What do environmental factors in the macro audit include?

In a macro audit, environmental factors specifically refer to the broader economic and societal shifts that impact businesses and their strategies. This includes elements like climate change, sustainability practices, and corporate social responsibility, which are increasingly significant in shaping organizational approaches to doing business.

The focus on climate change highlights the pressing environmental issues that businesses must adapt to, while sustainability encompasses the practices aimed at reducing negative environmental impacts. Corporate social responsibility reflects how companies engage with societal challenges, which can enhance brand loyalty and customer trust when managed effectively.

These factors are critical as they inform how businesses align their strategies with societal expectations and regulatory frameworks, making them essential considerations in a macro audit. This contrasts with other choices that are more narrowly focused on specific aspects of marketing or operational strategies rather than the broader environmental context businesses operate within.