BUSINESS AND SOCIETY

The traditional idea of business, which limited it to trade and personal gain, has undergone a
significant transformation. Business is now viewed as a social entity that is fundamental to the social
order. Business is a "social institution, per-forming a social mission and having a broad influence on
how people live and work together," according to Davis and Blomstorm.

The world of business cannot be separated from the rest of society. The modern world is a business
environment. In addition to the systems idea, Davis and Blomstorm note that three other principles
are crucial when considering an ecological view of business in a systems relationship with society.
Values, viability, and public awareness are the three concepts.

Businesses acquire specific belief systems, much like any other social institution these ideas, values,
and the causes they support serve as a source of institutional motivation. These values come from a
variety of sources, including the company's purpose as a social institution, the country in which it is
based, the kind of industry it operates in, and the character of its staff.

In order for a business to be a viable, thriving institution in society, Davis and Blomstorm describe
viability as the desire to live and grow, to realise the potential still unrealized, and to become
everything a living system is capable of becoming Public Visibility.

The part to which people outside of an organisation are aware of its actions is referred to as public
visibility. Public awareness is unlike the notion of a public image. The benefit of having company
activities visible to the public is that they are susceptible to scrutiny, debate, and evaluation.
 BUSINESS AND CULTURE

A fascinating and complex phenomenon called culture is frequently a crucial part of the business
environment. Therefore, a corporation that attempts to conduct business in a strange cultural context
may run into a number of issues.

The majority of international businessmen concur that "cultural differences are the most important
and problematic variables the multinational company faces. Per E.B. Taylor the complex whole that
consists of knowledge, belief, art, morals, law, tradition, and other skills and habits that man has
gained as a member of society is known as "civilizational culture." Francis Merill defines the concept
of culture as follows based on the many definitions of culture: Is the characteristically human
product of social interaction;
• It is a basic determinant of personality because it: • Offers socially acceptable patterns for addressing
biological and social needs; • Is cumulative because it is passed down from one generation to the
next in a given society; • Is learned by each individual during the course of his development in that
society; and • Depends on society's continued operation for its survival but is independent of any one
person or group.

• People are Created by Culture: The idea of culture is extremely important to business and human
ethos. It tends to mould people's personalities by training them along specific lines.

• When individuals from diverse cultural backgrounds support, own, and run organisations. At least
four tasks are carried out by culture: • First, culture establishes divisions between various
organisations.

• Thirdly, it helps people develop a commitment to something higher than their own self-interest.

• Second, it gives organisational members a feeling of identity.

• Lastly, it improves the stability of the social structure.

• Culture and globalisation: As company units expand internationally, it is crucial to comprehend and
value cultural variances among distinct nations.

• Commercial objectives, negotiating techniques, attitudes toward the growth of business relationships,
gift-giving traditions, greetings, the relevance of body language, the meaning of colours and
numbers, and other factors differ from country to country.

• Manage diversity when individuals from many cultures congregate at a company. Diversity in the
workplace has significant effects on management strategy.
 • Managers must change their approach from treating everyone equally to recognising and addressing
differences. such disparities in a non-discriminatory manner that will guarantee staff retention and
increased productivity.

• If diversity is effectively handled, it can boost innovation and creativity in organisations and enhance
decision-making by bringing different viewpoints to bear on issues

7.2 NATURE OF CULTURE AND LEVELS OF CULTURE

Any culture's foundation is its language. It is a system of symbols and word meanings that encompasses all
facets of culture. Speech, written characters, numbers, symbols, and non-verbal gestures all fall under the
category of language. Attitudes: Positive or negative opinions, emotions, and dispositions are referred to as
attitudes. They influence how someone acts toward others and things. A person's attitude can be many
different things, such as their view of democracy, truth and honesty, the importance of justice, love and
marriage, among other things.

As it significantly affects motivation, morale, job satisfaction, productivity, and other elements of human
resource management, attitude toward work is crucial. Work ethic, or a positive attitude toward one's work,
increases productivity and job satisfaction. Rewards and compensation are important factors that influence
job attitudes. A company must create compensation and reward structure that will encourage a strong work
ethic.

Collectivism and Individualism: The philosophies of collectivism and individualism have an impact on
workplace factors like employee morale, the diversity of trade unions, and rivalry between and within
unions.

The hallmark of our civilization is collectivism. We believe in people and crowds, whether it be for a
wedding, social event, business opening, or the installation of a CNC machine at a factory. Public sector
factories have thousands of employees as well as trade unions with many thousands of members.
Ambitious or complacent A person's desire to develop or to maintain a complacent attitude depends on his
cultural ethos.

A person who is ambitious is highly motivated, acquisitive of riches, driven to excel, willing to switch
organisations, even willing to take risks. If a significant section of the population is made up of aspirational
individuals, the economy will flourish.

Most of our people are notorious for being smug. A typical citizen will be pleased to obtain a government
position since it guarantees employment security and necessitates no initiative, no talents, and no hard work.
Contrary to popular assumption, our society has a reputation for ambition, especially when it comes to
accumulating wealth. In contrast to Western societies where wealth is merely revered, ours is likely the only
culture in the world where wealth is worshipped in the form of Goddess Lakshmi.

SOCIO CULTURAL FACTORS AND THEIR IMPACT ON BUSINESS

A recent development is the tight collaboration between business and higher education. There are
significant business ramifications for education. The level of knowledge in a nation determines how
economically advanced it will be. Given that this is a general statement, the following specific
economic consequences apply:

• Countries with excellent educational resources draw a lot of high-paying sectors. A nation may
entice the high-paying businesses that are frequently referred to as "brain power" industries by
investing in education.
• Education affects a nation's commercial potential. Compared to less educated nations, educationally
advanced nations like England, France, and Germany are more likely to be marketplaces for
computers and high-tech equipment.

• The type of advertising, packaging, calibre of marketing research, and distribution system depend on
literacy and educational levels. Authority: The way in which authority is exercised varies depending
on the management style, however distinct types are probably prevalent in many civilizations. Our
culture has a reputation for power and authority being centralised among the few. The fact that
Dharma is the king or boss, a notion that is unique to our culture, has been our society's greatest
strength.
• The Scientific Method View: Our culture's adherents are open-minded and receptive. They have
always used the most recent production techniques and assimilated new technologies.
• The majority of our industrial facilities are highly automated and mechanised. As our nation has
shown, traditional culture and contemporary science can coexist. A farmer is not opposed to using
new kinds even in a village

• Ethics in Business: Ethics refers to the rule of behaviour that directs an individual in dealing with
others. This could be in the form of seeds, fertilisers, or new techniques of cultivation. It concerns
with how people behave and the rules that control how people interact with one another. Both
internal and exterior ethics exist.
• Religion: The term "religion" designates a particular, institutionalised system of activities and ideas
that are generally accepted by various individuals or factions. Regardless of the nation to which one
 belongs, religion has a significant impact on one's life. People practise strange acts and go to great
lengths for their beliefs. Religion has an effect on a nation's economy. There are hundreds of
entrepreneurs from India who have achieved success there and abroad.

• Marriage: The marriage is a social institution which results in the multiplication of people, settled
life and systematised and organised activities. All these have economic significance.

• Cultural Resources: Cultural resources refer to the heritage which makes the country distinctive. Our
country is vastly rich in cultural heritage. It makes an individual feel proud that he is an Indian.

WOMEN AND BUSINESS OPPORTUNITIES

The trend towards women in leadership positions appears to be expanding as more renowned
firms, including TATA Steel, SBI, TCS, INFOSY, GOOGLE, Apple, and IBM International, have
appointed female CEOs. In fact, there are now more women running Fortune 500 companies than at
any other time in the list's 63-year existence.
I. BENEFITS OF HAVING WOMEN IN BUSINESS
Diversity has been found to promote creativity and invention, including diversity in terms of
gender, culture, age, and race. Organizations from PricewaterhouseCoopers to Disney and L'Oreal
are among those working to emphasise and gain from a diverse and inclusive workplace.
Men and women will unavoidably come from diverse backgrounds and have distinct experiences
that influence how they conduct business. Challenging one another and working with others who
possess divergent viewpoints can foster creativity and advance the novel concepts that advance
organisations.

Although technical knowledge and skill are essential for career success, CEOs frequently cite soft
skills as the most coveted professional qualities. Though difficult to quantify, qualities like good
communication, empathy, and self-awareness are highly appreciated and can significantly affect the
bottom line. According to recent research, CEOs who score highly for qualities like compassion and
honesty also experience a 9.35% return on assets over a two-year period. This finding suggests a link
between strong character and successful business performance.

For women in business, emotional intelligence and soft skills may prove to be a crucial competitive
edge. According to a 2016 report by the international consulting firm Hay Group indicated in 11 out
of the 12 essential emotional intelligence skills, women perform better than men. These qualities
were necessary for effective leadership in the workplace and included emotional self-awareness,
empathy, conflict management, adaptability, and teamwork.
Women are thought to spend over $20 trillion on goods and services annually, making up a larger
growth market than both China and India put together. Additionally, 85% of consumer purchases are
made by women.

However, just 11% of creative directors in the advertising industry are women, up from just 3% in
2008. It's hardly unexpected that women feel undervalued and neglected by the market, according to
Boston Consulting Group's thorough analysis of the "female economy." Given the influence of
female consumers, it is obvious that women are the finest well-positioned to seize that chance and
offer useful customer insight.

It is possible to increase the marketability and profitability of goods and services by drawing on the
wisdom that both men and women have to offer. In fact, according to recent McKinsey research,
organisations with a greater gender diversity are 15% more likely to perform financially above
industry average.
II. OBSTACLES FACED BY WOMEN ENTREPRENEURS
While certain areas are exhibiting signs of an increasing female workforce, fields like banking,
engineering, and technology continue to have a disproportionately male workforce. Women make up
just 24% of the workforce in the U.S. and less than 15% in the U.K.'s STEM (science, technology,
engineering, and math) industries overall.

Women's underrepresentation may result from the ongoing misconception that "hard science"
interests are unfeminine It's crucial that women feel empowered to acquire the skills and seize the
chances provided by a career in science, technology, and related sectors because STEM occupations
are anticipated to have some of the quickest growth and greatest pay rates.

In order to narrow the gender gap in STEM fields and encourage more women to study computer
science and engineering, organisations like the National Girls Collaborative Project and Girls Who
Code are working.

Although the majority of business leaders concur that the best candidate, regardless of gender, should
be hired, stories of women who have found more success by using male or gender-neutral names on
their resumes show that unconscious bias still exists.

Women who are or wish to be in positions of power for leadership positions frequently feel they are
subject to extra scrutiny. Women are taught from an early age not to be "bossy," but men may be
encouraged to be ambitious or pushy. The same traits and behaviours, such as initiative, passion, and
taking leadership, can be evaluated differently in men and women in the workplace due to underlying
gender prejudice.

One reason for the gender pay gap is frequently attributed to women's own unwillingness to request
better pay. In a recent survey on pay negotiations, Glassdoor discovered that while over half of the
males surveyed argued before accepting a post, just 68% of women accepted the salary they were
offered. It also showed that women often failed to negotiate their initial pay when they did try.

Men tend to have a stronger sense of self-belief when vying for leadership positions or negotiating
compensation, which is nearly universally acknowledged. Even very successful women have
"imposter syndrome," which causes them to feel inadequate and underestimate their value. The wage
gap can be closed in part by women believing in their own worth and demanding salaries that reflect
that value. Greater pay transparency can also help level the playing field.

WOMEN BUSINESS OPPORTUNITIES

Gender equality is increasingly becoming a matter of policy for many progressive businesses,
whether it's committing to equal representation of women in the boardroom or appointing diversity
officers.

Employing policies that discourage and avoid bias can help organisations achieve balance and
equality. Businesses flourish when diversity, inclusivity, and gender equality are included into
company strategy rather than just being used as buzzwords or political correctness.

Organizations may recruit top talent by committing to initiatives like fair gender representation, an
inclusive workplace culture, and work-life balance, which includes maternity and paternity leave
benefits. These are just a few of the factors that make organisations like Salesforce, General Electric,
and Deloitte top choices for both men and women looking for jobs.

Running their own business also gives women the chance to work with and recruit other driven, like-
minded women, helping to develop a new generation of women in leadership positions.

Many women pursue business degrees to develop the knowledge and skills they need to stand out in
a crowded employment market. Women are increasingly choosing to enrol in business schools.
Business school provides a useful platform for women to become subject-matter experts, exercise
leadership skills, and develop the confidence they need to enter the boardroom, whether they are
pursuing undergraduate education, an MBA, EMBA, or Master’s degree.
Additionally, business school offers a priceless possibility for mentoring relationships and
networking with peers, instructors, and campus speakers. A mentor can act as a sounding board for
fresh ideas and provide guidance on the sector. Mentors can also play a crucial role as career
sponsors by providing professional chances and assisting driven and bright women in advancing
their careers.

CHILD LABOUR

Not every job performed by children should be considered child labour that needs to be eradicated. It
is typically viewed as favourable when children and teenagers who have reached the legal working
age participate in activities that don't harm their health, personal development, or interfere with their
education.

Tasks like helping out in the family company or making extra money over the summer or after
school. These kinds of activities benefit children's growth and the wellbeing of their families; they
provide them knowledge and experience and serve to get them ready to be contributing adults in
society.

Child labor is frequently characterized as employment that robs kids of their innocence, potential,
and dignity, which is bad for their physical and mental growth.

It refers to work that: is hazardous to children's mental, physical, social, or moral development;
and/or interferes with their education by: denying them the chance to attend school; requiring them
to leave early; or requiring them to try to balance school attendance with excessively long and heavy
work Whether or not a certain type of "job" qualifies as "child labour" depends on the kid's age, the
nature and duration of the work, the working environment, and the goals that various nations have.

The solution differs between nations, as well as within sectors within nations.
I. The worst forms of child labour

The worst kind of child labour entail the enslavement of children, their separation from their
families, their exposure to dangerous situations and diseases, and/or their abandonment on the streets
of big cities, frequently at a very young age.

Despite the fact that child labour can take many various forms, it is crucial to swiftly end the worst
kinds, as outlined in Article 3 of ILO Convention No. 182: the use, procurement, or offering of a
 child for prostitution, for the creation of pornography, or for pornographic performances; all forms of
slavery or practises that are similar to slavery, such as the sale and trafficking of children; debt
bondage; serfdom; and forced or compulsory labour, including the forced or compulsory recruitment
of children for use in armed conflict.
• work that, by its nature or the circumstances in which it is carried out, is likely to harm children's
health, safety, or morals; the use, procurement, or offering of a child for illicit activities, in particular
for the production and trafficking of drugs as defined in the pertinent international treaties
("hazardous child labour", see below)

• One of the worst types of child labour is hazardous child labour.

• Job that, by virtue of its nature or the conditions under which it is performed, is likely to endanger
children's health, safety, or morals is known as hazardous child labour or hazardous work.

• Article 3 of ILO Recommendation No. 190 provides guidance for governments on several hazardous
employment behaviours that should be prohibited: Work with hazardous machinery, equipment, and
tools, or that requires the manual handling or transportation of heavy loads;

• Work in an unhealthy environment where children may, for example, be exposed to hazardous
substances, agents, or processes; Work in temperatures, noise levels, or vibrations that may be
harmful to their health; Work that exposes children to physical, psychological, or sexual abuse; Work
underground, under water, at dangerous heights, or in confined spaces;

II. REMEDIAL MEASURES IN INDIA

More than 80 lakh children (5-14 years old) are still working in fields, factories, stores, and other
places in India, where child labour is still a practise that exists today. Thankfully, a combination
of stern civil society activities by groups like Save the Children and succeeding government
measures have shown a firm direction in the struggle for children's rights. Child rights are
becoming a cause for everyone due to the rise of socially conscious businesses and individuals
that support charities. Let's ensure that child labour in India is abolished.

III. HOW CAN WE STOP CHILD LABOR IN INDIA

The disruption of education and forcing of children into labour can be avoided if parents are
informed of the negative effects of child labour. Parents' ignorance of the issue leads to
instances where child traffickers prey on youngsters, and many of these children wind up
working as children. Communities with awareness are considerably more able to understand
and address concerns affecting children.
 A society that is both socially and economically developed and in which children experience
significantly less suffering is one in which communities are aware of and take advantage of
chances for growth, education, employment, and enterprise.

NGOs spread awareness of the value of children's rights in communities through activities,
sports, the arts, and theatre. NGOs also develop financial resources, educational resources,
and information services with the goal of advancing children and their communities.
 stringent laws
Long-lasting societal change depends on policymaking, and advocating for improved laws
requires proving how the change might be highly advantageous. NGOs do research on
exploited children, present their findings, and use case studies to demonstrate how their
efforts benefit children. Relationships with a variety of stakeholders, such as the media,
lawmakers, citizens, other members of civil society, etc., are necessary to drive change at the
policy level.

Legislation can stop child trafficking, as seen by the numerous cases brought under the
current Protection of Children Against Sexual Offenses Act (2012) and Immoral Traffic
(Prevention Act), which have successfully resulted in more convictions. NGOs continue to
work in conjunction with district and state officials to monitor the application of child-
friendly laws.
 Sending more children to school

India has the largest educational system in the world, yet due to poor enrollment, it struggles with
low literacy rates. Numerous programmes are carried out by organisations like Save the Children to
increase the enrollment of children in schools. The organisation identifies youngsters who are not in
school and those who are at risk of quitting and works to get them back into the educational system.

• The following are some of Save the Children's accomplishments in child education:

• Establishing "Inclusive Learner Friendly Environments" in contexts ranging from villages and slums
(ages 3–18)

• Start a conversation with kids and families about sending them to school and offer admissions
support.

• Develop engaging learning opportunities for students in the classroom using kid-friendly and
interactive teaching-learning strategies.
• Raise money to build libraries, as well as infrastructure like computers, sporting goods, and mobile
learning centres. bringing back to school with success street children, child labourers, dropouts, and
students who have never attended school.

• Dissuading individuals from hiring kids for domestic, commercial, or industrial work.

• When Indian firms publicly employ child labour in sectors like retail, hospitality, and menial labour,
it receives loud support. NGOs currently educate people on reporting cases of child labour at
companies and households and sensitise trade organisations to stop this social evil. The largest IT
market in India has been declared free of child labour thanks in part to Save the Children's efforts.

• Save the Children works to influence policies that will result in long-term societal change while
simultaneously providing emergency assistance to child labour victims. The NGO aims to make sure
that current policies are implemented as intended. In ongoing rescue and relief operations across
India, 9337 children have been saved from child labour. Save the Children, which operates in 120
nations, aims to give millions of children who have been harmed by war and exploitation a new start
in life through education.

• The NGO collaborates with state and federal authorities, especially state police agencies, to prevent
child exploitation in states with significant child vulnerability, including Punjab, Delhi, Bihar, J&K,
Jharkhand, West Bengal, and Assam.
 CONSUMERISM

Consumerism is a social force that organises consumer pressure on businesses to safeguard

consumers' interests in the marketplace. The basic foundation of the marketing notion is under attack
by consumerism. P.F. Druckers asserts that consumerism calls into question four key precepts of the
marketing theory.

(i) It is presumed that consumers are aware of their demands

(ii) It is a given that business is aware of these demands and genuinely cares about meeting them.

(iii) The assumption is that businesses do offer helpful information that exactly matches products
to customer wants.

(iv) It is assumed that goods and services actually live up to both customer expectations and
business commitments.

8.1 Marketing and Consumerism in India

Consumers have the right to anticipate their purchases to be using it safely. The product shouldn't
make any false or deceptive pledges and should be able to deliver on its promises. In reality, this
"right" is a minefield for the marketing industry.
This covered four key areas that ought to be fundamental rights for all customers:
First everyone has the right to safety, followed by the rights to information, choice, and hearing.
(1) The Right to Safety: Products that were once thought to be safe for use or consumption have
since been disproven by contemporary study.

(2) Rights to information: False or deceptive advertising, incomplete information about product
ingredients, incomplete information on health issues, and other issues are all covered by the right to
information. Instructions for using the product, misleading information about pricing or payment
terms, etc. But this takes a disapproving stance. Avoiding conflict alone won't enough.
Every chance to interact with customers and educate them on the advantages and qualities of the
merchandise being sold should be seized by any market. It shouldn't be a defence to say that
customers don't read directions. Marketers are responsible for ensuring complete and efficient
customer and supplier communications.
(3) The Freedom of Choice:
The consumer has the freedom to make their own decisions, but marketing undoubtedly tries to
sway them. However, in the majority of western marketplaces, competition is encouraged and
consumers should not be misled by items.
For instance, it has been proposed that to make this privilege more accessible, Changes to
packaging should be made to ensure that identical items from various companies are packaged in
precisely the same quantities, or at the very least, utilise both metric and imperial weights/measures
to facilitate customer value comparisons.
(4) The Freedom to Speak:
Free expression is guaranteed in all western nations. Do businesses, though, pay attention to their
customers? Such feedback ought to be welcomed in a marketing organisation with a clear purpose,
and it ought to be considered a crucial component for the future. Customers have the freedom to
voice their opinions following a purchase, particularly if they are unsatisfied. The buyer should
anticipate that any issues with their purchase will be fairly and promptly resolved.
II. Indian scenario on consumer protection and consumerism
The typical consumer is less knowledgeable and less powerful than the seller, consumer
protection is important. Laws and voluntary actions can both be utilised to safeguard consumers.
A consumer is anybody who purchases things and uses services for their own purpose. Any
person who uses these products and services with the buyer's consent is considered a consumer.
More than thirty laws have been passed by the Indian government to help consumers.
The Contract Act of 1882, the Sale of Goods Act of 1930, the Laws of Torts, the Essential
Commodities Act of 1955, the Tine Prevention of Food Adulteration Act of 1954, the Standards and
Weights of Measures Act of 1976, and the Monopolies and Restrictive Trade Practices Act of 1977
are a few of these. Agriculture Produce (Grading and Marketing) Act of 1937, Trade Practices
(MRTP) Act of 1969, and Consumer Protection Act of 1986.
III. Consumerism includes the following types of customer complaints and solutions:
 Eliminating or decreasing the dissatisfaction and unhappiness that are produced in the
market's buyer-seller transaction connections.
 Consumerism is interested in safeguarding customers from any business with which they
have an exchange arrangement.
 Contemporary consumerism is also very interested in environmental issues that have an
impact on people's quality of life.
 RURAL DEVELOPMENT

Rural development typically refers to a strategy for improving peoples' quality of life and
financial security, particularly those who reside in inhabited and distant locations. Traditionally, the
overuse of land-intensive natural resources like forestry and agriculture was at the heart of rural
development. Today, however, the nature of rural areas has changed due to urbanisation and changes
in global industrial networks.
The foundation of the nation's overall development continues to be rural development. A third of
rural India's population still lives below the poverty line, while more than two thirds of the
population depends on agriculture for their living. Therefore, it is crucial for the government to
provide and offer sufficient facilities to raise people's living standards Example :
• Infrastructure development and education (electricity, irrigation, etc.)

• Access to credit;

• Facilities for agricultural extension and research

• Employment prospects

• Rural Development's Value

• Rural development is crucial for the overall economic growth of the country as well as for the
majority of the population who live in rural areas.

• In the country now, rural development is thought to be of noticeably greater importance than in
earlier times in the process of the nation's growth.

• It is a strategy that seeks greater productivity, greater socioeconomic equality and ambition, and
stability in the growth of society and the economy.

• The primary goal is to make enough nutritious food available and reduce the starvation that affects
around 70% of the rural population. The secondary goal is to make sure. the accessibility of clothing
and footwear, a clean home and surroundings, medical care, entertainment options, educational
opportunities, transportation, and communication.

8.3 OBJECTIVES OF RURAL DEVELOPMENT

The objectives composed by the government in the sixth five-year plan for rural development
are:
• To improve productivity and wages of rural people

• To guarantee increased and quick employment possibilities

 • To demolish unemployment and bring a notable decline in underemployment

• To guarantee an increase in the standard of living of the underprivileged population

• To provide the basic needs: elementary educations, healthcare, clean drinking water, rural roads, etc.

Rural development is important because of the following reasons:

(i) A large proportion of 1. Rural people account for about 3/4th (75%) of the total population.
population is living in rural areas 2. In 2016, 68.84% of the population accounted for the rural
population.
3. They have always lagged much behind the overall progress of the
economy.

(ii) Agriculture: Major source 1. Agriculture is still a major source of livelihood in rural areas.
of livelihood 2. More than two-third of India’s population depends on it.
3. So, the development of agriculture will contribute to the betterment
of rural areas and rural people.
 (iii) Lack of basic necessities 1. Majority of poor people live in rural areas.
2. They do not have access to basic necessities of life like food, health
facilities, sanitation, etc.

2. Explain the key issues in rural development. (NCERT)

Answer: The key issues in rural development are:

(1) Development ● There is a lack of infrastructure in rural areas.

of infrastructure ● Infrastructure development like electricity, irrigation, credit, marketing,
transport facilities, etc., needs to be addressed.

(2) Reduction of ● The reduction of poverty is important because rural areas have the
poverty maximum poverty.
● Around 30% of the population is below the poverty line; this figure reduced
to 21.92% in 2012.
● There is a serious need of taking steps for the alleviation of poverty.

(3) Development ● Rural areas lack proper health facilities.

of health facilities ● Better health facilities are necessary for physical growth of individuals.

(4) Development of ● Productive resources of each locality need to be developed to

productive resources enhance employment opportunities.
● It will help in diversification of production activities with a view
of finding an alternative means other than crop cultivation to sustain life.

(5) Development of ● There is a need to improve the quality of human resources in rural
human resources areas.
● It can be done by improving the literacy rate (especially female
literacy), skill development, industrial training, etc.

8.4 PROJECTS AND PEOPLE

 Understanding the organizational's strategic and operational goals as well as the project's particular goals
is crucial for project leaders. Understanding the external business environment that may have an impact on
the project and cause change is equally crucial.
Changes in the internal and external corporate environment frequently result from:
• Market and competition;
• Regulatory and compliance;
• Technology;
• Politics
The business environment must be regularly monitored and addressed by a project leader. Start by
posing thoughtful queries. Additionally, you need to plan for environmental risks all throughout your
project. The following are some methods for predicting changes brought on by the environment.
I. Business environment considerations for the project manager
You can take a number of steps to improve your business environment awareness and get ready for
project scope impacts.
i. Educate Yourself: Increase your awareness and knowledge about organisations. Think on the
strategic goals. Who makes the important decisions? What takes place if the endeavour fails?
What is going on in the sector? Find new influences, such as how stable the regulatory or
compliance environment is, whether technology will advance, and whether the market is
becoming more or less competitive. Recognize and draw connections.
ii. Recognize Changes: Keep an eye on what is occurring both internally at your company and in the
market. Watch out for any side effects that can affect the scope of your project. What is learned?
What is novel?
iii. Evaluation of the Organization Identify whether your company has the maturity and mechanisms
to support environmental changes that may arise during or as a result of the project, how the
project can respond to them, and how it can adapt to these changes. can get the company ready
for the change.
iv. Establish Processes and Procedures: Look for chances to enlist more assistance and support. To
effectively handle the problem, it helps to be able to recognise and alert the necessary
stakeholders to a change in the business environment. It is simpler for all project stakeholders to
escalate concerns when there is a clear framework in place.
v. Observe Your Environment: We can spot trends emerging or spot changes to the project
environment early and take proactive action during project work by keeping an eye on the known
environmental components and our current condition.
vi. Identify Challenges: Examine challenges as they arise and provide solutions to move the project
along.
vii. Continuous Improvement: What new information are you gaining that might help you perform
better or more efficient work?
 II. Stakeholder Engagement Strategies
Ask your stakeholders to help you identify the elements of the internal and external business
environment that need to be taken into account. You should find out what factors they believe may be
affecting the business environment. Request their assistance in identifying any project-related hazards. To
keep the project on track, encourage stakeholders to work with you to develop ideas, methods, and
evaluation tools.

Sharing pertinent project information with stakeholders is another aspect of engaging them. For instance,
you should convey the cost of failing to foresee changes in the business environment and their effects on
your project. Update your audience on the project's management in the larger organisational context and its
successes. Give the proper information to the project leadership. Describe your motivations for doing this
and provide examples using your actions how it’s relevant, appropriate, and important such as:
1. Clarify the Current State
The current situation of your company's environment should be clearly stated. To prove your
comprehension, take into account the following:
• Talk to stakeholders.
• List the influences on the external business environment.

• Keep in mind internal motivators and attitudes

• Using an affinity diagram to identify group influencers

• Check for any missing groups in the analysis

• Examine the results

Prioritize for focus.

2. Establish a Business Environment Influencers Register

Utilize a register as a database for the influencers and pertinent information. Along with other
information, it ought to include the name and description of any existing issues. Here is a list with more
specifics:

• Influencers' names and brief descriptions

• Category
 (External or internal) Type

Action is necessary.

• Risks

• Timing

• Measures

• Owner

• Project influence level

3. Conduct check-ups to ensure accuracy.

While the project is being worked on, Plan a regular reassessment of the present situation. In this
assessment, consider:
• What is new?
What has altered
• Could the initiatives have unforeseen beneficial or detrimental effects?
• What needs to change?
• What should be prevented?

SOCIAL AUDIT

An official assessment of a company's efforts, practises, and code of conduct with regard to social
responsibility and the company's effects on society is known as a social audit. An evaluation of the
company's performance in meeting its social responsibility criteria or goals is known as a social audit.

In a perfect world, businesses would reconcile social duty with revenue. An internal assessment of a
company's social impact is called a social audit. The audit assists businesses in determining whether they are
accomplishing their goals, which may include quantifiable milestones and targets. An organisation can use a
social audit to determine whether the actions it is taking are being perceived favourably or unfavourably and
to link that data to the company's overall public perception.
In the era of corporate social responsibility, businesses are frequently required to meet environmental and
social criteria while also providing value to customers and shareholders. Social audits can assist businesses
in establishing, enhancing, and sustaining a favourable public relations reputation. A positive public
perception is important for many businesses since it promotes a positive company image and, in the end,
lessens the detrimental effects of poor press on profits.
• Items Inspected During a Social Audit

• A social audit's scope is flexible and open-ended. Both employee treatment and social and public
duty can be evaluated. The following are some of the guidelines and subjects covered by a social
audit:

• Transparency in reporting any issues about the influence on the environment; • Environmental
impact stemming from the company's operations public or setting.

• The following criteria should be met: accounting and financial transparency; community
development and financial contributions; charitable giving; employee volunteerism; energy use or
impact on the environment; a safe and harassment-free workplace; equal opportunity; worker pay
and benefits; and nondiscriminatory practices.

• Diversity

• The components of a social audit are not standardised. Because social audits are optional, businesses
can decide whether to expose the findings to the public or keep them internal.

• The adaptability of social audits gives businesses the option to alter the scope in accordance with
their objectives. Other businesses may decide to broaden the scope of the audit to include an entire
region, whilst one company may want to understand the influence it has on a specific town or city,
state, country, or throughout the globe.

I. Use of Social Audit

Any public disclosure of the results resulting from social audits is voluntary as well. Negative
results could be kept internal and utilised to identify potential modifications that could make the
outcomes of the next social audit more favourable, while positive results might be made public.
For instance, a corporation may learn from its review that it was not sufficiently engaged in
charitable endeavours within the community. Executives at the corporation could then implement
projects with quantifiable objectives intended to boost community involvement. The subsequent
social audit could keep an eye on and assess the activities.
The business can gradually enhance its reputation with the public by consistently working to
achieve and beyond its social responsibility goals. Simply said, social audits assist businesses in
achieving a balance between profits and ethics.
 CORPORATE SOCIAL RESPONSIBILITY (CSR)

The phrase "corporate social responsibility" (CSR) refers to how a business gives back to or enhances the
community. CSR can be demonstrated by businesses in a variety of ways, such as through employee
volunteering, charitable donations, environmentally friendly production methods, and ethical hiring
procedures.

The phrase "corporate social responsibility" is frequently used to refer to a company's moral duties to
society. This suggests that corporations, like persons, are an essential component of society and that social
rules should govern how they behave.

H.S. Singhania divides the types of corporate social responsibility into two groups. • The way a business
conducts its own business activities. • The welfare initiative it undertakes as part of its mission. a secondary
purpose.
• Steiner and Steiner suggest the following as an acceptable approach to social responsibility.
1. Each company must consider the circumstances surrounding its ability to meet stakeholder
expectations.
2. Since it is an economic entity, business cannot put its profitability at risk by addressing social
issues.
3. Business should understand that everyone benefits in the long term from the broader social good.
4. A company's social influence over outcomes is directly correlated with the social responsibility
that is required of it.
5. The size of the business and the sector it operates in have an impact on its social responsibility.
6. A company should only focus on social issues in which it is skilled.
7. The social responsibility that falls to business must be shared, and Be prepared to shoulder
appropriate social costs.
 1. The following are significant determinants of a company's social orientation.
• Promoters and Top Management: One of the key elements affecting corporate social
responsibility is the promoters' and top management's values and vision.
• Board of Directors: The Board of Directors determines the primary policies and resource
allocation for the organisation, so the board members' attitudes have a significant role in influencing social
orientation.
• Stakeholders and Internal Power Relationship: The internal power relationship and the attitudes
of different stakeholders, such as shareholders, creditors, employees, etc., have an impact on a company's
social orientation.
• Societal Factors: Certain aspects of society have an impact on how socially conscious a firm is.
and general societal perceptions and expectations with regard to corporate social responsibility.
• Industry and Trade Groups: By establishing professional and ethical rules and conventions,
education, and group choices, industry and trade associations also have an impact on how businesses
behave.
• Government and Laws: Laws codify what is right and wrong in society. The rules of the game
must be followed by business. Different countries have different antitrust laws, laws to stop corruption, laws
against unfair practises, etc.

In addition to law, the government can also exert influence through rules, persuasion, incentives
(such tax breaks), and pressure.
• Political Influences: Political influences include the pressure put on corporate practises by special
interest groups in society and the media. These comprise several non-governmental organisations (NGOs),
such as consumer advocacy groups and environmentalists. Competitors: Competitive forces also have an
impact on a company's social orientation. Two distinct competitive behaviours are frequently observed.
Others may be inspired or driven to act when one or a few businesses get active in society.
• Resources: A company's financial standing and other resources might have an impact on its social
involvement. It should be emphasised that the Tisco was forced to impose a cap on its social responsibility
spending, albeit at a rather high level.
• Ethical Influences: Making ethical decisions and exercising self-control in business activity are
additional factors that affect social orientation.
II. RELATIONSHIP WITH SHAREHOLDERS

In fact, a company's duty to its owners, or shareholders, is its most important one. The fact that the
stockholders took a big risk by investing in Investment in the company should be properly acknowledged.
The primary business of a firm is to stay in business" in order to safeguard the interests of the
shareholders and employees. The shareholders are concerned with the company's reputation in addition to
the safety of their investment and the return on it.
 A company's position would be rattled and the interests of the shareholders will be compromised if it
is unable to adapt to changes in a dynamic and ever-changing environment. The business should strengthen
its position through innovation and expansion, consolidate its market share, and boost share prices.
• The shareholders are concerned with the company's reputation in addition to the safety of their
investment and the return on it. Therefore, it will, The company's goal should be to maintain a positive
public image that makes its shareholders feel proud to own the business.
III. RESPONSIBILITY TO EMPLOYEES

An organization's success rests in large part on the spirit of its workforce and their unwavering
cooperation. The fulfilment of the company's obligations to them and the employer-employee relationship
have a significant impact on employee morale. The organisation owes the following duties to the workers:
1. Paying fair wages;
2. Providing the best working conditions;
3. Establishing fair work standards and norms;
4. Offering labour welfare facilities to the extent possible and desirable;
5. Making arrangements for the
6. Reasonable opportunities and an appropriate structure for success and promotion;
7. Appropriate recognition, respect, and support of the workers' unique skills and abilities.
8. the implementation of a productive grievance handling system;
9. the potential for desirable managerial decision-making participation
IV. ACCOUNTABILITY TO CUSTOMERS
There is only one legitimate definition of a company purpose, in Peter Drucker's words: "to develop
a customer." According to Drucker, a company's foundation and lifeblood are its customers. Only he offers
jobs. The business enterprise is given society's wealth-producing resources in order to satisfy consumer
wants and needs.
1. To raise the effectiveness of the business's operations in order to boost productivity and To make
products more accessible, costs must be decreased, quality must be increased, and the distribution system
must be made more efficient.
2. To carry out research and development, enhance the standard of the product, and
launch new and improved products.
3. To take the necessary action to fix any flaws in the distribution system, such as
unethical marketing, middlemen profiteering, or unsavoury characters.
4. To provide products at fair prices even in seller's markets.
5. To offer the necessary post-purchase services.
6. To make sure the given product has no negative effects on the consumer.
7. To give customers enough information about the products, including the dangers, side
effects, and precautions to be taken when using them.
8. To prevent deceiving customers through bad advertising or other methods.
 9. To provide an opportunity for being heard and to redress genuine grievance
To make products more accessible, costs must be decreased, quality must be increased, and the
distribution system must be made more efficient.
• To carry out research and development, enhance the standard of the product, and launch new and
improved products.

• To take the necessary action to fix any flaws in the distribution system, such as unethical marketing,
middlemen profiteering, or unsavoury characters.

• To provide products at fair prices even in seller's markets.

• To offer the necessary post-purchase services.

• To make sure the given product has no negative effects on the consumer.

• To give customers enough information about the products, including the dangers, side effects, and
precautions to be taken when using them.

• To prevent deceiving customers through bad advertising or other methods.

• To understand customer needs and to take necessary measures to satisfy these needs

V. RESPONSIBILITY TO THE COMMUNITY

• A company has many obligations to the neighbourhood where it is located and to society at large.
One of these obligations is to take the proper action to prevent environmental contamination and to
maintain the ecological balance.

• Rehabilitating any population that has been displaced as a result of the functioning of the enterprise.

• Contributing to the neighborhood's overall growth.

• Whenever possible, taking steps to save limited resources and creating alternatives.

• Increasing the operational efficiency of the firm.

• Making a contribution to development and research.

• The growth of underdeveloped areas.

• Promotion of ancillarisation and small-scale industries.

• Making every effort to contribute to societal concerns including population control and education
promotion.

• Making a national contribution to the struggle to create a better society.

• EVIDENCE FOR AND AGAINST SOCIAL PARTICIPATION: The key reasons for and against
business's social involvement are listed below. Justifications for Social Engagement Business
 1. Businesses that depend on societal resources to survive have an obligation to that society.
2. Because it is a vital component of the social system, business must attend to the many
requirements of the community.
3. Resourceful business has a specific obligation to the community.
4. Business social responsibility would promote a positive and fruitful interaction between
society and business, to the mutual advantage of both.
5. Social obligations like recycling rubbish can have positive financial outcomes.
6. Social engagement may inhibit further governmental intervention and regulation.

Social interaction could lead to a more favourable public image for the business, which could aid
it in luring consumers, competent staff, and investors. Arguments against business social
involvement:
1. A firm should stick to what it does well. Government and nonprofit organisations are available
to carry out social activities.
2. Participation in social activities may have a negative impact on a company enterprise's
financial health. It should be mentioned that TISCO has been heavily burdened by social welfare
spending.
3. There is little use in praising a business's social commitment if the cost is ultimately passed on
to the consumers. Due to the expensive business sector undertakings, there may occasionally even be
a net loss to society.
4. Due to tax benefits on income used for certain social reasons, many businesses
participate in charitable activities.
5. If a company's social responsibility results in a price increase for its goods, it may lose
some of its competitiveness in both home and foreign markets.
6. Business's social involvement may boost its power or influence in society, increasing its
dominance.