Financial Analysis: Barclays Bank, CSR Strategies, and Brexit Effects

This individual report provides an in-depth analysis of Barclays Bank, addressing key financial issues, the importance of Corporate Social Responsibility (CSR) in its business strategies, and the significant impact of Brexit on its operations. The report highlights the LIBOR scandal and the adoption of Weber's Bureaucratic Management theory. It examines the benefits of linking CSR with the bank's strategies, particularly in enhancing its reputation and engaging with stakeholders. Furthermore, the report assesses the challenges posed by Brexit, including restrictions on conducting operations in the EU, and the subsequent decline in earnings and financial product values. The report concludes with recommendations for improvement, emphasizing the development of critical thinking and problem-solving skills and highlights the need to understand different subjects. The report provides a concise overview of the bank's current state and future prospects.

INDIVIDUAL REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
Issue that an organisation is facing.............................................................................................1
Linking Of Corporate Social Responsibility To Business Strategies.........................................2
Impact of Brexit..........................................................................................................................2
Recommendations.......................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Barclay's bank is one the largest international bank established in London and provides various
financial services like providing leans and investment opportunities. Moreover, this report will
highlight the issues which the Barclay bank is currently experiencing (Thompson.2017).
Moreover, the assignment will frame the importance of linking the CSR practices with the
strategies and on the flip side the report will outline the impact of brexit on the profits of the
Barclay bank.
Issue that an organisation is facing
Barclays bank which is one of the world's largest bank manipulated LIBOR rate between 2005-
09 to earn profits and prevent losses from derivative trading. Further, between 2007 and 2009 the
bank had made lower LIBOR submission fees to suppress marketplace hypothesis and terrible
media statement about the firm's operations throughout the monetary crisis. Moreover,on June
2012, Barclays bank is fine with $450 million by U.S regulators for manipulating LIBOR a
benchmark index which is essential for the global economic markets and is the basis for the
economic transactions (Batten, Loncarski, and Szilagyi.2017).
Recently, on June of 2017,Barclays bank past CEO John Varley and three former
executives are accused with crime relating to fundraising deals with Qatar that allowed Barclays
to keep away from a central authority bailout all through the 2008 crisis.
Management Theory
Barclay bank should adopt the Max Weber's Bureaucratic Management theory
through the bank can manage its operations according to the proper rules and regulations
imposed by the government authorities. Therefore, the Weber's standards for developing a
functionary system includes a clear and fair distribution of duties and tasks, chain of command,
modification between the personal and organizational belongings of the owner, precise financial
statement and documentation, rigorous and constant policies and regulations, and the recruitment
and development of personnel on the basis of their skills and abilities. However,through this
theory company can develop various standards and strategies which might help the bank to
conduct its business operations fairly and profitably.

Linking Of Corporate Social Responsibility To Business Strategies
Linking the CSR with tactics of the organization, will allow the Barclay's bank to achieve the
goals easily and conveniently. However,engaging the employees and stakeholders in the
decision-making process of the bank will encourage the personnel to work towards the goals of
the make. Further, if the bank will participate in the activities that eventually benefits the society
and link its business operations according to the preference of general citizen then it will enhance
the reputation of the company and will aware the public about the social activities of Barclay
bank towards the various groups of communities (Dhingra, and et.al., 2016).
Moreover, after the scandal which was committed by the Barclay bank , they have
adopted the CSR practice of economic responsibility to improve their brand image among the
citizens of the country. Thus, through this practice the Barclay bank follows various policies and
guidelines imposed by the government authorities to works towards the sustainability of the
environment and the general public. Moreover, the bank can improve its business operations by
engaging in various ethical practices which benefits the disadvantage sections of the country like
providing them loan at lower interest rate, offering investment products and offerings to middle
class clients so that they can improve their living styles.
Impact of Brexit
The key challenge that the Barclay bank will face due to the brexit is that the bank will lose all
its rights to conduct it operations in EU and at same time EU banks will also lose their rights to
conduct its banking activities in the UK (Marano, and Kostova.2016). Moreover, according to
solvency II, for conducting its business operations bank have to be approved under the member
states or within the EEA states.
Moreover, after the implementation of brexit, The trade between the Barclay bank and
the other banks in EU will be restricted which have impact the operations and the earnings of the
bank at huge level.
However, after the brexit the earnings of the bank fell 10 per cent during the initial
months of 2018 after the bank have paid out more than £2bn for being accused and at the same
time Pre-tax earnings declined to £3.1bn from £3.5bn in the same duration of closing year.

Moreover, during that year the lender has been penalized with £1.4bn through the united
states branch of Justice for conducting unfair practices of residential mortgage securities inside
the economic disaster. Further, the bank have also paid out £400m in PPI charges.
However, it was evaluated from the studies that if the bank won't have to pay such
penalty than the earning of the bank would have been grown upto 23 per cent which means
nearly £5.3bn. On the flip side, the economic value of financial products and offerings of the
Barclay's bank has been decline over the last few decades after the brexit to around £10 billion
from £12 billion which have affected the profits of the bank ( CSR Strategies That Are Good For
Business 2018).
Recommendations
From the above discussion,I have observed that while working in group presentation my thinking
skills have been developed. At the same time, my problem solving skills have been enhanced
which have helped me to resolve difficult problems with more creativity.
Moreover, whenever two or more people work together to accomplish difficult task it
leads to positive results and thus improves the creativity skills of the team members. On the flip
side, while working in teams there is only one team leader that instructs the team member
regarding the tasks and thus the employees feels restricted and won't work according to the
guidelines of the team leader (Thompson.2017).
From the above presentation. I have recognized that I still lack the skill of working on
different topics and background which limits my ability and thus, I won't be able to get insight of
different subjects which reduces my thinking ability.
CONCLUSION
This report briefly summarizes about the issues and problems which the Barclay bank is
currently facing and along with that the project have highlighted about the management theory
named as Max Weber's theory that the bank should follow to conduct its business operations
ethically and according to business standards. On the flip side, the report have framed about the
benefit of CSR practices for the Barclay bank and have commented on the CSR practices which
is followed by the bank. Eventually the assignment have highlighted about the impact of brexit
on the working and revenues of the Barclay bank.

REFERENCES
Books and Journals
Thompson, P.A., 2017. Putting the Lies into Libor: The Mediation of a Financial
Scandal. The Death of Public Knowledge?: How Free Markets Destroy the General Intellect,
p.151.
Batten, J.A., Loncarski, I. and Szilagyi, P.G., 2017. Financial Market Manipulation,
Whistle-Blowing and the Common Good: Evidence from the LIBOR Scandal.
Dhingra, S and et.al., 2016. The impact of Brexit on foreign investment in the
UK. BREXIT 2016.24.p.2.
Marano, V. and Kostova, T., 2016. Unpacking the institutional complexity in adoption of
CSR practices in multinational enterprises. Journal of Management Studies.53(1). pp.28-54.
Online
Six CSR Strategies That Are Good For Business 2018.[Online].Available
through:<https://www.forbes.com/sites/amberjohnson-jimludema/2018/08/15/six-csr-strategies-
that-are-good-for-business/#22d3177250a8>