Define the term "sociocultural environment" with regard to business.

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The sociocultural environment of a business is the customs and values that guide the business’s practices. It is created by the demographic characteristics of its leaders along with its employees. It can be evident in the company’s vision and mission statement. A company’s values are reflected in its policies. For...

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The sociocultural environment of a business is the customs and values that guide the business’s practices. It is created by the demographic characteristics of its leaders along with its employees. It can be evident in the company’s vision and mission statement. A company’s values are reflected in its policies. For example, a company with a strong family-focused culture will offer more employee benefits centered on this value. This company may offer flex-time for its employees, maternity leave for both fathers and mothers, and day care services or discounts.

The sociocultural environment of the business’s marketplace also affects the company’s business practices. For example, when McDonalds began opening stores in India it had to take the sociocultural environment into account since most of their new customers would not eat beef and many were vegetarian. Therefore they had to consider menu changes to meet the needs of their new customer base.

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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.

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