Social environment refers to the nature of social organisation and development of social institutions like Caste, Religion, customs , and socio-economic factors like Class structure, Social mobility , women employment etc.
Impact of Social environment on Business:
Caste – Competitive trading , Weaving , Metal , finance communities Religion – Prohibition on Pork & Meat , Islamic finance
Customs – Women employment, restriction on overseas employment Class Structure - Upper , Middle , Manual class
Social mobility – Middle to upper , Manual to Middle etc.
Poverty – Low purchasing power
Education – Availability of Skill & its cost.
Health – Long life – more allocation to senior citizens availability of knowledge.
Social Indicators :
1. Longevity & Health
3. Standard of Living
Social responsibility of Business:
Business is affected by society and vice-versa. Society includes Internal & External segments. Internal segment - owners & employees.
External segment – competitors , customers, suppliers , Government , Local community. No business can be in conflict with any of these segments. Hence the business has to take care of societal interets.
Responsibility to Owners :
Protect capital , provide fair return to owners , ensure longevity of business , Transparency in the operation of business
Responsibility to Employees :
Employees are key recourses of business. Hence fair compensation , welfare,trining, development have to be provided
Responsibility to Consumers :
Consumers are the foundation of business. A dissatisfied customer is a warning signal to business. The business has to ensure the following rights of customers : 1. Right to safety – Provide safe products
2. Right to product knowledge & Education – Provide through advertisements 3. Right to product choice – Avoid monopoly
4. Right to full value – Ensure product utility & performance as advertised 5. Right to justice – Through Consumer...