Business in socio-cultural setting

Business & society

Business Society

Manufacturing & marketing of goods & services, business strategies, rules & regulations, governing business, values & norms

Business functions, innovations, transmission & diffusion of ideas, information, attitudes and outlooks

Changing concept of businessTraditional view of profit maximizationRadical change in concept of business

As a social institution forming an integral part of the social system

Social mission Influence on way people live and work

togetherBusiness in relation to society

Values – belief systems of businesses Viability – drive to live & grow Visibility – public image

Business & cultureWhat is culture?

set of shared attitudes, values, goals, and practices that characterizes an institution, organization or group

an integrated pattern of human knowledge, belief, and behavior that depends upon the capacity for symbolic thought and social learning

ElementsKnowledge & beliefsIdeals Preferences

Impact of culture on businessCulture creates peopleCulture influences what is demandedDetermines attitude to business & workCollectivism or individualismScientific mindsetOrientation towards new ideasReligious dimension

Contd…Cultural adaptation – manner in which institutions

and systems fit into physical or social environment – essential for survival

Cultural shock – strangeness of new environment

Cultural transmission – transfer of elements

Cultural conformity – conform to norms or deviate

Cultural lag – time taken for readjustments

Important socio-cultural factorsReligion Ethnicity LanguageConsumer preferences & habitsEtiquettes Demographic and social trendsTechnological progress and resultant social

change

Current socio-cultural environmentDynamic changes in value systems, attitudesSociety in transitionRelative prosperity, progress in some areasRegressive behaviour Urban biasPressing issues

MDGs (to be achieved by 2015)Eradicate extreme poverty and hungerAchieve universal primary educationPromote gender equality and empower womenReduce child mortalityImprove maternal healthCombat HIV/AIDS, malaria and other diseasesEnsure environmental sustainabilityDevelop a global partnership for development

Where do we stand? Population below 1$ PPP = 41.6%Growth rate of GDP per person employed =

5.4%Employment to population ratio (%) = 55.4

(overall), 77.2 (males), 32.3 (females)Youth unemployment (15-24 yrs) = 10.5%Share of women in wage employment (non-

agri) = 18.1%Population undernourished = 21%Children below 5 yrs underweight = 47.8%

(moderate), 15.2% (severe)

Contd… Under five mortality (per 1000) = 72Infant mortality (per 1000) = 54Maternal mortality (per 100,000 live births)

= 450

Enrolment in primary education = 94.3%Literacy rate = 82.1%Gender parity index in enrolment = 0.96

(primary), 0.83 (secondary), 0.72 (tertiary)

Contd…Population using improved drinking water

source = 89%Population using improved sanitation = 28%

(urban 49%, rural 18%)Population living in slums = 34.8%

Telephone lines per 100 = 3.37Cellular subscribers per 100 = 19.98Internet users per 100 = 6.93PCs per 100 = 3.17