Socio-cultural environment is a collection of social factors affecting a business and includes social traditions, values and beliefs, level of literacy and education, the ethical standards and state of society, the extent of social stratification, conflict and cohesiveness, and so forth.
Socio-cultural environment consists of factors related to human relationships and the impact of social attitudes and cultural values on the business of the organization.
The beliefs, values and norms of a society determine how individuals and organisations should be inter-related.
The core beliefs of a particular society tend to be rigid. It is difficult for businesses to change these core values, which become a determinant of its functioning. Some of the important factors and influences operating in this environment are as follows:
a) Social concerns, such as the role of business in society, environmental pollution, corruption, use of mass media, and consumerism.
b) Social attitudes and values, such as expectations of society from business, social customs, beliefs, rituals and practices, changing lifestyle patterns, and materialism.
c) Family structure and the changes in it, attitude towards and within the family, and family values.
d) Role of women in society, position of children and adolescents in family and society.
e) Educational levels, awareness and consciousness of rights, and work ethics of members of society.