Syllabus: SQA - Higher Course Spec Business Management
Module: Understanding Business
Lesson: Role of Business in Society

Introduction

This lesson focuses on a core strand of the SQA Higher Business Management course: understanding the role of business in society. It’s part of the “Understanding Business” unit, where learners explore why businesses exist, how they operate, and their importance at individual, local, national and global levels.

It’s syllabus-aligned and designed to help students develop knowledge that underpins their wider business learning—from organisational structures to decision-making. Teachers can expect strong links to enterprise skills, while the broader context connects to real-world economic understanding and career readiness.

Key Concepts

Students are expected to understand the following as outlined in the SQA Higher Business Management specification:

• Purpose of business activity: Businesses exist to satisfy needs and wants by producing goods or services.

• Sectors of economy: Primary, secondary, tertiary and quaternary sectors, and how businesses operate within each.

• Types of organisations: Private sector (e.g. sole traders, partnerships, limited companies), public sector (e.g. NHS, BBC), and third sector (e.g. charities, voluntary groups).

• Objectives of different organisations: Including profit-making, growth, customer satisfaction, ethical responsibility and service provision.

• Stakeholders: Identification of internal and external stakeholders and their varying interests and influences on the business.

• Impact of business on society: How businesses affect employment, income levels, innovation, the environment and community wellbeing.

These concepts establish a solid foundation for analysing how businesses contribute to societal and economic development.

Real-World Relevance

Students often switch on when they see how content connects to life outside the classroom. Here are examples to bring this topic to life:

• Social enterprises like Brewgooder channel profits into clean water projects, illustrating business roles beyond profit.

• Scottish SMEs such as Highland Spring not only support local employment but also invest in sustainability.

• Multinationals like Amazon or Tesco influence infrastructure, supply chains, and employment across entire regions.

• The post-pandemic shift toward flexible work and online services has transformed the way businesses operate—changing expectations and creating opportunities.

Using mini case studies like these helps students contextualise the abstract and see business as a living system.

How It’s Assessed

In the SQA Higher Business Management exam, this topic is assessed primarily through:

• Short-answer questions: Definitions and straightforward application (e.g. “State two roles of business in society.”)

• Extended-response questions: These may ask students to explain the influence of a stakeholder or evaluate the role of a public vs private sector organisation.

• Case-study scenarios: Candidates may be asked to apply understanding of business roles to unfamiliar contexts, drawing on real or simulated examples.

Command words like describe, explain, analyse, and justify are key. Students must understand what each requires, especially when it comes to demonstrating depth and not just listing points.

Enterprise Skills Integration

This topic offers natural links to essential enterprise skills:

• Decision-making: Evaluating business aims and stakeholder interests to determine actions.

• Problem-solving: Assessing how a business might adapt to changes in consumer needs or stakeholder pressure.

• Critical thinking: Judging whether a business should prioritise growth, ethics, or innovation in a given context.

• Communication: Clearly articulating how a business impacts society and stakeholders, both in writing and discussion.

Practical classroom activities like stakeholder role-play or debating private vs public ownership help students hone these skills.

Careers Links

Understanding business roles gives students a head start in exploring future pathways. This topic supports:

• Gatsby Benchmark 4 & 5: Linking curriculum learning to careers and meaningful encounters with employers.

• Careers in business and public service: Including roles in HR, marketing, policy, project management, and social enterprise.

• Entrepreneurship: Encouraging students to think critically about starting their own business and its potential societal impact.

• Public sector opportunities: Roles in education, health, or civil service that align with understanding public value creation.

Encouraging learners to consider how businesses shape the world they live in also builds agency and ambition.

Teaching Notes

• Start with relatable examples: Use students’ part-time jobs, local businesses or news stories as entry points.

• Introduce stakeholders early: Set up recurring stakeholder mapping tasks throughout the course.

• Use real data: Company reports, news articles, or social enterprise impact stats can spark discussion and deepen analysis.

• Common pitfalls: Students often conflate public sector with public limited companies. Clarify terminology early and revisit.

• Extension activity: Ask students to design a business that addresses a social problem. What would its aims be? Who are its stakeholders?