IGBizStudies

May 26, 20211 min

Who are pressure groups and what do they do

Updated: Feb 22, 2022

Pressure groups are non-profit organizations that aims to influence society and businesses to be socially and environmentally responsible.

They therefore have specific objectives that aims to solve a social problem or promote a social cause. Among the activities that pressure groups use to influence businesses are;

  1. Organize protests, boycott and events to create awareness on a social issue

  2. Lobby legislators to impose stricter legal controls such as

    1. financial penalties for failing to observe procedures

    2. Taxes on services or activities that may create external cost

    3. Provide grants and subsidies to businesses to promote sustainable practices.

However, pressure groups can only be effective if they are;

  1. Well organized and financed

  2. Have significant public support and recognition

  3. Well publicized in mass media

  4. Able to influence consumers behaviour (to boycott specific products)

  5. Have expertise that can expose and prove illegal activities by the business

RELATED CONCEPTS

  1. Legal controls

  2. Taxes

PAST YEAR QUESTIONS

  1. Explain two ways in which a firm could respond to environmental pressures. Recommend which of the two options it should choose. Justify your answer.
         (6 marks) May/June 2018/12

  2. Identify two environmental pressures that a firm might have to respond to.
         (2 marks) Oct/Nov 2018/13

  3. What is meant by ‘pressure group’? (2 marks) May/June 2019/13

  4. Identify and explain two ways a pressure group might try to influence the actions of a firm. (4 mark) Oct/Nov 2019/12

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