Abstract

The complexities and interdependencies in modern society accentuate the impact of environmental forces on business. While the company may attempt to buffer and manipulate these externalities, it usually has limited success. Many social forces are outside the control of the individual organization and appear to be random and unpredictable. The growing interdependencies among organizations also create substantial uncertainties. The internationalization of economic activities over the past several decades has extended these interdependencies worldwide. Management's institutional role requires that it be responsive to societal forces and develop an open systems view. Usually economic indicators reflect limited dimensions of society. Most corporations keep close watch on such economic indicators as gross national product and personal income, unemployment data, interest rates, wholesale and consumer prices, balance of payments, and productivity rates. These are used extensively by corporate planning staffs in developing both short and long term forecasts and plans. Social indicators, as complements to existing economic indicators, can help provide this important information.