Society & Culture & Entertainment Education

Socio cultural environment

The following are the critical elements of sociological environment of business and these elements are:
  • Social institutions and systems
  • Social values and attitudes
  • Education and culture
  • Role and responsibility of government
  • Social groups and movements
  • Socio economic order
  • Social problems and prospects

This is to just suggestive classification which may help people to analyze the socio-cultural environment of business.

Social institutions and systems develop through history, culture and heritage. The place of individual is clearly defined in the social hierarchy of the joint family system where decision making is centralized in the head of the family, who command respect by way of age and experience. The position of women and children is also defined by the then social set up.

Social values and attitudes are changing very fast. Business does not remain confined any more within a given community or caste or system. Customs, traditions and conventions are no longer rigid, but flexible. The society's view towards authorities, responsibility and delegation, the society's attitude towards business as a profession; view towards achievement and work; view towards ownership and management and they all have very definite implications for sociological environment of business.

Education and culture is an ingredient of sociological environment. Attitude towards education; need for business education; education match with skill requirement of industry and manpower utilization; role of business schools and executive development programs; education vs training; correlation between formal hierarchy and the level of culture; spread of education and its impact on business ethics; material progress and business morality; business culture and the organization culture.

Social tension originates in groups composed of frustrated individuals. In a society, individuals form groups on the basis of caste, creed, religion, language, trade and profession, and similar other factors. Social groups and the social movement that they engineer is a very crucial and critical variable of non economic environment. Some of these groups have direct business interests. Thus consumerism, trade unionism, cooperative movement, professional management, shareholders' association; all pose challenges for business operation.

Social problems and prospects are just offshoots of a changing socio-economic order. For an example, when consequent to industrialization and socio-economic development in many developing countries, it is observed that the death rate can fall faster than the birth rate, and these results in explosive population growth. This results in growing unemployment and poverty, poor housing and sanitation, urban congestion, pollution and increasing incidence of anti social activities. The economists, therefore, suggest that people should always attempt a social cost benefit analysis of industrial development and as the society moves from "pre industrial" towards "post industrial" stages of development, social benefits always outweigh social costs, otherwise, the emerging new social order proves unstable.


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