What does the informal rules approach focus on when considering business practices?

The informal rules approach emphasizes the significance of culture, norms, and values in shaping business practices. This perspective recognizes that formal rules, such as laws and regulations, may not fully capture the complexities of human interactions within a business environment. Instead, it highlights how informal dynamics, including societal expectations, shared beliefs, and communal practices, can heavily influence decision-making, behaviors, and the overall conduct of business.

Understanding these informal aspects is crucial since they can dictate how businesses operate within a particular context, affecting employee interactions, customer relationships, and stakeholder engagement. For instance, a company's success often hinges on its ability to navigate the cultural landscape of the communities it serves, fostering trust and cooperation by aligning its practices with local values and social expectations.

While market trends and economic factors, technological advancements, and legal regulations certainly play important roles in shaping business practices, the informal rules approach specifically zeroes in on the underlying cultural framework that can drive or hinder business success.