The interplay between ER and its broader
environment – Macro-external factors and
Socioeconomic factors
Factors such as the country’s economic growth rate, inflation, taxation and interest rates may have
an effect on ER.The country’s socioeconomic dynamics are also intertwined with developments on
the global front.
Sociopolitical factors
•There is usually much interplay between ER and sociopolitical variables and factors.
•The political environment as such is crucial, as government promulgates and enforces all the
relevant legislation that impacts directly on ER.
•Organized business and organised labour are engaged directly to take part in the processes of
drafting and/or amending labour-related legislation.
•The increasing value attributed to aspects like transparency and democratic processes holds
potential implications for the ways ER is managed.
•A society’s value system regarding the physical environment is also important.
Technological and ecological factors
•Technology is a key driving force behind the re-organisation of the world of work.
•We live in an era of rapid change, revolution and technological developments.
•Ecological factors and sustainability issues are high on agendas of governments and other
stakeholders.
•Aspects such as global warming and climate-change are receiving more attention from
governments, business organisations and trade unions across the globe.
•Responsible corporate citizens = Organisations who demonstrate to the communities where they
operate that they care about the environment and the impact of their operations on it.
environment – Macro-external factors and
Socioeconomic factors
Factors such as the country’s economic growth rate, inflation, taxation and interest rates may have
an effect on ER.The country’s socioeconomic dynamics are also intertwined with developments on
the global front.
Sociopolitical factors
•There is usually much interplay between ER and sociopolitical variables and factors.
•The political environment as such is crucial, as government promulgates and enforces all the
relevant legislation that impacts directly on ER.
•Organized business and organised labour are engaged directly to take part in the processes of
drafting and/or amending labour-related legislation.
•The increasing value attributed to aspects like transparency and democratic processes holds
potential implications for the ways ER is managed.
•A society’s value system regarding the physical environment is also important.
Technological and ecological factors
•Technology is a key driving force behind the re-organisation of the world of work.
•We live in an era of rapid change, revolution and technological developments.
•Ecological factors and sustainability issues are high on agendas of governments and other
stakeholders.
•Aspects such as global warming and climate-change are receiving more attention from
governments, business organisations and trade unions across the globe.
•Responsible corporate citizens = Organisations who demonstrate to the communities where they
operate that they care about the environment and the impact of their operations on it.
