to advertise economic growth of Facebook which are under development.

This objective can be acquired by mobilizing financial resources. These resources can be
mobilized by Taxation, public savings, private savings. Fiscal policies imposes taxes in social
media sectors to use different platforms. Fiscal policy affects the growth of Facebook by raising
taxes so it decides to take measures and make less money flow in the economy.
Depletion in inequalities of wealth and income: Fiscal policy objective is to acquire equity and
justice by depleting inequalities of income from different sectors of the Facebook. Fiscal policies
imposes taxes in social media sectors to use different platforms. Government significantly invest
a small amount of its revenues and implement programmes of poverty mitigation to improve
conditions of poor people. This kind of policy is used by government to maximize GDP and
aggregate demand.
Management of inflation and price stability: Fiscal policy have to manage inflation by launching
schemes of tax savings and minimizing fiscal deficiency (Sow and Razafimahefa, 2017).
Formation of employment: This policy decreases taxes on small-scale industrial units. Fiscal
policy mainly decreases rate of unemployment. It can influence investment in Facebook
infrastructure to set up investments and get direct or indirect outcomes in employment. Self
employment programme was implemented to give employment to the technically qualified
persons.
Fair regional development: It is government duty to build few projects with public expenses to
reduce regional imbalances of the country. Fiscal policy affects the opportunities of investment
from the spending of private as well as from the government investments. It may face many local
and state level taxation changes based on its location.
Maximizes national income: It is the courage of fiscal policy which emphasizes the desired
outcomes in countries economy. Government increases tax rates when it wants to maximize its
income of the country. Corporate tax gets increased, depreciation occurs in Facebook. Increase in
taxes led to decrease volume of employment. Basically this happens when the implementation of

business tax policy applies on Facebook and its investment and profits are affected by this
policy.
Monetary policies
It is a policy which administers rate of growth and size of money which is supplied in the
economy (Kiley and Roberts, 2017). Monetary policy minimizes cost of investment in Facebook.
It is a strong tool to balance variable of macro environment like unemployment and inflation.
This policy offers loans for short term by offering lower rate of interest which help Facebook to
expand its businesses. Monetary policy includes rate of interest, investments and auctions of
government securities and modifies the amount of economies cash flow. Central bank is
responsible for managing these monetary policies. It influences rate of interest by modifying
discount rates (Altavilla, Boucinha and Peydró, 2018). It usually organizes the minimum
reserved amount that necessarily assaulted by the commercial banks. These banks utilize
reserves as funds in new businesses. Central bank can affect money supply by investing or
auctioning securities of government. This policy is also called macroeconomic policy which
supports Facebook to achieve objectives like consumption, growth, liquidity to build growth in
economy and decreases liquidity to control inflation. This policy plays a necessary role in
fighting economic slowdowns. This policy promotes higher profits. It has great influence on
inflation. It reduces fund rates and result in stronger demand of services which Facebook
provide. It led to push salaries of employees and effects other cost heavily. Increase in money
supply will raise nation's output and target keep growth steady. It supports open market
operations to achieve appropriate objectives which are necessary for the work environment.
Reserve requirements and modifications of interest on reserves.
Monetary policies are contractionary or expansionary.
Contractionary- Its objective is to reduce the supply of money in the economy. This objective
can be acquired by raising rates of interest, maximizing the banks reserve requirements and by
auctioning government bonds. This policy is used when the government wants level of inflation
in control.

Expansionary- Its aims are to decrease rate of interest for increasing money supply. Make
investments in government securities by purchasing them from central banks to reduce reserve
requirements for banks. Expansionary monetary policy reduces the unemployment and
encourage spends of consumers and business activities (Furceri, Loungani and Zdzienicka,
2018). Overall aim of this policy is to fuel growth of economy.
2.Role of corporate social responsibilities and ethic in modifying activities of different
organizations in social media sector.
Corporate social responsibility is a business model that supports Facebook contribution to wider
its goals through ethical practices and be accountable to itself, public and its stakeholders. It is
described as an internal policy of organizations to develop or push itself to overtake position in
the industry and use its authority in initiatives of industry. It is also known as corporate
citizenship. Facebook can be conscious of the type of impact it is having on the society including
social, environmental and economic. It is an ordinary course of business to engage with CSR.
Facebook operates in different ways to enhance its business in the society instead of making
negative impacts on them. Corporate social responsibility is a different kind of concept that can
take many forms to depend on organizations (Verčič and Ćorić, 2018). By this CSR programmes
and efforts Facebook provides benefits to the people of society while boosting its technical
services. This corporate social responsibility is necessary for both Facebook and its community.
This CSR activities supports to form a strong relationship between Facebook and its employees.
It helps both of them to feel connected with all around the world. This corporate social
responsibility is a business strategy used by Facebook and large corporations to set higher
standards of ethical behavior for its competition, industry and peers. Facebook express its
citizenship by reducing their waste produce and by earning sufficient returns from the resources
(Crane and et.al, 2019). CSR has positive impact on Facebook assets, trust, perception of
Facebook reputation and return of equity. It primarily manifests in the appearance of
communication with its interests groups. In many developing countries Corporate social
responsibility is still in the phase of development because concerns and priorities are different in
developing and developed countries. Idea of Corporate social responsibility was originated in
united states and later reached in the forefront of political organizations interest and in the sights

of economic development committee. Facebook adopts these CSR policies which impacts
positively on its performance, enhance its competitiveness and credibility (Wang and Sarkis,
2017). Facebook have allowed persons and big corporations to use it and communicate with
entire new ways. It became a standard tool for communications for the companies worldwide.
Then later it undertaken an application called Instagram and made new implementations and
developments to it. It used hashtag analysis to identify main topics on social media related to
corporate social responsibility. It focusses on solving issues which are surrounding its socio
economic development of the country. It is a type of self regulation of private businesses which
aims to contribute in societal objectives of an activist by engaging in practices of ethically
oriented. CSR contributes in Facebook profits from the strategic point of view and particularly
focusses on negative and positive results of their endeavour. These all benefits accumulate by
maximizing positive relationships with public and increase ethical standards to reduce
Facebook's and legal risk by taking responsibilities of corporate actions. From an ethical point of
view, Facebook adopt corporate social responsibility to increase profits for long term. CSR is
titled to benefit Facebook's mission as well as it serves as a mentor to what the Facebook
represents to its users. In some methods of corporate social responsibility, broadcasting and
planning company activities allots important insights and valuable information to develop its
strategy (Huda and et.al, 2018).
Examples of corporate social responsibility are:-
Carbon emissions: Facebook runs wastage diversion programme to reduce impacts of carbon
foot prints on environment.
Empowering workers: Empowering, informal culture and competitive payment make its
employees satisfied to an extent.
Human and labour rights: Facebook workers are encouraged to criticise and question their
managers and frequently placed on roles that serve according to its employees strength.
Employees safety and health: Organic food is served in Facebook canteen and its always aim to
have max amount of natural lights in its offices.
Business ethics recognizes ethical principles and moral problems that arise in Facebook
(Reinecke, Arnold and Palazzo, 2016). This is the study of particular practices and policies of
business regarding subjects of controversies including social responsibilities, governance and
fiduciary responsibilities. It provides common guidelines which Facebook has to select and

follow to acquire approval from public. It is used to shape up each organization in social media
sector and highlighting its ethical structure. Business ethics recognizes the fundamental purposes
of Facebook. These ethics are the internal norms or status that rule our daily basis decisions. It is
collection of regulations and rules which are necessary to be followed by all workers in
Facebook (Ogbari and et.al, 2016). It reflects the philosophy of Facebook. Facebook purpose of
increasing share holder returns then sacrificing its profitability for other concerns is a
contravention of its fiduciary responsibilities.
Some examples of business ethics are:-
Effective communication: Facebook has a business ethics of communicating effectively to avoid
misunderstandings when handling hypothetical issues at the workplace.
Develop and maintain professional relationships: Professional relationships are only option to
encourage team work among employees.
Employee has to be accountable: Facebook always to maintain responsibilities and look over
employees accountability to maintain good trait.
Work smarter: Facebook is a social media platform where it runs a business ethic called 'Work
smart not hard' because technical companies count value of employee by its work done by its
mind not by its physical work.
Obey company's norms: Facebook offers some common and some unique norms and regulations
which has to be followed by employees to work.
CONCLUSION
Based on the total review of this assessment, it is concluded that social media sector is
affected a lot when those fiscal and monetary policies gets implemented in it. Implementations of
CSR and services provided by it influenced people in the society. Using corporate social
responsibilities in Facebook led it to hold a deserving position in the society. Facebook cared and
took all responsibilities for displaying its company supreme opposed to other websites or
applications. It is concluded that implementing CSR and business ethics play an important role to
shape-up a unique character of company to survive in the society.

REFERENCES
Books and journals
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Chugunov, I.Y. and Pasichnyi, M.D., 2018. Fiscal policy for economic development. Scientific
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Crane, A., and et.al., 2019. Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press, USA.
Furceri, D., Loungani, P. and Zdzienicka, A., 2018. The effects of monetary policy shocks on
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Kiley, M.T. and Roberts, J.M., 2017. Monetary policy in a low interest rate world. Brookings
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