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

2. IB Business & Management 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.

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

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

5. IB Business & Management 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

6. IB Business & Management 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.

7. IB Business & Management 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).

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