Sustainable Approach to Business Strategy and CSR Challenges: A Case Study of Arcadia Group

This business report explores the sustainable approach to business strategy and CSR challenges faced by Arcadia Group. It discusses the strategic planning and implementation of sustainable strategies, as well as the challenges of changing employee behavior and cost involvement. The report also analyzes different approaches to CSR in micro, SME, and corporate businesses, and how success in CSR strategies can be measured.

Business report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Explanation of sustainable approach to business strategy along with management...................1
Analysing different approaches to CSR of Micro, SME along with Corporate Business, how
can success in CSR strategies can be measured..........................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business report is can be said to organised statement of various events, facts, situation and
risks relating to commercial interest which is prepared after research and presented to
stakeholders with as well as without recommendations (Altenburger, 2018). It includes
information related to strategic planning of company and corporate social responsibility which
businesses are required to fulfil for operating in the market in sustainable and ethical manner.
The present business report is a formal report about Arcadia Group which is international force
in fashion. It has more than 1000 employees that make things possible to provide all services
which is needed for growth and thriving in market. The report demonstrates about sustainable
approaches for management of business including strategic planning along with CSR challenges.
It also analyse distinct approaches to CSR of various businesses and the ways success of CSR
strategies can be measured.
MAIN BODY
Explanation of sustainable approach to business strategy along with management
Sustainable approach is termed to a holistic approach which thinks about economic,
ecological along with social dimensions through recognising that all needs to be considered
together for searching lasting prosperity (Cooper, 2017). For all businesses, it is necessary to
devise and apply sustainable approach as it assist in working ethically by ensuring compliances
in the goals and workings. Sustainable approach to company is also termed as corporate
sustainability which is about creating long term employee and customer value by creating green
strategy that is aimed for preserving natural resources and taking into account all dimension
having relation with external factors of business environment. It includes aspects related to
strategic planning as well as challenges in corporate social responsibility that enables an
enterprise to prepare a strategic view in order to deal with all the challenges in appropriate
manner and tackle situations effectively. Following is the explanation and application of
sustainable approach to business management addition to strategy in context to Arcadia Group:
Sustainable approach to management of company
The approach of sustainability to business management is also named to corporate
sustainability that is an approach undertaken by organisation to create long term values through
managing risks along with embracing opportunities from social, economic as well as
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environmental developments (Demirag, 2018). It is one of corporate management paradigm that
assist in recognising and pursuing plans for societal objectives which are closely associated with
sustainable development. Arcadia Group is one of entity that focuses on developing sustainable
approach through improving its procedures, practices and methods. The strategic planning and
challenges to CSR for the company are the following:
Strategic planning: It is a process to define directions, strategies and decision making on
resource allocation for pursuing towards strategy. Strategic planning is major element in business
management for developing sustainable approach. It is generally executed by strategists or
strategic planners of company that are involve themselves in researches in order to develop
effective plan of strategy (D'Este, Amara and Olmos-Peñuela, 2016). The strategists of Arcadia
Group have devised a plan for sustainable approach that is underneath:
 Planning directions: In this, strategic planners of company plans directions that the
company wishes to adopt for moving further. For example, Arcadia Group have aim for
developing sustainable approach which aids in fulfilling responsibilities for corporate
society and attaining opportunities for expansion and growth.
 Strategic objectives: In this, strategic objectives are devised that have relation with
sustainability approach (Duckworth and Hoffmeier, 2016). One of strategic objective of
Arcadia Group is to enhance translation of resources available with entity by 15% till
2022 in order to optimise using resources and retain them for coming generation. The
other objective is to increase reducing wastage by 8% till mid of 2021.
 Sustainable strategies: It is sequence of projects and anecdotes that are written in
sustainable reports of entity. Devising and application of strategic strategies are
mandatory for sustaining in the market for future. Some of sustaining strategies that will
be used by managers of Arcadia Group includes employee development, Investment in
AI and Automation and abolishing micro fibre.
 Implementation: Once strategic objectives and strategies for sustainability are devised
then the next is implementation (Demirag, 2018). In this, strategists of Arcadia Group
will communicate the information of strategic planning and will assists manpower to
work accordingly. all these stages will help the company in addressing challenges and
taking suitable measures to attain sustainability for long term.
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CSR Challenges: Corporate social responsibility is the commitment made by companies to
behave ethically as well as make huge contributions in developing society while improving life
of population at local and larger society as whole (Gallego-Álvarez and Ortas, 2017). In case
with Arcadia Group, following are certain CSR challenges that are faced by the entity in
implementing aspects of strategic planning:
 Changing behaviour of employee: In dynamic era, organisational employees are
increasingly focusing beyond benefits as well as paychecks that create issues for
employers to operate practices to match the principles. In order to motivate employees for
working more to implement practices towards developing society, Arcadia Group is
forced to make changes in improving working conditions. The constant changes in
employee behaviours are one of major challenge that the company faces while working to
fulfil responsibilities towards developing society (Hopkins, 2016).
 Huge involvement of cost: Planning, framing and implementing sustainability strategies
involves various types of costs including direct and indirect cost that is one of barrier for
the company to meet society responsibilities to fullest. Strategies charge huge salaries
and employees needs motivation in form of additional benefits that costs the business to
huge extent that leads managers of Arcadia Group to make certain changes in its financial
budget for fulfilling responsibilities.
 Increasing pressure from stakeholders: Stakeholders such as investors, suppliers and
others creates pressure on companies for changing the manner in which they are fulfilling
responsibilities (Kang, Germann and Grewal, 2016). In context to Arcadia Group, it has
large stakeholders base that pressurises the business to analyse performances along with
make decision to take actions that results in making restricted attempts to initiation of
actions as per the set objectives and strategies.
Sustainable approach to strategy of entity
Sustainable strategy is defined to the plan and attempt which an organisation puts into
place with the hope of remaining going concern (Lau, Lu and Liang, 2016). Different business
have adopted different strategies so to operate in the dynamic and complex world in ethical and
sustainable manner. In context to Aracadia Group, following are certain strategies used for
performing operations in ethical addition to sustain manner:
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Employee development: It is one of common strategy that is used by businesses to
provide safety, welfare and other related aspects to develop employees to fullest so to retain them
for future (Leipziger, 2017). For example, managers of Arcadia Group mostly rely on wetware
that is attribute as well as benefit that is bought to the entity by an employee’s skill. The strategy
is used by the company in form of developing manpower through compensating them and
educating or training them to manage risky situations and working in competition. Moreover, the
strategy assists in retaining individuals for future and managing operations ethically.
Investment in AI and Automation: It is anther business strategy that boosts working of
entity for sustainability through launching automation technology in various numbers of
operations. For instance, Arcadia Group supplies materials and sale finished products at its
different outlets in which use of AI and Automation assist in restoring energy and performing
working ethically to meet customer demand . At same time, the company uses the strategy in
managing inventories at store and making timely deliveries which improve its various
functioning and shows exciting growth areas in sustaining resources for coming generations
(Investing in AI and innovation at Arcadia Group. 2020).
Abolishing micro fibre: This is important business strategy that is used by entity to
exercise operations sustainably and ethically. Micro fibres are threads that are similar to micro
plastic which shreds clothing during washing. Use if micro fibre also causes issues in
environment as the fibre poses threat to health of human along with marine life. In Arcadia
Group, managers have implemented the strategy in which the use of micro fibre in cosmetic or
other personal care product is banned that reflects that huge attempts are made by the entity in
ethical and sustainable manner for protecting and solving issues in environment.
Analysing different approaches to CSR of Micro, SME along with Corporate Business, how can
success in CSR strategies can be measured
In the present world different size of company have different actions of strategies towards
fulfilling social responsibilities (Lone, Ali and Khan, 2016). All companies whether small or
large have some of other approaches to CSR.
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Figure 1 Engagement of different sized companies in CSR. 2020
(Source: Engagement of different sized companies in CSR. 2020)
In context to micro companies, these companies operate with fewer employees that are 9
in number and generate turnover of less than £ 5 million. For example, Maxim Restaurant is one
of micro enterprise in UK that works with 7 employees to meet satisfaction of customers for
different taste and dishes. The company uses approach of contributing philanthropy towards CSR
through supporting education excellence in London and providing training to local talents. This
helps the entity in fulfilling responsibilities for developing society at certain level. With this
approach, the business achieves success in making contribution for communities in need
(Schäfer, 2016).
SME Business are small to medium enterprises which are specialist in specific field. For
instance, Airdri Limited is an SME in UK that manufactures variants of hand dryers. The
businesses use approach of volunteering and involvement of community. With this approach,
Community Involvement Program is organised by managers of the organisation in which all the
employees at different levels supported to benefit local and regional communities. Moreover,
social responsibility program of Airdri limited emphasis on heath and safety of all its
stakeholders and strengthen capabilities through supporting researchers in the field of technology
for manufacturing distinct types of hand dryers that suits customers value.
Corporate business is charitable at state and has rights as business separate from owners
(Visser and Tolhurst, 2017). One of corporate business in Arcadia Group which have limited
liability of its owners, existence as expansion concern and shares insured are easily transferable
stock. The approach of CSR used by managers of Arcadia Group is creating shared values in
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order to develop society while strengthening economies and market. The approach creates
interdependence of future business success on balanced social systems and encourages
companies in investing strategically for the purpose of educations, social welfare, conserving
environment resources addition to healthcare which creates huge opportunities for long term
growth of society and company as whole. With this approach, Arcadia Group makes huge
number of investment in innovation, preserving natural environment and empowering
communities.
As per the approaches used by micro, SMEs and corporate businesses, it is identified that
they the approaches adopted by these business are not similar. These differ in terms of objectives
and ways to improve community and develop society (Duckworth and Hoffmeier, 2016). Micro
businesses earn limited revenue so that uses approaches to CSR accordingly. In contrast, SMEs
earns relatively more than micro business that enable them to use more effective approach that
benefits society at regional or upper level. However, approaches adopted by corporate businesses
are highly initiative for developing society at domestic level and also helps in focus on other
environmental aspects.
For measuring success in the CSR Strategies of the businesses, managers use various
mechanisms that show that all the strategies are implemented as per the objectives. One of the
ways through which managers of Arcadia Group can measure success of CSR strategies is to
benchmark activities of company against rivals. The mechanisms will assist businesses in
measuring performances and devising targets. The another way for measuring strategies of
corporate social responsibility success is Community Mark Standard that will enable in
measuring organisational involvement and level of development done in community. With this
mechanisms, Arcadia Group or other businesses can properly measure CSR strategies success
against set criteria. Key performance indicator is also a tool that assists entities in measuring
success made by CSR strategies in the market. The tool is sued for measuring environment
performance and it evaluates organisational success in the activities they are engaged on. By
analysing the actual results against defined criteria can also assists businesses in analysing the
success made by their CSR strategies (Lau, Lu and Liang, 2016).
.
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CONCLUSION
From the above report, it is concluded that all businesses makes attempts of efforts for
corporate social responsibility. It is a wider concept which takes various forms as per
dependence on company and sector. It is considered as self regulating model which enables firms
be socially accountable for stakeholders and public. By engaging in CSR programs, a business
operates in various manners which improve society addition to environment positively.
Strategies that are used by institutions to manage activities ethically are making investments in
automation and AI techniques, developing employees and abolishing use of material that are
harmful for human and aquatic life. At same time, certain challenges that are faced by enterprise
in implementing corporate social responsibility are large cost involvement, changing employee
behaviour and more pressure from stakeholders. All types of businesses such as micro, small and
medium, corporate and social enterprises creates and implements social responsibility programs
through using suitable approaches that not only benefit the brand but also develop society and
economy of nation as whole. The approach of contributing philanthropy, creating shared values,
volunteering and involvement of community are adopted by businesses for meeting
responsibilities towards society.
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REFERENCES
Books and Journals
Altenburger, R., 2018. Corporate Social Responsibility as a Driver of Innovation Processes. In
Innovation Management and Corporate Social Responsibility (pp. 1-12). Springer,
Cham.
Cooper, S., 2017. Corporate social performance: A stakeholder approach. Taylor & Francis.
Demirag, I. ed., 2018. Corporate social responsibility, accountability and governance: Global
perspectives. Routledge.
D'Este, P., Amara, N. and Olmos-Peñuela, J., 2016. Fostering novelty while reducing failure:
Balancing the twin challenges of product innovation. Technological Forecasting and
Social Change. 113. pp.280-292.
Duckworth, H. A. and Hoffmeier, A., 2016. A six sigma approach to sustainability: Continual
Improvement for Social Responsibility (Vol. 41). CRC Press.
Demirag, I. ed., 2018. Corporate social responsibility, accountability and governance: Global
perspectives. Routledge.
Gallego-Álvarez, I. and Ortas, E., 2017. Corporate environmental sustainability reporting in the
context of national cultures: A quantile regression approach. International Business
Review. 26 (2). pp.337-353.
Hopkins, M., 2016. The planetary bargain: corporate social responsibility comes of age.
Springer.
Kang, C., Germann, F. and Grewal, R., 2016. Washing away your sins? Corporate social
responsibility, corporate social irresponsibility, and firm performance. Journal of
Marketing. 80 (2). pp.59-79.
Lau, C., Lu, Y. and Liang, Q., 2016. Corporate social responsibility in China: A corporate
governance approach. Journal of Business Ethics. 136 (1). pp.73-87.
Leipziger, D., 2017. The corporate responsibility code book. Routledge.
Lone, E. J., Ali, A. and Khan, I., 2016. Corporate governance and corporate social responsibility
disclosure: evidence from Pakistan. Corporate Governance: The International Journal
of Business in Society.
Schäfer, H., 2016. 26 Corporate Social Responsibility Rating. A Handbook of Corporate
Governance and Social Responsibility, p.449.
Visser, W. and Tolhurst, N. eds., 2017. The world guide to CSR: A country-by-country analysis
of corporate sustainability and responsibility. Routledge.
Online:
Engagement of different sized companies in CSR. 2020. [Online]. Available through:
<https://www.eurofound.europa.eu/publications/article/2009/corporate-social-
responsibility-in-micro-and-small-enterprises>
Investing in AI and innovation at Arcadia Group. 2020. [Online]. Available through:
https://advisor.morganstanley.com/the-arcadia-group/articles/investing/investing-in-
artificial-intelligence-and-automation
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