It is heartening that the implementation of compliance requirements of

1.	It is heartening that the implementation of compliance requirements of the Companies Act, 2013 has progressed substantially with NIFTY 500 companies. Data shows a significant increase in women’s participation in the top management of Indian Companies from 5% few years ago to 13% now. Even companies which are not in NIFTY 500 have undertaken drives to increase women’s participation across different areas of work. The government had also announced that it would support such companies. Identify and explain the dimensions of business environment discussed above which brought about the change.
Answer» Following are two dimensions of business environment discussed in the given para : (a) Legal environment – Legal environment consists of those governmental regulations and laws that define the rules under which business must operate. Typically, government laws and rules are designed to foster the overall goal. The legal environment provides operating parameters under whjph business has to exist and work. Legal environment, therefore, exercises a significant influence on business activities. Following are the components of legal environment: 1. Rights and duties of citizens. 2. Laws relating to business. 3. Judicial system of the country. 4. Flexibility of laws. (b) Political environment – Political environment provides the framework within which the business has to function. Policies of the government change with the change in the political party in power. No business can succeed without understanding the political environment i.e., political peace, stability and political programmes of the parties. Policies of the government change according to the attitudes of the political leaders. Following are the components of political environment: 1. Type of government in existence. 2. Governmental attitude towards various industries. 3. Platforms of political parties. 4. Lobbying efforts by interest groups. 5. Progress towards the passage of laws. 6. Predisposition of candidates running for office.

It is heartening that the implementation of compliance requirements of the Companies Act, 2013 has progressed substantially with NIFTY 500 companies. Data shows a significant increase in women’s participation in the top management of Indian Companies from 5% few years ago to 13% now. Even companies which are not in NIFTY 500 have undertaken drives to increase women’s participation across different areas of work. The government had also announced that it would support such companies. Identify and explain the dimensions of business environment discussed above which brought about the change.

Answer»

Following are two dimensions of business environment discussed in the given para :

(a) Legal environment – Legal environment consists of those governmental regulations and laws that define the rules under which business must operate. Typically, government laws and rules are designed to foster the overall goal. The legal environment provides operating parameters under whjph business has to exist and work. Legal environment, therefore, exercises a significant influence on business activities.

Following are the components of legal environment:

1. Rights and duties of citizens.

2. Laws relating to business.

3. Judicial system of the country.

4. Flexibility of laws.

(b) Political environment – Political environment provides the framework within which the business has to function. Policies of the government change with the change in the political party in power. No business can succeed without understanding the political environment i.e., political peace, stability and political programmes of the parties. Policies of the government change according to the attitudes of the political leaders.

Following are the components of political environment:

1. Type of government in existence.

2. Governmental attitude towards various industries.

3. Platforms of political parties.

4. Lobbying efforts by interest groups.

5. Progress towards the passage of laws.

6. Predisposition of candidates running for office.

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