BC Hydro is going to construct and operate a dam and  hydroelectric generating station on the Peace River in the northeastern British Columbia. However, this plan is strongly opposed by First Nation leaders due to the fact that the dam would flood 83 kilometers of the Peace River Valley and destroy farmland and wildlife habitat. First Nation chief declares that if Ottawa approves the project, local aboriginal people will challenge the decision in the Federal Court of Canada.

This news article clearly demonstrates how socio-economic factors in the PEST analysis can significantly affect business activities. Without doubt, building more hydroelectric stations will benefit British Columbia economically by providing more clean energy source. However, it is necessary for BC Hydro to negotiate with First Nation People with regard to the potential environmental impact on their lands. First Nation people have a unique spiritual connection with their lands, as the First Nation delegation says, “It’s our church, it’s our store, it’s our school. We have elders’ gatherings there annually.” Therefore, besides environmental issues, it also raises an ethical problem when business embarks on a project at a cost of violating First Nation people’s values and beliefs.