Applying CSR Pyramid Model on Rolls-Royce Plc

The assignment requires applying the CSR pyramid model to Rolls-Royce Plc, focusing on four stages: economic responsibility, legal responsibility, ethical responsibility, and philanthropic responsibility. The model is used to analyze how Rolls-Royce Plc can improve its corporate social responsibility (CSR) and enhance its business profits by considering these responsibilities.

Business Environment

Table of Contents
TASK1.............................................................................................................................................3
TASK2.............................................................................................................................................5
REFERENCES..............................................................................................................................10
.........................................................................................................................................................1

TASK1
Business environment is the combination of external and internal factors which influence
the business of an organisation. The external factor of a company are political, social,
economical, legal and technological which affect the organisation from outside and the internal
factors are employees, rules or laws, structure and resources which affect the organisation
internally and help in running of a company (Deasy and et. al., 2016). In simple words, business
environment means collection of individuals, entities and other factors which may or may not be
control of the organisation and affect the performance, profitability and growth of the company.
This assignment is based on business environment of the companies and there are two task in this
essay. In first task talking about the impact of innovation within Just Eat and the impact of
innovation within some functions of the company such as marketing, operation, supply chain
management and research & development. And scone task is based on corporate governance and
corporate social responsibilities of Rolls-Royce plc.
Innovation is the process of changing and transformation an idea or invention into goods
or services that create the value for that which a customer will pay. In business or an organisation
is related to the satisfaction of the customers needs and wants. Within this task talking about the
innovation which Just Eat company do in its business environment for satisfied the customers
needs and wants. Just Eat plc is an online food order and delivery service company which is
founded by Jesper Buch, Per Meldgaard and Henrik Stergaard in 2001. this company operate its
business in 13 countries in Europe, Asia, Oceania and Americas. Innovation create impact on
various functions of Just Eat. Innovation in business of the company affected the marketing
function of the organisation positively and negatively. In marketing function, company use
various marketing strategies like promotional strategies. In past time if the company do the
promotion by TV, radio and newspaper but now these days there are various promotional
technologies like social media marketing and web advertisement and Just Eat use them and
provide information to the customer about its services. Innovation is impacted the operational
function of the company. Just Eat deliver the food of restaurant and the deliver person go to
restaurant to take the food and then deliver it (Belás and et. al., 2015). If the restaurant open their
outlates and the delivery boy collect food fro there, this way they reduce the time and cost of the
company and help in achieving the growth.

Technological innovation is the process where an organisation contribute to the research,
development and design of new products, services and techniques or help in improving existing
products and gain new technological knowledge (Bah and Fang, 2015). Now these days various
new technologies are invented they impact the economy of the company as well as country. If
the technology is useful and favourable for the company it help the company to increase its profit
which affect the economy of the company positively. Technological innovation affected the
company positively or negatively. Just Eat provide app to its customer for ordering food but
sometimes the person who order the food do not provide the correct location so by innovate a
new technologies like the delivery boy also can saw the location from which the order is done.
By accepting this innovate the delivery person can save time and place more order or increase
the sales. Innovation affect supply chain management also. This function include raw material,
supplier, manufacturing, distribution and customers. Just Eat deliver the food so innovation
affect supplier, distribution and customer within this function. The restaurant use good packaging
which is easy to carry by the distributors and they can provide better and good service to the
customer. Innovation create impact on research and development function of the organisation if
the company because the business of every company is run through research and development
and innovation is the main driver of R&D. By R&D Just Eat do research on people of various
areas and do research that which type of food they like. They can do research according the age
group, gender and areawide. For example in UK, there are mostly corporate people and they do
not want to go outside for food so the company can provide food according their taste with the
help of R&D.
Financial issues affected every business, these issues can be related to cash flow, pay and
debt, organise business expenses and increase or taxes customer base. Just Eat operates its
business international and taxes legislations of every country are differ which affect the finance
of the the company. And the own country of the company can also make changes in the tax plans
which affect the financial condition of the business. Financial issues are faced by the company in
profitability when the company make its annual budget, the organisation face some issues related
to profit. Finance affect accounting, travel, tax compliance and planning etc. And ICT(In
formational communication Issues) are related to the promotional issues in Just Eat. If the
company will not use good communication channels and new technologies it could not provide

the information about discounts and offers. Lack of update information and information of
current changes in the services of Just Eat are some ICT issues (Siewiorek and et. al.,2012).
Innovation help in the growth and development of economy. If the company do
innovation in its products according the customers needs, then the sales increase which affect
positively to the company and the country's economy (Savrul and Sener, 2014). By doing
innovation in its products company increase the sales for positive impact of innovation.
Innovation add value I the product and those kind of product are cause of economic growth. Just
Eat can do innovation in its services and achieve its business objectives like, it can provide the
delivery of the food according the customers given time. This way it can add value in its services
and provide the food to customer on time and save the delivery person time which increase the
sales of the company.
Corporate governance is a system of rules, and processes by which an organisation
directed and controlled. It involves the interest of the company's various stakeholders, like
shareholders management, customers, suppliers, finances and government. It use by the
companies to make transparency, leadership, accountability and sustainability in the business. If
the customers are aware with every function or elements of the business they are loyal for the
company. There are four pillars of Corporate governance such as accountability, transparency,
fairness and leadership. If Just Eat make transparency in it business like it inform the customers
about every offer and discount, the customer use it and loyal for its services. If the company
make fare policy for customers such as time issues. Mostly food delivery company cancel the
order if the customer are not in their reach before notified the consumer. So the company make
fairness and clearness in its policies for it make to the customer and employees. Leadership, in
Just Eat it is use for solving the problem and lead the employees so that the business of the
company run in a proper way without facing any issues. Without policies and procedure and
clear direction no organisation can run its business properly. Accountability, in Just Eat it is
related to the ownership of strategy and task oriented which is set by the company. In this leader
help the employees and defined the way and reduce the risk by solving the workers or employees
problem.
TASK2
Corporate governance is the interaction between various participants like shareholder,
boards of directors and company's management which help in shaping corporation's performance

and organisation activities (Popescu, 2013). In this task, here talking about Rolls-Royce Plc, it is
a British multinational public limited company which is founded by Charles Rolls and Henry
Royce in 1904. This company desires, manufactures and distributes power systems for aviation
and other industries. It make aircraft engines and provide energy systems to marine propulsion. It
operate its business in over 50 countries (Langfield-Smith and et. al., 2017). The products of
Rolls-Royce's are military gas turbine engines for military, civil and corporate aircraft, jets,
helicopters and turboprop and other instruments. In Just Eat,Corporate governance refers the way
a corporation governed an it is a technique by which a companies directed and managed its
business and business functions. It create transparency within the business which ensures strong
and managed development in economy of the company. It create many positive impact on the
company like,if the company's corporate governance will be strong it maintain investor
confidence and raise capital of the company .efficiently and effectively. It gives ultimate
authority and complete responsibilities of the organisation to the board of directors. Boards of
directors have many roles and responsibilities within a company such as they recruit, retain and
evaluate the manager of the company. They provide direction for the employees and provide
vision, mission and goals for the company. They make policies or procedures and provide
framework for developing the company and its business. The board of directors are monitor and
control function for an organisation and they make strategies and techniques for so that a
company can do its business in a legal and proper way and achieve its business objectives. They
are responsible to the stockholders, they reports to stakeholders particularly the local
communities which the nonprofit serves. There are two types of stakeholders in a business such
as internal and external stakeholders, internal stakeholders have right to vote on company
decision but external stakeholder have not this right. They invested any personal and
organisational funds to the company but internal stakeholder have a financial interest in the
company. The board of directors are the person or bodies that are appointed for doing work on
the place of shareholders which help Rolls-Royce Plc to run its business.
Corporate social responsibilities are a business process to produce to create a positive
impact on society by doing social works. It is an business approach which is use by the
companies to make them sustainable and development of the business. It is an commitment
which work ethically to improve the business of a company and provide benefits for all
stakeholders. In Rolls-Royce Plc, it is a broad concept that address different topics such as health

and safety, human right, corporate governance and environmental effect which contribute in
economic development (Klem, 2013). For example Rolls-Royce Plc is a company which make
engines and supply energy systems to aviation and marine industry. Corporate social
responsibility help in its business and proper running of the company. CSR create positive
business reputation, increased sales or customer loyalty, help in organisational growth and save
operational costs. The importance of CSR is that it improve relationships with customers and
their communities. It help in improving brand image because it improve the relation with the
customer and make a positive images in the customers mind and improve the brand image
(Hilton and Platt, 2013). By helping it stand out the companies from the competition and
improved employees talent. Rolls-Ryco Plc promote of education, employment enhancing
vocation skills, especially among children, women, elderly and various different abled or
livelihood enhancement projects. CSR help the companies by providing the training, safety to its
employees or providing them proper resources at the workplace which help the employees in
their work.
Carroll's CSR Pyramid is corporate social responsibilities pyramid which is given by
Archie Carroll's in 1950. This pyramid has four responsibilities such as economic, legal, ethical
and philanthropic responsibility. These all responsibilities are described by the resources
contributed by corporations toward social, educational, recreational and cultural purpose. This
pyramid remains highly relevant 20 years later. To be profitable as a company, minimize cost
and maximize sales or make sensible decisions which are based on four responsibilities of this
model. Economic responsibilities, it is related to the company's economic performance which is
necessary and required for the society. The company anaylize the resources which are helpful for
the growth of the company as well as economy without harming the society. Legal
responsibilities, these responsibilities are also required by the society and the company fulfil
these responsibilities by following laws, acts and legislations because law mirrors show the
society regards and the company work without harming the society and follow the rules and laws
properly so that it can achieve its targets. Ethical responsibilities, it is expected by the society
that a company work in its ethical way and provide legal products to the customers. They expect
from company that provide employees rights and make the workplace friendly so that they can
work properly. To assert ethical leadership, avoid questionable practices or operate the minimum
standard of the law. Philanthropic responsibilities, stand the top of the pyramid and to be good

corporate citizen and improve the quality of life for the society (Gupta, 2013). These
responsibilities are on the community and create impact on the employees of the company and
influence the morale of the employees. This model is regularly cited, debated, modified and
criticized by academia, corporate leaders, politicians and social commentators.
CSR activities of Rolls-Royce is that the company covers its commitment and
effectiveness within the local and national community in which it reflects its business. It do not
those work which affect negatively society and environment (Belás and et. al., 2015). It make s
various policies and rules for the company and employees so that they can feel safety at the work
place. It provide training for improving and enhancing the employees knowledge and skill and
provide them benefits. The company do not use those resources which are harmful for the
environment and society and organise various CSR activities for wellness of society so that it can
make better customer relation.
Illustration 1: Carroll’s pyramid of CSR: taking another look

The first stage of this pyramid is emphasises on economical responsibility that is required
by the company for the profit. Second stage focus on legal responsibilities which is important to
follow the law while conducting CSR activities through an organisation (Deasy and et. al., 2016).
The next stage of this pyramid is focus ion the ethical responsibilities if the company which is
important for business. And the last stage is philanthropic which is important for individuals and
to be good corporate citizen. When this model apply on Rolls-Royce Plc, it will be required that
the company should focus on the profit of its business. And do its business by following proper
laws and rules so that they can not harm the society. It is also necessary that Rolls-Royce Plc
should consider economic, legal, ethical and philanthropic responsibilities (Bah and Fang, 2015).
If this model is applied by Rolls-Royce Plc, the CSR of this company improve and improve its
profits of the business which directly enhance the company's image in specific time frame.

REFERENCES
Books & Journals
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Belás, J., and et. al., 2015. The business environment of small and medium-sized enterprises in
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Deasy, S., and et. al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Gupta, A., 2013. Environment & PEST analysis: an approach to external business environment.
International Journal of Modern Social Sciences. 2(1). pp.34-43.
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Klem, J. B., 2013. System and method for tracking information in a business environment. U.S.
Patent 8,583,514.
Langfield-Smith, K., and et. al., 2017. Management accounting: Information for creating and
managing value. McGraw-Hill Education Australia.
Popescu, G. H., 2013. Macroeconomics, effective leadership, and the global business
environment. Contemporary Readings in Law and Social Justice. 5(2). p.170.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
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Siewiorek, A., and et. al.,2012. Learning leadership skills in a simulated business environment.
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Online
Business Environment. 2018. [Online]. Available Through:
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