4th Chapter-Socio Cultural Environment.pptx

4th Chapter-Socio Cultural Environment.pptx

1. Socio Cultural Environment

2. Socio cultural environment Customs, traditions, values, beliefs, practices, behavior, poverty, literacy, etc.

3. Elements of socio cultural environment Culture Language Religion Social systems

4. Elements of socio cultural environment Level of education Customer preferences Social institutions Population growth rate

5. Corporate governance Corporate governance deals with looking after complete governance of various organizations with respect to financial disclosures, transparency, legal practices, organizational structure and social welfare.

6. Corporate Governance According to OECD , “Corporate Governance is the system by which business corporations are directed and controlled. The Corporate Governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance.”

7. NEED FOR CORPORATE GOVERNANCE Independent business decisions Bringing new ideas Attracting sources of funds Gaining trust and confidence Helping in operational performance

8. NEED FOR CORPORATE GOVERNANCE Reduces risk and costs Long term survival Stakeholder relationship Good credentials Commitment to values and ethical conducts

9. CORPORATE SOCIAL RESPONSIBILITY OF BUSINESS “Corporate Social Responsibility is the entire range of obligations business has to society.”

10. Models of CSR Economic Legal Ethical Discretionary

11. COMPONENTS OF CSR Towards owners of enterprise Towards workers Towards consumers Towards society Towards the government Towards the weaker section of society

12. Importance of CSR Optimum utilization of resources Producing goods and services efficiently C ontributing to the economic well- being of society Providing public amenities and avoiding the conditions of slums and congestion Maintain environmental ecology and adopting anti-pollution measures.

13. SOCIAL AUDITS Social audit is a set process of reviewing the organization performances, code of conduct, and its CSR work report and initiatives. Social audits making transparencies in work-culture of the organization and its performances. Social audits reduce wrong practices, wastages, and improves the way of working of the organization.

14. Objectives of Social audit Help organizations to identify the areas where they can improve their social performance Identifying gaps Improving financial management in accordance with the budget Effectiveness and efficiency Assessing impacts

15. Steps of Social Audit Find circumstances leading to the commencement of the social audit program. List goals of the social program. State how the organization is going to meet such goals. Quantitatively evaluate what is actually done as against what has been planned.

16. USES OF SOCIAL AUDITING To indemnify the requirements in accurate manner and helps in making an environmental-oriented work culture within the organization. To make sure transparency in financial and accounting report. To facilitate free from harassment and equal opportunity organizational system. To ensure the utilization of funds as per the requirement.