The socio-cultural environment affects the operations of a business. Its impact on Nepalese business organizations may be explained in the following points.
There is the dominance of family business in Nepal. The family members hold top-level managerial positions. The authority is centralized. There is a lack of corporate culture and professionalism in Nepalese business. However, some corporate businesses are exceptions.
2. Widespread corruption:
Nepal is one of the poorest countries in the world. The tendency of holding the property is widespread in Nepal. Unethical practices are common for individual and family benefits. The level of corruption is very high, especially in government offices. It has adverse effects on the business sector.
3. Gender difference:
Nepal is still a male dominating country. Gender difference is widely prevalent in Nepal. The business sector is mostly dominated by males. The top-level is largely occupied by males. Employment is focused on males.
4. Social responsibility:
Nepalese businesses lack social orientation. They still believe social welfare is the sole responsibility of the government. They don’t take a proactive approach to social responsibility. However, some businesses are involved in social responsibility.
With globalization and the development of information technology, significant changes may be noticed in the taste and preferences in Nepalese customers. They are heading towards westernization.
6. Lack of planning:
Nepalese business organizations lack formal planning. Decisions are made on a contingent approach. They focus on short-term benefits. They lack a long-term horizon.
7. Workforce diversity:
Nepal is a multi-ethnic and multi-cultural country. This has an impact on workforce diversity. The rate of cultural mix in Nepalese organizations is increasing. Hence, the management of employees in Nepalese organizations is being more challenging.
8. Attitude towards work:
Some works are regarded better in Nepal. Nepalese people are also found to lack motivation and commitment towards their work.
9. Resist to change:
Nepalese people are found to resist change. There exists a fear of change due to power loss, job loss, or other reasons. A risk-taking culture also lacks.