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Societal and Task Environment in Business Essay

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Updated: May 27th, 2021

The task environment involves external stakeholders that influence the firm’s ability to attain its business goals. Consumers, investors, suppliers, competitors, and other actors may be considered as the task environment. As Steigenberger, Lübcke, Fiala, and Riebschläger (2017) note, task environment plays an important role in shaping the decision-making process in a company. Therefore, it is crucial to analyze the effects that can be produced on this area of business by societal environment.

The societal environment has a great impact on the organizations’ task environment. One of the aspects of societal environment’s impact that have received much attention from scholars lately is its connection to sustainability issues. Valentinov, Hielscher, and Pies (2015) emphasize the activity of societal environment in healthcare, social services, professional representation, environmental protection, culture, and other facets of organizations’ functioning Manos and Drori (2016) also note that the companies’ decisions regarding the reduction of carbon footprint or the enhancement of employment conditions are governed by societal environment. The results of such activities can cause alterations in the task environment.

An example of the dependence of task environment on societal environment is when a company decides to reduce its carbon footprint. As a result of such a decision, suppliers may suffer since the firm may choose to stop the cooperation with those providers that are located far away and, as a result, emit much carbon dioxide while transporting the goods. Another example may be when the organization launches a health or an educational project. In this case, competitors will suffer since they will lose the competitive advantage. Therefore, it is possible to conclude that societal environment has a major effect on task environment. Many aspects of the corporation’s activity and its cooperation with stakeholders depend on societal environment.

References

Manos, R., & Drori, I. (2016). Corporate social action and newspaper media: the role of geopolitical risk. In R. Manos & I. Drori (Eds.), Corporate responsibility: Social action, institutions and governance (pp. 117-139). New York, NY: Palgrave Macmillan.

Steigenberger, N., Lübcke, T., Fiala, H. M., & Riebschläger, A. (2017). Decision modes in complex task environments. Boca Raton, FL: CRC Press.

Valentinov, V., Hielscher, S., & Pies, I. (2015). Nonprofit organizations, institutional economics, and systems thinking. Economic Systems, 39, 491-501.

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IvyPanda. "Societal and Task Environment in Business." May 27, 2021. https://ivypanda.com/essays/societal-and-task-environment-in-business/.

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IvyPanda. 2021. "Societal and Task Environment in Business." May 27, 2021. https://ivypanda.com/essays/societal-and-task-environment-in-business/.

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IvyPanda. (2021) 'Societal and Task Environment in Business'. 27 May.

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