Business Environment and CSR Importance

This assignment requires a comprehensive analysis of the business environment's significance and Corporate Social Responsibility (CSR) activities. It involves understanding the importance of CSR for companies such as BP Plc and explaining Archie Carroll's model, which is well-defined for CSR activities and importance in the company. The assignment also references various studies and papers on entrepreneurship education, business incubators, cloud computing security, corruption in Vietnam, local content frameworks in Africa, standard business reporting in Australia, the impact of Enterprise Law in Vietnam, and sustainable built environment reviews.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impact of innovation on Sainsbury's organization......................................................................1
TASK 2............................................................................................................................................4
Importance of Corporate Social Responsibility for BP Plc organization...................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to the surroundings which directly or indirectly affect the
different operational activities of an organization. In addition to this, it can be defined as the
internal and external factors which effect on company's function includes, competitors, suppliers,
customers, political, technological etc.(Ubarte 2016.) The company which is taken into
consideration in Task one is Sainsbury's company which is one of the largest chain of
supermarkets in United kingdom and it was founded in 1869. Whereas, in task 2 the company
which is being taken into consideration is BP Plc company which is a British multinational oil
and gas company with its headquarter in London and was founded in 1909. This presented report
gives the brief about the impact of innovation on different functional activities of Sainsbury's
company. Lastly this file explains about the importance of corporate social responsibility for BP
Plc organization.
TASK 1
Impact of innovation on Sainsbury's organization
Innovation is the process of transferring of idea and invention by introducing or
implementing new products and services in the marketplace. The company which is being taken
into consideration in order to explain the impact of innovation is Sainsbury's organization. It is
one of the second largest chain of super market in United Kingdom and was founded in 1869 by
John James Sainsbury. (Trinh, 2017 )In addition to this, it is the UK largest food retailer which
consist of 600 supermarkets, 800 convenience stores and nearly 250,000 render online order
every week. Moreover company is investing in a three-year programme so as to upgrade over
3000 of their own brand products.
For Sainsbury's organization, innovation is the core activity as it is termed to be an
important aspect for the company to survive in the marketplace and to achieve competitive edge
in the market. Innovation can be done in many forms, it doesn't simply means developing or
implementing new products in the market. For example, Sainsbury's organization is applying the
innovation techniques to product renewal and for designing of new process technologies. In
addition to this, it is very essential to understand the concept and difference of innovation and
invention as both are different from each other. As invention refers to create something new but
it can become an innovation only if it is applied in a practical and marketable application.
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Sainsbury is planning to meet the challenges of competition from supplier and low cost
manufacturer.(Robb, 2016) So the company can meet there challenges only if it continuously
develop new ideas, process improvement and in designing of products. Company can carry out
there innovation techniques by adopting two different approaches one is product oriented
approach and the second is market oriented approach. Furthermore it can be said that innovation
in a particular organization heavily impact the different functions of a firm, Like When the
Sainsbury company planning to innovate new designs in the process of technologies then it
greatly impact upon marketing functional department too, as this department have to change their
different promotional techniques and strategies like earlier company use to advertise through TV,
newspaper etc. But now due to innovation technique company uses different social media,
magazines, poster and many more aspects so as to advertise and to create awareness about the
products and services in marketplace.(Mushemeza, 2016) In addition to this innovation
techniques also impact upon other functional activities of an Saindbury organization like on
operation, supply chain management and on research and development department. Operation
department have to change the technology they uses if the want to innovate something new
design in the technology process, like the company have to adopt that technology which would
be beneficial to render better and quality design in products and services so as to influence
customers towards their products.
On the other hand, supply chain management of Sainsbury also get impacted when the
company innovate some new design and techniques of product renewal. As supply chain
management is the key component to achieve competitive advantage as well as it underpins the
ability to respond quickly and effectively to to rapidly changing market. This can be achieved as
innovation is the key element in achieving success despite of intense technological uncertainty.
In addition to this supply chain management is the essential element which strives to improve
organizational profitability and the productivity through proper interaction with customers and
with suppliers.(Maruichi, 2018) One of the most important function which get impact when
innovation take place in Sainsbury company is research&development department. As its the
major responsibility lies upon research & development department as it the department who have
to identity and analyse the different key aspects before innovating the product in the market. Like
it the responsibility of research department to analyse the changes taking place in the customers
needs and preferences, competitors strategies, technology advancement and many more aspect
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are there which the research and development functional department must identify and analyse
so as to achieve competitive advantage in the marketplace.
Technological innovation is termed to be an essential concept and techniques which
should be used by Sainsbury organization. As it is a concept which is developed within the
scientific field of study of innovation and which serve as a concept so as to explain about the
nature and the rate of technological changes taking place. Additionally it is a process where
Sainsbury company embarks in a journey and where it is being identified that technology of
innovation act as an important source so as to achieve critical success in the form of increase in
market competitiveness. (Kumari, 2017)Moreover financial department of Sainsbury also get
impact when the innovation take place in the business, as it is the functional department which
render funds to start up the business without this department company cannot achieve its success
in the marketplace. So, when the company is planning to innovate new design in products or to
renew product then there arises the requirement of fund so as to implement the innovative ideas,
then in that case its the financial department of an organization who render financial support in
the form of funds. Thus, it helps in increasing the productivity and profitability ratio of an
organization in an effective and efficient manner.
It is strongly being emphasized that technical changes have great impact in the growth of
economics through the world. For example Sainsbury company is trying to achieve progress
through innovating some product design technology which also result in the overall improvement
of the economic condition. A strong indicator which helps in the development of economic
growth through innovation is Research and Development department.(Hichri, 2016) As it is the
department who let the company to innovate and implement products and services after
identifying the impact of new product and technology can have upon environment of an
economy so as to keep environment and human health safe. Thus, it can interpreted that there is
a strong interrelationship between innovation, economic development and
Research&development department.
Corporate governance and ethics both plays an important role in the development of an
organization. As it is defined as a system of rules, processes and practice the firm adopts so as to
carry out smooth functioning of an organization in order to achieve target goal.(Hassan, 2015)
In addition to the corporate governance generally involves balancing the interest of the
shareholders, management, customers, suppliers, financiers, government and of the community.
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Moreover before implementing the innovative ideas into new product design or new product
development the manger of the Sainsbury company must take into consideration the ideas of
employees as well, so there should be proper relationship and communication between
employees, employers, customers, directors and stakeholders. Relationship can be formed only if
the company takes into consideration six important pillars of corporate governance like fairness,
transparency, leadership, assurance and stakeholder management. Further more company should
run its business ethically by following all the norms of the company legally. Thus, it will helps in
attaining successful competitive advantage in the market place as well as helps in creating brand
image of an organization.
Thus, overall it can be concluded that If the Sainsbury company wants to develop and to
achieve a successful growth in the marketplace then the company must strongly focus on the
innovation aspect. Innovation plays an important role as in modern era as there take place more
of competitiveness among the organization due to the advancement of technology and difference
and brand of products among different company. Thus, in order to give stiff competition in the
market place company must innovate some new technology so as to improve product design and
to renew product in order to increase the quality of the goods and services as compared to its
competitors. Therefore it will help in achieving maximum profit for the organization.
TASK 2
Importance of Corporate Social Responsibility for BP Plc organization
Corporate Social Responsibility is also known as corporate sustainability, corporate
conscience, sustainable business and corporate responsible or citizenship. In addition to this it
can be defined as an organized policy and is a self regulating business model which helps the
organization to be socially responsible to itself, (Fell, 2017)Public and to its stakeholders. BP
Plc company has taken into consideration the practice of Corporate Social responsibility with the
help of which company can be aware about the kind of impact it will have on different aspects of
society which may includes, environmental aspects, economical aspects and social aspects. The
BP Plc company has taken into consideration Corporate social responsibility so as to enhance
society and the environment instead to contributing negatively to it. There are several importance
of Corporate social responsibility for BP Plc organization some of them are explained below:
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Some of the important activities which fall under the umbrella of Corporate social
responsible with their respective benefits for BP Plc organization are mentioned below: Prevent financial ractifactions:One of the importance which the BP Plc company
receives from implementing of corporate social responsibility strategy is it helps in
preventing financial rectification. In addition to this through self regulatory process fines
can be prevented and will help business in lowering legal expenses. Increase workforce loyalty: One of the important aspect which the BP Plc company
takes into consideration is that they treat their employees generously and fairly which is
also an essential part of Corporate social responsibility.(Enombo,2016) professionals and
moral standard of the workforce which helps in increasing employee loyalty and
motivation level. Thus, it helps in increasing the productivity level and profitability ratio
of BP Plc organization.
 Maintain positive reputation: One of the most important benefits of corporate social
responsibility for BP Plc organization is that it helps in demonstrating consciousness in
different sector of an organization. In addition to this it helps in boosting up as tangible
proof of their code of conduct and which can be proudly displayed by the company on
their websites. It may consist of environmental consciousness and Social concern, thus it
helps in achieving competitive advantage in the market place too.
Moreover, Corporate social responsibility of BP Plc company can be briefly understood
with the help of Archie Carroll's model and it is explained below:Archie Carroll's model:
As per Archie's model, there are basically four types of responsibility which comes under
Corporate social responsibility and as adopted by BP Plc organization which are mentioned
below: Economic responsibility:Every business concern has some economic responsibility
toward their society, owners and stakeholders. Its the prime responsibility of the manager
of BP Plc company to render a good return on investment to shareholders and to owners.
In addition to this the company should also render useful goods and services to the
society taking into consideration their taste and preferences pattern. Thus it helps in
achieving maximum sales revenue for the organization.
 Legal responsibility:Manager of the BP Plc company should ensure that each operational
activities are being carried out legally. It means that taking into consideration the legal
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laws and regulation company must produce products so as to protect and retain customers
who rely on business to be truthful about the goods they sell. In order to meet legal
responsibility manager of BP Plc company must take into consideration following
aspects(Chen,2016):
1. Must conduct themselves as law bidding corporate citizens
2. Must perform in a manner consistent as per the expectation of law and
government
3. Must render product and services that at least meet minimum legal requirements Ethical responsibility:This responsibility specifies that manger of BP Plc company
should manage waste, recycling and consumption. In addition to this company can also
provide excellent benefits, insurance to the workforce. Moreover company can make an
investment in resources so as to build a clean and safe workplace in order to make
employees fell happy to come up each day and to give their best for the organization in
accomplishing company aims and objectives.
 Philanthropic responsibility: This responsibility specifies to promote welfare of human
beings so as to spread goodwill of the corporations.(Burnsed, 2018) In order to full fill
philanthropic responsibility company pursue in a variety giving forms like products and
services donations, gifts of monetary resources and other discretionary contribution
towards the community and stakeholders.
Thus, overall it can be concluded that its the prime responsibility of manager of BP Plc
company to take into consideration all the four types of responsibility explained in Archie's
model as they are considered an important aspect of corporate social responsibility. .
CONCLUSION
In this report concluded about innovation in factors of business environment and how
does this innovation impact the workplace. The impact of business environment is describe
through marketing function, operation function, supply chain management and design or
research and development function. Basically innovation is a process or ideas which add value
in goods and services. In this report knowledge and understanding of technological innovation is
explained in the context of company and financial and ICT issues are affect the business
functions. The impact of corporate governance and ethics are also defined in a business context.
The role of technological changes in economic progress and and the relationship between
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innovation and economic development are define. Corporate governance knowledge,
understandings and importance for BP Plc are explained. CSR impotence for BP Plc and CSR
model are also explained. Archie Carroll's model is defined well for CSR activities and
importance of the company.
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REFERENCES
Books and Journals
Burnsed, K.A. and Bickle, M.C., 2018. SATISFACTION WITH INDEPENDENT FASHION
STORES'ENVIRONMENT. International Journal of Sales, Retailing & Marketing.
7(1).
Chen, B., 2016. Relationship between Work Environment, Leadership Style, Performance
Appraisal, and Employee Turnover in Hebei, China (Doctoral dissertation, INTI
International University).
Enombo, J.P., Hassan, S.L. and Iwu, C.G., 2016. THE SIGNIFICANCE OF
ENTREPRENEURSHIP EDUCATION IN GABONESE SCHOOLS:
JUSTIFICATIONS FOR A NEW CURRICULUM DESIGN.
Fell, E., 2017. Hartmut Berghoff and Adam Rome, eds., Green capitalism: business and the
environment in the twentieth century (Philadelphia: University of Pennsylvania Press,
2017. Pp. xiv+ 298. 5 figs. 7 tabs. ISBN 9780812249019 Hbk.£ 42.50/$65). The
Economic History Review. 70(4). pp.1471-1473.
Hassan, S.L., Enombo, J.P. and Iwu, C.G., 2015. The significance of entrepreneurship education
in Gabonese schools: Justifications for a new curriculum design.
Hichri, S.M., M'chirgui, Z. and Lamine, W., 2016. How Business Incubators Create a Conducive
Environment for the Development of Innovative Tunisian Startups. InTECHNOLOGY
ENTREPRENEURSHIP AND BUSINESS INCUBATION: Theory• Practice• Lessons
Learned (pp. 179-212).
Kumari, E., 2017. Security Challenges Faced in Cloud Computing Environment. International
Journal of Advanced Research in Computer Science. 8(5).
Maruichi, D. and Abe, M., 2018. Corruption and the business environment in Viet Nam: An
exploratory survey (No. 179). ARTNeT Working Paper Series.
Mushemeza, E.D. and Okiira, J., 2016. Local Content Frameworks in the African Oil and Gas
Sector: Lessons from Angola and Chad. ACODE.
Robb, D.A., Rohde, F.H. and Green, P.F., 2016. S tandard B usiness R eporting in A ustralia:
efficiency, effectiveness, or both?. Accounting & Finance. 56(2). pp.509-544.
Trinh, D.Q., Trinh, A.T. and Phan, T.T.N., 2017. Review on the impact of 2014 Enterprise Law
on business environment and some suggestions. Science & Technology Development
Journal-Economics-Law and Management. 1(Q5). pp.16-23.
Ubarte, I. and Kaplinski, O., 2016. Review of the sustainable built environment in 1998–
2015. Engineering Structures and Technologies. 8(2). pp.41-51.
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