Demographic, Environmental and Ethical Factors

This lesson completes AQA topic 3.1.3 by examining three important external influences on business: demographic change, environmental issues, and ethical considerations including fair trade and corporate social responsibility. These factors increasingly shape business strategy, reputation, and long-term viability.

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Demographic Factors

Key Definition: Demographics refers to the statistical study of populations — including their size, age structure, geographic distribution, ethnicity, income levels, and household composition.

Demographic change creates both opportunities and threats for businesses. Understanding population trends helps businesses anticipate future demand and plan their strategy.

Key Demographic Trends in the UK