Report on Business Environment, Corporate Governance at Barclays Bank

This report provides a comprehensive analysis of the business environment at Barclays Bank, encompassing various internal and external factors influencing its operations. It explores the bank's history, business structure, and its approach to both national and international management. The report delves into the ICT applications utilized by Barclays, highlighting their role in enhancing customer services and operational efficiency. Furthermore, it examines corporate governance principles, including stakeholder and shareholder values, agency theory, and relevant UK corporate governance codes. The report also addresses past scandals, such as the Libor rate scandal and issues related to mis-selling payment protection insurance, evaluating their impact on the bank's ethical standing and customer relations. The report also explores the corporate governance principles recommended by the OECD and their relevance. Overall, the report offers a detailed overview of Barclays Bank's business practices and the challenges it faces in the current business landscape.

Business enviorment

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of the organisations................................................................................................1
2.ICT applications currently used in the operation of Barclays bank....................................2
Assessment Criterion 2....................................................................................................................3
1. Corporate governance.........................................................................................................3
2.Brief history of corporate governance particularly in the UK.............................................3
3. Define stakeholder and its examples..................................................................................3
4. Agency theory....................................................................................................................4
5. Examples of previous scandals in the UK..........................................................................4
6. Scandal in Barclays Bank...................................................................................................4
7.Understanding of corporate government principles recommended by OECD....................5
Assessment Criterion-3 ...................................................................................................................6
8.Describe the effect of corporates recklessness and negligence on the
stakeholders particularly the shareholders and employees in the Barclays bank..................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is the way by which venture try to find the different internal and
external factors which can have great impact over the working and performance of the venture.
The report is going to cover the different strategies which are adopted by then in order to manage
their operation and activities nationally and internationally. Other than that the report is going to
cover the different corporate policy of the UK. With that it is going to include the agency theory
which consist of stakeholders value and shareholders value. With that the report is going to
cover the different corporate policy made by them in order to understand the different corporate
policies.
Overview of the organisations
Name of the organisations: Barclays Bank
History of Barclays banks: its origin to 1690 when the founder John frame a Quaker
and Thomas Gould started trading as goldsmith banker in Lombard street. The bank has drive
with strong ethics abs the ultimate objectives of serve the customer to bring their ambition in the
better manner. In the 1736 son-in-law of jhons, James Barclays had joined the business. Since
the Barclays have the innovations in the different field such as the first steam railways, also the
first female branch manager from the UK was Barclays bank and worlds first ATM machines
started. From the 300 years ago they continue working for the innovations in the financial
industry.
Business structure of the organisations: These can be the most important aspect for the
organisation in which business structure with all division are interlinked with each other to
achieve business objectives. They have the unique structure in which personal and corporate
banking. They have the director on the top who take all the decision for the bank. After that
human resource management will handle all the manpower and other division is legal which will
handle all the legislation related issues. Finance division have the responsibility. The customer
officer is the separate division which performing the card operation, loans operation, collections,
account opening.
Barclay manage organisation intentionally and nationally:
Barclays international: They had started international with different nations constitute one of the
core collection of group archives. The following record are included such as:
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 board and committee minute and documents.
 An extensive series of photographs with the collection of Barclays presence in overseas
territory and nations.
 Annual report and accounts
 visit report consist ledger, division collection and management documents.
 The inspection papers which will include the various informations on the state of banking
business in the different territory
Nationally Barclay manage the firm: In the UK they have the various division which are
performing the different activities in the organisation as well for the external operation the legal
advisor officer. The main branch will be manage with polices and code of conduct.
2.ICT applications currently used in the operation of Barclays bank.
The bank have launch fist ATM machinery of world which shows that organisation is
focusing on the information communication technology to make the operation work. The
digitalization in the financier industry is also system by the Barclays bank and the applications
for the customer to use the different services which can be easy to operated. The next step of the
organisation to use the electro-mechanical machines to boost the accounting process. For the
effective services used by the organization they bring the various communication through
technology. The application have been used in the Barclay bank to influence customer and
employees with more automotive organisation inn terms of deposit machinery for the cash
transaction. They have invented the best products for the effective operation in the organisation
to save time and cost of organisations. The virtual account facility have been introduce by the
bank to manage customer and better services. The bank have their own technology to make the
effective operations in the organisations as well it will help to implement better customer
services. If the bankings industry is not focusing on the ICT than it is not possible to manage the
different operation of the firm.
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Assessment Criterion 2
1. Corporate governance
It defines as the system of various guidelines , code of conduct and process in which
organisations is controlled and directing. It will help to attract all the stake holders such as
customer, shareholders, management and employees.
2.Brief history of corporate governance particularly in the UK.
The united kingdom have the different way of corporate governance in for the individual
industry to make the build relationship with employees and employer. The major contribution of
corporate governance due to the various scandal have been saved by the government. The top
management will be departed in the corporates governance code(Rogerson and Rogerson,,
2012). Over the past decades the investment world has seen huge number of scandal relating to
the different organisations which are attributed to failure. In the year 1998 the combined code of
corporates governance code. In the year 1999 Turnbull rules and regulations on internal controls.
While in the year 2010 stewardship code and 2013 companies act 2006 have been introduce the
effective key outcomes in the industry. In the year 2014 new rules and regulations on risk
management, internal control and going concern basis of accounting and the FRC will be
included in the United Kingdom corporate Governance.
3. Define stakeholder and its examples.
Stakeholder is the key person who will be impacted on the decision implementation in
they organisations. These can be customer. Employees. Government, Creditors, owner of the
organisation can be the stakeholder with help of these people a firm will draws the resource in
the organisations. For examples: Stakeholder can be internal and external.
Internal stakeholder: if any venture organisation want to invest $5 million into technology start-
up in return of 11% equity and the importance to influence to organisation becomes an internal
stakeholder of the start up.
External Stakeholders: it is the person who can affect the internal operation of the organisation
directly on business. If the firm is expanding the business in other location but due to external
stakeholder it can be affected the carbon emission.
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4. Agency theory
This theory have importance in the organisation to solve various issue between the
principle and agent. The most common agency relation ship in the revenue occurs between
stakeholders and organisation executives.
 Shareholders values: For the organisation the most important key person are the
shareholders of the firm who are the owner of business from external
environment the values of shareholder in the organisation to take the important
decision of the organisation they can affect the business environment internal as
well external.
 Stakeholders value: these can be the person who are the agent of the organisation
which can effect the external environment but the impact can be seen the internal.
They are the creditors and suppliers of the organisation which is important for the
firm for the various key decisions implementations.
The values of the both the people are like agent and principle of organisations. It is important to
bring the effective measure for firm to make healthy relation ship for both.
5. Examples of previous scandals in the UK.
The most common problem for every organisation have the scandal occurs in the
industry which may affect overall performance of the firms as well to nation economy. The
global financial crisis due to adverse scandal of the various firms in the UK,. The five largest
scandal in the nation are involved in the big fraud. The Lloyd banking groups in the year 2014
was fine by the regulatory authority of the UK around 218 million pounds after adjusting the
London interbank offer rate or LIBOR for the Japanese yen. The bank had manipulated the
costumer to give the benefits in the past years.
TESCO bank is also involved in the scandal in the year 2014 serious fraud office found that
bank had engaged in action like semi insurance policies. Witting off some of its profits to avoid
the taxes and shows the
6. Scandal in Barclays Bank.
Barclays Bank is one of oldest bank which is founded in 1690 but they are also facing
diverse corporate and ethical issues. For example, the Libor rate scandal is issue which has
impacted the brand value and created long term issues in regard to have sustainability. It has
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been noticed that Barclays manipulated Libor to benefit trades and its own bottom line. It has
impacted the overall outcome in diverse manner. In year 2007, the bank has presented the higher
interest rate as compared to normal interest rates. It has impacted the overall market share and
working of the company (Richards, Egri and Schroll‐Machl, 2012). Presenting a false Libor rate
is one of ethical and corporate issue. In 2012 Barclays admitted to misconduct with giving false
information to the Libor system. The company was fined over £290m with their involvement
and the Financial Service Authority (FSA) and the British Bankers’ Association (BBA) are still
investigating the company.
Another issue that is faced by the Barclays Bank is regarding mis-selling the of payment
protection insurance. It has also created an ethical issue for the business firm and impacted the
customer loyalty. It is one of key reason that ratings of bank has been dropped in recent years.
Along with this, the satisfaction level among customers has also decreased to great context
which need to be referred properly. It has been noticed that key reason behind the Barclays
Scandal is unethical leadership. It means the management to develop standards in such manner
that the issues in terms of ethical values can be overcome properly. It is one of key reason that
management need to analyse diverse factors related to ethical practice. Ensure that managers
actively take responsibility for the team and its standards. Bring in the right people, whose
values reflect the organisation’s own
7.Understanding of corporate government principles recommended by OECD
The OECD provides a meeting for ongoing dialogue and exchange of experiences among
members and non members of countries. The organisation of economic cooperation and
development developed in order to help OECD and non OECD governments. This principles
arranged in order to create legal and regulatory frameworks for corporate government in their
countries.
OECD focused on various important factors of government and followed developments in
corporate governance. OECD also helps to develop a culture of values for professional on which
functioning markets depends.
OECD is developed to achieved the highest sustainable economic growth and employment apart
from this it also helps to maintain the standard of country members. The relevance of the
fundamental principles arranged by the OECD.
Six OECD principles are as follows:
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 OECD ensures the basic of corporate governance framework : to improve the nation
economy, corporate governance framework should boost clear and efficient markets.
Corporate governance should also promote market with rules and laws. They should
distribute responsibilities among different supervisory and enforcement authorities.
 it provides rights of shareholders: the corporate governance has responsibility to protect
and facilities the exercise of shareholder's rights. Stockholder has different rights such as
they have right to transfer the shares, they can hire and remove the members from board.
Apart from these share owner can secure the methods of ownership registration. So its
corporate governance responsibility to secure the rights of stockholder.
 OECD focused on the equality : cooperate governance should offers equal opportunities
to all shareholders.
 it focused on the role of shareholders in the corporate governance
 it analysis the responsibility and roles of the board: the corporate governance has
responsibility to analysis the management of board, governance theory should check the
important content of the company.
 Clearness

Assessment Criterion-3
8.Describe the effect of corporates recklessness and negligence on the
stakeholders particularly the shareholders and employees in the Barclays bank.
For every organisation have the responsibility to bring it corporate recklessness and
negligence by the stakeholders, shareholders and the effect which can be solve issue with cop
corporates governance. The shareholder has the different values in the organisations to bring the
goodwill in the market (Gupta, 2013). It is the responsibility of the firm to give all the benefits
in the banks. With organisation law it can be easy to prevent all the parameter of the bank in
which they can securer the employees and stakeholders. The corporate governance will ensure
that the various stakeholder and shareholders of the organisations. The more the scandal happen
in the industry that can create the situations which will demotivate to the employees and their
shareholder. Due to the includes happen with the Barclays bank.
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The various scandal in the banking industry have make more strict rules for better
practice can be done in the organisation to save these shareholders and stakeholders. The trust is
the major factor and that had been lost by Barclays bank. Due to these employees are also
leaving from the organisation which increase the attrition rate of the bank. All the top
management are also leaving because all the blame are on their hand because they had taken
various decision for organisations to improve financial positions. Also, the economic condition
of the nation will be affected with the various incident happen with the bank due to huge fine on
the bank. The interest of various stakeholders will be affected on the organisations. The major
impact can be seen on the organisation with various technology adoption by the supplier of the
technology are not appropriate the heavy loss of haver been incurred due to failure of
technology. But the shareholder have been facing so many problem due to effect of the scandal
on the organisation performance. They incurred loss in the share of bank are in less demands. It
is the responsibility to know the all the factor that can be considered before any decision or
wrong practices have been done by the bank will impact on the employees, stakeholders and
shareholders of the firm are the most key person who are involved in the success of organisation
it is the corporate recklessness and negligence of this key person may affect goodwill of the
Barclays bank(Gupta, 2013). The more they have been introduced to stop various practices in the
organisation to bring the image back. It can be done through the corporate social responsibility
and the affect that can be done with activity have to organise by the bank for the people to
involve in the firm.
If the bank is not able to do these all things than it may be loss for the employees.
Stakeholders and shareholders of the Barclays bank.
CONCLUSION
From the report business environment it can be concluded that Barclay have used the
various strategies to improve the ICT in their organisation which is important for them to hold
specific planning. The scandal have been impacted on the organisation which downs the images
and the impact can be seen on the employees, stakeholders and shareholders. If the bank is not
able to do these all things than it may be loss for the employees. Stakeholders and shareholders
of the Barclays bank.
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