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Essay On Social Cultural Environment

1474 Words6 Pages

Business is all around us and it is the mainspring of modern life. Literally the term ‘business’ implies ‘busyness’ or the state of being busy. But this is not the proper concept of business as it covers every human activity. Business is an economic activity as it is concerned with earning money and acquiring wealth. It is the human activity directed towards the acquisition of wealth through the production and exchange of goods and services. A business enterprise is an economic institution as it is engaged in the production and or distribution og goods and services in order to earn profits and acquire wealth.

According to Wheeler, “Business is an institution organized and operated to provide goods and services to society under the incentive …show more content…

No society will allow a business to maximize its profits at the cost of the society .
Business helps in the development of society. It helps to provide good quality of products and services , creates employment opportunities , adopts new technology for the greater goods of the people and leads the path towards growth and development . If business provides good quality of product and satisfied the wants and needs of the society then business can enjoy social sanction.

Social cultural environment of business
Social environment refers to the characteristics of the society in which a business firm exists.
The social cultural environment of business include the social forces like customs and traditions, values, social trends, society’s expectations from business, etc. Traditions define social practices that have lasted for decades or even centuries Social and cultural environment consists of the following :
1) Demographic forces – size, composition, mobility and geographical dispersal of population, occupational structure.
2) Social institutions and groups .
3) Caste structure and family organization.

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