The Business EnvironmentIntroduction An organization does not exist in a vacuum. It exists in its environment, which provides resources and limitations. If an organization adapts to its environment, it will thrive, otherwise it will fail. An organization and its environment are interdependent and interact very intensively.o The organization depends on its environment for the resources and opportunities necessary for its existence.o The environment provides resources to the organization only if the organization returns the desired goods and services.Effects of the environment on organizationsEnvironmental factors affect an organization in 2 ways. They set limits and pose threats, but they also offer opportunities and challenges. A change in government export policy can suddenly threaten an export-oriented organization. An interest rate reduction can provide cheap financing to an organization. Effects of the organization on the environment The effects of organizations on the environment are quite evident in the case of cigarette production; liquor production, film production, pharmaceutical companies, etc. These organizations have a clear impact on the environment. Elements of the environment The business environment in which companies operate can be divided into internal environment and external environment.A. Internal EnvironmentThis refers to all factors or forces that influence the company's day-to-day activities.1. Customers • As Peter Duckers said, “The ultimate goal of every business organization is to create a customer.” Nowadays, for most products and services, the market belongs to the buyer. Customers and...... at the center of the paper ......product safety• Misleading advertising• Customer complaints3. The environment• Pollution• Noise• Restoration of the territory to natural uses4. Financial honesty and openness • Bribery and corruption • Corporate control and ownership • Executive compensation and compensation • Contributions to political parties Conflict between social responsibility and profitability1. The money invested in social responsibility comes from the company's profits.2. If shareholders do not receive what they believe to be a fair return on their investment, they are unlikely to contribute to the future needs of the company.3. The company's managers are rigorously evaluated based on economic performance; rewards go to managers who keep costs low. Therefore, social responsibility cannot be left to the whims of individual companies and managers must be enforced by law.