Innovation and Technology Impact on Economic Growth and Corporate Social Responsibility

This paper explores the influence of innovation and technology on economic growth, specifically in the context of a UK-based bakery company, Greggs plc. It also discusses the importance of corporate social responsibility and Archie Carroll's four areas of duty.

Business
Environment
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Executive Summary
This paper examines innovation and technology, which will have a direct influence on the
country's economic growth, such as higher GDP and tax revenue. It had an influence on the
firm's sales, operations, and earnings, as well as the technology it employed. It is necessary to
assess the relevance of corporate social responsibility and Archie Carroll's four primary areas of
duty, which are economic, legal, ethical, and philanthropic.
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Table of Contents
Executive Summary.....................................................................................................................................2
INTRODUCTION.......................................................................................................................................4
TASK 1.......................................................................................................................................................4
1. Understand innovation & technology and how they impacted economic growth of country...............4
2. How innovation and technology have impacted operations, sales and profits.....................................6
TASK 2.......................................................................................................................................................9
1 Importance of corporate social responsibility for an organization........................................................9
2. Four areas of corporate social responsibility by Archie Carroll.........................................................11
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13
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INTRODUCTION
The business environment in an organisation is made up of a variety of internal and
external elements that influence profitability and productivity. The terms innovation and
technology refer to the development of new technology or innovation in an entity that may assist
businesses in increasing their profitability and lowering their costs in a cost-effective manner.
The chosen organisation is used in this evaluation. The company Greggs plc. is a UK-based
bakery company. It serves baked goods, sausage rolls, and sandwiches, as well as sweet treats
like doughnuts and vanilla slices. The firm's headquarters are in Newcastle upon Tyne, England.
This research looks at a variety of topics, including innovation and technology and how they
should contribute to economic growth, comparing how operations, sales, and profits impacted
the company, corporate governance and corporate social responsibility, and the role of CSR in
Greggs Plc.
TASK 1
1. Understand innovation & technology and how they impacted economic growth of country
Innovation is a process in which people generate fresh ideas and thoughts about new
products or services in order to produce value for which customers would pay money.
Technology is a tool made by humans that is important in promoting their progress and making
such jobs and addressing many of humanity's issues simpler. Innovation and technology are
employed to better their product and identify new goods for the application technique that they
have brought to market. In references to Greggs Plc, innovation act as important aspect in firm
development.
They should contribute to the country's economic progress since it helps businesses
produce more productive products. When a firm and the employees who work in that industry or
organisation become more productive, the prices of various goods and services decline, therefore
raising their standard of life. One of the advantages of innovation is that it contributes to
economic growth, which leads to increased productivity and higher output from the same input.
It is widely believed that technology enables more efficient production of more products and
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services, which are the foundations of opulence. There are several methods to contribute to the
country's economic success:
Growth tax: This technology aids in the increase of tax because when there is a high
level of employment and income, taxes are also raised. This will contribute to national income,
allowing them to pay taxes to the government of that country. Firms like Greggsplc will continue
to offer more opportunities for individuals in the UK so that they can pay taxes to the
government..
It boosts GDP: Innovation and technology boost GDP because they create more job
opportunities in an economy, which helps to raise income for those who are already well-off. It
also increases the demand supply of an economy, causing businesses to develop on an
international level, contributing to the nation's economic prosperity. In the case of GreggsPlc,
this sort of company has improved people's income, which has been utilised to generate
additional jobs and facilitate the export of products and services inside a country.
Use new technologies in business organizations
Technology has a direct influence on business organisations, regardless of company size.
Any technology may provide several benefits that will enhance market share for goods and
services produced. Without technology, a company will be unable to attract the majority of
customers in order to achieve its aims and objectives. The following are some of the technologies
that a company should employ:
Risks: When businesses implement technology, there are risks that production and
customer satisfaction may suffer as a result of personnel' inability to employ the appropriate
skills. In reference to GreggsPlc, businesses are implementing new technology, which will
benefit workers by making it easier to connect with other members and improving things
quickly. Most of this technology has had an impact on practically every company function and
has helped to define how a firm functions in a certain location.
Business communication: Technology allows employees in businesses to interact with
one another more readily, which should improve productivity. Business can stay linked thanks to
advancements in communication, and productivity is rising. The decision is to interact in
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Greggsplc to transfer files from one location to the next. Companies must hold meetings or
conferences for networking, video-conferencing and global economic data with the other
members.
Productivity: In order to enhance their product development, some businesses must
build procedures and skills for their employees, as well as use technology to boost productivity
in a variety of corporate processes. There have been significant advancements in technology such
as social media and email, which have aided in the communication of diverse members of
organisations, as well as decreased personal attention and boosted productivity. In the instance of
Greggsplc, the business assisted in the development of legal procedures such as financial
procedures, which are used to ensure that clients get and receive the appropriate services.
2. How innovation and technology have impacted operations, sales and profits
Overview of company: Greggs plc is a United Kingdom bakery chain. It specialises in delicious
foods like bakes, saucers, sandwiches, and sweet dishes such as doughnuts and vanilla slices.
The company's headquarters is Newcastle on Tyne, England. It forms part of the Index FTSE
250 and is traded on the London Börse. John Gregg founded Greggs in 1939 as a bakery of the
tyneside.
Technology used by firm
GreggsPlc invests in new software to support its digital transformation objectives, and its
business and technology teams focus on cloud apps that are utilised by workers and the general
public. The following apps were acquired by this company: Oracle HCM Cloud for core HR and
Unit 4 travel and cost. IT stakeholders utilise these technologies. Firms adopt digital technology
and software for a variety of reasons, including managing work and performing project-related
duties more efficiently. It aids in the provision of additional insights that give essential
information to consumers, whether they are purchasing software or not. Most technologies also
assist consumers in increasing their consumer tastes and preferences, as well as building and
maintaining positive relationships with other customers in order to gain competitive advantages.
This technology paves the door for increased contact between team members who will give
various items to clients, and the company is developing new physical stores, which will be
extremely useful in connecting with a large number of customers.
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Compare sales and profits of firm
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2020 2019
4150
4200
4250
4300
4350
4400
sales
2020 2019
588
589
590
591
592
593
594
595
Profit
Profit and sales are expected to rise in the future, according to the graph, and this will
have a significant influence on the numerous technologies that they have implemented. Because
technology allows customers to attract and expand their sales, innovation and technology have
had an influence on sales and profitability. Because it needs a fresh concept to switch on money,
whether it's additional incomes, better operations, or more efficient manufacturing procedures,
innovation increases profits. These technologies have a significant influence on profit directly if
profit is large in this company, but the main benefit is over a longer period of time. In the
instance of Greggsplc, it aids the company in increasing sales productivity and profitability, both
of which are higher than the previous year.
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Findings: The main conclusions are that they should supply technologies and innovation
in this firm and that business expansion is critical to the firm's profitability survival. Adopting
diverse technologies improves their competitive edge in the marketplace and allows businesses
to produce new products, improve customer service, and attract more consumers.
TASK 2
1 Importance of corporate social responsibility for an organization
Corporate governance: It is a collection and mixture of many rules, regulations, and
procedures that organisations must follow in order to run and control efficiently. It assures that a
model must be followed by a certain company for the allocation of various duties and duties
among all entity participants. It should be determined who has the authority and responsibility
for making such strong judgments and enabling management to deal with them in a more
efficient and effective manner. Internal and external issues that impact the interests of business
owners, suppliers, governments, and management are included.
The phrase "social responsibility of companies" refers to a method which takes strict
ethical and social criteria into consideration. It allows companies to directly take into account
their social and environmental responsibilities and obligations. Corporate social responsibility is
a system of self-regulation that allows companies to have better effects and characterise
company efficiency to the benefit of society. CSR influences enterprises, non-profits, employees
and the public in general. It is a broad term that can be applied to a variety of companies, which
are dependent on their industries.
History of corporate governance in UK
Corporate governance was originally introduced in the United States in the 1970s, and it
quickly became a topic of dispute among academics, regulators, and investors (Lagasio and
Cucari, 2019). It's a term that's just been around for 20 years and isn't widely used; it refers to a
variety of colleges, charities, and municipal governments. Cadbury's initial report on several
financial elements of corporate governance, which included a code of best practise, kicked off
the revolution in the 1990s. The principal objective is to be listed in companies and the town has
established the Cadbury Code to look for customer comportements and ethics. The Greenbury
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Corporate Governance report was published in 1995, outlining executive directors' principles and
salaries. All these studies were driven either by shareholders interested in perceived defects in
company structures and their ability to respond to poor performance, or by the prospect of rules
and legislation for governance when there is such a risk. In 2002, an investment banker
attempted to improve corporate governance by creating a single comprehensive regulatory
register in previous reports. Minor adjustments to the 2003 code were made in June 2006, with a
revised version of the code taking effect on November 1, 2006. Many companies have stated to
their shareholders that they have superior governance, that they are more lucrative, and that they
can afford time, effort, and compliance with this code of best practise.
Importance of CSR for organizations
Instead of focusing on the impact on profit margins, corporate social responsibility could
have a longer-term interest in social media concerns, which will attract more consumers who
share the same values. The following are some of the most important aspects of corporate social
responsibility in the context of Greggs PLC:
Employee engagement: It should guarantee that employees are aware of corporate social
responsibility policies and are more likely to work for a company that has a positive public
image than others. Employees at Greggs PLC should enjoy their employment and project a
positive public image by participating in volunteer projects. This will also result in stronger
teamwork among staff, and happy employees will result in gradual but steady destruction.
Business competitive advantage: Customers with social concerns will be loyal to the firm and
think that their values are aligned. They may provide certain items or services, but the truth is
that corporate social responsibility is a top focus.
Corporate social responsibility may save costs: The basic purpose of company is to produce
money, and corporate social responsibility does not imply that earnings be sacrificed. Greggsplc
produces certain equipment that costs money up front but saves money in the long run. If a
company's expenses are lowered, product prices rise, and the company may earn a significant
profit while being socially responsible.
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2. Four areas of corporate social responsibility by Archie Carroll
Carroll, Archie The pyramid is a framework for arguing how and why organisations
should fulfil their societal duties and tasks. Economic, Legal, Ethical, and Philanthropic CSR are
the four categories that make up this structure or pyramid..
Economic responsiblities: This is important because companies are responsible for the
entire economic society as a whole, while making strategic business choices they should create
the highest profits for their shareholders. For Greggsplc, a company that does not make a profit
will be unable to pay its employees, and workers will lose their employment as a result. If a
company is successful, it will be able to exist in the long run, and it will also benefit society.
Legal: it shall consist of management laws, regulations and regulations established by
society, and certain bodies relevant to the nature of business transactions. In the case of
GreggsPlc, the company should be expected to do more and be required to follow a number of
rules and regulations as a condition of doing business. It is the most significant component of
duties since it demonstrates how businesses should behave themselves in the marketplace.
Various employment rules, tax restrictions, and employee safety should all be considered.
Ethical: These sorts of obligations are left to management's discretion, and the business
is not compelled to meet tier standards. It discusses moral principles, rights, and conventions, but
they are all linked to societal expectations (Katz and Green, 2018). Firms should act in a moral
and ethical manner when performing their business operations in accordance with the standards
for future systems. Greggsplc should not only follow the law, but also do business in an ethical
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manner. It is best for a company to be ethical since it not only demonstrates to some
stakeholders, but it also gives customers confidence in purchasing products or services.
Philanthropic: This obligation forms a pyramid and harps on the notion that it is to build
a good citizen and to improve their quality of life and that of their people. Greggsplc must
determine its carbon footprint, as well as its role in pollution and the use of natural resources.
Responsible businesses are those that qualify as having authentic values for the company and for
society, and without fulfilling their other obligations, businesses cannot grow.
CONCLUSION
The preceding information has led to the conclusion that persons, firms, and external
variables all have a role in the business environment. Innovation and technology assist them in
doing business and maintaining company performance across the country. It assists businesses in
increasing and obtaining a long-term competitive edge in the marketplace. Several topics are
covered in this report, including how innovation and technology contribute to a country's
economic growth, how new technologies are used, how they impact operations, sales, and
profits, the importance of CSR, the history of corporate governance, and four areas of CSR,
including economic, legal, ethical, and philanthropic responsibilities.
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