Impact of Indian social environment on business organizations.

Social or Societary environment of business means all factors which affects business socially
. Every business works in a society , so societies ' different factors like family , educational
institutions and religion affects
business .

Main elements Of Societies and its effect on Business

1. Family :- Family is basic part of society from the birth of a person and upto death , he
lives in family so personal decision of buying and selling of goods are affects from family . In
the culture of a family , it may happen that parent does not allow to use any product , then
sale of such product will decrease , so businessman must analyze different families needs .
Many occasion of family like marriage of any family member , can increase the demand of
goods .
2. Educational institutions :- Educational institutions are also main part of societies . They
provide good knowledge , education , awareness , thinking what should students buy or not to
buy . Suppose if a student is habitual to drink the tea and if his teacher advice him that this is
harmful to his health after his guidance students can avoid to drink tea after this the sale of
tea will decrease .
3. Religion :- Like family and education institution , religion is also effects the business
socially . Religion means the system in which group of persons trust in God . They believe
that there is one supernatural power in this earth and its name is God . They gives many name
like Ek onkar sat nam , om and many more etc. Different religions have different principles ,
rules and regulations in which they sacrifice to use some products and to eat some food , in
Hindu religion , they never use leather products . They affects the sale of leather industries .
So, businessman must analyse the targeted audience and after listening their religious
thoughts , he should produce the goods . - See more at:
http://business.svtuition.org/2009/11/social-evironment-of-business-and-
its.html#sthash.S1FLzh8Y.dpuf
in India, social environment was the least considered environment. There were too much of
monopoly power in the handful of businessman and they always gave priority to the profit
maximization. Until 1980-85, rather than marketing, selling was their main aim. The society
was not very alert and aware about these facts. The position changed considerably in the late
1985 due to consumerism, increase in market competition, etc. Economic reforms and
globalization were two major factors, which contributed to the importance and growth of
social environment.
Social environment is very comprehensive because it may include the total social factors
within which a business enterprise operates.
Social environment includes peoples attitude, family background, religion; education etc.
traditions, customs and social attitudes have changed the attitudes and belief of the persons
which have their effect on entrepreneurial environment.
The social environment of a business can be integral to its success or failure. Employees are
often influenced by the context in which they work and this can have implications for
productivity. Some effects of the social environment are easier to measure than others.
Employers who take the necessary strides to create a positive and harmonious social
environment in the workplace can set themselves up for future success.
Teamwork
One way in which the social environment affects the workplace is in the way that it either
inspires or discourages employee cooperation. In businesses with a positive social
environment where employees get along and are generally positive in their relationship to one
another, cooperation and teamwork are more likely to exist than in a negative social
environment. Negative social environments will generally foster dissent and strife among
workers and destroy the ability or willingness of employees to work together.
Job Satisfaction
The social environment of the workplace can also have an effect on an employee's job
satisfaction. In businesses where employees experience a positive social environment, they
are more likely to have a greater sense of job satisfaction and enjoyment. In a job
environment where negativity is the norm and employees are constantly in conflict with one
another, workers are more likely to dread work and not have a positive assessment of their
employer.
Customers
The social environment of a business can also have an impact on the type and number of
customers it attracts. In a business environment where employees are generally positive,
upbeat and cooperative, customers are more likely to appreciate the atmosphere they
experience when interacting with employees. Customers who experience a negative social
environment may be more likely to avoid a business altogether, especially if the business has
a competitor that is conveniently located near the customer. Customers choose which
business to patronize based on various factors, and the social environment can be the
deciding factor for some.
Leadership
A positive and nurturing social environment for workers is one that can engender positive
change within the workplace. It can also lead to the creation of leaders within the business
itself. Businesses that constantly emphasize positive reinforcement, self-improvement and
education of employees are likely to cultivate leaders from within the organization. Some
may go on to pursue positions of leadership within the company or industry, while others
may simply assume a lesser leadership role within their current occupation.

1. Pluralistic Society:
Indian society is a pluralistic society with a complex social order characterized by a multitude
of ethnic, linguistic, religious and caste divisions. Hindu constitutes the majority community
and comprises about 82% of the population. They stand evenly distributed across regions.
The Muslims constitute 12% and the Sikhs 2% of the population. Muslims are concentrated
in J and K Assam, Bihar, U.P. Kerala and West Bengal. Christians are concentrated in the
small states of North East like Nagaland, Meghalaya, Arunachal Pradesh, Mizoram and the
Sikhs arte concentrated in Punjab.
These distributions have an important bearing upon the politics of these areas. The Muslim
concentrated areas are communal riots areas; the concentration of Sikhs in Punjab is a
determinant of politics in Punjab.
2. Predominantly Rural Society:
About 70% of the Indian people live in villages and Indian villages continue to be under
developed even backward. Lack of civic amenities, employment opportunities, roads,
transport facilities, electricity, hospitals and schools in rural areas is a hard reality.
The gains of industrialization and development during the past 55 yeas have mostly been
cornered by the urban areas. On an average a city dweller earns nearly 2.5 times more than a
retaliate. The gains of technological back-through and industrialization are yet to reach the
villages.
Urban-rural gap is a reality of our society. The ruralites feel that though agriculture accounts
for a major part of Indias national income. The rural areas continue to lag behind because of
the governmental policies which favour the urbanities.
In the democratic political process, the rural people by virtue of their large majority play an
active a dominant role and yet the leadership in India continues to be in the hands of the
urban elite.
Of late, the government of India has started giving due importance to the objective of rural
development. IRDP, NREP, Panchayati Raj etc. are all designed to achieve this objective.
The growing awareness among the rural people and their increasing participation in the
politics process are healthy signs yet the process continues to be slow.
3. Poverty:
Poverty of the masses is an important feature of Indian social system. Despite the fact of
having made considerable progress in the fields of agriculture and industrialization.
India continues to be an economically backward country. It still remains worlds 15th poorest
nation despite maintaining an overall industrial growth rate of 3 to 5 % and an agrarian
growth rate of 2 to 3 %. The increase in GNP from 1.3 % in 1947 to 3.6 % in 1980 ha failed
to match the growing number.
A large number of Indians continue to live below the poverty line. The economic
development of the society through organized plans and all round industrial and technological
development constitutes the biggest and most challenging objective of the Indian polity. The
objective of economic upliftment of at least 90 % of the people by the end of 8
th
Five Year
plan period is indeed laudable, yet chances of achieving it appears to be weak.
4. Illiteracy and Ignorance:
Illiterates constitute a major part of Indian social system. A large number of Indians are still
illiterate. Nearly 64 % of the population continues to be illiterate. Despite the spread of the
educational network and adoption of ideal like free and compulsory education for children up
to 14 years and the ideal of making 80 million adults literate by 1995.
India remains a state inhabited by a large majority of illiterates. The population explosion and
poverty combined with inadequate resources and efforts have all combined to perpetuate the
problem. The political process continues to be predominated by illiterate masses who are
exploited by literate and neo-literate leaders.
Even many political leaders have a vested interest in perpetuating illiteracy and public
ignorance because they are leadership. The faulty system of education has further
compounded the evil of illiteracy.
Even the literates have failed to keep away from casteism, communalism, factionalism,
regionalism, indiscipline and corruption. Politics in India continues to operate in an
environment of illiteracy and ignorance.
Nevertheless, with the passage of time the people of India are learning through formal and
informal means of education gaining experience and becoming more and more mature.
Illiteracy creates so many social problems. The need is for more determined governmental
action and strong social support in this respect.
5. Linguistic Diversity:
Communalisation of language is another factor which is polluting the social environment of
India. On the basis of language, Indian society stands divided into linguistic groups.
The Constitution of India recognizes as many as 15 languages as the major languages which
are spoken by 87% of population. There are as many as 1952 mother tongues in India.
In the North-East region alone, which constitutes just 8% of the Indian Territory and 4% of
the population, there are 432 languages. Hindi is spoken by nearly 31% of the peop0le
followed by Telugu which is spoken by nearly 9% of the population.
Linguistic diversity and emotional and parochial love of people for their regional languages
have forced the government to accept and follow the principle of reorganization of Indian
States on the basis of languages i.e., the creation of linguistic States.
This feature has, further, hindered the recognition and use of Hindi as the official language of
the Union. The Southern States are not prepared to accept Hindi as the national language and
instead are prepared to retain English as the medium of communication with the Centre and
other States.
Language has emerged as key factor of social and political tension in India. Hindi has failed
to get support as the National Language and attempts to popularize it are regarded by the
people of the South, particularly in Tamil Nadu, as impositions and they oppose it through
aggressive and violent protests.
In some states like Punjab, which is a bilingual state, the three language formula stands
implemented but it has unduly burdened the educational system and within the State has
divided the people on language basis.
6. Facial Diversity:
India is inhabited by people of different racial connections. People of the North are of Aryan
race whereas the people of South represent the Dravidian race.
In the Eastern States people have affinity with Mongolian race. The racial inter-mixing has
taken place but only in a limited way. The principle of unity in diversity is accepted and yet
diversities are many a time allowed to dominate the objective of unity.
The Constitution categorically ends racial discrimination and provides for secularism as the
best way, yet in actual operation of socio-political processes, racial factor plays a role in
India.
7. Caste and Castes:
Caste and casteism has been the pre-dominant feature of India social system. It is an ancient
practice, may an ancient evil which continues to influence Indias social, economic, cultural
and political life.
The constitution in abolishing untrouchability and in providing for no discrimination on the
basis of caste and creed has taken a great step towards their dilution, if not elimination of
caste and casterism.
But in the actual process of Indian society, caste and casteism continue to be major factors.
An attempt is on to limit their role.
Increased social mobility and inter-mixing of people living in various parts of the country
have made the people less caste continues to be a major factor in the political processes like
political socialization, leadership recruitment, political communication, political participation
and voting behavior.
Caste membership and caste loyalties continue to influence the popular participation in
politics. Even the constitution provisions for reservation of seats and jobs for the people
belonging to Scheduled Castes and Tribes have failed to produce the desired integrative
effect.
Caste system has deep historical roots and hence cannot be abolished. It has been playing an
integrative role but only at the group level. It has helped the formation of social groupings in
an otherwise vast and heterogeneous population.
Hence what is needed is not its abolition but the cultivation of the ability to limit its role and
prevent it from acting as a source of communalism, regionalism and parochialism.
8. Communalism:
The presence of communal tension and the periodic outbreak of communal riots have been
the bone of Indian social system. Even after 55 years of independence these continue to strain
the socio-political system. The existence of some regional and communal political parties
adds fuel to the fire.
Exploitation in the name of religion, election campaigns based on communal lines and use of
religion as a pressure group are practiced by political parties, which prefers secularism and
also those which are based on a particular religion. Communalism remains a big strain on
Indias efforts towards nationalism.
The mean ace of communalism constitutes a big danger to the unity and integrity of the
nation. Even the spread of literacy and operationalisation of several control mechanism have
produced little success towards the elimination of this menace.
The rejection of communal electorates and the implementation of a communal electrode too
have failed to produce the desired results. Each year the State has to spread a huge amount of
money for preventing and controlling riots and providing assistance to riot affected people.
All this seriously limits the capabilities of India social system.
9. Regionalism:
Religious, linguistic, cultural and caste diversities prevailing in the India society have
together strengthened the forces of regionalism. Love and concern for ones local areas of
inhabitation is something natural.
The adoption of federal structure presupposes the existence of some regionalism due to which
the division of pw3r is done between the federal government and the federating units. India is
not an exception to generalization. But unfortunately, regionalism in India often takes the
form of sub-nationalism or even anti-nationalism.
The sons of the soil principle and the existence of several regional political parties with
narrowly conceived regional goals have aggravated the problem.
People belonging to a particular region or state regard fellow citizens who belong to other
areas/regions/states as outsiders. People of Haryana regard Punjabis outsiders and even raise
such slogans as Haryana for Haryanvis. Similar cries are also heard from other parts of the
country.
Inter-state boundary disputes, demand for more and more autonomy for the states, separate
states and independent states are manifestations of regionalism which characterize Indian
society and which deep the political system under stress.
The need to channelize regionalism and make it a contributing part of nationalism is one of
the biggest tasks before the Indian socio-political system.
10. Tradition and Modernity:
Tradition and modernity exist side by side in the Indian society. The attempts of
modernization of tradition as well as traditionalisation of modernity are simultaneously
present.
Tradition is clearly being affected by modern trends and pressures like politicization of caste,
lessening of caste consciousness among the urban elites, operationalism of modern western
tools of administration and government etc but at the same time modernity after gets colored
with traditionalism when the social and political elites talk in terms of age old glorious
traditions of India.
The Indian approach towards development reflects both tradition and modernity. As Rajni
Kothari writes, The Indian approach to development may be characterized as one in which
the exposure to modernity led to a renewed awareness and quickening of traditional identity,
its reinterpretation and rejuvenation and its consolidation in the framework of new institution
and ideas.
The Indian response to modern stimuli consisted of asserting the Indianans of India,
reformulating this Indianans and giving it a modern character.
The model of those who conceive of modernization as a rejection of traditionalistic and
transformation on modern lines does not apply to India. Nor does the opposite model of those
who deny potency to modern institution and values and simply assert the durability and
resilience of traditionalism.
What is happening in India can be described as an attempt as a synthesis of tradition and
modernity for achieving a new identity without destroying its rich diversity and cultural
heritage.