Business Environment: Fiscal, Monetary Policies and Social Media

This report provides an introduction to the business environment, focusing on the impact of fiscal and monetary policies on the social media sector. It details the mechanisms of fiscal policy, including government spending and taxation, and monetary policy, including interest rates and money supply. The report examines how these policies affect social media platforms like Facebook, Instagram, Twitter, YouTube, TikTok, and LinkedIn. It also discusses corporate social responsibility (CSR) and ethical considerations within the social media sector, outlining the CSR initiatives of major platforms. The analysis covers various aspects of social responsibility, including environmental sustainability, community support, and ethical practices. The report concludes by summarizing the key findings and implications of fiscal and monetary policies and CSR in shaping the activities of social media organizations.

INTRODUCTION TO
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................3
Knowledge and understanding about fiscal and monetary policies and the impact of fiscal and
monetary policy on the social media sector as a whole...............................................................3
The impact of fiscal and monetary policy on the social media sector.........................................4
Corporate social responsibility and ethics have shaped the activities of various organizations in
Social Media sector......................................................................................................................5
CONCLUSION ...............................................................................................................................8

INTRODUCTION
Fiscal policy, it is a way by which a government adjust its spending level and tax rates to
supervisor and influence the nations economic system. Monetary policy include authority of
nation to control the interest rate payable or the money supply. The fiscal and monetary policies
are to be discussed along with the government spending and taxation processes. The study even
includes of the impact of fiscal and monetary policy on social media sector as whole. The study
also consist of the corporate social responsibilities and ethics which has shaped various
organizations in the social media sector are as follows Facebook, Instagram, pinstripe, you tube,
tiktok and twitter. All the social responsibility of different organizations is to be discussed in the
further study which includes of different responsibility of organization towards the society,
culture and environment.
MAIN BODY
Knowledge and understanding about fiscal and monetary policies and the impact of fiscal and
monetary policy on the social media sector as a whole
Fiscal policy, the term includes of the government usage of disbursal. Indirect and direct
taxation and government dealing it will impact the growth of collective demand in the economy
output and jobs. It is also in used to change the pattern and purchasing of goods and service like
investing on healthcare (Bonam and Lukkezen., 2019). It is a policy by which distribution of
financial gain and wealth can be achieved. For example tax rates could vary on different types or
level of income Weil 2019. The major two different parts of the policy are as follows. Spending
of government and Taxation.
Spending of government : The biggest individual component of spending of government in UK
is welfare protection with the largest spending on teaching system.
Three major areas of government spending which take up to around 40% of annual GDP are,
 Give payment : payments being given to profit receiver like state pensions.
 Present-day spendings : the amount being spent on goods and service provided by the
government like health and education.

 Capital spending : amount being speeded on infrastructure such as hospitals, prisons and
roads.
Taxation
It is necessary for any ruling party in order to, increase revenue which helps in funding
the spending of government, manage need in economy help to fulfil the government objectives
of microeconomics objectives like economic growth and inflation. Change in distribution of
income and wealth (taxes may help correct market failure).
Monetary policies
This includes in use of interest rates and modification in supply of money to achieve the
economical goals like profit earnings, customer creation, and the best possible use of available
resources. Major objective of monetary policies is to keep the inflation low and stable. The prime
tool of monetary policy is to change interest rates. Most usual goal of the policies which includes
of liquidity is to keep a hold on to a full employment to achieve high rate economic development
to maintain price and wages. Tools of the policies which includes of monetary terms and policies
which includes of market operations, discount rates and reserve requirement. The versatile
market which involves the buying and selling of government securities. Most frequently used
tool of monetary policies. Interest rate is discount rate being charged by the federal reserve bank
to facility institute on short term loan.
The part of deposit which banks must maintain either the vault or to submit at federal
reserve bank (Chatelain and Ralf 2020). The federation can use different tools to achieve policy
goals by applying reduction rates, reserve needs, open market operation, interest on reserve.
Discount rates include of the interest rate being charged for the short term loans. Fall in
the discount price is expansionary because the price reduction rate influence other different
interest rates. Lower the rate the more encouragement in leading and spending by consumers and
businesses. Same way increase in discount price is contracting because discount price influence
other interest rate. Open market operations, the purchasing and selling of the government legal
instrument has been a tested tool. Interest rate reserve, it is the most frequently used new tool
given to the federation by the government. Interest on reserve is been paid to the excess reserves
held at the bank. The federation of banks require the banks to hold a particular amount of
percentage of their deposit on reserve. Currently the policy paying interest on reserve allows the
federation to use the involvement of monetary policy way to influence bank leading. Banks are

way more interested in leading money rather than keeping it reserved, it could outcome of
decrease in the interest rates it pays on extra reserve.
Impact of fiscal and monetary policy on the social media sector
Social media has a wide range of connection to circulate information through different
platforms like Facebook, Instagram, twitter etc (Cantore and et.al., 2019). which helps in
circulating information with one click, fiscal policies like stable economic growth, price stability,
full employment and monetary policies which include information regarding market mutual
funds, to manage inflation information regarding these fields can be easily circulated over the
social media it's a good platform to use for such policies. It makes easy to approach a lot of
people at same time with the help of social media. But at the same time it is a disadvantage to
use as some times the information given on the internet (social media) is not justified and
authentic.
Due to such reason there is probably a chance of fraud to the miss leading information
being circulated on social media which In result sometimes badly affects the customer. The
taxation policies also affects social media by the fluctuation in taxation. Monetary policies can
target the inflation levels , the inflation level should be low for the better running of the
economy. There should be a proper management under different policies' unemployment,
maintaining the medium of exchange rates. Different monetary polices can affect the level of
unemployment in the economic system. Change of currency rate by using the fiscal authority the
bank can adjust its rates of exchange between two different currencies foreign medium of
exchange and domestic currency.
Bank use different way to implement different monetary policies. Most often used tools
are as follows like interest rate adjustment which includes of the influence of rates by changing
the discounted rate, it is a rate been charged by the central bank to other banks for the purpose of
short term loans for suppose when the rate of discount increases the borrowing for the bank
increases,
The bank will gain the rate of interest they cost their customer. Thus, the pricing of
dealing in the economy will lead to increment and supply of money will decrease. Change in the
reserve requirements, central bank usually setup the nominal amount of reserve that must be held
by a commercial bank by charging the needed sum of money the central bank can indefinite
quantity the money provision decreases (Mesagan and Yusuf 2019).

Open marketplace operations, the bank can sell or buy legal document issued by the
government to make a affect in the currency supply chain. Like central banks can buy
government bonds in result bank will acquire more money to increase the leading and monetary
system supply in the economic system.
Corporate social responsibility and ethics have shaped the activities of various organizations in
Social Media sector.
CSR is term refereed to the company's efforts, to make improvement in different ways to the
environment and ethics refers to the moral principle of an individuals' behaviour. CSR and ethics
have shaped Social media sectors that are as follows :
 Facebook : The use of this app is to be socially connected with friends and family around
the world. Facebook supports its business through CSR program that includes
stakeholders interest. The social media business affects stakeholders around the hole
world. Company must maintain privacy policies. The major corporate social
responsibilities of Facebook are to education and empowering others, support local
communities, human and labour rights, gender and minority equality, usage of water
reduction and recycle it in the more efficient way. Around 78% of the UK internet users
use Facebook. Around 60 million active businesses pages are there on Facebook which in
result help to circulate related information to the desired audience.
 YOUTUBE : It is among the mostly used social media channels with around the same
number of users as Facebook(Dutt 2020). It is a platform to watch different videos and
up-lode it over there. The CSR of YOUTUBE has shaped the company in such a way by
performing different activities and working towards the social causes and events which
brings up the company to a good CSR position. The activities include of performing
voluntary activities on different occasions. Reducing carbon footprints and improve
policies for existing employs.
 INSTAGRAME : Currently this the most used app all over the world and it's a successor
of Facebook. Instagram allows people to follow different brands and business. Instagram
has adopted new policies for the better experience of the customer which includes
advancement in privacy policy which is among the most important advancement. In the
recently launched new feature which allows custom reminder to limit usage(Chatelain
and Ralf 2020). It also works for the betterment of the environment and maintain social

responsibility towards the environment by organizing various camp over the internet for
social awareness and protection towards the environment.
 TWITTER : it is a micro blogging and social networking services platform which is
broadly used in UK. Twitter has made its CSR information more accessible to the public.
With hundreds of CSR and substantiality and green tweets, tweeting there CSR news.
Twitter also perfectly maintain the environmental factors by promoting more and more
awareness towards the betterment of environmental safety in more efficient way. The
policy is to maintain good ethics weather at workplace or at home.
 LINKEDIN : It is the platform used for businesses and employment which can be
operated by websites and mobile application and mainly used for the purpose of
professional networking which includes of employer posting jobs and job seeker posting
there CV on the online platform. LinkedIn believes in growth and environmental
substantiality hand in hand. This brings the environmental factor to a safety point. The
company is working efficiently to reduce any kind of waste to the nature and generating
new policies for better functioning of the organization.
 TIKTOK : it is the platform which is used as a pure source of entertainment. It's a leading
platform for short video. Now it Is spreading awareness among social awareness, youth,
education, women empowerment, wildlife conservation and save water projects
TICKTOK is currently working on all such projects to better understand the
environmental and social need. To improve its CSR. TIKTOK has donated a huge
amount for social cause like COVID.
 PINTREST : it is platform where user's share images, animated GIFs and small clips on
site. PINTREST has been working on its CSR for the betterment of educational level.
Promoting education include of special education and better employment for children,
women. Promoting gender equality for the better working culture and awareness for
gender equality. By empowering women and setting up places like orphans to live for
women and children's. Setting up old-age homes. Setting up day care centres for old age
people. Focusing on environmental substantiality which in nature does not affect the
nature and protection of nature is very important in company aspect. Maintaining quality
of air, water, soil. Training encouraging rural areas for the better growth of the people
living in rural areas (Mesagan and Yusuf 2019).

CONCLUSION
From the above study it has been interpreted that fiscal and monetary policy which includes of
government spending and taxation and the impact of the policies on social media sector as hole.
The study has also concluded the corporate social responsibility and the ethics of different social
media platforms like Facebook, Instagram, pintrest, LinkedIn, twitter and tiktok. In which the
responsibility of different organization towards the social awareness towards the environmental
factors has been put in light for the better understanding of the CSR and the ethics to better shape
different organizations.

REFERENCES
Books and Journals
Bonam, D. and Lukkezen, J., 2019. Fiscal and monetary policy coordination, macroeconomic
stability, and sovereign risk premia. Journal of Money, Credit and Banking. 51(2-3),
pp.581-616.
Canlas, D. B., 2019. Fiscal and monetary policy in the Philippines, 1970-87. Philippine
macroeconomic perspective: developments and policies.
Cantore, C. and et.al., 2019. Optimal fiscal and monetary policy, debt crisis, and
management. Macroeconomic Dynamics. 23(3). pp.1166-1204.
Chatelain, J. B. and Ralf, K., 2020. Ramsey Optimal Policy versus Multiple Equilibria with
Fiscal and Monetary Interactions. arXiv preprint arXiv:2002.04508.
Chris-Ejiogu, U. G., Emmanuel, B. and Awa, S.K., 2019. Effect of fiscal and monetary policy
instruments on economic growth of Nigeria from 1985-2016. International Journal of
Contemporary Research and Review. 10(10). p p.21635-21655.
Dutt, A. K., 2020. Autonomous demand growth, distribution, and fiscal and monetary policy in
the short and long runs. In Economic Growth and Macroeconomic Stabilization Policies in
Post-Keynesian Economics. Edward Elgar Publishing.
Mesagan, E. P. and Yusuf, I. A., 2019. Economic stabilisation and performance in West Africa:
The role of fiscal and monetary policy (No. WP/19/097). AGDI Working Paper.
Tarawalie, A. B. and Kargbo, N., 2020. Efficacy of Fiscal and Monetary Policy in Sierra Leone:
An ARDL Bound Testing Approach. International Journal of Economics and Financial
Issues, 10(3).pp.217-224.
Online
Weil, N. D., 2019. fiscal policy Available through:
<https://www.econlib.org/library/Enc/FiscalPolicy.html>. [Accessed on 30 December,
2020].