Corporate Social Responsibility and Innovation

The assignment focuses on the impact of business environment on business activities and the role of innovation in enhancing overall performance. It also emphasizes the importance of corporate social responsibility for businesses to act towards community and environment. The Archie Carroll model is mentioned as a framework to address social issues, responsibilities, and responsiveness. Additionally, the document highlights the need for companies to analyze technological advances to improve their performance.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impact of innovation...............................................................................................................1
TASK 2............................................................................................................................................4
Corporate Social Responsibility and responsibility of board of directory to stakeholders....4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
Books & Journals...................................................................................................................8

INTRODUCTION
Business environment is considered as the elements of internal as well as external
environment which influences organisational functions. It also impacts customers, management
team , stakeholders, suppliers, contractors and other business related person. An effective
business environment can be seen by analysing how effectively needs and requirements of
customers are attained. This present report is going to cover two task which will be addressed by
using two different company (Prajogo, 2016). First task is based on Sainsbury's which is a
renown supermarket of United Kingdom. It describes about innovation and role of technological
change in economic progress. It further illustrates how innovation is impacting different
organisational functions. Second task is based on BP Plc which is a multinational oil and Gas
organisation based in London, England. This task will briefly describe about importance of CSR
activities for enhancing sustainability of company.
TASK 1
Impact of innovation
Business is an organised set of activities in which production and exchange of goods and
services takes place in order to achieve certain objectives. Business environment is a
combination of factors like internal and external which directly influence company operating
system. There are various factors that need to taken into consideration while organisation need to
enhance their performance. With the help of innovation in different segment company can
increase their productivity. Innovation is defined as creating new ideas and new imagination
organisations can transform their useful products, services and methods of operations in order to
creates values. It is very important for business organisation to implement various innovations in
their workplace to satisfy expectations of both consumers and employees (Belás, and et.al.,
2015). Innovation directly impact on all major functions of business that are mentioned below:
Marketing: In marketing many business marketers know that innovation is vital factor
to remain competitive. Innovation affect all major marketing elements it helps to develop various
channels of product distribution. It enable to utilize different pricing methods.
Operations: Innovation help business to develop various innovative measures to deliver
their products and services. It directly creates link between research and management operations.
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Logistics/ Supply Chain Management: Innovation significantly impact on supply chain.
It benefits company to be more innovative while fulfilling consumers demands. It help them to
save their unnecessary cost on designing and manufacturing.
Design / Research and Development: With the help of innovation company can able to
create more revolutionary products. They can improve quality and design of their existing item
and create something more unique.
Innovation is an act of introducing new methods, ideas and devices for the purpose to
develop new values from consumers. There are many impact of innovation which are mentioned
below in Sainsbury’s which is an largest chain of supermarket and retail industry. Their main
products are hypermarket, supermarket, convenience and forecourt shop.
Retailing Activities: Innovation can help Sainsbury’s to acquire, stock, display and
exchange their goods and services in order to fulfil consumers needs. They can adopt specific set
of structure with their working process which can increase value of their store design,
atmosphere, pricing, communicating and branding. Innovation can provide various benefit to this
company to address their retailers in best way and fulfil costumers needs (Cai and Yang 2014).
Retailing governance: This factor includes mechanisms like contract and various
incentive system that motivate Sainsbury’s to conduct their roles in order to fulfil costumer
experience. One of the most important aspect in retail governance is incentive structure which
motivates and organise company to perform their responsibilities successfully.
Sainsbury’s need to put extra effort on their technological innovation which can benefits
them on increasing their operations, sales and profitability. Technological innovation consists
those activities which contributes towards research and designing of various new products and
services. It help them to improve their quality of existing products and develop new
technological knowledge. There are various stages included in technological innovation that
includes, generating new ideas, screening, experimenting, and implementing those ideas (Khan
and Quaddus, 2015).
Relationship between innovation and economic development :
There is an appropriate relationship between innovation and economic development. As
with the help of technical changes in organisation culture company can foster their growth. By
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adopting various innovative measures like development of learning , human capital, development
and public infrastructure company can contribute their wealth towards economic development.
Innovation facilitates country GDP and benefits them for long-term. As organisation produces
more effective products as services it stimulates business profitability. Increase in production
results in rise in wages of workers. Which automatically increase national level income of
country. For example, if a person earn more money then they are able to buy more numbers of
goods and services. Which results in increase in generating total gross production of nation.
Innovation drive economic growth in more efficient manner. This provide benefit to both
costumers and company. It also helps individual to enhance their level of performance and
generate more turnover for company.
Role of technological change in economic progress
Innovation is a process in which creation of more effective goods and services with the
help of new ideas takes place. It helps to meet consumers and market needs in effective manner.
With help of innovation company can able to increase exiting quality of their products and
services. New inventions and innovation are largely responsible to generate rapid economic
growth. It not only helps in increasing quality of products and services but also enhance
company capital (Prajogo 2016). With help of technological advancement employees can
increase their skills and knowledge which directly generate desirable amount of production and
profit for Sainsbury’s. Technological change company to increase their total output which
automatically increase economic growth. With the help of this factor Sainsbury’s can increase
their level of overall output and contribute towards county economic growth. This company can
enhance their internal technological process and create effective process of sales and production.
Technological change is very important factor which help company to increase their economic.
growth of rates at macro level. It also benefit them to increase their profitability and market
shares. They also can enhance their volume of product and services. With the advancement in
technology Sainsbury’s can guarantee their contribution in economic growth. It also increase
wealth and drive nation and company towards maximum benefits (Cheng, Ioannou and Serafeim,
2014).
Ways in which innovation impact of Sainsbury’s operations
Innovation is a process through which with help of new ideas goods and services can be
modified into magnificent way. In context with this, Sainsbury’s which is a second largest
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supermarket chain in united kingdom use various technological changes to enhance their quality
of products. Company mainly serves in superstore, forecourt shop, convenience shop and
supermarket (Ni and Van Wart 2015). With the help of innovation this company is expanding
their business in foreign markets with the finest quality of products and services. There are many
segments in company mentioned below in which this technological change takes place:
Operations: Innovation largely impact on business operations in order to meet consumer
demand and productivity. Sainsbury’s with help of innovation can implement mobile apps,
digital coupons and timely discounts and enhance their product demand in marketplace. They
can use innovative methods like personal shopper apps and advance payment options to attract
more population.
Sales: Innovation is a process with help of which company can enhance their product
quality. It also help them to increase their productivity and generate more sales revenue.
Innovation benefit Sainsbury’s to observe their costumers exact needs and them make effective
procedure to meet their demands. Company by implementing various technological changes can
increase their product quality which automatically increase their sale in marketplaces.
Profits: As with the help of effective innovation techniques company can able to increase
their quality of product and their demand and supply (Pintea,2015). Which automatically results
increase in profit generation source of company. Sainsbury’s by using effective innovative ideas
and imagination while making plan to develop new product and service can increase great
amount of profit.
It is has been analysed from above discussion that innovation is major key element with
help of which Sainsbury’s can increase their sales and profits. It plays as an principal source in
economic development. While by implementing different digital advancements methods
company can attract more amount of customers. Innovation plays an important role in
determining economic growth and help to increase growth rate of company.
TASK 2
Corporate Social Responsibility and responsibility of board of directory to stakeholders
It is a responsibility that includes ways in which company is required to act towards
community and environment. It means that any harm to society and people need to be
acknowledged and corrected. In context with BP Plc which is an British oil and gas company and
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are serving in other various sectors. This is an multinational company which headquarters in
London, England. This company mainly deals in petroleum, natural gas, petrochemicals, motor
fuels and aviation fuels. It is most ethical responsibility of BP Plc to perform their business
function in that way which helps them to improve quality of life of their workforce (Prajogo
2016. ). Company while making profit must need to take care of that they don't hurt feelings of
society, people and stakeholders. It is primary role of board of director that they assess overall
strategy of business functions and overview day-to-day function. They need to adopt proper
plans towards sustainable future of organisation. Moreover, they can utilize some of their funds
in creating positive social impacts. This company while performing their business functions must
ensure environmental safety. While making their petroleum products they need to take care to
that they are not harming marine water and health of its creature. There are various benefits and
importance of effective CSR activities mentioned below in relation to BP Plc:
 Company can enhance their brand recognition in overall marketplace which helps them
to create positive business reputation.
 It benefits company to increase their sales and consumer loyalty.
 With this BP Plc can save their operational cost and create better financial performance.
 CSR benefits company to develop great ability of their staff and retain them.
 It helps company to increase enhance their overall organisational growth.
 It is responsibility of their board of directors that they need to be properly accountable to
their stakeholders.
 By implementing sound and ethical governance company can assure their prosperity
towards their stakeholders.
RESPONSIBILITIES OF BOARD OF DIRECTORS :
 Board of directors have their main responsibility towards stakeholders. They need to take
consideration of stakeholders interests in account while making any decisions.
 Board of director need to foster effective relationship with their stakeholders to perform
business functions more efficiently.
 It is major responsibility of board of directors to make sufficient laws to guard interests
of stakeholders.
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 While making any important decision it is basic responsibility of board of directors to
listen to their stakeholders. Indulgence of stakeholder while making important decisions
help company to foster their profitability.
Archie Carroll Model
In this model, there are various social responsibility given. This model basically
comprises of social issue, social responsibilities and social responsiveness. There are three basic
challenges in this model that includes, economic responsibility, public responsibility. With help
of this model, BP Plc can organise their legal, ethical and economical activities. There are mainly
four areas mentioned below in this model through which company can make better
understanding of their roles and responsibilities:
Environmental Responsibilities: It is a to a key responsibility of a business concern to
efficiently use natural resources , minimise any sort of wastage or damage in such a way that
resources can further be used by future generations. For ensuring that a high level of
environmental safety and pollution prevention is maintained , managers of BP Plc, ensure that all
production processes are quality checked as per global standards and have less less impact on
environment , biodiversity, waste treatment and distribution processes. For example, process of
natural gas production is done in such a way that pollution emitted in minimum. Once, natural
gas is processed it is checked as per global standards of quality check that is followed by BP Plc.
Ethical Responsibilities: Ethical responsibility in terms of business means carrying out
business operations in such a way that they do not adversely affect or harm any body whether it
may be environment, stakeholders or employees working in BP Plc. Ethical responsibility is
further explained in terms of four factors namely employees, stakeholders society and
environment (Pintea, 2015). In terms of employees, it is an ethical responsibility of BP Plc.to
pay sufficient amount of monetary funds to its employees as per their worth and ability. Also,
employees should be treated with utmost dignity and respect. In terms of shareholders, it is an
ethical responsibility of BP Plc. to earn profits for itself and also its shareholders. Also,
shareholders should be paid their share of profits on a timely basis. Owners should always strive
towards working in such a manner that that are to easily provide funds to its investors and build a
sense of trust and confidence in them. Another important factor is society and business concerns
should always aim towards thinking about welfare of society a business is operating .
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Economic Responsibilities: This responsibility mainly focus on activities that facilitates
organisation long term growth. BP Plc can use this factor in various elements for example,
setting their ethical standards, meeting environmental practices. Company can also measure their
economical decisions in order to generate overall benefits (Tsuyuki,2017). They can also
increase their performance of operations and enhance their sustainable development. For an
instance, company can modify their manufacturing process like they can take use of recycled
products while manufacturing any product. With the help of which BP Plc can decrease can
lower their cost of raw material and it also provide benefit to society.
Philanthropic Initiatives: It includes to be a good corporate citizen. BP Plc can provide
various incentives like donating money, time and resources to various charities. They can do all
that in different local organisation, local and national level. By doing this they can increase their
goodwill in marketplace and this will also help them to create better image in mind of their
costumers. Company can also donate in various cause for example, worthy causes like human
rights, education programmes, natural disaster reliefs and cleaning programmes. There are
different other sectors in which this company provide their contribution in order to generate their
philanthropic initiatives. They can donate on causes like eradicating malaria and on agricultural
development.
CONCLUSION
As per the above mentioned report, it has been evaluated that business environment
directly influence business activities. It has also been analysed that innovation impacts all major
functions of a business organisation. In this regard, technology also plays a crucial role in overall
development of a business organisation. There are also some corporate social responsibilities for
business entities, which are essential to for an organisation to act towards community and
environment. In addition to this, Archie Carroll model is also mentioned which helps a business
organisation in various social issues, responsibilities and responsiveness. It is essential for a
business entity to analyse all technological advances in a business environment, which will help
a business entity in enhancing its overall performance.
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REFERENCES
Books & Journals
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Belás, and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia.E+ M Ekonomie a Management.
Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production Economics.
151. pp.131-145.
Khan, E.A. and Quaddus, M., 2015. Examining the influence of business environment on socio-
economic performance of informal micro enterprises: content analysis and partial least square
approach. International Journal of Sociology and Social Policy. 35(3/4), pp.273-288.
Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to
finance. Strategic management journal. 35(1), pp.1-23.
Ni, A. and Van Wart, M., 2015. Corporate Social Responsibility: Doing Well and Doing Good.
In Building Business-Government Relations(pp. 175-196). Routledge.
Tsuyuki, M., 2017. CSR AS THE IMPORTANT COMPONENTS OF EACH BUSINESS
MODEL. Journal of International Management Studies. 17(2).
Pintea, M.O., 2015. THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND
CORPORATE SOCIAL RESPONSIBILITY. Review of Economic Studies & Research Virgil
Madgearu,8(1).
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