Social Environment


Social Environment

A business is basically a social activity. Habits, usages, culture, attitudes and behaviour of people have great influence on a business enterprise. The outlook of the people towards life influences the nature of economic and business activities. For example, the increasing role of women in the economic and political life has demanded the introduction of time and energy saving household equipment to support the busy housewives. The demand for Washing Machine, Mixies, Grinder etc. has increased because of this. Thus social environment refers to social customs and traditions, education level, size and composition of population, culture, social institutions etc.
The social environment of business includes:
 a) Social institution and groups Caste structure and family organization
 b) Mobility of Labour
 C) Customs and tradition's
 d) Educational system and level of literacy Cultural heritage and
 g) Social values and attitudes


Social and cultural forces exercise significant influence on business. For instance, social consciousness among the people demands more responsible behavior on the part of businessmen.