Business Environment, Law and Ethics: notes

Stakeholders and Rules

• Stakeholders: everyone affected by a business: owners, workers, customers, suppliers and the community.
• Government regulation: laws that businesses must follow, such as licences and health rules.
• ZIMRA: the authority that collects taxes. Businesses pay income tax and VAT.
• Consumer protection: laws against unsafe goods, false claims and unfair prices.
• Contract: a legal agreement. It needs an offer, acceptance and both sides agreeing freely.
• Employment rules: a fair wage, safe conditions and a written contract for workers.

Risk and Ethics

• Insurance: you pay a small premium so the insurer covers a large loss, such as fire at a shop.
• Ethics: doing what is right and honest. Bribing an official is corruption.
• Social responsibility: helping the community, for example sponsoring a school team.
• Environmental sustainability: using resources without harming the future, such as not dumping waste in a river.

Modern Business

• ICT and communication: phones, email and social media help firms serve customers fast.
• Human resources and teamwork: hiring, training and motivating staff to work together.