Impact of Innovation, Business Ethics and CSR on Modern Business Organizations

This report assesses the impact of innovation, business ethics, and corporate social responsibility on modern business organizations using Hikma Pharmaceuticals as a case study. It covers the impact of innovation on modern business organizations, the importance of corporate social responsibility, and the impact of business ethics on business. The report also provides recommendations for the company to adapt a model to fulfill its social responsibility and duties in a proper and systematic way.

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Assess the impact of innovation on modern business organisations ..........................................3
Assess the impact of business ethics and corporate social responsibility (CSR) on modern
business organisations.................................................................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................8

Executive Summary -
The report is covering the organisational ideas that assist the company in having the objective
successfully in a positive way. These activity and ideology aids the company in having the
institution to fulfil the Company social responsibility in a proper way. They should implements
a various creative ideas and techniques to attain the activities and increase the productivity that
directly hits the sales volume of the organisation. The company requires to increase the
profitability with considering the long run in existing market and in the desire to expand the
business.

INTRODUCTION
A business environment is ever dynamic and it is also uncertain in nature because of the ever
fluctuating atmosphere. As it is known that business environment consist of all the element that are
not in control of the management of the organisation such as, that element that are regularly
fluctuating and they have lots risk, uncertainties and opportunities that can support in the future of the
business. The business environment includes all the components that impact the operations of the
firm and involves consumers, suppliers, sectorial trends, development, technology, competitors,
stakeholders, factors of economy and other government practices. Hence, it refers to the outside
atmosphere of the business and involves all the elements outside of the organisation that can lead to
the threats and opportunities of the company. The following report is based Hikma Pharmaceuticals
Plc, which is a British multi national pharmaceutical firm having its headquarters in London,
England. Company produce non branded licensed pharma products. It was founded in 1978 by
Samihh Darwazah. The following report will include the understanding and knowledge of authentic
modern business company and concepts of the business and it will also cover the usage of business
concepts to the business ethics and corporate social responsibility.
TASK
Assess the impact of innovation on modern business organisations .
Innovation is the technique in which a environment, a service or the goods is modified and
introduced up to date by utilising various latest processes, giving several creative ideas and
latest forms of methods just to increase the value (Sengupta, 2018).
In order to analyse the innovation strategy of the Hikma Pharmaceuticals Plc. Company uses 4
Ps of innovation which is mentioned below:
 Product - It refers to the offers in which company is dealing according to the needs and
wants of consumer. In context to the Hikma Pharmaceuticals company sells more than
200 edible and injectable products in almost around 400 various dosage forms such as
their main products are argatroban, suprax, prograf, blopress, Amoclan, iron gluconate
etc.
 Process – It includes modification and alteration of the products, services and activities
of the firm Hikma pharmaceuticals in order to create better offerings.

 Position – It includes the target consumers of the innovation. In context to Hikma
Pharmaceuticals, management shall target the consumers of very age and gender as the
medicines are needed for every human being so this give them a positive edge over its
competitors as well as helps in enhancing their consumer base.
 Paradigm – This factor refers to the what firm is doing. Management of the company
Hikma pharmaceuticals can implement several techniques that can help them in
modifying their products and services (Saleh, and Watson, 2017).
The impact of innovation on the modern business companies is mentioned below:
 Retain top talent – Firm Hikma pharmaceuticals have a goodwill for being innovative in
various sections including in hiring of talented and skilled employees internationally.
Management making their brand as innovative has motivated them in getting the top
skilled employees to apply and keep loyal to the organisation which gives the company
brawny edge over its competitors.
 Enhanced efficiency – Firm Hikma Pharmaceuticals have an efficient business model
that helps in attaining technology innovation. So their business activities are flowing with
the technologies as it is very less costly, it also saves the time and increase the
productivity of their firm as well as gives more sustainability (Liu, and Yang, 2019).
Company can reinvest these saving in the future growth of the firm or gives it to the
consumers by offering reliable and affordable products.
 Increases brand awareness – Nowadays customers do their proper study before
purchasing a product so in order to sell the product to the consumers it is required better
brand image. In context to Hikma Pharmaceuticals, management use the execute the
proper digital advertising strategies to enhance their presence online and if the customers
are looking for the key organisations in this industry then, they can easily look for this
company. Firm Hikma requires to set up a image for being the of the best in the industry
that means efforts for innovation as well as being very conscious socially and
environmentally that might assist them in enhancing their sales and brand awareness.
 Staying ahead of disruption – Innovation in business refers to maintaining a path of the
direction of the market in consequence possible disruptions or a alteration in the demand
of the customers. In relation to Hikma PhaRMACEUTIcals, company is on the top of the

customers information which allows their managers to react to the dynamic trends by
utilising the purchase, partner and construct model.
Assess the impact of business ethics and corporate social responsibility (CSR) on modern
business organisations.
Corporate social responsibilities is a business model which is actually is a self regulating model
that supports company to be responsible towards the society, its stakeholders, general public and
itself (Kurti, 2020). By implementing corporate social responsibility also known as the corporate
citizenship, organisation can be focus on the type of the strike they are having on all the
perspective of the environment which involves social, economic and environmental. There are
various importance of the implementation of the corporate social responsibilities that are
mentioned below:
 Consumer Engagement – It can assist businesses in better engagement with the
consumers. Various types of the CRS includes the members of the society is interacting
directly with the organisation and those members can be the potential consumers for the
organisation. This can assist the company in getting straight and honest feedback on what
wrong or right the organisation is doing in their CRS practices.
 Brand Awareness – It helps the organisation in improving their brand image of
recognition. If the respective company is focused towards the ethical activities for the
betterment of the society assist them in spreading this news of the company. Hence, more
consumers or members of the society will definitely hear about the working of the
company that makes an improvement in the awareness of the brand.
 Competitive Edge – Company by implementing the corporate social responsibilities,
organisation can get an edge over its competitors in the same sector by establishing itself
as an organisation that is pledged to implementing various steps of the environmental and
social factors.
Corporate Social Responsibilities in today's have become famous after it was known by Carroll's
pyramid of the CSR which was introduced in 1991 (Knight, and Ellson, 2017). It is basically
capable to show the idea of the Corporate social responsibilities in four ways which has created a
pyramid and it is also the one of the most used and preferred corporate theories of the CSR.
Carroll's pyramid states that organisations has to attain all their duties at those four ways such as
legal, economic, ethical and philanthropic that are described below:

 Economic Responsibilities – This level of this theory shows a firm's initial duty that is to
be successful. Without revenue, the firm is not able to pay their employees, staff can lose
their earning even before the implementation of the CSR practices. Organisation being
profitable is the sole method for the firm to be able to grow and survive for the long term
(Ho, 2021).
 Legal Responsibilities – This level of the pyramid refers to the legal duties of the
organisations to follow the policies and laws which are made by the government. This is
the most essential duty of this theory as it states that how firms conduct their operations
in the market area. Laws related to the employment, competition with several
organisations, health, safety of the employees as well as tax regulations.
 Ethical Responsibilities – This is the ethical level of the pyramid which refers to
executing the right activities and being fair in every condition with also obviating the
harm. A firm should always follow and obey the law as well as also pursue their
operations of the business ethically. Dissimilar the initial two layers of the pyramid it is
something that an organisation is not suppose to execute. Nevertheless, it is better for the
firm to be ethical as it can help them in increasing the moral and motive of the
stakeholders as well as the people can also feel more satisfying in the buying or products
and services from the organisation (Cvenkel, 2018).
 Philanthropic Responsibilities – This responsibility is at the top of the pyramid as
various organisations are always being point out for their carbon emission, maximum
unnecessary use of the natural resources as well as the industrial waste of the organisation
and many more. These factors can be a matter of concern as the many consumers
interested in doing the business with the organisations that are giving something back to
the environment. This responsibilities holds and focus on the true values of the company.
In context to Hikma Pharmaceuticals PLC, management consistently is concentrating on the
social, environmental and governance problems. Company is the members of the United Nations
global compact in which the firm is pledge to carry on their few principles which focuses on the
human rights, anti corruption, labour and the environment and they have also kept their
constituency in the FTSE4Good (Crowther, and Seifi, 2017).
 Even after the issues of the pandemic Covid 19, they still focused on giving on their
promise to keep the health and safety of the several patients in their market segment.

Initially they concentrated on the health and well being of their various workers in whole
world. This helped them to keep the supply of their medicines and react to the fluctuating
wants of the patients.
 Company have strengthen their gathering programmes of engagement, specifically those
in the need of the education, healthcare and giving relief to people who actually are in the
most requirement.
 They have reinforced their donation campaigns of medicines by increasing the quantity
and value of their donation into double after the inspection of this campaigns few years
ago.
 They are regularly measuring their affect on the development and on the environment and
made development in their strategy to function more sustainably. They are taking various
methods to adjust their assessment of issues related to the climate (Boutchich, 2021).
The impact of the CSR of Hikma Pharmaceuticals PLC:
 Consumer Retention – CSR help the Hikma Pharmaceuticals, as they are socially
responsible so consumers always tries to do business with them. Company's commitment
and focus towards the society can help them in attracting more potential consumers as
well as retention of existing ones.
 Stability in cash flow – Proper cash flow is very essential for the growth of any
company. IN context to Hikma Pharmaceuticals, management is socially and ethically
obligated so it can help them in avoiding the expenditure of the litigation and other
several challenges which can give a negative impact on the company profitability and
stability. So it can help them in maintaining their cash flow which is very beneficial for
their long term growth.
 Employee Recruitment – Every organisation must make a stable work forc by keeping
their top skilled employees and not letting g these people to their competitors. Employees
in the firm have seen the era of heightened awareness of the welfare of society as well as
the environment protection. So in case of Hikma Pharmaceuticals, their commitment
towards the welfare of society and environment is the reason and the determining element
in retaining and joining their company.
Business ethics:

It is the research of proper business policies and activities about the likely disputed matters like
insider trading, bribery, racism, discrimination, corporate governance, fiduciary duties and
corporate social responsibility (BĂTUȘARU, 2019). The policies usually instructs about the
ethics of the businesses, management decided to obey to gain public approval.
Impact of business ethics on business:
 Consumer loyalty – Customers of the firm Hikma Pharmaceuticals is loyal to them as
they do not intend to treat them unfairly in respect of the prices and the quality of their
products. Their long term business success is the key to the loyalty of the consumers.
 Brand reputation – Reputation of the firm Hikma's for ethical behaviour has helped
them in creating their more goodwill in the market that helps them in enhancing their
potential consumer base by various ways like word of mouth marketing.
 Positive work environment – Workforce of the firm Hikma Pharmaceuticals, works as a
team instead of a person just out of themselves. They evolute the optimistic bonds with
their colleagues. Their seniors believe them with the important confidential data and they
are usually provided with more independent as a outcome.
 Legal Aspects- Management of the company does not compromise in complying with
the labour laws, safety and environmental policies or utilising hazardous material in their
products. So this helps them in avoiding all the legal issues which the firm Hikma
pharmaceuticals can face in future and can also give them the negative marketing.
Recommendation-
Company should adapt a carrolls model so that they can fulfil the companies social
responsibility and duties in a proper and systematic way. They should apply a model in a crucial
way that leads to improvisation in the production activity and profitability level in the firm.
This model assist the organisation in a various ways this gives a idea to satisfy the workers so
that they feel happy in working in the organisation. Secondly firm should implements some
innovative ways in their operations so that impact the institution in both externally and
internally both. This both recommendation assist the firm in positive way or provides a long term
sustainability in the market.

CONCLUSION
From the above report it is concluded that for every business it is necessary for the firm to
analyse its external and internal environment in order to smooth working and long term business
growth and success of the organisation. The business environment involves all the elements that
affects the functions of the company like consumers, development, technology, competitors,
stakeholders, economic factors etc. Additionally, innovation is very essential for the long term
growth of the firm as it helps in the modification in products or services as well as introduction
of new offering of the organisation in the market segment. Moreover, impact of innovation on
the business have various positive factors such as Retaining the top skill and talent, enhanced
efficiency, helps in improving the brand awareness etc. Apart from this management uses
various corporate social responsibilities in order to attain their objectives of social and
environmental which can give them long term consumer growth as well as success. Furthermore,
business can function their operations smoothly by following its business ethics.
REFERENCES
Books and Journals
BĂTUȘARU, C.M., 2019. SUSTAINABILITY OF THE SMALL BUSINESS
ENVIRONMENT IN ROMANIA IN THE CONTEXT OF INCREASING
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Boutchich, D.E.K., 2021. Impact of ethics on research productivity in higher education.
International Journal of Ethics Education, pp.1-19.
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the evidence. In Modern Organisational Governance. Emerald Publishing Limited.
Cvenkel, N.R., 2018. Employee well-being at work: Insights for business leaders and corporate
social responsibility. In Stakeholders, governance and responsibility. Emerald
Publishing Limited.
Ho, J.C., 2021. Disruptive innovation from the perspective of innovation diffusion theory.
Technology Analysis & Strategic Management, pp.1-14.
Knight, H.H. and Ellson, T., 2017. Value drivers of Corporate Social Responsibility: The role of
explicit value and back value. Social Business, 7(1), pp.27-47.
Kurti, E., 2020. Institutional Tensions and Complexity in the Digital Innovation of Incumbent
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Saleh, A. and Watson, R., 2017. Business excellence in a volatile, uncertain, complex and
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Sengupta, K., 2018. Managerial decisions for innovation strategy of firms: implications for
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