The Effects of Socio-Culture on Global Business
Clarke Ricks School of Business,
Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
May 7, 2022
The Effects of Socio-Culture on Global Business
Your business does not operate in a vacuum, especially if you do a lot of work overseas.
This means societal and cultural changes can have an impact on your company based on how
your target audience’s attitudes and moods shift over time. Socio-cultural factors can involve
social attitudes, beliefs, education, legal structure and political ideology.
You do not have to overhaul your company’s mission statement and values based on the
whims of your audience. However, as society and culture change, your responsibility as a
business owner or leader is to adapt and stay ahead of your competitors and remain relevant in
the minds of your consumers.
Changing Preferences Require Adaptation
One of the major socio-cultural factors influencing businesses and business decisions is
changing consumer preferences. What was popular and fashionable 20 years ago may not be
popular today or 10 years down the road. Different styles and priorities can undermine long
successful products and services. For example, a clothing company must constantly be aware of
changing preferences when creating new products or it will quickly become outdated.
Another example is the marketing industry. Ten years ago, consumers wanted businesses
to market their products and services on TV, radio and in newspapers. But after the
introduction of the iPhone and the emergence of social media, consumer preferences changed.
Audiences have now become more mobile, which means that to reach them, companies have
had to develop mobile marketing strategies.
Changing Demographics Affect How You Target Your Audience
Changes in demographics are also a significant factor in the business world. As
populations age, for example, markets for popular music and fashions may shrink while markets
for luxury goods and health products may increase. Additionally, changes in the proportion of
genders and different racial, religious and ethnic groups within a society may also have a
significant impact on the way a company does business.
This is especially true when it comes to marketing products and services to a younger
generation. For example, clothing styles are always changing, but the most significant change
occurs in the demographics of prospective buyers. It used to be that business owners in the
clothing industry could cast a wide net and reel in customers, but with audiences so segmented,
understanding the growing power of Generation Z, for example, is vital. This audience is often
categorized as buyers born in 1995 onwards, and they have emerged over the past five years as
a motivated consumer group.
Gender and Racial Attitudes Impact Internal Work Environment
In addition to a company's interactions with the market and its customers, socio-cultural
factors also influence a company's internal decision-making process. For example, changing
gender roles and increasing emphasis on family life have led to increased respect for maternity
and paternity leave with organizations. Additionally, attitudes toward racial discrimination and
sexual harassment have changed drastically over the years because of a socio-cultural change.
More recently, sexual harassment has become an explosive issue, driven by the countless
number of powerful corporate leaders that have run afoul of harassment charges. As a result,
societal attitudes about how women should be treated in the workplace have dramatically
shifted. In the past, an “old boys network” was tolerable if only because women didn’t feel
empowered to push back against entrenched ideas about their work roles. But as women have
begun speaking up and telling their stories regarding harassment, company leaders have taken
note.
It is no longer acceptable for you to take a laissez-faire attitude about how your female
employees are treated by male colleagues. Business leaders that maintain this type of work
environment not only risk breaking the law; they risk the reputation of a permissive, hostile
workplace that will ultimately damage their brand.
