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Illustrate the role of Interest Groups in business. - Leaving Cert Business - Question 1(A) - 2003
Question 1(A)
Illustrate the role of Interest Groups in business.
Worked Solution & Example Answer:Illustrate the role of Interest Groups in business. - Leaving Cert Business - Question 1(A) - 2003
Step 1
Interest Groups: Definition and Purpose
Answer
Interest groups are organizations that aim to influence political decisions and actions related to business. They operate outside the established political structures and actively lobby the government and other entities, such as the European Union, to advocate for their specific viewpoints or interests.
Step 2
Influence on Business Operations
Answer
Interest groups can significantly impact business operations by creating public pressure and generating media attention regarding specific issues. If businesses oppose the positions of these groups, they may face negative publicity, which can harm their reputation and lead to decreased sales.
Step 3
Cost Implications
Answer
The presence of interest groups can increase costs for businesses. For instance, companies may need to invest more in marketing campaigns to counteract negative perceptions, or they may have to enhance security measures to prepare for potential protests or picketing at their premises.
Step 4
Examples of Interest Groups
Answer
Examples include promotional pressure groups like Greenpeace, which advocates for environmental protection, and trade organizations such as the Irish Business and Employers Confederation (IBEC) or the Irish Congress of Trade Unions (ICTU). These groups issue reports and lobby the government on issues related to unemployment, taxation, and small business policy, thus influencing legislative developments.