Features of India’s current social environment are as follows:
1. Important role of the society: Social environment comprises of the society, which ultimately comprises of consumers, investors, employees and local community. They bear larger impact on the success and failure of the business. A businessman must not take the social environment for granted.
2. Indian businessman gave least priority to social environment: 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.
3. Alertness in consumers: with improvement in literacy ratio, education level and development of media industry, the consumers started being alert about what is sold to him. Consumers are now in a mood to fight as and when they are exploited as regards to price, quality, etc. Consumer protection act 1986 has made consumers alert and strong.
4. Employees/ Workers Awareness: The employees as well as workers in India are now becoming alert and aware about their rights and welfare. Trade unions demand attractive wages, monetary incentives and welfare facilities. Employees also get attractive salary, perks, bonus and other facilities. Thus, growing awareness in employees and worker class has contributed to a change in social environment in India.
5. Importance to the society: The society people have overall become alert. The organizations also take care of the environment related policy, make sure that the surrounding does not get disturbed, they prefer to recruit the local people in case with MNCs. The community has become very sensitive related to the environment, pollution etc.
6. Changed Indian business community: Indian businessman has started giving preference to the Indian society. Many business houses have developed their research centers; they conduct regular R & D, give importance to consumer’s expectations, started consumer’s cell. In short, they have started treating consumers as kings for their market. Thus, the business community has started becoming conscious of new trends in the social environment.
7. Social impact of globalization: Globalization and its impact on Indian market.
Fast changing social environment
Inter-dependency of business and society/culture.
Businesses need to be alert on changes taking place on societal side.