Socio Cultural
Environment
Business and Society
As Davis and Blomstorm observe, business is social
institution, performing a social mission and having a
broad influence on the way people live and work
together1 As Calkins remarks: It is now recognized
that the direction of business is important to the
public welfare, that businessmen perform a social
function.2
Davis and Blomstorm point out that, in taking an
ecological view of business in a systems relationship
with society, three ideas are significant in addition to
the systems idea. The three ideas are values, viability
and public visibility.5
Business Ethics
The term business ethics refers to the system of
moral principles and rules of conduct applied to
business.
In the 1930s, Rotary International developed its
Code of Ethics that is still used extensively. It uses
four questions that are called the four way ethical
behavior for any ethical issue a business faces.
Is it the truth?
Is it fair to all concerned?
Will it build goodwill and better friendship?
Will it be beneficial to all concerned?
Business and Culture
Culture consists of both material culture and non-
material culture. Material culture involves manmade things (e.g., automobile, television, telephone,
etc.) and man-made alternations in the environment.
Non-material culture includes such factors as
language, ideals, beliefs, values, etc.
Elements of Culture
Knowledge and Beliefs (Prevailing notion of reality)
Ideals (Societal Norms)
Preferences (Attractive or unattractive desire)
Organisation of Culture
The term organization of culture refers to the social
structure and the integration of traits, complexes and
patterns that make up the cultural system.
Cultural Adaptation
The term cultural adaptation refers to the manner in
which a social system or an individual fits into the
physical or social environment. The social system
may be a small group, such as the family or a larger
collectivity, such as an organization, or even a total
society, like a tribal society.
Cultural Shock
Environmental changes sometimes produce culture
shock a feeling of confusion, insecurity, and
anxiety caused by the strangeness of the new
environment
Cultural Transmission
A very important character of culture is its
transmissive quality. The elements of culture are
transmitted among the members of the culture, from
one generation to the next, and to the new members
admitted into the culture. Some of the aspects of a
culture may be transmitted to other cultures also.
Cultural Conformity
Individuals in a culture tend either to conform to the
cultural norms or to deviate from them. If the culture
endures as it is, most people would conform to the
norms.
Cultural Lag
various parts of modern culture do not change at the
same rate.
For example, in some cultures social inertia and
religious sentiments come in the way of population
control, though a variety of techniques are available
for birth control.
Cultural Traits
Low-Context (high degree of shared knowledge) &
High-Context Cultures (intangible aspects of
negotiation)
Masculine and Feminine Cultures
Monochronic and Polychronic Societies (Goals)
Universalism vs. Particularism
Individualism vs. Communitarianism
Neutral vs. Emotional
Specific vs. Diffuse (Sharing of private place)
Achievement Vs. Ascription (Accorded Status)
Religion
Different peoples have their own religious
convictions, beliefs, sentiments, customs, rituals,
festivals etc. The cost of ignoring certain religious
aspects could be very high, sometimes even fatal, in
business.
Ethno domination
In many countries one or other industry or trade is
dominated by certain ethnic groups. This is
particularly true of trade.
There are a number of cases of ethnodomination in
India. For example, the automobile spare parts
business is dominated by the Sikhs. There is
domination of some communities in the wholesale
trade in several products. In several parts of the
country, there is dominance of some or other
community in banking and money lending like the
Chettiars in Tamil Nadu and Vysyas in Karnataka and
other places.
Language
Differences in the language is a very important
problem area in business.
India has numerous languages and their dialects,
besides the 18 officially recognised languages. Of the
1652 mother tongues listed by the Census of India,
33 are spoken by people numbering a lakh or more.
Culture and Organization Behavior
Centralized Vs Decentralized Decision Making
Safety Vs Risk
Individual Vs Group Reward
Informal Vs Formal Procedures
High Vs Low Organizational Loyalty
Cooperation Vs. Competition
Short Term Vs Long Term Horizon
Stability Vs Innovation
Technological Developments and Social Change
Technology is one of the important determinants of
social change. The rapid changes in our society are
obviously related to, and somehow dependent upon,
the development of new techniques, new inventions,
new modes of production, new standards of living.
