This film looks at businesses, what they are and how they work. How are they changing under social and environmental pressures?
THE ENTREPRENEURS: Early entrepreneurs like Richard Arkwright were key players in the industrial revolution. The entrepreneur "super stars" of today are the direct descendants of Arkwright. Think of an idea, get backing, make a fortune -- this is the classic model of what's called "free enterprise".
TYPES OF BUSINESSES: Key to the development of businesses is the idea of limited liability - which enables shareholders to invest in businesses without being personally liable for their debts. There are two main types of limited companies - public and private, but there are many other kinds of organisations, too - from sole traders to co-ops.
FUNCTIONAL DEPARTMENTS: Businesses are divided into what's called functional departments, including marketing and sales, finance, production and personnel. Employees of a small UK manufacturer explain how their departments work.
PUBLIC SECTOR: But not all organisations are privately owned. Many are funded by the taxpayer and are there to provide services, for example, the National Health Service, schools and the local council.
EXTERNAL FACTORS: Almost as important as what happens INSIDE a business is what happens OUTSIDE. These are called external factors, and include the general state of the economy, exchange rates, and our membership of the European Union. Are the burdens of EU bureaucracy outweighed by the advantages?
GLOBALISATION & ETHICS: Much of what we buy is produced by people working in poor conditions in the developing world. The idea of corporate social responsibility has emerged - the idea that companies have a responsibility to a wider group than just their shareholders - their "stakeholders". But, by law, directors are obliged to run the business in the interests of the shareholders and this mean profits come first.
NEW WAYS OF DOING BUSINESS? Capitalism is supposed to be all about competition. But it's also about cartels and price-fixing - as has been suspected of the energy companies in recent years. Recent years have seen a growth in "social enterprises", companies who claim their main aim is to improve society. But what about the need to protect the environment? Some companies are taking steps to be greener - but is this enough for the health of the planet?
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