The Role of Pressure Groups (Cambridge International IGCSE Business)

Introduction to pressure groups

• Pressure groups are organisations, or groups of people, that seek to influence the policies and actions of businesses or governments

• Their primary objective is to promote a specific cause or agenda

• Pressure groups want a business to support their cause or take action on an issue

  • For example, an animal rights group may want a clothing company to stop using animal products in their clothing

• They can operate on a national or international scale

  • Save the Arctic campaigned for Lego not to sell their products at Shell petrol stations
  • Greenpeace campaigned for Kimberley Clark (the manufacturer of products such as Kleenex and Huggies) to dispose of their products in a sustainable way

How pressure groups influence business decisions

Pressure groups can lobby politicians, name and shame and take direct action to influence businesses

Naming and shaming

• Pressure groups often publish reports or use social media to expose businesses behaving unethically

• This can damage the business’s reputation and reduce public trust

  • For example, in 2022, Greenpeace publicly criticised Coca-Cola for being one of the world’s biggest plastic polluters

    • This naming and shaming led to media attention and public pressure on the company to improve its packaging

Direct action

• This includes protests, strikes, boycotts and other public demonstrations to draw attention to an issue and pressure the business to change its behaviour

• For example, pressure group Extinction Rebellion staged protests outside Barclays Bank branches to demand the bank stopped funding fossil fuel projects

  • These protests have affected customer views and generated negative media headlines

Lobbying

• Pressure groups may meet with government officials or provide evidence to encourage changes in laws or regulations that affect business practices

• For example, the Living Wage Foundation has lobbied the UK government to increase the minimum wage and encourages businesses to adopt the higher 'living wage'

  • This has influenced major companies like Lidl and Aviva to increase employee pay

Other pressure group actions

• Starting online campaigns or petitions that go viral
• Partnering with celebrities or influencers to spread a message
• Taking legal action or supporting court cases against companies

Exam Hint Don’t assume pressure groups always harm businesses. While they may increase costs or force changes, they can also improve reputation and encourage sustainable practices. Examiners look for answers that recognise both positive and negative effects