Every business firm operates in a given type of environment. The environment is the firm's surroundings. Some aspects of the environment have the ability to affect how the firm will need to behave and what its strategies will be. The sociocultural environment is that part of the firm's environment that has to do with society and culture (as opposed to purely physical or economic factors).
Each firm operates within a particular society or societies. It must alter its behaviors so as to conform to the social and cultural values of the places in which it is operating. For example, a firm operating in America may well use scantily clad models in its advertising, but a firm operating in a more conservative society should not.
Firms must always be aware of their sociocultural environment so that they will not act in ways that are offensive to their potential customers.