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Pressure Groups

Pressure Groups. Groups of individuals with shared interests, but without political power, who seek to influence decision-making by governments and firms. Who do pressure groups represent?. Stakeholders directly involved in the business (eg employees and shareholders).

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Pressure Groups

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  1. Pressure Groups Groups of individuals with shared interests, but without political power, who seek to influence decision-making by governments and firms. IB Business & Management

  2. Who do pressure groups represent? • Stakeholders directly involved in the business (eg employees and shareholders). • Stakeholders not directly involved in the business (eg local communities or consumer groups. IB Business & Management

  3. Types of Pressure Group • Single Cause: eg CND campaigns for nuclear disarmament. • Multi-Cause: eg Greenpeace look at many issues. IB Business & Management

  4. What determines the effectiveness of pressure groups? • Financial resources • Organisational ability • Level of public sympathy • Access to politicians (lobbying) or business leaders • Reputation IB Business & Management

  5. Pressure groups and business • Influence consumer behaviour (eg to reduce smoking or use alternatives to cars for short journeys). • Law changes following a successful lobbying of politicians (eg tobacco advertising in the UK). • Reduced sales following a boycott IB Business & Management

  6. Pressure groups and business • Increased costs (eg to improve the company’s image, or as a result of new legislation). • A tarnished reputation may make recruitment more difficult. IB Business & Management

  7. How can businesses react to pressure groups? • Positive response. Can improve the firm’s image. • Employ Public Relations (PR) to counter any bad publicity. Eg oil companies stress alternative energies in their corporate advertising. • Employ own lobbyists to represent the firm’s interests. • Take legal action (if the firm has a strong case). IB Business & Management

  8. Ethics • In a democracy, are pressure groups ethical? IB Business & Management

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