Legal and social environment of business pertains to day to day affairs of business. Interaction of staff members with each other, chit chat in tea and lunch breaks, get together and parties on achievements and honors of colleagues, employees-management relations, annual dinners, picnic and outings etc all make the social environment of business. On the other hand regulatory affairs, industrial relations, compliance of rules and regulations etc are part of the legal environment of the business.
How it is developed
Discussing about legal and social environment of business it is necessary to learn how social environment is developed. It is a gradual process. When a company is established and staff is hired, by and by they develop social relationships with each other apart from having regular official relations which are not by choice but by default. Under social interaction employees get to know each other and whoever they like most they develop proximity with them which continues till they remain colleagues and even if they quit then too they have good relations with each other. This bonding develops the basis for social environment of the business.
In legal and social environment of business class consciousness remains there and every employee love to interact with colleagues of same level but it is not necessary that a group of employees of same level remains confined to interact with each other. All employees usually love to develop friendly and congenial relationships with as much colleagues as possible but feel at ease while interacting with those of same age group, field, and seniority level. Therefore, we can say that social environment of the business remains free of any class distinction and people interact with each other without any duress or compulsion.
Top managers’ objectives
In legal and social environment of business top level management also try to make the working environment so pleasant by not only adding pleasantries in physical environment but offers opportunities to employees to interact with each other and keep the social environment warmer. Weekly gatherings, sitting over a cup of tea, picnic parties, family functions are few of such opportunities which are offered by employers to develop warmer relations amongst staff members. In this way work efficiency of staffers also improves as every theory of management says congenial working environment brings on more output.
The legal aspect
In legal and social environment of business, the legal aspect has already been covered in other articles easily found on this website but here we again describe it for the sake of recall. In legal environment all regulatory and legal compliances are ensured to avoid any kind of legal violation. Every company has to abide by all laws, rules and regulations levied on it and develop a reputation of law abiding company without any avoidance of legal framework. In this way a company earns goodwill and enhances its clientele to earn more profits. In countries where there is strict implementation of business laws, it is not a big task to abide by them. However, in those countries where legal frame work is little loose there it all depends upon the company that how it develops the image of law-abiding company by giving due respect to all concerned laws by fully complying with them.Do You Like This Post?