Analysis of Business Environment: Policies, CSR, and Ethics in Media

This report provides an in-depth analysis of the business environment, focusing on the influence of fiscal and monetary policies on the social media sector. It explores the impact of expansionary and contractionary fiscal and monetary policies, detailing how changes in taxation, interest rates, and money supply affect social media companies. Furthermore, the report examines how corporate social responsibility (CSR) and ethical considerations shape the activities of major social media players such as Facebook, Twitter, and LinkedIn, highlighting their CSR initiatives, labor policies, and contributions to environmental sustainability. The report also discusses business ethics, including compliance with laws and regulations, and the implementation of clear policies regarding social media usage to ensure responsible business practices. The conclusion synthesizes the key findings, emphasizing the interconnectedness of these factors in the dynamic social media landscape.

Introduction to the business
Environmental

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Knowledge and understanding about fiscal and monetary policies and assess the influence of
fiscal and monetary policy on the social media sector................................................................1
How corporate social responsibility and ethics have shaped the activities of several companies
in social media sector...................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The business environment consist of the surrounding aspects that either assist if hinder the
enlargement of commerce. Business atmosphere is sum or compilation of all interior and exterior
aspects like workforce, consumer’s demands and desires, supply and demand, administration,
clients, provider, possessor, actions through national authority, modernism in machinery, social
trends, market tendency, financial modifications and many more (Hamilton and Webster, 2018).
This document will consider information about acknowledgement of financial and monetary
policies as well as impact of them on the social media industry. Further, it will define about
corporate social accountability and ethics which have designed the actions of several ventures in
social media industry.
MAIN BODY
Knowledge and understanding about fiscal and monetary policies and assess the influence of
fiscal and monetary policy on the social media sector
Social media industry is a highly developing sector and there are approx 3,499billion
active social media users at international scale. Basically social media is computer base
technology that assists the contribution of thoughts, ideas and data by the making of fundamental
networks and society. By design, social media is internet supported and offer users fast electronic
communication of substance. Social media may take the form of a range of tech facilitated
actions and processes. There are diverse social media tools like Facebook, Instagram, YouTube,
LinkedIn, Twitter, Pinterest and many more that are highly used by the diverse users at global
level for different objective and purposes. This business sector and industry influence by fiscal
and monetary policy in diverse manner. The description of them as below:
Fiscal policies
Fiscal policy indicates to the utilisation of administration expenditure and tax policies to
impact financial circumstances, particularly macroeconomic situations considering aggregate
need for products and facilities, employ, price increases and financial development. It is the
sister plans of monetary strategy through which a central bank impacts a country’s finance
supply (Čepel and et. al., 2018). These two policies are utilised in diverse mixtures to lead a
nation’s economic objectives. Along with this, the impacts of any fiscal policy are not the same
for everyone. Based on the political directions and aims of the policymakers, a tax cut could
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influence only the middle class that is basically the largest financial collection. During economic
refuse and rising duty, it is the same unit which may have to pay more taxes than the wealthier
upper class.
Expansionary fiscal policy- It is when the government expands the money contribution
in the financial system utilising budgetary tools to either maximise expenses or cut taxes for both
of which offer customers and commerces with more find to expend. The key purpose of
particular strategy is to develop and enhance combined command to make up for shortfalls in
confidential command (Gaganis, Pasiouras and Voulgari, 2019). This policy is proposed to
develop business investment and customer spending through inserting capital into the financial
system either by instant government shortfall spending or maximised directing to business and
customers. The main reason of expansionary financial strategy is to enhance development to a
healthy economic scale that is required during the contractionary step of the industry cycle.
Deflationary fiscal policy- This kind of policy considers taxes and lower spending, It will
minimise the development of aggregate demand and could direct to less improvement or even
negative economic development. The influence of deflationary rule on growth based on the
resilience of customer spending in expression of tax enlarges and wage freezes, export can take
the slack of slowing domestic need and monetary policy can absorb some of the deflationary
pressure on the financial system.
Monetary policies
It is the command side of financial policy which indicates to the activities assumed by the
country’s central bank to make management on money furnish and accomplish macroeconomic
aims which promote sustainable economic development. Monetary policy considers of the
administration of funds supply and interest rates, intended at accomplishing macroeconomic
aims like domineering price increases, expenditure, development and liquidity (Fabus, 2018).
Thus is attained by activities like changing the interest rate, trading government bonds,
regulating foreign exchange rate and change the amount of currency banks are required to
manage as raw materials.
Cause of Inflation (Demand pull factor, Cost push factor and excessive growth in the money
supply) ()
Expansionary monetary policy- If a nation is suffering a high joblessness rate during a
reduce speed or a recession; the financial authority can opt for an expansionary policy whose aim
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is to maximising the economic development and expanding financial process. Lower interest
rates denote that businesses and people can protect loans on suitable terms to make bigger
creative actions and expend more on big ticket customer products.
Contractionary monetary policy- augmented money delivery can direct to higher
inflation, increasing the cost of living and cost of doing commerce. Contractionary monetary
policy, maximising interest rates and deliberating the development of the money supply, aims to
bring down inflation (Calabrese and et. al., 2018). This can slow economic development and
maximise joblessness, but is often required to cool down the financial system and maintain it in
make sure.
Impact of fiscal and monetary policy on social media industry
Fiscal and monetary policy create a huge impact on social media sector in diverse manner
when change are occurred in taxation rate and interest policy in term of high the they charge
more tax which affect the business of social media company like Facebook, Instagram, Twitter
and many more. This also creates influence on labour market incentives when changes in income
tax in term of low tax then it can develop incentives for individual to actively look for work.
Along with this lower taxes also create positive impact on work effort and labour efficiency.
There is several kind of innovation take place in social media industry due to which research and
development practices are organised by social media industry organisations. In context of which
government of diverse nations spending and tax allowances could be utilised to promote research
which make a favourable manner.
How corporate social responsibility and ethics have shaped the activities of several companies in
social media sector
Corporate social accountability is an administration conception whereby organisations
incorporate social and ecological apprehensions in their commerce options and connections with
their stakeholders. It is a business tool to sustainable development by delivering economic, social
and environmental advantages. It also summarizes the proposals through which an organisation
takes accountability for its influence in social and environmental well being (Syazali and et. al.,
2019). Social media is a powerful tool in business which assists in expanding the markets and
promotes a company to a wide range of consumers or develop the relationship with consumers
between many other things. There are number of establishment which operate their business in
social media industry and also play an important function in CSR area. Companies like
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Facebook, Twitter, Instagram and many more have it total almost 85 million loyal audiences on
Facebook and 27.5 million supporters on Twitter. It is actually wide range of possible consumers
that establishments cannot ignore. More than 80% of the Facebook and Twitter posts are
promotions which straightly beleaguered to drive consumers attraction to new advertisement of
commodities and services. Along with this, these social media venture also plays an effective
role in CSR area by providing and demonstrating CSR message (Corporate Social Responsibility
in Social Media Environment. 2020). The occurrence of CSR post are differs in Facebook and
Twitter. Establishments have shared ¾ o all corporate social communication on Facebook,
leaving just ¼ for Twitter way, although general ratio of Facebook/Twitter communication in the
viewed period is almost half to half. It signifies that establishments choose Facebook because
their outlet for CSR publication.
CSR play an effective role in shaping the business activities of several organisations. In
Social media sector, the organisation like facebook, Twitter, Instagram and many other
effectively consider and following effective labour policies and laws like equality act,
discrimination and many more so that they can provide an effective treatment to their workers.
Along with this by making use of effective technology in their business so that they can make
their contribution in reducing carbon footprints. In addition to this, they also provide and invest a
small portion of their profit in corporate social responsibilities so that they can make a
contribution in development of society and environment. In addition to this, they also use less or
no paper in their business operations and activities so that can work for CSR welfare for
environment. Facebook endeavours to have maximum amount of natural light in its offices and
provides restricted unprocessed foodstuff in its kitchens.
The enterprise has publicized that its latest data centre in Los Lunas, New Mexico will be
powered with 100% renewable energy in 2015, the establishment’s total power expenditure
equalled to 1,310,000,000 kWh about 221,000,000 gallons of water was utilised and consumed
in 2015 (Facebook CSR Overview. 2020). Along with this, the management of firm also operates
and runs Waste Diversion Program. Also, the firm provides advanced shipping method for its
workers that consider worker transports, as well as assets for ride sharing, carpooling, taking
public transport and biking to work. Additionally, LinkedIn is another social media sector that
also makes its contribution in CSR through disaster response. The particular enterprise also
provides a Disaster Response Program whose aims to maintain compassionate effectiveness in
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times of disaster. The instances of their work consider their instant reaction to the overwhelming
earthquake in Nepal 2015 and their 2016 support of Syria refugees (Practicing responsibly.
2020). During the Nepal earthquake, the company utilised their tools to match UAV drone
specialist to the Digital Humanitarian Network, a humanitarian company that was reacting on the
ground.
Business ethics is the learning of effective commerce policies and exercise about potentially
contentious subjects considering corporate governance, insider trading, bribery, favouritism,
favouritism, corporate social accountability and fiduciary errands. By considering effective
business ethics, companies of social media sector can share and create its business activities in
effective manner. The organisations require acknowledging the submissions of lawful and
authoritarian principles to social media (Akhtar, 2018). In present time, a number of US laws and
system are being implemented to the media’s functions; Regulation FD reacts to the
announcement of firm fiscal or other key functioning data externally of the firm. Worker privacy
is enclosed through HIPAA. Along with this, the social sector firms like Facebook, Instagram,
Twitter and many more can consider Intellectual property legislations which address that how
workers may communication a firm’s IP crosswise social media.
In context of operating business activities in ethical manner in social media sector, the
enterprises can set up and set up clear strategy and processes with reverence to the utilisation of
social media by considering diverse actions like explaining the distinction among the utilisation
of social media for company versus personal use, determining and reviewing of human resource
use, evaluating effective venture utilization of social media, fulfilment with regulation and policy
and offering training and development programs of workforce regarding effective and accurate
use of technologies and others so that they can perform their work in more developed manner
(Khalatur and et. al., 2019). Along with this by following business laws and government
regulations in appropriate manner, the organisations of social media sector can operate and shape
their business in more developed and amended manner.
CONCLUSION
It has been concluded form the defined information that business environment is a collection
of external and internal aspect of business like supply chain, customer, employees, stakeholder
and many more. The business of organisations is affected in several ways when modifications
are take place. When fiscal and monetary policies are modified by the government then they
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create an influence over the business of particular sector. CSR and business ethics activities also
assist in creating and shaping the business of companies of social media sector.
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REFERENCES
Books & Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Čepel, M. and et. al., 2018. Business environment quality index in the SME segment. Journal of
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Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling, 78, pp.275-292.
Fabus, M., 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL
COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY
SLOVAKIA. Journal of Security & Sustainability Issues, 7(4).
Calabrese, M. and et. al., 2018. From mechanical to cognitive view: The changes of decision
making in business environment. In Social Dynamics in a Systems Perspective (pp. 223-240).
Springer, Cham.
Syazali, M. and et. al., 2019. Retracted: Partial correlation analysis using multiple linear
regression: Impact on business environment of digital marketing interest in the era of industrial
revolution 4.0. Management Science Letters, 9(11), pp.1875-1886.
Akhtar, M., 2018. Managing strategic performance in a dynamic business environment: A study
of two Indian oil companies. Global Business and Organizational Excellence, 37(5), pp.47-62.
Khalatur, S. and et. al., 2019. Financial instruments and innovations in business environment:
European countries and Ukraine. Investment Management & Financial Innovations, 16(3),
p.275.
Khan, K.A., Çera, G. and Netek, V., 2019. Perception of the selected business environment
aspects by service firms. Journal of Tourism and Services, 10(19), pp.111-127.
Online
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Facebook CSR Overview. 2020. [Online]. Available Through: < https://research-
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