Impact of Fiscal and Monetary Policies on Social Media Marketing

This report analyzes the impact of fiscal and monetary policies on social media marketing and the role of corporate social responsibility and ethics in shaping activities in the social media sector.

Introduction to Business
Environmental

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business environment comprises internal and external factors which are having an ability
to affect the working capabilities of an organization these factors can be employees, customers or
any other factor which influence organization to implement change. Analysis of impact of fiscal
and monetary policies and assess on company's social media marketing is done in this report.
With that evaluation of social responsibility's impact on organizational working and goal
achievement is also done in this report. Impact of ethics on company's social media sector is
done in this report.
MAIN BODY
Fiscal and Monetary policy impact on social media
Fiscal policy-
Fiscal policy is the generalized term which is employed for taxing and spreading actions
of the governments and because of which national fiscal policy is determined by the UK
government. Fiscal policy is used for describing changing levels of taxation and governmental
expenditures which influence the economic growth of UK. Social media is a online area at which
people tend to communicate with each other through the means of internet at which they are able
to reach wide range of internet uses more efficiently than traditional means (Sinclair and Allen,
2017). Social media allow users to transfer their messages or transfer any field of knowledge
with other in such a way that the message receiver is not bound to see the message
instantaneously. This social media is also used for governmental activities in which government
can use it to showcase its new developed policies or new taxations. Through this is used to
increase the transparency between government and its citizens in such a way that high level of
trust bonding can be achieved. This is achieved because of social media in which social media
users can get the soft copy of the national fiscal policy and any other information about taxes and
governmental spending. This fiscal policy is also used for reducing the aggregate demands about
the changing inflationary pressures (Igharo and et.al, 2020). This involves reduced governmental
spending or high taxes. Through this government borrowing can can be reduced. Through this
automatic fiscal stabilisers government borrowing varies with the economic cycle. Thus social
media plays a important role in increasing the transparency of government spending and because
which tax payers can also be aware of the expenditures which the government is done in order to
provide high economic advantage. In this the welfare protection is one of the largest elements of

the UK government spending in which NHS and education are the biggest singular departmental
items. The governmental spending takes around 40% of GDP by which it can make sure that
money is circulated unified and equally in all areas which is required for strong economical
growth.
Monetary policy-
Monetary policy is used to describe the governmental attempts to influence the
economical activities through the means of interest rates, exchange rates, control of money
supply, control over bank lending and credit and the main aim of UK monetary policy- Control
of inflation. The UK central bank has implemented two main methods through which it makes
efforts in such a way that it is able to effectively control the inflation rate of the money flow by
which it make sure effective economical growth (Ejiogu, Okechukwu and Ejiogu, 2020). With
monetary policy UK government can take steps to influence the required money in the economy,
by using two tools which are as following. The first step is used to set interest rate that is charged
from the banks to borrow money from the government i.e. bank rate. This all is done by the
government to make sure that companies are working in a proper way by which strong
economical monitoring is achieved and for this the banks set interest rate that is charged by it for
borrowing the capital investment. Through this cutting interest rate at the aftermath of credit
crisis with deep recession the banks tend to increase the chances to have a limited effect on the
economical activities. Thus it tend to achieve recovery in its gross domestic production and
through which it can analyse expansion of employment, investment and profit. This will provide
high level of advantages to social media because in this case company tend to deliver best in
class services to its customers and because of which high amount of money circulation can be
achieved in this. Thus this monetary policy shows the impact of how much prices are increasing
which is called as inflation, this changing inflation rate is analysed by organizations all across the
globe to check the potential market growth in that particular sector and social media is an
effective way of communicating through this long distance (Ezeaku and et.al, 2018). Through
monetary policy the government target tend to keep the inflation rate at 2% as per the case study
and also by which it can increase the chances for strong economic growth. Thus low and stable
inflation is considered good for UK’s economy and this is also the main aim of monetary policy.
Other governmental steps are also beneficial for achieving high economical growth through
which high employment can also be achieved and through social media high level of awareness

can be spread by which company can increase the chances for high engagement. Thus through
the integration small and consecutive steps economic growth and high number of jobs can be
achieved (Williams, 2016).
Ways in which how corporate social responsibility and ethics have shaped the activities
Currently upper management within most organisations has fully understood about the
role of social media, and this is the main reason that they have ordered their marketing team for
always considering different social media platforms. Currently Facebook Twitter, Instagram,
Snap-Chat, Tiktok are some major or key platforms of social media, in which many of successful
businesses are taking lots of advantages from these activities. In this dynamic and modern, there
are corporate social responsibility and ethics have fully shaped the activities of different
organisations in social media sector (Saiz-Alvarez, 2019). Basically, CSR (Corporate Social
Responsibility) is an appropriate way to a business for working in the welfare of society. No
business can gain proper outcomes in market place without following the concept of CSR. On
the other side, there is business ethics also can play an effective role to an organisation for
achieving huge success in market place. Basically, most people within market are completely
literate, and they know about the value of business ethics as well as CSR, in which they like to
buy products and services only from such businesses and companies which has followed the
concepts of business ethics and corporate social responsibility in market place. In this situation,
upper management of a business have to take quick action for fulfilling its obligation of
corporate social responsibility. The management of a business is highly responsible to adhere
business laws as well in the market place.
Business law provides a specific framework to a company for legally formed in the
market place, and this is the main reason that, currently many of successful businesses are
adhering ethics in own workplace to make its positive image in market place. The involvement
of social media now become very essential to a business in marker place (Shim and Kim, 2019).
Generally, currently each venture like to post or share its each activity on social media platforms
for the promotional purposes, in which this is very tough task to a company for sharing about its
corporate social responsibility also on these platforms, because when many customers or people
seen different tasks of that business relating on CSR on social media, then it will be gained very
positive image in market place. In this situation, upper management of a venture should always
post its each activity on social media for informing people about own good work (Salvioni and

Gennari, 2017). For example; sometimes, many businesses open free schools and colleges, in
which they have posted about this social activity on social media platforms for aware many
people about this social work of busines, because this type of activities of a business puts an
effective image of business in market place.
Currently social media is very useful tool for a business for gaining huge popularity in
the market place. For example; currently the whole world is suffering from the corona virus
pandemic, in which recently many of businesses has provided some fund to their local
governments in the form of charity to fight against this pandemic. In this situation, providing
charity for working in the welfare of people is also the part of CSR, so these businesses have
aware people about their social work through different social media platforms. In this modern
world, there is no business can run its business operations without considering different
platforms of social media. On the other side, people of a country also get highly motivated to talk
about ethics in businesses and companies (George, 2020). In this situation, many of people are
sharing their point of views and opinions of social media about how a business have to be
followed business ethics in own workplace to gain appropriate outcomes marker place. After
seeing these posts of people, a business can simply adopt different ethics in its workplace to put a
very positive image of own brand in the market place. Currently many of people don’t like to
visit stores of such businesses which has not followed the concepts of business ethics and
corporate social responsibility in marker place.
Upper management of a business should be very aggressive and active in order to gaining
the knowledge of business ethics and corporate social responsibilities. Currently many
companies and ventures are using different innovative ways for fulfilling CSR in market place.
For example; upper managements within many companies plating new plats for stopping global
warming, some businesses are providing free education to different poor students, many
companies have provided free hospital facility to various people for helping them. These are
some key ways which most businesses have chosen for working in the welfare of social. In this
situation, the management of each business should click pictures and videos while working in the
welfare of society for posting them on different social media platforms. Basically, when many of
people or customer see these all images and videos of a business about fulfilling corporate social
responsibility, then they will start respecting that business because of its good work for the
society (Kim and et.al., 2018). This is the main reason that, CSR and business ethics are very

helpful to a business, because they have shaped the activities of different organisations on social
media sector.
CONCLUSION
On the basis of above findings, it can be concluded that upper management of a venture
has highly required to consider different platforms of social media, because these platforms are
very helpful to a venture for informing about its different products and services in market place.
Basically, there are fiscal policy and monetary policies are highly affecting the social media
sector right now, in which upper management of an organisation have to consider these both
policies while running its business operations in a country. On the other side, there are CSR
(corporate social responsibility) have highly shaped the activities of various organisations in
social media sector. A venture can easily share about its activities relating to CSR and business
ethics on social media platforms.

REFERENCES
Books and journals
Sinclair, P. and Allen, W.A., 2017. Monetary policy normals, future and past. National Institute
Economic Review. 241(1). pp.R5-R12.
Igharo, A.E. and et.al, 2020. Monetary policy transmission mechanism, innovative banking
system and economic growth dynamics in Nigeria. International Journal of Business
Innovation and Research. 21(1). pp.1-22.
Ejiogu, A., Okechukwu, O. and Ejiogu, C., 2020. Nigerian budgetary response to the COVID-19
pandemic and its shrinking fiscal space: financial sustainability, employment, social
inequality and business implications. Journal of Public Budgeting, Accounting &
Financial Management.
Ezeaku, H.C. and et.al, 2018. Monetary policy transmission and industrial sector growth:
Empirical evidence from Nigeria. Sage Open. 8(2). p.2158244018769369.
Williams, J.C., 2016. Monetary policy in a low R-star world. FRBSF Economic Letter. 23. pp.1-
23.
Saiz-Alvarez, J. M., 2019. Managing social innovation through CSR 2.0 and the quadruple helix:
A Socially inclusive business strategy for the Industry 4.0. In Organizational
transformation and managing innovation in the Fourth Industrial Revolution. (pp. 228-
244). IGI Global.
Salvioni, D. and Gennari, F., 2017. CSR, sustainable value creation and shareholder
relations. Salvioni, DM & Gennari, F.(2017). CSR, Sustainable Value Creation and
Shareholder Relations, Symphonya. Emerging Issues in Management (symphonya.
unimib. it). 1. pp.36-49.
Kim, C., and et.al H., 2018. Stakeholder influence, institutional duality, and CSR involvement of
MNC subsidiaries. Journal of Business Research. 91. pp.40-47.
Shim, K. and Kim, S., 2019. Consumers’ ethical orientation and pro-firm behavioral response to
CSR. Asian Journal of Business Ethics. 8(2). pp.127-154.
George, F., 2020. Integrating discrimination training with CSR programs. Industrial and
Organizational Psychology. 13(2). pp.182-185.