1

Business environment is an aggregate of all conditions, events and influences that

surround and affect it. It is broad and ever changing as its separate elements interact. A
single firm’s environment is narrow in scope than the total environment of business. It is
complicated and continuously changing.
BE divide into two

1. Internal environment and

2. External environment.
1. Internal Environment:
The internal environment consists of conditions and forces within an organisation that
affect the organisation’s management. Aspects of the internal environment include the
organisation’s mission, corporate culture, owners and the board of directors, employees,
other units of the organisation and unions.
2. External Environment:
The external environment consists of those factors that affect a firm from outside its
organisational boundaries. Of course, the boundary that separates the organisation from
its external environment is always not clear and precise. For example, shareholders are
part of the organisation, but in another sense, they are part of its environment.
It covers factors and forces like customers, completion, suppliers, and government, social, cultural,
political, technological and legal condition.
There is a close and continuous interaction between the business and its environment.

× Major Factors influencing Business

physical or natural environment, and international environment could be two of the
factors in influencing business.
But the following are the main ones.

1. Natural\ Ecological factors.

Human beings, air soil, land forms, flora and fauna, rivers, oceans and mountains
must exist together in harmony. But the harmony is disrupted by industrial
establishments

2. Technological factors,
technological environment exerts considerable influence on business. Since technology
enable them to conquer distances; control birth rate; save lives, generate preserve and
distribute energy; 

3. Demographic factors,
Demographic factors are commonly used to differentiate groups of present or potential
customers. These factors are easily understandable and quantifiable and therefore easy to
use in strategy formulation.
4. Political factors,
The political system prevailing in a country decides, promotes, fosters, encourages, shelters,
directs and controls the business activities of that country.
5. Economic factors
Economic factors decide the nature and direction of the economy in which a firm operates
6. Global factors,
Globalisation of business provides opportunities to access larger potential market and
factors of production

7. Social factors,
values, beliefs, attitudes, opinion, and life styles are social factors affect business
environment.
There are THREE core steps Areas environment business concept, these are;
 Setup for success.
 Nurture the stake holder’s environment.
 Present results to stake holders.
## 2 environmental Policies

government's, Organization‘s, Enterprise’s chosen course of action or plan to address issues

such as pollution , wildlife protection, land use , energy production and use, waste
generation, and waste disposal Etc...

They are four categories environmental policies of the stake holders these are;
 Risk losers: those who may be adversely affected by an
environmental risk decision, economic, or
social well-being, and possibly their deeply held values. It is this
group which conventionally comes to mind with the term
"stakeholders." An example might be those living on or owning
property near a proposed low-level radioactive waste disposal
facility
 Risk gainers: those who may be favorably affected by an
environmental risk decision, typically through economic gains.
 Risk perpetrators [unexpected hazards]. Or west management.
those who create the risk., as well as the waste management
company(ies) that build and operate the facility.
Risk managers:
##3

Environmental management is defined as a system that incorporates processes for

summarizing, monitoring, reporting, developing and executing the environmental
policies.
Objectives of environmental management

 Finding solutions for environmental issues

 Establishing limits to avoid overuse
 Control environmental pollution
 Encourage resource conservation programs etc...

Importance of environmental management

 Reducing carbon emissions

 Processing all the waste in a safe and effective manner
 The effective and wise use of energy and resources
 Preventing pollution

##4 The reason Why enterprises changes environmental attitudes?.

The reason basics enterprises changes environmental attitudes are;

 Among adults differences strategies need to be employed.
 Access to information and ability to learn.
 A roughly equal ability to devote the to participates.
 Appropriateness of stake holders-centered environmental decision-making.
Society. Media. Customers. Supplies. External stake holders.
Top management. Employees. Owner of enterprises.
##5

IGOs are distinguishable from nongovernmental organizations (NGOs) in that NGOs are formed by
two or more individuals rather than by nations. NGOs are therefore typically independent of
governments, are usually non-profit organizations, and receive at least a portion of their funding
from private sources. IGOs have the financial and political support of its members. An
intergovernmental organization (IGO) is a group of members (sovereign states, countries)
working together on issues of mutual self-interest.
Example of IGO, United Nation, African Union, European Union

NGO Amnesty International

AI’s objective: "to conduct research and generate action to prevent and end grave abuses of
human rights, and to demand justice for those whose rights have been violated."

Save the Children

Provides relief and support for children in developing countries

##6

Pros of mics on host countries

 Provision of significant employment and training to the labour force in the host
country
 Transfer of skills and expertise, helping to develop the quality of the host labour force
 MNCs add to the host country GDP through their spending, for example with local
suppliers and through capital investment
Drawbacks of MNCs on Host Countries

 Domestic businesses may not be able to compete with MNCs and some will fail
 MNCs may not feel that they need to meet the host country expectations for acting
ethically and/or in a socially-responsible wa
 Profits earned by MNCs may be remitted back to the MNC's base country rather than
reinvested in the host economy.

Examples of MNCS are Safari com, Moha, Dangote...

###7

Impacts of corruption
Corruption hurts everyone.

The effects of corruption are wide-ranging. Some of these effects are fairly obvious, while
others require explanation. They include:
Undermining the Sustainable Development Goals
Economic loss and inefficiency
Poverty and inequality
Personal loss, intimidation and inconvenience
Public and private sector dysfunctionality
Rigged economic and political systems
Impunity and partial justice
Organized crime and terrorism

In order to effectively fight corruption – both at home and internationally – transparency, accountability and
integrity in the public and private sectors are necessary.
We set and promote international anti-corruption standards and principles to:

 Combating the “supply side” of bribery

 Preventing bribery through export credits
 Denying tax deductibility of bribes
 Promoting responsible business conduct
 Preventing corruption in the public sector
 Improving governance through development assistance

###8
Ethics are the moral principles that govern the behavioral inclinations and activities of
an individual, society, or organization. Ethics is a simple system of moral principles as it
depicts how people make their own right and wrong decisions. 

3 Approaches to Ethical Theories

 three approaches to set the rules of conduct-

1. Meta-Ethics

The branch of philosophy associated with meta-ethics gives out the nature of moral
judgment which looks at the origins and ethical principles.

2. Normative Ethics

When normative ethics is concerned, it talks about the moral judgments’ content with the
criteria for what is right and wrong or morally good and bad as per the ethical rules of
conduct

3. Applied Ethics

Finally, when applied ethics is concerned, it deals with controversial topics such as
animal rights, war, and capital punishment.

Types of Ethical Systems

1. Deontology and Ethics

For making the right moral decisions, people need to understand their specific moral
duties and behave accordingly.
2. Teleologically the focus is given to the consequences of the choices that
you make.

While performing an activity, you need to pay heed to the outcomes of those activities.

3, Virtue Ethics is crucial in developing good character traits.

##9

Cultural dynamics, then, is an investigation of how a culture thus defined is

formed, maintained, and transformed over time.

There are at least four basic sources of cultural dynamics.

  Importation: new cultural information that has not existed in a given
culture, but which has existed in a different culture, is added to the
former culture by virtue of transmission from the latter.
 Invention: new cultural information that has not existed in the
culture of a group is added to the culture without importation.
 Selection: cultural information is selected in for further reproduction
or selected out to be removed from a culture.
 Drift: random processes produce a change in prevalence of cultural
information over time.
They are five key component managing intercultural diversity are needed to transforms. These
are;
 Leadership.
 Training.
 Research.
 Analysis and changes of cultures.
 Human resources managerial systems.

TWO Types cultures, these are

1. Material cultures is manmade material objects.
2. Non-material cultures refers to the intangible part of mans cultures .such as religions members,
beliefs law and norms.
Cultures have the followings characteristics.
 It is symbolic.
 It is humans made and learned.
 It is shared.
 It is cumulative dynamics and selective