socio-culuture and natural environment
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The social andcultural
environment/
Natural
environment
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The social cultural environment, consists of the
whole range of behaviors and relationships inwhich individuals engage in their personal and
private lives, including:
«. the characteristics of the population(e.g. age, sex, race or ethnicity, class)
«. values and attitudes
«.. lifestyles and relationships.
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Dynamism !In analyzing the social-cultural environment of business it is
important to recognize that society and culture are not
homogeneous or fixed. Rather they are diverse and fluid or
dynamic. Social and cultural change is a hallmark of modern
societies (more than in the past), symbolized by the widelyrecognized phenomenon of a generation gap. This refers
to the way in which, due to social and cultural change,
each generation tends to feel somewhat out of touch with
(and even bewildered or shocked by) the attitudes and behaviors of the next. Business needs to stay in touch with
social and cultural shifts.
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InteractionAs with other aspects of the environment, the relationship between
business, culture and society involves a two-way interaction.
Although we tend to think of business as operating according to a
distinctive instrumental rationality of profit-and-loss and the
¶bottom line· it is also influenced by the social-cultural setting inwhich it is embedded. At the same time business affects the
wider culture and society profoundly. For example, a good deal
of what we think of as making up the culture of modern society
consists of the outputs of private sector businesses in what might be called the culture industries, such as popular music, films,
literature, newspapers and magazines.
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These influences can be seen as either positive or negative. For
example, aspects of the culture of a society might be seen ashindering or assisting business performance. Therefore
governments might be interested in promoting cultural change as a
way of boosting economic competitiveness. On the other hand
business might be seen as having harmful or beneficial effects onthe wider society or culture, and governments might want to
influence or regulate business behavior for this reason.
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Lets take some examplesBusiness is an activity undertaken by people whose values and attitudes
are shaped by the culture and society of which they are a part. To
some extent the roles we perform in business are quite discrete
from other aspects of our lives and require that we adopt different
behaviors and personas. However there is not, of course, a completeseparation between ¶work· and ¶life·. We carry values and attitudes
shaped by the wider culture and society into our roles as managers,
employees and consumers.
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Anthony Giddens
It can be argued that capitalist business owes its historical origins and
development in part to non-economic factors. Max Weber argued
that the ¶spirit of capitalism·, or ethos of capitalist business, with its
emphasis on accumulating wealth, can be traced to religious
belief³the ¶Protestant ethic·. This religious belief encouraged the
reinvestment of wealth in business rather than the pursuit of a life
of luxury, thus fuelling economic growth and dynamism«
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Anthony Hiddens
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Examples of business impacts on
culture and society
The culture industries make up a significant part of business activity,
reflecting the shift from manufacturing to service industries in the
wealthy economies (see below³the occupational order). Culture
has become increasingly big business as a growing share of consumerexpenditure is dedicated to ¶lifestyle· purchases rather than material
necessities. This can be seen in the growth of the wide range of
businesses concerned with leisure and tourism. For example, cheap
flights have enabled growing numbers to widen their cultural
horizons through foreign travel
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«the rapid development of information and
computer technology has transformed theway we communicate with each other,
consume cultural products such as music,
and gain access to information. Cultural
trends are driven powerfully by product
innovations spurred by business·scompetitive pursuit of profit.
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Organization culture
Culture is also part of the internal
environment of business. As we have said,
although business cannot be isolated fromthe wider culture it does to some extent
constitute a discrete sphere of activity
with distinctive roles, attitudes and
behaviors
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Another giant
called Natural
Environment
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What is that Natural environment
Rapid industrialization has become one of the main objectives in
recent years. Industrial development and economic development
are used as synonymous words today. Industrialization has brought
several benefits to the man kind and accelerated the process of economic development. At the same time, it has posed several
challenges to the entire world. Sustainable economic development
has become the major goal in many countries of the world. It
demands higher rates of economic growth with environmentalpreservation
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Environmental degradation in the process of
rapid growth has become the main concernin recent times. Global warming and
damage to the ozone layer are the talk of
the day. There is great need for taking extra
care to maintain ecological balance in the
entire world.A
healthy globe can emergeonly with a healthy environment.
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Business has close relationships with natural environment and
business units have greater responsibilities in this direction.
Maintenance of reasonable ecological balance has become one of
the prerequisite conditions for any business to flourish. This unitdeals with various facets of environmental degradation and its
harmful effects on business and the entire society.
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there has been very fast and quick economic growth in many
countries of the world. There is a visible change in the
pattern of economic growth. In the name of quick economic
development in a very short period of time, there is fast
depletion of all kinds of resources and many types of
resources may be exhausted in the near future.
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There has been excessive and over utilization of many resources.Shortsightedness in the developmental policies has shifted the
emphasis from future to the present welfare of the people. This has
been responsible for environmental disorder, dislocation and
degradation. There is widespread air, water, soil and noise pollution
on account of rapid industrialization and growth in all modes of
transportation. There is environmental decay and degeneration all
round the world. The destruction in ecosystem has dangerous and
demoralizing effects on the economy.
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Sustainable development
Sustainable economic
development seeks to meet the
needs and aspirations of thepresent without
compromising the ability of f uture generations to meet
their own needs
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It is felt that sustainable development can be
achieved only when the environment is
protected, conserved, saved and improved
consciously by the people in a country. The
process of development will become
sustainable only when the stock of various
types of resources are maintained and
further improved.
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Water pollutionThe main water pollutants are disease causing agents which include
bacteria, viruses, protozoa and parasitic worms that enter water from
domestic sewage and untreated human and animal wastes, oxygen
depleting wastes, inorganic plant nutrients, fertilizers, pesticides, water
soluble inorganic chemicals which includes acids, salts, and compounds of
toxic metals such as mercury and lead, organic chemicals like oil,
gasoline, plastic cleaning solvents, detergents and many other varieties of
items.
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As industrial wastes are dumped in to the rivers and lakes, water iscontaminated and it cannot be used for drinking purposes. Itcreates health hazards. The capacity of the water to preserve theaquatic life is becoming more and more difficult. Evenunderground water is polluted today on account of variousreasons and is creating innumerable problems. Billions of peopleare affected by water contamination in the world
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Birth and Death
y Production === Natural resources
y Consumption ==human resources
y Pollution === ???
y Profit /profit /profity Life expectancy of the product
y Life expectancy of the consumer ?
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Question and answer?
a patient : when( what ) is theexpiry date of this medicine ?
medical shop staff : oh !«thats exactly your expirydate
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Air pollution
The air may become polluted by natural causes such as volcanoes, whichrelease ash, dust, sulphur, and other gases or by forest fires that areoccasionally naturally caused by lightening. But there are five primarypollutants that together contribute to about 90% of the global airpollution. These are carbon monoxide, sulfur oxides, nitrogen oxides,hydrocarbons and particular. Human sufferings increase due to the airpollution. Respiratory disorders and cancers are due to inhalation of polluted air. The vehicles increase the sulfur dioxide concentration inthe air creating breathing problems for children and affect theirneurological developments.
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ySoil pollution
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Deforestation
Forests protect environment in several ways. They provide alivelihood and cultural integrity for forest dwellers and ahabitat for a wealth of plants and animals. They protectand enrich soils, provide natural regulation of thehydrologic cycle, affect local and regional climate through
evaporation, influence watershed flows of surface andground water, and help to stabilize the global climate.Hence, they play a more useful role in preserving theecological and environmental balance and in maintainingthe biodiversity and eco systems. However, in recentyears, there is terrific deforestation due to recklessindustrialization and growth in urban areas which isresponsible for several problems.
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Loss of biodiversityBiological diversity, a composite of genetic information, species and eco
systems, all provide material wealth in the form of food, medicine and
inputs to industrial processes. It supplies the raw material that may
assist human communities to adapt to future and unforeseen
environmental stresses. Further more, many people value sharing theearth with numerous other forms of life and want to bequeath this
heritage to future generations. Loss of biodiversity jeopardizes all this
benefits
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Solid and hazardous wastes
Excessive quantities of solid wastes generation,
inadequate collection and unmanaged disposal
etc present serious problems for human health
and productivity. Open dumping and
uncontrolled land filling causes several types of
diseases and contributes for the spread of
diseases. Solid and hazardous wastes pollute
ground water resources.
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Nature·s Business with business
The nature, magnitude, composition and
direction of business basically depends
upon the type of natural environmentexists in a country. Business and
environment has symbiotic relationship
with each other. They are inseparable innature.
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Natural environment includes land
f orm, location aspects,
topographical conditions,mountains, rivers, oceans, coast
lines, f orests, soil, weather and
climatic conditions, naturalendowments, f lora and f auna etc.
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Natural environment is also called as physical environment. Ecological
factors which include both renewable and nonrenewable resources
would affect the type of economic and business activities in a country.
Geographical factors would decide the type of goods and services that
may be produced most economically in a county. Natural hazards like
floods, droughts, earth quakes, storms, heat and cold waves and
volcanic eruptions would decide the nature of business.
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«..all business activities are guided and
influenced by natural environment either
directly or indirectly. Nature is a greatstorehouse of all kinds of materials which
are to be used by a business unit in the
most economical and profitable manner
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the natural environment also provides certain physical and
biological conditions with in which man lives, works and carryon his business. How best business units exploit and use theseresources to maximize their profits and maximize social benefitsis the question before any economy. Business units have to comeout with such business plans which results in proper, better and
full utilization of all kinds of resources in the most optimummanner leading to higher output, income and employment in thecountry with minimum costs.
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It is to be remembered that business activities should not createenvironmental pollution and degradation at any cost. This calls forgreater social responsibilities on them. They have to realize that onlygood environment can bring good business. Social costs are to beconsidered while making private profits and private profits should notcome in the way of social benefits and welfare. Hence, proper balancing is required between the two. If social costs exceed privateprofits, in that case, government interference will become inevitableand it will be justified in the overall interest of the entire society
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Externalities, Environmental
Degradation And Market FailureIn a competitive market oriented economy, every thing is left to the free
and automatic market mechanism. The allocation of resources in tovarious productive channels is made by the invisible hand of pricemechanism so as to meet the society·s maximum needs in an optimumway. Prices of all goods and services are collectively called as the price
mechanism. Price mechanism indicates the price movements caused bychanges in supply and demand for goods and services in the market. It isthe connecting link between different groups like consumers, producers,distributors etc operating in the market
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Vilifredo Paretoan Italian economist has laid down an objective test of social welfare on
the basis of best allocation of resources in a free and perfectly
competitive economy. According to him, maximum social welfare is
possible only when the resources are allocated in the most ideal
manner. Social welfare is said to be optimum when nobody can bemade better off without making somebody worse-off. In short, it is
impossible to make any one better off without making some one worse
off because already there is optimum allocation of resources.
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Private costs of an economic activity always
do not equal the social costs. They are
totally different in many cases. For
example, when a business unit polluteseither air or water by discharging its
wastes, it can save some amount of money
or private costs
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Failure to supply public goods
Markets fail to supply several types of public goods to the general public
in the overall interest of the society. A public good is also called as
social good or collective good used by all people irrespective of the
class to which one belongs. For example, in case of construction of a
railway line or provision of postal service, the cost of supply of the
service is several times more than that of the benefits enjoyed by the
people in general. Markets do not take these costs in to consideration.
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R ich man( Urban ARE A ):What doyou consume more in your life
and how rich are you? A poor man from Village:Oh Yea , I
consumeAir(Oxygen) and iam very rich
in that «what about you R ich man : mmmmmmmmmm
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Failure to supply merit goods
These are certain goods which are to be consumed by the
people irrespective their level of income. We can give a few
examples for such goods. The subsidized food, clothing,
shelter, free distribution of sites to economically weaker
sections, midday meal schemes etc. Markets cannot realizethe value and significance of such goods.
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Darwin·s principle of survival of the
fittestThe working of the market economy is based on Darwin·s principle of
survival of the fittest and the fittest species survive and totally ignorethe economic welfare of weak and unlucky people. Free marketeconomy creates several types of negative externalities, environmentaldegradation and many other problems in an economy. Hence, when
markets fail, the government has to interfere and look after the generalwell being of the especially economically weaker sections and otherdowntrodden groups through various developmental and welfareprogrammes
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NEGATIVE EXTERNALITY IN
CONSUMPTION
Consumers create negative externalities by purchasing andconsuming certain commodities and services. A fewexamples are given below for our understanding. Creatingnoise pollution by using the car stereos, peculiar horns,
smoking in public places and drinking alcohol, indulging invarious types of crimes, ill-treating animals, litter on publicplaces and on streets, pollution from cars and bikes, use of narcotic drugs etc
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Direct government regulations
In case of all kinds of pollution and other health and security externalities, thegovernment may introduce direct regulatory controls [social regulations]over the externality by setting certain rules and regulations regardingpollution, which every industry should follow. Under the command andcontrol regulations, the government would simply order the firm to comply,
giving detailed instructions on what pollution control technology to use andwhere to apply etc. For example, installation of pollution control equipmentin factories and disposing the chemical and industrial wastes in a specific wayis directly regulated by the government.
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The Global Environmental Threat.Climate change: Climate is the average weather conditions of a place for a
fairly long period of time covering a number of years. Climate change is ashift in the average weather that a given region experiences. This is measured
by changes in all the features one can associate with weather, such astemperature, wind patterns, precipitation and storms etc. Global climatechange implies changes that occur in global climatic conditions. Climate
change is a normal process. The rate and magnitude of change in globalclimate is dramatic in recent years. It is brought about by a number of factorssuch as the latitude of a place, altitude of the place, and distance from thesea, ocean currents, position of mountains, direction of prevailing winds,nature of soil etc.
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Global warming or green house effect.
Global warming means an increase in the average temperature of theatmosphere, oceans, and landmasses of Earth. The average temperature has
been increasing in many regions in recent decades. The average
temperature of Earth is about 15 oC. Over the last century, this average
has risen by about 0.6 Celsius degrees. Scientists are of the opinion that it
may increase to 1.4 to 5.8 Celsius degrees by the year 2100. This warmingwill be greatest over land areas and at high latitudes. The projected rate of
warming is greater than that has occurred in the last 10,000 years. This
temperature rise is expected to melt polar ice caps and glaciers as well as
warm the oceans, allof which will expand ocean volume and raise sea level
by an estimated 9 to 100 em flooding some coastal regions and even entire
islands..
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The word Green House Effect was first coined by J. Fourier in the
year 1827. Greenhouse is constructed for plants mainly in thecold countries where total insolation at least during winter
season is not sufficient enough to support plant growth. The
glasses of greenhouses are such that they allow the visible
sunlight to enter but prevent the long wave infra red rays to go
out.
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The greenhouse effect on earth means progressivewarming up of the earth·s surf ace due to theblanketing effect of manmade carbon dioxide in theatmosphere. In short, the trapping of heat from the
sun by certain pollutant gases like carbon dioxide,chlorof luoro carbons, nitrous oxide, methane etc inthe atmosphere, leading to rise in the earth·s meantemperature, is known as greenhouse effect.
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Adverse effects of global warming y It causes climatic changes. Extreme weather conditions like
floods and droughts are likely to occur more frequently.
y It results in melting of ice and glaciers leading to rise in sea
levels and flooding of coastal areas.
y Small islands may even disappear due to submergence.
y It leads to a change in crop pattern.
y It creates adverse effects on eco systems biodiversity.
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y It results in changes in hydrological cycle and storms will be
more frequent and intense.y Weather pattern becomes more unpredictable and crops are
affected by different varieties of insects and plant diseases.
y Animals find it difficult to adjust to the changed
environment leading to migration.
y More people become sick due to global warming
y Tropical diseases such as malaria, dengue fever, yellow fever
etc will spread to other parts of the world etc.
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Acid rain
The term acid rain was first coined by Robert Angus in 1872. When fossilfuels such as coal, oil and natural gas are burned, chemicals like sulfurdioxide and nitrogen oxides are produced. These chemicals react withwater and other chemicals in the air to form sulfuric acid, nitric acid,and other harmful pollutants like sulfates and nitrates. These acid
pollutants spread upwards into the atmosphere, and are carried by aircurrents, to finally return to the ground in the form of acid rain, fogor snow. The corrosive nature of acid rain causes many forms of environmental damage.
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Ozone layer depletion
Ozone is formed by the action of sunlight on oxygen. It forms a layer 20to 50 Kms above the surface of the earth. This action takes placenaturally in the atmosphere, but is very slow. Ozone is a highlypoisonous gas with a strong odor. It is a form of oxygen that has threeatoms in each molecule. It is considered a pollutant at ground level
and constitutes a health hazard by causing respiratory ailments likeasthma and bronchitis. It also causes harm to vegetation and leads to adeterioration of certain materials like plastic and rubber
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It also causes harm to vegetation and leads to a deterioration of certain materials like plastic and rubber. Ozone in the upperatmosphere however, is vital to all forms of life as it protects theearth from the sun·s harmful UV radiation. Ozone layer is a thin band in the ozonosphere which blocks out sun·s ultra violet rays[ie, screens out sun·s harmful ultra radiation] and protects life onearth from the harmful ultraviolet radiation from the sun.
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Nuclear accidents and holocaust.
Nuclear accidents refer to accidents resulting from nucleardevices and radioactive materials. It also includes accidentsresulting from the release of radio active contamination. One canrecollect a few nuclear accidents in some parts of the world. The Three MileIsland disaster occurred at a nuclear thermal power station at Three MileIsland in Pennsylvania in USA. Here, a private corporation constructed
nuclear thermal power station and an accident took place at the nuclearpower station on 28 th march, 1979. in the accident, half of the nuclearpower reactor was completely burnt, releasing radioactivity. Due to thisaccident, about 10,000 people fled away and several persons suffered formradioactivity
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