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31726035 Social and Cultural Environment

31726035 Social and Cultural Environment

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Published by: werewolf120 on Aug 22, 2011
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  • What is Culture?
  • Language
  • Family System
  • Customs
  • Demographic Transition
  • Savings
  • Etiquettes
  • Cultural Transmission
  • 2. People·s attitude to Business
  • 3. Attitude to Work
  • 4. Culture creates people
  • 5. Collectivism and Individualism
  • Social responsibility of Business
  • What is Social Responsibility?
  • Social Responsibility in Business
  • What is ethics?
  • What is Business ethics?
  • Types of Business ethics?
  • Role of Trade Associations
  • Education and Persuasion
  • Code of Ethics
  • Moral sanctions
  • Consumerism
  • Consumer Protection
  • Consumerism in India
  • Government Measures
  • Establishment of Public Sector
  • Statutory Regulation
  • Conclusion
  • Consumer rights

Social and Cultural Environment


Social and Cultural Environment 

Business is an integral part of the social system. Social factors are among the most important factors which affect business. The type of products to be manufactured and marketed, the marketing strategies to be employed, the way the business should be organized and governed, the value and norms it should adhere to etc. all influenced by the social structure and culture of a society.


What is Culture? 

Culture may be defined as the behaviour of man as a member of society. It is the habit acquired by belief, knowledge of arts, moral, law and It is socially sanctioned behaviour of people.


Cultural Factors/ Social Structure 4 .

5 . Religion also play a role in deciding in weekly holiday. festivals etc. The cost of ignoring certain religious aspects could be effect organizational existence in international business. sentiments. customs. Religion may also influence the attitude towards work and wealth. rituals. beliefs.Religion and Caste      Different people have their own religious convictions. other holidays and working hours. Many business decisions in India and in several other countries are based on astrological advices.

6 . Non-verbal communications create equally perhaps even more difficult problems. Same words of a language have different meanings or connotations in different places.Language    Differences in the language is a very important problem area in business.

Consumption     What is liked by people of one culture may not be liked by those of other culture. Many companies modify their products and promotion strategies to suite the tastes and preferences or other characteristics of the population of the different countries. Consumption habits and demand patterns vary greatly from one market to another.Consume preferences. Beliefs. Habits. The values and beliefs associated with colour vary significantly between different cultures. 7 .

Children have become spenders instead of earners. With big families being broken up. socialization of the child etc. family businesses are slowly turning into limited companies. sexual relationship.Family System       Family is a social institution. Concerns itself with love. Nuclear families have now become common in our society replacing the traditional joint family system. marriage. Women now enjoy equal status with men and most of them supplement family income by their own earnings. 8 .

naming ceremony of child. 9 . festivals. catering. consumer durables etc.Customs   The customs of marriage. These have implications for many types of business like textiles. jewellery. have significant effect on business. dress sense etc.

10 .Demographic Transition     In the first stage of transition. death rates were less on account of improved diets. wage policy etc. death rates were high on account of poor diets and absence of effective medical aid. In the third stage of transition people started to shift from rural areas to industrial and commercial centers. and improvement of transport. In the second stage. These changes affect the business organizations interms of availability of skilled labour.

Increased saving habits of the consumer leads to the capital formation and even it boosts the banking sector. 11 . It may favorably affect some organization and on the other hand it may adversely affect the other business organization.Savings    Savings habits of consumer also affect the organization.

Etiquettes  The ways of meeting and greeting people methods of showing respect. ways of conducting meetings etc affect business organization. 12 .

13 . from one generation to the next and to new the new members admitted into the family. teachers and other elders.Cultural Transmission    The elements of culture are transmitted among the members of the society . it is obvious that certain old elements are dropped as new ideas and traits are aquired. In the cultural transition. Many cultural bahaviours are handed down by one·s parents.

Impact of Culture on Business 14 .

the clothes they wear. Culture determines Goods and Services   Culture broadly determines the type of goods and services a business should produce. the beverages they drink and the building material they use.1. The type of food people eat. vary from culture to culture and from time to time with in the same culture. 15 .

16 . Business systems are a product of beliefs and customs of society in which they exist.2. People·s attitude are based on how well business contribute to society. People·s attitude to Business    Attitude of people towards business is largely determined by their culture.

Attitude to Work  Motivation.3. morale and other related aspects of human resource management are based on the workers attitude to their work. 17 .

Culture creates people  The concept of culture is of great significance to business because it is the culture which generally determines the activities of the people  18 .4.

19 . Collectivism and Individualism   The spirit of collectivism and individualism is related to such personnel aspects as employee morale. multiplicity of trade unions and inter and intra-union rivalries.5. It is said that ´ our culture Stresses individualism.

Ambitions and complacent   An individuals ambition to grow or remain complacent depends on cultural factors. Majority of our people are know to be complacent.6. 20 .

Industrial societies of today are knowledge and Educational oriented.7. Education is considered as one of the social overheads that has been accorded due priority among the developmental activities. Education    The close interface of business and higher education is a new development. 21 .

µ  This will be useful to the management of the business in several ways- 22 .´ In order to effectively adopt. create and also to confirm a culture. the business people should have a thorough knowledge of the cultural environment.

by observing their cultural background.   People generally are conditioned to behave in a particular way and perform their work in a particular method. the businessmen can easily predict their future behaviour in the event of introducing a new product. So awareness of their culture will help to understand their behaviour and conduct. Awareness of cultural background will enable the business to quickly change the product to suit the needs o the changing soviety. 23 .

 The business managers should develop a sensitivity to the culture of the society in which they operate. 24 . This will help in making quick decisions.

and skills.  Being so much dependent. men. sustenance. and encouragement.Social responsibility of Business Business depends on the society on the society for the needed inputs like money.  Business depends on society for existence. business has definite responsibility towards society.  25 .

for the benefit of the societyµ 26 . over and above the statutory requirement.What is Social Responsibility? ´ Obligation of business to take actions which protect and improve the welfare of society as a whole along with its own interestsµ ´ What business does.

Social Responsibility in Business Early 20th Century Middle 20th Century Early 21st Century Maximize Profits Provide Jobs and Pay Taxes Balance Profits and Social Issues 27 .

Dimensions of Social Responsibilities 28 .

Social Responsibility Towards Stockholders     Protect the capital. Providing fair and reasonable return.1. Stability of dividend Transparency in the business operation. 29 .

2. in 30 . Social Responsibility Towards Employees    Providing fair compensation. Opportunity for workers participation management. Providing good working conditions.

3.Social Responsibility Towards Consumers     Strive to improve product quality. Making arrangements for supply of goods and services. Providing goods and services at fair and competitive price. 31 . Satisfactory after sale services.

4. Engaging in healthy competition. Should not indulging in brand assassination 32 . Social Responsibility Towards Competitors    Fair game in market.

Providing required information from time to time. Regular payment of various taxes. 33 .5. Social Responsibility Towards Government    Conducting business according rules and regulations enacted by govt.

34 . Social Responsibility Towards Local Community       Preventing of environmental pollution. Conserving scarce resources. Providing employment and education opportunities. Assisting in overall development of the locality. Development of backward areas. Promotion of small scale industries.6.

Social involvement may discourage additional govt. Social responsibility like recycling of waste may have favourable financial effects. 35 . regulation and intervention.Why Social Responsibility?     Social involvement of business would foster a harmonious and healthy relationship between the society and business to the mutual benefit of both. Social involvement may create a better public image for the company which may help it in attracting customers.

Business which is an integral part of the society has to care for the varied needs of the society.Why Social Responsibility?   Business which survives using the resources of the society has a responsibility to the society. 36 .

Business ethics 37 .

It tells what is right and what is wrongµ 38 .What is ethics? ´ Ethics refers to the code of conduct that guides an individual in dealing with others.

What is Business ethics?
´ the term business ethics refer to the system of moral principles and rules of conduct applied to business.µ ´ Business ethics refer to the behaviour of the business man in his business situation. Where in the business man values certain norms as very important than other thingsµ


´ The most important business ethics is expressed by the Hippocratic oath of the Greek physician. i.e. ´Primum non nocereµ Which means that ´ business or professional should not knowingly harm the societyµ The code of conduct Primum non nocere encompasses various business ethics namely-



Do not cheat customers by selling substandard or defective products. Do not destroy the competition. Do not indulge in unfair trade practices like Grey marketing. Ensure sincerity and accuracy in advertising, labeling and packaging. Ensure prompt payment of wages and fair treatment to employees.


Make accurate business records available to all authorized persons. Do not form an illegal organization and illegal agreement to control the production. 42 .    Pay taxes regularly and discharge obligations of the govt. Refrain from secrete profits.

Corporate Responsibilities.Types of Business ethics?        Personal Responsibility. Economic Responsibilities. 43 . Legal Responsibilities. Technical Morality. Official Responsibility Personal Loyalties.

2. Moral sanctions 44 . Education and Persuasion. Code of Ethics 3.Role of Trade Associations ´ Voluntary organizations of businessmen and employees formed to promote their common interests.µ  Trade association can promote business ethics in three different way 1.

and the need of for.Education and Persuasion  Trade associations can promote business ethics by educating the members about the importance of. having business ethics. 45 . and persuading them to give due regard to ethical principles in the conduct of their business.

Code of Ethics   Trade associations can formulate a code of conduct for their members. 46 . The code of conduct will not only guide but also regulate the conduct of business.

It may debar a member for a serious violation of the code of conduct.Moral sanctions    ´sanctionsµ refer to the ways in which moral conduct rewarded or misconduct is punished. 47 . Trade associations may announce incentives to promote business ethics.

They can not be programmed like production and inventory decisions.Problems in Business ethics   a. Ethical decisions are difficult to make. There are many reasons why business ethics is difficult to adoptManagers face dilemmas in deciding on a course of action. Some ethical standards vary with the passage of time. Knowledge about consequences of an action is limited. b. c. 48 .

e.Problems in Business ethics d. Individual differences. Difficult to match organisational loyalty to public interest 49 .

Consumerism ´ Social movement seeking to augment the rights and powers of the buyers in relation to sellers.µ ´ Consumerism may simply be expressed as ¶let the seller beware· in comparison to the age ¶let the buyer beware· 50 .

Thus the need for consumer protection has arised to protect the interest of the consumers. 51 . but have to settle for lower quality goods. But in Modern days consumers have not only been called upon to pay higher price.Consumer Protection    In a free market economy. it is said that consumer is a king. duplicate and adulterated products.

52 . Protect consumers against pollution. Consumer should be protected against the unfair trade practices. Protect consumers against restrictive trade practices or monopolies.      Consumer protection is essential for following reasonsConsumer should be protected against the products that are unsafe and unhealthy. To prevent exploitation of consumers from manufacturers.

Consumerism in India can be explained in two pointsEstablishment of consumer Organization. It was only in 1965 consumer movement started in India. Government Measures 53 . Consumerism in India is of recent origin.Consumerism in India    1. 2.

Price rise resistance movement CERO. Consumer education centre Indian federation of consumer organization 54 .Consumer guidance society of India.Consumer education and research centre.e. PRRM. Other organizations are ² CGSI.Establishment of Consumer Organization        In the year 1965 housewives of Bombay established a voluntary consumer organization in the name of AWARE i. Association of Women Against Rising expenses.

To protect consumers from exploitation To maintain accuracy in weights.Establishment of Consumer Organization           These associations deal in three important areas likeConsumer protection Consumer education Representation Main objectives of these organizations areTo charge fair and reasonable prices. 55 . Educating consumers Creating an awareness among consumers.

Government Measures   1. 2. Government measures can be classified intoEstablishment of public sector Statutory Regulation 56 . In India the government has taken number of measures to protect consumer interest.

improving efficiency in production. established many business unit to enhance the consumer welfare by increasing production. Curbing private monopolies. Making goods and services at fair prices. Improving the distribution system 57 .Establishment of Public Sector     Govt.

Statutory Regulation   Govt. distribution. has armed it self with a number of statutory weapons to control the production. price and quality of a large number of goods and services It enacted following acts to protect the consumers 58 . supply.

      The sale of goods act 1930 Standards of weights and measurements act 1976 MRTP act 1969 Prevention of food adulteration act 1954 Fruit products order 1955 The consumer protection act 1986 59 .

Consumer organizations got success in creating awareness but failed in the field of consumer protection. 60 .Conclusion   There are several loopholes in the lows which are misused by the sellers in exploiting the consumers.

Right to seek redressal 61 .Consumer rights      Right to health and safety Right to be informed Right to choose Right to be heard.

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