31726035 social and cultural environment
Post on 07-Apr-2018
216 Views
Preview:
TRANSCRIPT
-
8/4/2019 31726035 Social and Cultural Environment
1/61
1
Social and Cultural
Environment
Social and Cultural
Environment
-
8/4/2019 31726035 Social and Cultural Environment
2/61
2
Social and Cultural Environment
Business is an integral part of the social system.
Social factors are among the most important factorswhich affect business.
The type of products to be manufactured andmarketed, the marketing strategies to be employed,the way the business should be organized andgoverned, the value and norms it should adhere to
etc. all influenced by the social structure andculture of a society.
-
8/4/2019 31726035 Social and Cultural Environment
3/61
3
What is Culture?
Culture may be defined as the behaviour of man asa member of society.
It is the habit acquired by belief, knowledge of arts,
moral, law and It is socially sanctioned behaviour of people.
-
8/4/2019 31726035 Social and Cultural Environment
4/61
4
Cultural Factors/ Social Structure
-
8/4/2019 31726035 Social and Cultural Environment
5/61
5
Religion and Caste
Different people have their own religious convictions,beliefs, sentiments, customs, rituals, festivals etc.
The cost of ignoring certain religious aspects could beeffect organizational existence in international business.
Religion may also influence the attitude towards workand wealth.
Religion also play a role in deciding in weekly holiday,
other holidays and working hours. Many business decisions in India and in several other
countries are based on astrological advices.
-
8/4/2019 31726035 Social and Cultural Environment
6/61
6
Language
Differences in the language is a very importantproblem area in business.
Same words of a language have different meanings
or connotations in different places. Non-verbal communications create equally perhaps
even more difficult problems.
-
8/4/2019 31726035 Social and Cultural Environment
7/61
7
Consume preferences, Habits, Beliefs,Consumption
What is liked by people of one culture may not beliked by those of other culture.
Many companies modify their products and
promotion strategies to suite the tastes andpreferences or other characteristics of thepopulation of the different countries.
Consumption habits and demand patterns vary
greatly from one market to another. The values and beliefs associated with colour
vary significantly between different cultures.
-
8/4/2019 31726035 Social and Cultural Environment
8/61
8
Family System
Family is a social institution.
Concerns itself with love, sexual relationship, marriage,socialization of the child etc.
Nuclear families have now become common in oursociety replacing the traditional joint family system.
Women now enjoy equal status with men and most ofthem supplement family income by their own earnings.
Children have become spenders instead of earners. With big families being broken up, family businesses
are slowly turning into limited companies.
-
8/4/2019 31726035 Social and Cultural Environment
9/61
9
Customs
The customs of marriage, naming ceremony ofchild, festivals, dress sense etc. have significanteffect on business.
These have implications for many types of businesslike textiles, jewellery, catering, consumer durablesetc.
-
8/4/2019 31726035 Social and Cultural Environment
10/61
10
Demographic Transition
In the first stage of transition, death rates were highon account of poor diets and absence of effectivemedical aid.
In the second stage, death rates were less on accountof improved diets, and improvement of transport.
In the third stage of transition people started to shiftfrom rural areas to industrial and commercial centers.
These changes affect the business organizationsinterms of availability of skilled labour, wage policyetc.
-
8/4/2019 31726035 Social and Cultural Environment
11/61
11
Savings
Savings habits of consumer also affect theorganization.
It may favorably affect some organization and on
the other hand it may adversely affect the otherbusiness organization.
Increased saving habits of the consumer leads tothe capital formation and even it boosts the
banking sector.
-
8/4/2019 31726035 Social and Cultural Environment
12/61
12
Etiquettes
The ways of meeting and greeting people methods
of showing respect, ways of conducting meetingsetc affect business organization.
-
8/4/2019 31726035 Social and Cultural Environment
13/61
13
Cultural Transmission
The elements of culture are transmitted among themembers of the society , from one generation to thenext and to new the new members admitted into
the family. Many cultural bahaviours are handed down by
ones parents, teachers and other elders.
In the cultural transition, it is obvious that certain
old elements are dropped as new ideas and traitsare aquired.
-
8/4/2019 31726035 Social and Cultural Environment
14/61
14
Impact of
Culture
on
Business
-
8/4/2019 31726035 Social and Cultural Environment
15/61
15
1.Culture determines Goods andServices
Culture broadly determines the type of goods andservices a business should produce.
The type of food people eat, the clothes they wear,
the beverages they drink and the building materialthey use, vary from culture to culture and fromtime to time with in the same culture.
-
8/4/2019 31726035 Social and Cultural Environment
16/61
16
2. Peoples attitude to Business
Attitude of people towards business is largelydetermined by their culture.
Business systems are a product of beliefs and
customs of society in which they exist. Peoples attitude are based on how well business
contribute to society.
-
8/4/2019 31726035 Social and Cultural Environment
17/61
17
3. Attitude to Work
Motivation, morale and other related aspects ofhuman resource management are based on theworkers attitude to their work.
-
8/4/2019 31726035 Social and Cultural Environment
18/61
18
4. Culture creates people
The concept of culture is of great significance tobusiness because it is the culture which generallydetermines the activities of the people
-
8/4/2019 31726035 Social and Cultural Environment
19/61
19
5. Collectivism and Individualism
The spirit of collectivism and individualism isrelated to such personnel aspects as employeemorale, multiplicity of trade unions and inter and
intra-union rivalries. It is said that our culture Stresses individualism.
-
8/4/2019 31726035 Social and Cultural Environment
20/61
20
6. Ambitions and complacent
An individuals ambition to grow or remaincomplacent depends on cultural factors.
Majority of our people are know to be complacent.
-
8/4/2019 31726035 Social and Cultural Environment
21/61
21
7. Education
The close interface of business and highereducation is a new development.
Industrial societies of today are knowledge and
Educational oriented. Education is considered as one of the social
overheads that has been accorded due priorityamong the developmental activities.
-
8/4/2019 31726035 Social and Cultural Environment
22/61
22
In order to effectively adopt, create and also toconfirm a culture, the business people should have
a thorough knowledge of the culturalenvironment.
This will be useful to the management of the
business in several ways-
-
8/4/2019 31726035 Social and Cultural Environment
23/61
23
People generally are conditioned to behave in aparticular way and perform their work in aparticular method. So awareness of their culturewill help to understand their behaviour andconduct.
by observing their cultural background, thebusinessmen can easily predict their future
behaviour in the event of introducing a newproduct.
Awareness of cultural background will enable thebusiness to quickly change the product to suit the
needs o the changing soviety.
-
8/4/2019 31726035 Social and Cultural Environment
24/61
24
The business managers should develop a sensitivityto the culture of the society in which they operate.This will help in making quick decisions.
-
8/4/2019 31726035 Social and Cultural Environment
25/61
25
Social responsibility of Business
Business depends on the society on thesociety for the needed inputs like money,men, and skills.
Business depends on society for existence,sustenance, and encouragement.
Being so much dependent, business has
definite responsibility towards society.
-
8/4/2019 31726035 Social and Cultural Environment
26/61
26
What is Social Responsibility?
Obligation of business to take actions which protectand improve the welfare of society as a whole
along with its own interests
What business does, over and above the statutoryrequirement, for the benefit of the society
-
8/4/2019 31726035 Social and Cultural Environment
27/61
27
EarlyEarly
2020thth CenturyCentury
MiddleMiddle
2020thth CenturyCentury
EarlyEarly
2121stst CenturyCentury
MaximizeMaximize
ProfitsProfits
Provide JobsProvide Jobs
and Pay Taxesand Pay Taxes
Balance ProfitsBalance Profits
and Social Issuesand Social Issues
Social Responsibility in Business
-
8/4/2019 31726035 Social and Cultural Environment
28/61
-
8/4/2019 31726035 Social and Cultural Environment
29/61
29
1. Social Responsibility Towards Stockholders
Protect the capital.
Providing fair and reasonable return.
Stability of dividend
Transparency in the business operation.
-
8/4/2019 31726035 Social and Cultural Environment
30/61
30
2. Social Responsibility Towards Employees
Providing fair compensation.
Providing good working conditions.
Opportunity for workers participation in
management.
-
8/4/2019 31726035 Social and Cultural Environment
31/61
31
3.Social Responsibility Towards Consumers
Strive to improve product quality.
Providing goods and services at fair andcompetitive price.
Making arrangements for supply of goods andservices.
Satisfactory after sale services.
-
8/4/2019 31726035 Social and Cultural Environment
32/61
32
4. Social Responsibility Towards Competitors
Fair game in market.
Engaging in healthy competition.
Should not indulging in brand assassination
-
8/4/2019 31726035 Social and Cultural Environment
33/61
33
5. Social Responsibility Towards Government
Conducting business according rules andregulations enacted by govt.
Regular payment of various taxes.
Providing required information from time to time.
-
8/4/2019 31726035 Social and Cultural Environment
34/61
34
6. Social Responsibility Towards Local Community
Preventing of environmental pollution.
Assisting in overall development of the locality.
Development of backward areas.
Conserving scarce resources. Promotion of small scale industries.
Providing employment and educationopportunities.
-
8/4/2019 31726035 Social and Cultural Environment
35/61
35
Why Social Responsibility?
Social involvement of business would foster aharmonious and healthy relationship between thesociety and business to the mutual benefit of both.
Social responsibility like recycling of waste mayhave favourable financial effects.
Social involvement may create a better publicimage for the company which may help it in
attracting customers. Social involvement may discourage additional
govt. regulation and intervention.
-
8/4/2019 31726035 Social and Cultural Environment
36/61
36
Why Social Responsibility?
Business which survives using the resources of thesociety has a responsibility to the society.
Business which is an integral part of the society has
to care for the varied needs of the society.
-
8/4/2019 31726035 Social and Cultural Environment
37/61
37
Business ethics
-
8/4/2019 31726035 Social and Cultural Environment
38/61
38
What is ethics?
Ethics refers to the code of conduct that guides anindividual in dealing with others. It tells what isright and what is wrong
-
8/4/2019 31726035 Social and Cultural Environment
39/61
39
What is Business ethics?
the term business ethics refer to the system ofmoral principles and rules of conduct applied tobusiness.
Business ethics refer to the behaviour of thebusiness man in his business situation. Where inthe business man values certain norms as very
important than other things
-
8/4/2019 31726035 Social and Cultural Environment
40/61
40
The most important business ethics is expressed bythe Hippocratic oath of the Greek physician.i.e. Primum non nocere
Which means that business or professional shouldnot knowingly harm the society
The code of conduct Primum non nocereencompasses various business ethics namely-
-
8/4/2019 31726035 Social and Cultural Environment
41/61
41
Do not cheat customers by selling substandard ordefective products.
Do not destroy the competition.
Do not indulge in unfair trade practices like Greymarketing.
Ensure sincerity and accuracy in advertising,labeling and packaging.
Ensure prompt payment of wages and fairtreatment to employees.
-
8/4/2019 31726035 Social and Cultural Environment
42/61
42
Pay taxes regularly and discharge obligations of thegovt.
Refrain from secrete profits.
Make accurate business records available to allauthorized persons.
Do not form an illegal organization and illegalagreement to control the production.
-
8/4/2019 31726035 Social and Cultural Environment
43/61
43
Types of Business ethics?
Personal Responsibility.
Official Responsibility
Personal Loyalties.
Corporate Responsibilities. Economic Responsibilities.
Technical Morality.
Legal Responsibilities.
-
8/4/2019 31726035 Social and Cultural Environment
44/61
44
Role of Trade Associations
Voluntary organizations of businessmen andemployees formed to promote their commoninterests.
Trade association can promote business ethics inthree different way
1. Education and Persuasion.
2. Code of Ethics
3. Moral sanctions
-
8/4/2019 31726035 Social and Cultural Environment
45/61
45
Education and Persuasion
Trade associations can promote business ethics byeducating the members about the importance of,and the need of for, having business ethics, andpersuading them to give due regard to ethicalprinciples in the conduct of their business.
-
8/4/2019 31726035 Social and Cultural Environment
46/61
46
Code of Ethics
Trade associations can formulate a code of conductfor their members.
The code of conduct will not only guide but also
regulate the conduct of business.
-
8/4/2019 31726035 Social and Cultural Environment
47/61
47
Moral sanctions
sanctions refer to the ways in which moralconduct rewarded or misconduct is punished.
Trade associations may announce incentives to
promote business ethics. It may debar a member for a serious violation of the
code of conduct.
-
8/4/2019 31726035 Social and Cultural Environment
48/61
48
Problems in Business ethics
Ethical decisions are difficult to make. They cannot be programmed like production andinventory decisions.
There are many reasons why business ethics is
difficult to adopt-a. Managers face dilemmas in deciding on a course
of action.
b. Knowledge about consequences of an action is
limited.c. Some ethical standards vary with the passage of
time.
-
8/4/2019 31726035 Social and Cultural Environment
49/61
49
Problems in Business ethics
d. Individual differences.
e. Difficult to match organisational loyalty to publicinterest
-
8/4/2019 31726035 Social and Cultural Environment
50/61
50
Consumerism
Social movement seeking to augment the rights andpowers of the buyers in relation to sellers.
Consumerism may simply be expressed as let the
seller beware in comparison to the age let thebuyer beware
-
8/4/2019 31726035 Social and Cultural Environment
51/61
51
Consumer Protection
In a free market economy, it is said that consumeris a king.
But in Modern days consumers have not only
been called upon to pay higher price, but have tosettle for lower quality goods, duplicate andadulterated products.
Thus the need for consumer protection has arised
to protect the interest of the consumers.
-
8/4/2019 31726035 Social and Cultural Environment
52/61
52
Consumer protection is essential for followingreasons-
Consumer should be protected against the products
that are unsafe and unhealthy. Consumer should be protected against the unfair trade
practices.
Protect consumers against pollution.
Protect consumers against restrictive trade practices ormonopolies.
To prevent exploitation of consumers frommanufacturers.
-
8/4/2019 31726035 Social and Cultural Environment
53/61
53
Consumerism in India
Consumerism in India is of recent origin.
It was only in 1965 consumer movement startedin India.
Consumerism in India can be explained in twopoints-
1. Establishment of consumer Organization.
2. Government Measures
E bli h f C
-
8/4/2019 31726035 Social and Cultural Environment
54/61
54
Establishment of ConsumerOrganization
In the year 1965 housewives of Bombay established avoluntary consumer organization in the name ofAWARE i.e. Association of Women Against Risingexpenses.
Other organizations are
CGSI- Consumer guidance society of India.
PRRM- Price rise resistance movement
CERO- Consumer education and research centre. Consumer education centre
Indian federation of consumer organization
E t bli h t f C
-
8/4/2019 31726035 Social and Cultural Environment
55/61
55
Establishment of ConsumerOrganization
These associations deal in three important areaslike-
Consumer protection Consumer education
Representation Main objectives of these organizations are- To charge fair and reasonable prices. To protect consumers from exploitation
To maintain accuracy in weights. Educating consumers Creating an awareness among consumers.
-
8/4/2019 31726035 Social and Cultural Environment
56/61
56
Government Measures
In India the government has taken number ofmeasures to protect consumer interest.
Government measures can be classified into-
1. Establishment of public sector
2. Statutory Regulation
-
8/4/2019 31726035 Social and Cultural Environment
57/61
57
Establishment of Public Sector
Govt. established many business unit toenhance the consumer welfare by increasingproduction, improving efficiency in
production. Making goods and services at fair prices.
Curbing private monopolies.
Improving the distribution system
-
8/4/2019 31726035 Social and Cultural Environment
58/61
58
Statutory Regulation
Govt. has armed it self with a number ofstatutory weapons to control the production,supply, distribution, price and quality of a
large number of goods and services It enacted following acts to protect the
consumers
-
8/4/2019 31726035 Social and Cultural Environment
59/61
59
The sale of goods act 1930
Standards of weights and measurements act1976
MRTP act 1969
Prevention of food adulteration act 1954
Fruit products order 1955
The consumer protection act 1986
-
8/4/2019 31726035 Social and Cultural Environment
60/61
60
Conclusion
There are several loopholes in the lowswhich are misused by the sellers inexploiting the consumers.
Consumer organizations got success increating awareness but failed in the field ofconsumer protection.
-
8/4/2019 31726035 Social and Cultural Environment
61/61
Consumer rights
Right to health and safety
Right to be informed
Right to choose
Right to be heard.
Right to seek redressal
top related