In addition to changes in the business environment, significant changes have taken place in
the social, political, and cultural environments that affect business. Although the nature and
extent of these changes vary a great deal from country to country, they include a more ethnically
and racially diverse workforce, and a renewed sense of ethical responsibility among
managers and employees.
The new business environment requires firms to be flexible and adaptable and to place
greater responsibility in the hands of a more highly skilled workforce. Additionally, the
changes tend to focus the firm on factors outside the production of its product or provision of
its service to the ultimate consumer and the global society in which the consumer lives.