How does a STEEPLE analysis differ from a PESTLE analysis?

A STEEPLE analysis differs from a PESTLE analysis by including Ethical and Environmental factors in its framework.

STEEPLE and PESTLE are both acronyms used in strategic management to help businesses understand the macro-environmental factors that can impact their operations. PESTLE stands for Political, Economic, Sociocultural, Technological, Legal, and Environmental. It is a tool used to identify and analyse the external factors that could impact an organisation's performance.

STEEPLE, on the other hand, stands for Social, Technological, Economic, Environmental, Political, Legal, and Ethical. It is an extension of PESTLE, with the addition of Ethical factors. This means that in addition to the factors considered in a PESTLE analysis, a STEEPLE analysis also considers ethical issues that could affect a business. These could include corporate governance, business ethics, corporate social responsibility, and ethical consumerism.

The inclusion of Ethical factors in a STEEPLE analysis recognises the growing importance of ethics in business. In today's business environment, companies are increasingly being held accountable for their actions and are expected to operate in a manner that is ethical and socially responsible. This can have a significant impact on a company's reputation and brand image, and can therefore affect its performance and profitability.

The Environmental factor in STEEPLE, while also present in PESTLE, is given more emphasis. This reflects the increasing importance of environmental sustainability in business. Companies are now expected to minimise their environmental impact and to operate in a sustainable manner. This can affect a company's operations in many ways, from the resources it uses, to the waste it produces, to the energy it consumes.

IB Business Management Tutor Summary: STEEPLE analysis adds Ethical and gives more focus to Environmental factors compared to PESTLE. While PESTLE examines Political, Economic, Sociocultural, Technological, Legal, and Environmental aspects, STEEPLE goes further by including Ethical concerns. This means STEEPLE not only looks at how external factors impact a business but also considers the importance of acting ethically and being environmentally responsible in today’s world.