
GDP: A business perspective
Wealth, environment and well-being
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Gross Domestic Product (GDP) and the corresponding national accounting framework, are frequently used by businesses, both directly and indirectly when making short and long-term business decisions. This document aims to investigate how businesses, adopting either a classic or stakeholder approach to business, measure the economy in which they operate, with particular focus on the value and influence of GDP. Using a business perspective, the suitability of GDP as a window into the macro-economy is explored, from how GDP is calculated, how businesses and individuals regard GDP, and how GDP is us...
Gross Domestic Product (GDP) and the corresponding national accounting framework, are frequently used by businesses, both directly and indirectly when making short and long-term business decisions. This document aims to investigate how businesses, adopting either a classic or stakeholder approach to business, measure the economy in which they operate, with particular focus on the value and influence of GDP. Using a business perspective, the suitability of GDP as a window into the macro-economy is explored, from how GDP is calculated, how businesses and individuals regard GDP, and how GDP is used within the business environment. As GDP is a well trusted economic indicator, certain shortcomings of GDP as a sustainable measure of the economy, are examined in detail, including wealth, the environment, and well-being.