LOGOBusiness Environment

UNIT-IComponents of BE:

Socio-Cultural Environment

Course Coordinator: Dr. Saboohi NasimFMS&R, AMU

Global Environment

Natural Environment

Internal Environment

External Environmen

t

Unit –I (Syllabus)

❖Nature, Characteristics & Objectives of

Business

❖Nature & Elements of Business

Environment

▪ Technological Environment

▪ Socio-cultural Environment

▪ Political-legal Environment

▪ Demographic & Natural Environment

▪ Economic Environment

Socio-cultural Environment

Ecological view of business in a system

relationship with society??

• Business is an integral part (sub-system)

of the (total) social system.

• The social system influences business,

which in turn, is affected by the business.

Keith Davis & Robert L. Blomstorm

(Business, Society and Environment, 1971)

• Values: set of beliefs that drives the activities of business.

• Viability: is the drive to live, grow, and achieve all that a

living system is capable of becoming. Business is a viable

vigorous institution in society…not just a passive

receiver/reactor .

• Public Visibility: refers to the extent that an

organization’s activities are known to persons outside the

organization. Different from public image (what people

think), public visibility subjects business activities to public

examination, discussion, and judgment.

Keith Davis & Robert L. Blomstorm

Characteristics of Business as Social Institution…3Vs

• Culture and society are intricately related; Society

consists of people who share a common culture.

• Culture refers to “….complex whole which includes

knowledge, belief, art, morals, law, and other capabilities

and habits acquired by man as a member of society”

(E B Taylor)

• Culture is the “…software of the mind—the social

programming that runs the way we think, act and percieve

ourselves and others.” (Geert Hofstede)

Culture is a socially learned behaviour and can

change.

Society Vs. Culture

• Social and Cultural factors which are beyond the

control of an organization

• Social factors: Influence exercised by social

institutions and social systems like family, caste

system, marriage, religion, social groups etc

• Cultural factors: include value systems, people’s

attitude to work, customs, traditions, education,

language, tastes and preferences, etc..

Socio-Cultural Environment?

Social Institutions and Social systems…

• Family: change in size and structure of family unit has an

impact on purchase decisions (joint vs nuclear); family life

cycle…..etc

• Marriage: as an institution has undergone changes (social

contract, legality, glamour, consumerism..)….. direct implications

for various industries-apparel, jewellery, real state, insurance,

automobile etc……..Mukesh Ambani’s daughter wedding cost ??

• Religion: belief systems (faith), morals, ethics….; Have huge

implications for businesses (Food, apparel, real state, liquor, toy

industry ….)

Social Factors

• Social Groups: unions, trade associations, civil society

organizations, environmentalist groups, other pressure groups

(physically challenged/differently abled etc.. Mirakle couriers-

Mumbai-Dhruv Lakra; Microsign –Gujarat etc)

• Caste System: social stratification..SC/ST (implications for

recruitment -reservations), social responsibility for the exploited

…(Tatas, HLL.. Recent amendment in SC/ST Act 2020??), Impact of

education…

• Role of Women: increasingly recognized socially as well as by

the businesses….greater participation in workforce, flexi timings, work

from home…etc…(Gender Gap Index 2019??)….empowerment of

women by businesses –Project shakti by HUL

Social Factors…

`

Characteristics of Culture

• Learned: Culture is not inherited…acquired

by learning and experience

• Shared: People as members of a group,

organization and society share culture

• Trans-Generational: passed on from one

generation to another

• Symbolic: based on human capacity to symbolize

or use one thing to represent another

• Adaptive: based on human capacity to change or

adapt

Levels of Culture

National culture

Business culture

Organizational culture Occupational culture

• Beliefs & superstitions: increasing importance of

astrology and numerology in India… auspicious days,

numbers, colors etc….impact on business??

• People’s attitude towards work: work

commitment, work-life balance, worker-mgt. relationship….

work culture

• Customs & Traditions: greetings/handshakes,

attitude towards guests, weaker sections (women, children,

elders, physically challenged, poor….etc), customs and

rituals…

Cultural Factors?

•Language: means of communication…critical

implications for marketing, packaging, HR etc.

• India is multi linguistic. (18 officially recognized languages and the

census of India identifies 1652 more.); Marketing becomes costlier

and more complex due to this huge diversity

•Tastes and preferences: dynamic in nature,

fashion, aesthetics,..etc

•Education: level of education, quality of

education…RTE, education of children…Adopt a

school program by Alig society??? AAP’s model??

Cultural Factors…

The Irony!

Video

Child labor

Child Labor in India??

The plight of CHOTUA Documentary by

Munazzah Arif

Do watch

Infinite Vision: The Story of Aravind Eye HospitalAuthor Pavithra Mehta tells the story of her grand-uncle Dr. Govindappa Venkataswamy,

and his journey to becoming the founder of the Aravind Eye Hospital in Madurai, India

Any Query???...............Ask Google!!