Innovation, Technology and Corporate Social Responsibility in AB Foods PLC

This report analyzes the impact of innovation and technology on AB Foods PLC's economic growth and corporate social responsibility. It covers the concept of innovation and technology, examples of how they contribute to economic growth, and the use of new technologies in operations. It also discusses AB Foods PLC's overview, new technologies used, and sales and profits before and after new technologies. Lastly, it explains the importance of corporate social responsibility and Carroll's pyramid of CSR.

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
Innovation and technology..........................................................................................................3
Overview of AB foods PLC........................................................................................................6
Corporate social responsibility ..................................................................................................7
Carroll's pyramid of CSR............................................................................................................8
CONCLUSION .............................................................................................................................10
REFERNCES:................................................................................................................................11
Books and Journals:..................................................................................................................11

INTRODUCTION
The report aims to ascertain business environment in terms of innovations and
technology. It plays a vital role in ascertaining profits into competitive market. Innovation is the
key concept in the modern business sector it describes as creating something new better than
before. Innovations leads to build something unique and non approachable at easiest. It is
basically a concept of developing new product and services which is better than others and
creates some value into market. This report is going to analyse how the innovation and
technology has contributed into economic growth. All these criteria will be emphasize on
Associated British food Plc (Holgersson, and Granstrand, 2017). The company was formed in
1935 in London, UK. It is scattered in 4-5 countries and best sellers of grocery, food ingredients
and other supplements. This report will cover two task in which first will describe the concept of
innovation and technology in context of AB foods PLC whereas, Task 2 will evaluate about
corporate social responsibility by explaining Carroll's pyramid of CSR in order to understand
the role of social welfare to create a positive image among customer and fulfil demand of society
through best possible efforts.
MAIN BODY
TASK
Innovation and technology
Innovation refers to creating something new and innovation into market. A product and service
is become innovative when it leads to new features, unique concept and creativity which is rare.
Innovating could be in terms of goods and services, method of production, devices uses,
technology. Any kind of innovation come with something new and better aspects which is
superior than the previous goods, methods or technology. It become a significant process in
modern world where people and country wants frequent changes into their surrounding.
Innovating ascertain change within an organisation who wants to enable great efficiency,
productivity and brand name into market. It gives competitive advantage by creating innovative
environment of business which provides production, procedure and development for the growth
of society and economy.
Technology Is yet another term of innovation as it gets upgraded in frequent time by
making changes and cresting more superior than before. Technology his rapidly rising through

which every work become easy and quick for both business and customers. Technological
innovation refers to that process in which organisation keeps on change their technology to
produce product with more efficiency or enable services with more convenient services
(Demirel, and Kesidou, 2019). It could be understood with an example of internet and mobile
devices as it becomes a crucial part of every individual life, internet plays vital role in
undertaking advantage of online technology through online shopping, CRM, digital marketing
and many more.
Examples of how innovation and technology contributed to the economic growth of
country.
Innovation and technology is contributing rapidly in the growth of society and economy.
It makes the country developed and competitive to take market opportunities, enable digital
acquisition and promote new ways of working and experiencing. Innovations leads to develop
country in a better way which come up with regular changers in products and services, gives new
experience of technology in order to make purchase, sales and take information from any
sources. for example, the arrival of mobile phones, television and computers make the world
connected and provide a great experience of enabling communication, entertainment and
perform work in a easy manner(Yang, Cheng, and Yao, 2019). These have developed through
wider the expansion of business scope and development of new techniques. It gives rise to
market demand, trends which creates influence on businesses to become capable of working in
dynamic environment. It reflects in the positive growth of employment generation as these
technological advancements requires experts working and vast knowledge of technical fields.
Some of these advancements are automated engines, 3-D printing, Artificial intelligence,
customer management system and many more. These technology provide a new for doing
business which shows how to identify customer preferences and what strategies would attract
them. The economy become more of people centric in which society wants are initial concern of
every marketer. Due to this, it gives rises in GDP of economy and makes the society capable to
accept changes and established a unique name into market.
Use of new technologies in operations
Businesses use new technologies in many ways which are useful for its productivity and
profitability. Every business wants to cut their cost and make the operation as much as effective.
The business use new technologies to make production procedure efficient, improve product

quality and skills of employees. These could be use in a broader way through which organisation
will set trainings and coaching sessions through using virtual methods in order to maintain
protocols of Covid-19 (Cao,2021). Operations makes more developed when the work will be
carry out through techniques and involving new criteria that focus on quality, quantity and
efficiency. Therefore, organisation use technologies like social media marketing, digital
evaluation, advertisements to get connect with their customer and make them aware about the
product and service of company. It makes the communication quick and effective and eliminate
any barriers between the company and its customer. Mainly technological advancements focus
on enabling minimum expenses at operations which maximises the profits and reach to
customers directly so that, it avoid cost of mediator and the goal of profit maximization would
get achieve. Business use innovation for the following ways:
Communication: It becomes the necessity for employees of organisation to get connected at
internal and external ways. These organisation use many way of communication by giving
company phones, extensions or provide remote excess to get connect with employees at different
levels of working. It avoid delays, confusion, misunderstanding and work will flow smoothly.
project management: it is also an important task for organisation to manage complex project
and regulates among employees so that, the vision and mission would get clear. Business use
software to record each and every details and make proper use of Microsoft software like power
point, MS-excel, more of computer usage (Maradana, and.et,al. 2017). It will done through
using software which are safe and secure to assess communication over working on projects.
Customer service: Technology is known for connecting the world with business. The main
motive of business is to enable quality services that retain customer and hold brand position into
their mind. Technology brings ways to get connect on social media like Emails, chats on
Facebook, Twitter and other platforms which established effective customer services at the time
of clearing doubts and provide informations.
Automation: The service of automation is enables by any retailers and supermarkets who attain
high sales during a day. This technology helps to maintain records of stock with the way through
barcode scanner. This will helps to supply goods to the needful and keeps real time data of
requirement of materials (Guerrand, 2017). It helps in maintaining operations and employees
will not need to get pressurise for keeping an eye over every material as it will et automatically
recorded by keeping accounts and data collection.

Overview of AB foods PLC
Associated British Food Plc is the second largest supplier of good ingredients which are
produced with high quality fibres and material. The company works since 86 years and has its
headquarters in London. It serve their operation in across 7 countries which includes Spain, UK,
Netherlands, Germany and Ireland. It has took over many subsidies to scattered their reach into
other parts of the world. They are leading deliverer and retailer of ingredients like enzymes,
Emulsifiers and lactose. The company undertakes several brands like Ryvita, Jordan's and many
more. They wants to diversify their products range for every food supplements in a healthiest
way, therefore, the company being indulge with many large firm like Unilever, primark to reach
customer preferences and be the top most global provider of food ingredient. Their products are
mainly sold for the health purpose to avoid any bacterial infections or hazardous cause by
undertaking food.
Describe new technology and how its used in company
there are various technologies used by the AB food Plc. These technological advancements are
the reason for company success to maintain hold on five different divisions of company. These
are mainly retail, agriculture, food, ingredients and grocery (Horvat, and.et,al. 2019). The
company follows a smooth ways of packaging their product which assure sustainability and
avoid use of hazardous substances which could harm others. The company use these
technologies in following ways:
Flexo technology: this technology is mainly built to combine off set machinery which prints
the packaging in an effective way. This technological can save time for package the product and
deliver it to the market at the right time. It could be done through electron bean, flexo coating
and cylindrical equipped that present substances and print packets at high speed This packaging
have positive impact on company as It promote recycling and reusing and avoid use of plastic
which Is adored by customers. It is an innovating within the company that set a unique brand
name into market with the way of maintaining economic welfare and work for society
betterment.
Artificial intelligence: this technology is now become popular and necessary to get every
insight about customer (Hashmi, and Alam, 2019). Through AI technologies, business could
easily identify the demand of customers across the globe and how they reach on their product
and service. AB food Plc undertaking AI to serve products and make changes as per customers

demand. Also, this emphasise on taking decision for marketing as to know about which channel
come up with large customer engagements and enables high reach.
Online selling:It is another best use of technology which gives benefits in increase sales and
profit for the company. It enable wide reach by selling through online channels and delivers
products at more convenient platforms. Online selling is being the requirement of every
individuals as people could get informed about all the features through websites and application.
AB food plc deliver products through its website that keep customer aware about product details,
its price and availability so that, they need not to come at the stores and save time.
Sales and profits of company before and after new technologies
As per the annual report of AB food Plc, the company have earned sales in the year of
2020 at the rate of 4% whereas in 2020 it has reached to 18%. along with this, the revenue after
deducting all the taxes, expenses were 878 in 2019 and 455 in 2020 (ANNUAL REPORT AND
ACCOUNTS 2020). it is because of the fact that the organisation gets upgraded in technology
and innovation due to which the expenses were more than the revenue. But it created positive
impact as it made increase in sales by 14%.
It has evaluated that technologies and innovation might impact on the financial stability
of the company but gives positive results in brand reach and customer retention. It has identified
that, sales are more than the last 5 years of data which shows slight increase and decline also. In
the year 2020, the company has achieved customer satisfactions and product reach many parts
of the world with an effective change in technology and operation.
Corporate social responsibility
Corporate governance talks about treating economy and society on the top of business
practices. an organisation is required to fulfil their act of corporate responsibility in order to
survive in current market. The economy wants positive development which runs with society
and its people. So that, this could be done through making effective utilisation of resource like
man, material and labour. corporate governance includes the responsibility towards shareholders
and stakeholders to be stick on their commitments and provide them what they have promised. It
includes working on stakeholders interest and avoid conflicts and issues in terms of democracy
and legal rights of the company.
Corporate social responsibility refers to the responsibility towards society and its people.
It helps the business to be largely eligible to work among society and for their betterment

(Kamal, 2021). The act of social welfare to maintain a balance between economical, social and
environmental interest is known as corporate social responsibility. The organisation needs to
look foreword for the concern of present and future availability into economy to be great helper
at the time of crises. The organisation will contribute a positive impact on environment by taking
actions which are in favour for whole surrounding and people could have healthy experience of
lifestyle.
History of corporate governance:
The history shown that, the concept of corporate governance is existed from 20 years ago.
It was first come into contract on the financial report of Cad bury which found to be alleged in
code of practices. The report was stated in the early 90s with some allegation and conversation
took place. Basically, the UK represents the act of corporate government when Cad bury come in
contract to breech practices in regards with stakeholders (Manogna, 2021). This case has raise
the need of legal provision and amendments in new code which took place in 2006. now the
concept is being used by every business firm whether they are limited liability holders,
education departments of any other sector.
Importance of CSR
Corporate social responsibility is highly significant for AB foods Plc as the company
deals in food items and serve kinds of ingredients. The company is required to build a positive
image to gain trust and affirmation of people. Retailers are responsible to act the best well-
wisher of the society as they are the only one who directly reach to customers very often.
Therefore, the company is responsible to use resources in such a way that represents future
security and environment get healthier by promoting recycle and reuse. As AB food Plc indulge
in sustainable packaging which holds a special place in economy and contribute in boosting their
sales and revenue.
Carroll's pyramid of CSR
This pyramid represents the aim and concept of corporate responsibility by defining its four
major areas. It assures that the act of social welfare needs to be ascertained by achieving four
levels which are discussed below:
Economic: This responsibility emphasise on completing the economic requirement for business.
AB food Plc needs to first look for their financial stability and revenue generation which will

contribute into the growth of GDP of country and work as CSR practices an long term survival
into society.
Legal: The company needs to adhere all the legs requirement in term of laws, taxation,
competition and under obligations (Sahu, and Sahu, 2017). AB Food Plc work on each legal
aspects to ascertain a positive brand name on people and in the eyes of government.
Ethical: The organisation is responsible to work ethically which means, the business must have
knowledge about the right and wrong to take business decisions. These practices must be in
favour of planet that will not harm and people, their culture, value and ethics. AB food Plc is
working hard to be ethically responsible by promoting diversified workplace culture, healthy
and quality products, sustainable supply and many more.
Philanthropic: this area of reasonability emphasize on utilising resources and ace air, water,
environment at its best, as these are the future of society that must not be destroyed which is in
the hands of business who works closely with them.

CONCLUSION
The report has concluded about the importance of innovation and technology which
drives prominent facts on the necessary of innovation. Also, it shows how innovation contribute
in economy as it makes the country developed and superior. CSR and corporate government
played vital role in organisation success as they being responsible for economic and
environmental welfare.

REFERNCES:
Books and Journals:
Holgersson, M. and Granstrand, O., 2017. Patenting motives, technology strategies, and open
innovation. Management Decision.
Demirel, P. and Kesidou, E., 2019. Sustainability‐oriented capabilities for eco‐innovation:
Meeting the regulatory, technology, and market demands. Business Strategy and the
Environment, 28(5), pp.847-857.
Yang, F., Cheng, Y. and Yao, X., 2019. Influencing factors of energy technical innovation in
China: Evidence from fossil energy and renewable energy. Journal of Cleaner
Production, 232, pp.57-66.
Maradana, and.et,al. 2017. Does innovation promote economic growth? Evidence from
European countries. Journal of Innovation and Entrepreneurship, 6(1), pp.1-23.
Hashmi, R. and Alam, K., 2019. Dynamic relationship among environmental regulation,
innovation, CO2 emissions, population, and economic growth in OECD countries: A
panel investigation. Journal of cleaner production, 231, pp.1100-1109.
Horvat, and.et,al. 2019. Understanding consumer data use in new product development and the
product life cycle in European food firms–An empirical study. Food Quality and
Preference, 76, pp.20-32.
Cao, L., 2021. Artificial intelligence in retail: applications and value creation
logics. International Journal of Retail & Distribution Management.
Guerrand, D., 2017. Lipases industrial applications: focus on food and agroindustries. OCL
Oilseeds and fats crops and lipids, 24(4), p.D403.
Kamal, Y., 2021. Stakeholders expectations for CSR-related corporate governance disclosure:
evidence from a developing country. Asian Review of Accounting.
Manogna, R.L., 2021. Ownership structure and corporate social responsibility in India: empirical
investigation of an emerging market. Review of International Business and Strategy.
Sahu, M. and Sahu, D., 2017. THE PYRAMID OF CSR: AN INDIAN PROSPECTIVE.
Online

ANNUAL REPORT AND ACCOUNTS 2020. [online] Available through
<https://www.abf.co.uk/>