Socio-cultural environment

1. Socio-cultural environment

2. Business in socio-cultural setting

3. Business & society Business functions, innovations, transmission & diffusion of ideas, information, attitudes and outlooks Business Society Manufacturing & marketing of goods & services, business strategies, rules & regulations, governing business, values & norms

4. Changing concept of business • Traditional view of profit maximization • Radical change in concept of business • As a social institution forming an integral part of the social system • Social mission • Influence on way people live and work together • Business in relation to society • Values – belief systems of businesses • Viability – drive to live & grow • Visibility – public image

5. Business & culture • What is culture? • set of shared attitudes, values, goals, and practices that characterizes an institution, organization or group • an integrated pattern of human knowledge, belief, and behavior that depends upon the capacity for symbolic thought and social learning • Elements • Knowledge & beliefs • Ideals • Preferences

6. Impact of culture on business • Culture creates people • Culture influences what is demanded • Determines attitude to business & work • Collectivism or individualism • Scientific mindset • Orientation towards new ideas • Religious dimension

7. Contd… • Cultural adaptation – manner in which institutions and systems fit into physical or social environment – essential for survival • Cultural shock – strangeness of new environment • Cultural transmission – transfer of elements • Cultural conformity – conform to norms or deviate • Cultural lag – time taken for readjustments

8. Important socio-cultural factors • Religion • Ethnicity • Language • Consumer preferences & habits • Etiquettes • Demographic and social trends • Technological progress and resultant social change

9. Current socio-cultural environment • Dynamic changes in value systems, attitudes • Society in transition • Relative prosperity, progress in some areas • Regressive behaviour • Urban bias • Pressing issues

10. MDGs (to be achieved by 2015) • Eradicate extreme poverty and hunger • Achieve universal primary education • Promote gender equality and empower women • Reduce child mortality • Improve maternal health • Combat HIV/AIDS, malaria and other diseases • Ensure environmental sustainability • Develop a global partnership for development

11. Where do we stand? • Population below 1$ PPP = 41.6% • Growth rate of GDP per person employed = 5.4% • Employment to population ratio (%) = 55.4 (overall), 77.2 (males), 32.3 (females) • Youth unemployment (15-24 yrs) = 10.5% • Share of women in wage employment (non-agri) = 18.1% • Population undernourished = 21% • Children below 5 yrs underweight = 47.8% (moderate), 15.2% (severe)

12. Contd… • Under five mortality (per 1000) = 72 • Infant mortality (per 1000) = 54 • Maternal mortality (per 100,000 live births) = 450 • Enrolment in primary education = 94.3% • Literacy rate = 82.1% • Gender parity index in enrolment = 0.96 (primary), 0.83 (secondary), 0.72 (tertiary)

13. Contd… • Population using improved drinking water source = 89% • Population using improved sanitation = 28% (urban 49%, rural 18%) • Population living in slums = 34.8% • Telephone lines per 100 = 3.37 • Cellular subscribers per 100 = 19.98 • Internet users per 100 = 6.93 • PCs per 100 = 3.17