Impact of Business on Society and Environment

The report outlines that businesses should consider diversity in culture, technological changes, and government regulations for better performance in a global business environment. Companies should also behave ethically regarding social issues and conduct Corporate Social Responsibility (CSR) activities to resolve economic issues and protect the environment.

CONTEXT OF BUSINES

Table of Contents
INTRODUCTION...........................................................................................................................3
L O 1 ...............................................................................................................................................3
Dynamic nature of business........................................................................................................3
L O 2...............................................................................................................................................5
Need for organisation to behave ethically in relation to various issues......................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business refers to the activity of producing goods or services to earn profits. There are
various forms of business such as sole proprietorship, partnership, companies, franchises,
cooperatives etc. Tesco was founded in year 1919 by Jack Cohen. The Report will outline the
the dynamic nature of business due to the changes that are happening in the dynamic world. The
Report will also describe the need for organisation to behave in ethical way in relation with
social, environmental and economic issues.
MAIN BODY
L O 1
Dynamic nature of business.
The term dynamic refers to continuous changes that are happening in the business. The
business environment in which company is operating is dynamic because, the need and demand
of customers changes regularly. A business can become successful only when it has ability to
fulfil the changing needs of the buyers(Souto, 2015). The business environment keeps on
changing on in terms of the technology of producing goods or services, changes in demand of
products, new competitors etc. Business environment can be divided in two parts that is micro
environment and macro environment.
Micro environment-
It includes the factors that directly impacts the organization performance. There are
various micro factors such as-
Competitors-
Companies should consider the type of products other companies are offering. So that, it can
develop innovative products to gain competitive advantage.
Customers-
Before, entering in global market. Every business have to conduct market research. So that, it
can offer products according to needs of targeted buyers.
Employees-
Companies should provide training opportunities to employees. So that, organization will get
success at global level also.
Macro environment -

It consist of factors that are not under the control of the company. Such as technology,
culture, legal factors etc. There are various macro factors such as -
Considerations within global business environment- A company should consider various
factors within the business environment at global level. So that, it can operate the business
globally in different countries. Some of the considerations of the future of the companies are as
follows-
Political-
Companies that wants to operate at global level,require to consider political factors
because, the rules and regulations of the Government of different countries are also different.
Example- organisation have to consider the increase or decrease in the tax rate, political parties
can impact the rate of development of new technology.
Technology-
To become successful at global level, companies should consider the technological
changes that are happening in the business environment at global level. Company should adopt
advance technology for production and distribution of goods or services in international market.
Organisations should develop digital infrastructure such as using cloud technology, personal
technology etc. for communicating effectively with customers at global level(Lieder, M. and
Rashid, 2016). This will help organisations to gain competitive advantage over other companies
that are operating at international level.
Culture-
The company should consider the difference in the culture when it is operating in global
business environment. Considering the cultural difference across various countries while
developing products is very important for the success of the organisation. The firm should make
efforts for understanding the difference in values, beliefs of the people while operating the
business at global level. Understanding the cultural difference at local and international level is
very important because, employees of different organisations will have to deal with customers of
different cultures.
Legal -
Companies that are operating their business in global business environment should be
aware of legal rules and regulations of Government of the country in which it is operating its

business. Each and every should ensure that it is conducting the global business as per the rules
and regulations. Such as regulations of Government regarding quality of products etc.
L O 2
Need for organisation to behave ethically in relation to various issues.
The organisation should behave in ethical way in relation with the issues that are related
with society, economy and environment. Business ethics refers to the behaviour, standards,
norms , ethical practises and values that guides the behaviour of individual and organisation.
Business ethics helps to maintain good relationship with all the stakeholders such as
Government, customers, suppliers etc.
Social issues-
Company should follow the ethics, values for the benefit of the society. Company should
develop rules and policies in respect of the production and distribution of goods and services. So
that, this will help in betterment of the society. Employees and management of an organisations
should take initiatives for providing employment opportunities to the people that are living in the
communities(Flammer, 2015). The top level management of the company should evaluate that
how their decisions will impact the society in which company is operating. Individual working
in various organisations should integrate business ethics and values for the benefit of the society.
Company should adopt model of social entrepreneurship for the benefit of the society. Tesco is
making efforts for CSR activities by working in ethical manner for providing a healthy lifestyle
to all the peoples of the society.
Economic issues-
Companies should behave ethically in relation with the issues that are related with the
economy of the country. The firms should behave ethically by paying the amount of tax on time
and there must be a policy for preventing evasion of tax by the individuals that are working in
the company. Company should behave ethically through conserving the natural resources for
economic development of the country. Organisations through Corporate Social Responsibility
activities is working for providing employment opportunities to the people in retail sector.
Company is working in ethical manner that results in decrease in imports and increase in exports
of food items.
Environmental issues-

The companies are a part of society and it should perform the activities in ethical manner
for the betterment of the people living in society through protecting the environment. The
individuals that are working in Tesco should make efforts for sustainable utilization of the
resources(Crowther, D. and Seifi, S. eds., 2018). The firm should make policies for resolving the
issues that are related with the environment. It is the duty of the organisations to check the
impact of the decisions of company on the environment.
The management of the firm should make commitment to develop and maintain a culture that
will promote environment protection. Company should initiate CSR activities such as buying
good quality of raw material and adopting techniques for managing the wastage that will help to
control environmental pollution.

CONCLUSION
The above Report has outlined that the nature of business is dynamic due to continuous
changes in the taste of customers regarding the products or services of the company. The Report
has also described that company should consider diversity in culture for better performance in
global business environment, company should consider changes in technology for operating the
business at global level. The firm should also consider rules and regulations of Government etc.
Further, the Report has explained that organization should behave in ethical way in respect of
social issues for the betterment of people living in the society. Organisations should conduct
CSR activities for resolving the economic issues and also for protection of the environment
through development of the policies.

REFERENCES
Books and Journals-
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.
Flammer, C., 2015. Does corporate social responsibility lead to superior financial performance?
A regression discontinuity approach. Management Science. 61(11). pp.2549-2568.
Lieder, M. and Rashid, A., 2016. Towards circular economy implementation: a comprehensive
review in context of manufacturing industry. Journal of cleaner production. 115.pp.36-51.
Raziq, A. and Maulabakhsh, R., 2015. Impact of working environment on job
satisfaction. Procedia Economics and Finance. 23. pp.717-725.
Souto, J.E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management. 51. pp.142-155.
Online-
Global Business Environment. 2017.[Online] Available Through :
<https://www.mbaknol.com/category/global-business-environment/>