Page 322 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 6 External influences on business activity
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Remember, pressure groups
do not have the power to make
laws. They only try to influence
consumers, businesses or the
government.
Pressure groups
A pressure group is a group of people who join together for a common cause
(ethical or environmental). They aim to change the way businesses function. Th ey
often do this by trying to influence government policy. For example, the pressure
group Greenpeace campaigns on environmental issues. Another example is the
Environmental Justice Foundation (EJF), a non-profit organisation working
globally to protect the environment and human rights. It campaigns against the
negative effects of shrimp farming in Brazil, which is destroying the lives of coastal
communities and damaging the environment.
Pressure groups use the following methods to make their point:
■ Demonstrations – this involves a group of people protesting about a business’s
actions or policy, either at a rally or outside the company’s off ices.
■ Boycotting – refusing to buy a business’s products or services and trying to
influence other consumers to do the same.
■ Petitioning – making an oral or written official complaint to the government or
concerned authority on an issue.
■ Lobbying – attempting to influence policymaking of the government.
■ Increasing awareness of the issue – this is done through the pressure group’s
website and possibly causing negative publicity with the help of the media.
A pressure group demonstration
How businesses respond to environmental pressures
Businesses respond to environmental pressures by:
■ using green manufacturing methods, which produce less waste and pollution
■ reducing their use of energy
■ obeying government regulations and standards
■ following sustainable business practices