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Business is an economic activity and decision making by the management is an economic process. It will be influenced by economic and non economic environment of business. You will appreciate that the business environment is quit complex, with heterogeneous elements in the environment. A manager must understand and analyse this process of interaction. In particular, you must note that all non-economic, environmental variables have economic implications, and that is why these variables singly or jointly, affect business activity.

Business must have a social purpose; business concern must discharge social responsibility and social obligations and have social commitment. Otherwise business cannot enjoy social sanction. We may identify the critical elements of the sociological environment of business. 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
Social institutions and systems

Social Institutions and systems develop through history, culture and heritage. The caste system, the fount family system, child marriage, sad and the patriarchal family are all examples of social institutions and systems. Until the recent past the caste system ensured a very simple occupational division of labour in our society. The place of the individual was very clearly defined in the social hierarchy of the joint family system where division making was centralized in the head of the family who commanded respect for his age and experience. Social Values and Attitudes

In India Today, most of these age-old social institutions are dying fast. It is because the social values and attitudes are changing very fast. The western values of individualism have caught our imagination. Indian women no longer remain satisfied as housewives. Business does not remain confined any more within a given community or caste. Customs, traditions and conventions are no longer rigid. They become flexible. Society’s view of its authorities, responsibilities and delegation, its attitude towards business as a profession, towards achievement and work, towards ownership and management-all have very definite implications for the sociological environment of business. Education and Culture

Then come Education and culture as an ingredient of the sociological environment. In this category you may list the attitude towards education; the need for business education; education matching the skill requirement of industry and manpower utilization the role of business schools and executive development programmes ; education versus training ; correlation between formal literacy and the level of culture; the spread of education and its impact on business ethics ; material progress and business morality ; business culture and organizational culture. Role and Responsibility of the Government

At a given point of time, society has a level of achievements and aspirations. Such achievements and aspirations have to be defined clearly and categorically, and any divergence between the two has to be bridged through relentless social effort taking care of social welfare and social constraints. This is where the role of the Government as a welfare state comes in. The government is the apex social institution. It is the Government which has to make sure that social progress is not handicapped by the tyranny of the majority, otherwise social tension. Social Groups and Movements

Social tension originates in groups composed of frustrated individuals from groups on the basis caste, creed, religion, language, trade and profession and similar other factors. Social groups and the social movements that they engineer are a critical...
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