In the recent years, the businesses are operating internationally. The social environmental challenges are faced by all of the organizations either local or international but the companies which work across the national borders face a lot of social environmental challenges. For example, work force diversity has increased in the companies. People from various backgrounds like culture, language, religion, gender and traditions work together. It is the responsibility of the organizations to create such an environment which may enhance the positive interaction among the workforce. If organization fails to do this, then social problems are raised in the organization. The multinational companies operating in the developing countries also face huge social problems because if they introduce the standard culture and ignore the regional and local culture then they may face opposition. Therefore, social environmental challenges can impact the companies positively as well as negatively. Positive impacts can be innovative ideas and high skilled labor etc while negative impacts can be religious issues, and language barriers etc.
The production of the product depends on the culture of the consumers. It the producer doesn't produce according the need of his consumer then there might be a great loss to the business as no consumer buy the product.