How Political, Legal And Social Factors Are Impacting Upon The Business Activities Of The Selected Organisations

P6 describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders.

M3 analyse how political, legal and social factors have impacted on the two contrasting organisations.

Part A

Taxation

Companies have to pay corporation taxes on their taxable profits. This is why the corporation taxes depend on how much profit a business makes.

Every individual or organization has to pay taxes base on their income. These taxes are the Income tax

The national insurance is a contribution system set up by the government. Every individual, provided that some criteria are fulfilled, has to pay a certain amount, dependent on the amount of income. The national insurance can have some benefits including the State pension. The rate of the national insurance mostly depends on the income

The VAT describes the rate at which goods and services are sold within a territory.

The current standard VAT tax is 17.5 %.

The customs duty is a payment for bringing goods from on side of a countries border to another. These obstacles are di-established for some regions because of the formation of political groupings, the trade blocs. These allow national boundaries to be crossed by flows goods, money and sometimes workers. Still, some parts of the world can not be crossed without paying customs duty which is set by the government entering.

Providing Infrastructure

Roads are ways between two or more places. Roads can be used by both individuals and organizations. Transportation over roads can be easy as short distances can be bypassed quickly and affordably. On the other side, long distances take much time with for instance vans or trucks because congestion on the street can occur and b...

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...he other hand, for Samsung, such a problem of global warming would be more difficult to deal with because they are a big emitter. The changes would have for every business negative impacts. Some might have positive ones, too, but the negatives outweigh the positives. In case of environmental changes, Samsung might have to change, too, because of the pressure which would arise. Adaptation and mitigation strategies might have to be used. They included: reforestation, recycling, switching to “green energy” and so on.

In conclusion, if ethics and the environment are regarded well by both business, they will have a better image and less pressure but as with any other company, ignoring the responsibilities might cause a major image loss and therefore even loss in sales revenue.

Changes in the environment, especially the global warming, might be struggle for every business.