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Socio Cultural Environment

Socio-cultural environment is shaped by social factors such as attitudes of people, cultural heritage, beliefs and customs of people, education system, consumer’ organizations, trade unions, and other non-government organizations. Sociological factors such as caste and occupational structure, view towards scientific methods, respect for seniority, etc., might have a far reaching impact on business. For instance, the nature of goods and services in demand depends upon people’s attitudes, customs, socio-cultural values, etc.In India, the attitudes of people have changed with respect to food and clothing as a result of industrialization, employment of workmen in factors and offices and increases level of educational. This has resulted in the growth of food processing and garment manufacturing.

Socio- cultural environment determines the code of conduct the business should follow. If a business follows unethical practices, various social groups and government will intervene to discipline it. For instance, if an industrial unit is indulging in adulteration, hoarding or black marketing, consumer forums and government agencies may resort to direct action against such industrial unit. Over the years, several social organizations called non-government organizations (NGOs) have come up which have raised their voice against air, water and noise pollution by the industries. They have even approached the courts for shifting of polluting industrial units away from the populated areas. In Delhi, the polluting industries (of F category) have been closed by the orders of the Supreme Court. Playing of diesel buses has also been banned in Delhi by the orders of the Supreme the Court. These orders have been passed on the PIL (public Interest Litigations) filed by the social organizations.

A few examples of impact of changes in the socio-cultural environment business are as follows:

(i)    Consumers organizations keep a watch on the activities of business firms. In case of unfair practices, they file complaints in the customer courts.

(ii)    There has been a movement for improving education facilities for girls. This would lead to increase in the demand for school dress, books stationery, etc.

(iii)    Demand for consumer durables like TVs, Refrigerators, Air Conditioners Computers, Mobiles, Cars, etc. are on the rise.

(iv)    Demand for fast foods is on the rise.

(v)    The number of dual career families has increased over the years. Females going for jobs even during night shifts are no longer considered a taboo in the Indian society.

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