Factors like social outlook towards education, literacy, fashion, tendency, population growth, family structure, dynamism, materialism, etc. affect the business environment.
In the modern age, new social recognition and values have been established. These include the high quality of life, feelings of respect for people, love for knowledge and education, faith in authorities and feelings of competition.
It is necessary to keep these in view, in the management and operation of the business.
Social and Cultural Values Affect Business Environment
Briefly, following social and cultural values affect business environment:
1. Systems and Traditions
The systems, traditions, customs, social recognition, religious faith, moral values, religious sects, festivals, functions, etc. established by the society guide the business and entrepreneurship.
They affect the functional operation of the business.
2. Traditional and Scientific Thinking
Traditional or scientific thinking of society affects the business environment.
If people are highly traditional, they can not provide a conducive environment for business.
On the contrary, if people have scientific aptitude and rationality, society would develop, which will facilitate the creation of a favorable environment.
Such an environment is needed for the expansion of the business and as a result, many new commodities will be visible in the market.
The outlook of comforts and facilities towards life, the outlook of maximum consumption of physical commodities or aspiration for high living standards is called materialism.
If people in the society have thought for comforts and facilities, it will motivate the businessman for higher production, diversification and bringing out new changes.
4. Social Values
Social values include devotion for the family, love for art, devotion towards knowledge, affection, and friendship, power authority, honor, reputation and love for mankind, etc.
If social values are good, these help in the creation of a good business environment since they deeply affect the working system of the business.
5. Outlook Towards Managers
The outlook of the society towards the managers, the delegation of powers, fulfilling the responsibilities and participation of employees in management affect the business environment.
Farmer and Richman have included following outlook towards the society, in social and cultural factors.
- The outlook of the society towards management, business, and entrepreneurship.
- Outlook towards authority, power, force, and subordinates.
- The volume of cooperation between groups like labor management etc.
- Outlook towards wealth, profits, materialism, utilities, and property, etc.
- Outlook towards changes, risks, and courage, etc.
All the aforesaid factors influence the business environment.
Hence, an entrepreneur should keep these in view, while performing business activities.
6. Changes and Risks
The attitude of the people towards changes or otherwise, and the capacity and desire for risk-taking or otherwise also affect the business environment.
7. Notions and Views
Notions and views, like purchase sale, uses, assets making, profits, standards of living and lifestyles, always prevail in society.
If people incur substantive expenditure on purchase and have a high level of consumptions and thinks in terms of assets making, etc. the entrepreneur will have to direct his business activities, accordingly.
However, if the opposite type of notions and views prevail in society, no new activities will be operated.
Thus, socio-cultural notions and views also affect the business environment.
8. Feelings Towards Work
The desire of people to work for the sake of satisfaction and reputation or for earning wealth is instrumental in developing the business.
If such desire lacks, no development if possible.
9. Level of Cooperation and Organisation
If people cooperate with each other, then the entrepreneurs will solve their problems by making adjustments in their business.
Besides, the level of organization, i.e. whether it is private or cooperate or labor or benevolent organization also influence the business environment.
10. Growth and Characteristics of Population
Male, female, caste, religion, class, creed, education, income, and age, etc. also affect the business.
11. Family Composition
Joint family, nucleus family, etc. also affect business activities.
12. Sense of Responsibility Among People
Devotion towards responsibilities, proper use of powers, level of trust and mutual relations among the officers also affect the business.
13. Logical and intellectual levels
Logical and intellectual levels of society also affect the business environment.
Thus, now you know the Social and Cultural Values Affect Business Environment.