Contemporary Developments in Business and Management at Barclays Bank

This report provides an analysis of Barclays Bank's contemporary business and management practices, focusing on the impact of external factors, ethical considerations, and corporate social responsibility (CSR). The report examines the political, economic, social, technological, legal, and environmental factors influencing Barclays' operations, highlighting their positive and negative effects. A key theme is the relevance of ethics and CSR to Barclays, exploring their influence on policies and decision-making processes, including transparency, fair trade, and diversity issues. The report also discusses specific ethical challenges faced by Barclays, such as money laundering and abusive mortgage practices, while also acknowledging the bank's efforts in promoting ethical conduct and CSR initiatives like opening banks in rural areas. The report concludes by assessing the effectiveness of Barclays' organizational responses to these issues and suggests areas for improvement.

Contemporary Developments
in Business and Management

EXECUTIVE SUMMARY
There are so many external factors that impacts on the performance of all organisations.
Some of those factors are political , economical, social, technological, environmental, legal, etc.
which are effecting positively as well as negativity on corporation. The present report is based on
the contemporary development and issues faced by Barclays. Ethics and corporate social
responsibility is chosen as theme here and its effect on the decision making and policies has been
described in this project.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Political factors............................................................................................................................2
Economical influences................................................................................................................3
Social factors...............................................................................................................................3
Technological factors .................................................................................................................3
Legal factors................................................................................................................................4
Environmental factors.................................................................................................................4
TASK 2............................................................................................................................................5
i). Relevance of ethics and CSR to Barclays bank and their influence on policies and decision
making process............................................................................................................................5
ii) Effectiveness of organisational response................................................................................7
iii) Areas of improvement as a response...................................................................................10
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business environment is nothing but the surrounding where any corporation perform its
business. It has been noticed that such environment are changing quickly and due to this reason
almost all of the international organisations are facing various types of issues in carrying out
their operations in proper way. On the other hand, at the same time, they also gain several
opportunities to expand their businesses and they can use them in order to gain successfulness
and executing appropriate strategies (Rosemann, and vom Brocke, 2015). The current report is
based on contemporary development in Business and management of Barclays bank. In this
project, different external factor has been described which is impacting on the performance of
Barclays. Here, Corporate – social – responsibility and ethics is chosen as theme and influence of
such factors on the process of decision making has been analysed in this assignment.
TASK 1
Barclays is a famous British international bank and financial services corporation whose
headquarter is located in London. It is world - wide bank having global scope, providing goods
and services across personal, investment and corporate banking, credit cards and perform wealth
management as well. It is running its business in more than 40 nations and consist of around
120,000 workers. Barclays is organised into four core businesses that are Barclaycard, Personal
and corporate banking, Africa and investment banking. As this bank is doing its business in
various countries, they are able to manage their internal issues but are not having any control of
different external factors (Jeston and Nelis, 2014). These macro factors can impact positively as
well as negativity on the whole working of venture. The effect of those external factors are stated
below :
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Political factors
Barclays is operating its business in numerous nations, so they should be sure that they
would invest revenue in such country which is not facing any problem regarding instability in
context to political situations. In different countries government changes instantly and due to
this, the new government introduce large set of variations in terms of policies. For example, in
India due to political imbalance mostly such cases are seen where emergence of governance
leads to change various system or legislations and run nation according to their wisdom. They
can make increment in tax rates of banks and even can modify the procedure of taking loan.
Thus, Barclays need to make their policies and strategies as per that so that they can easily cope
with those modifications which occur due to governmental unstableness.
Example of political influence Impact on enterprise
War Due to this, properties of firm get totally
damaged.
Strict rules against foreign nations This leads to decrement of sales.
Increased taxation charges Large sum of money of venture goes in paying
such taxes, hence it is hard to earn profit.
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Illustration 1: PESTLE Analysis, 2016
(Source: PESTLE analysis, 2016)

Importance : This factor is seem to be important for Barclays as this will force them to
concentrate on those nations which are not facing any kind of political instability. By this, they
can invest their money in correct country and can easily run their business at that place.
Economical influences
The economical risk and uncertainty in United Kingdom exists from Europe that poses a
significance challenge to various banks involving Barclays (Hammer, 2015). Separation from
EU causes certain negative results on Barclays and influences its capital, regulations and
operations.
Importance : Thus, it is very important for the cited venture to maintain its economic
situations so that they can handle any kind of risks.
Social factors
Social environment consist of alterations in demographics, lifestyles, changes in labour
and mobility of society. Therefore, such changes is having the potential to be either opportunities
or threats for company like Barclays.
Importance : One of the demographic modification that is presently impacting on
Barclays is development of core markets in US and UK is the ageing group and what it means
for upcoming services or products offers. An ageing civilians comes with opportunities for
Barclays as pension age users have more incomes so company can earn higher available
incomes.
Technological factors
It is a vital factor that impacts the whole business of organisation. Updated software and
applications has been brining various changes in banking sector. But at the same time, due to
digitisation, illegal activities like hacking is increasing day on day that effects adversely on
Barclays.
Importance : It is very important as if company will not do their business as per the
changing technological aspects then they would not able compete from other competitors and
hence can not survive in existing business world (Myers, 2013).
Legal factors
Rules and regulations made by government of UK as well as other countries where
Barclays is doing its business changing instantly and are getting strict. But at the same time, in
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some nations, there are fair policies. So, Barclays have to do its business operations as per that
and ought to cooperate with government by obeying their norms. For example, Some laws
imposed by them like Child labour act, Equal wages act, etc. should be followed by the cited
firm. Child labour act states that no organisation can hire any employee who is under 18 and if
they do say they are treated as guilty in the eyes of government.
Importance : Legal factors is significant for venture as they have to maintain their
business as per the laws imposed by legal bodies. Thus, Barclays needs to design its strategies in
accordance to that. As if they will not follow rules made by government then legal authorities
can take strict action against their venture. Even they can ban their banking activities from that
nation. Thus, it can be said that Barclays have to adopt legislations designed by government and
run their business as per that.
Environmental factors
There are various issues of environment which directly impact on business operations and
functions such as recycling of wastage, change in climate etc. of the firm. Barclays bank are try
to reduces carbon emission and they work for saving energy for the building. These major
changes should be taken due to influence of environmental changes.
Importance-It is necessary for cleaning atmosphere which is significance for the firm
due to have some responsibilities regarding holding environment that is free from pollution
(Alvarez, 2016). The reduction of paper use is another step which they has to be taken because
they understand that they will minimise the usage of paper and focus on recycling wastage.
TASK 2
i). Relevance of ethics and CSR to Barclays bank and their influence on policies and decision
making process
The business ethics can be defined as moral guidelines to run a business regarding the
right, wrong and fair perspectives. Some people consider their own consciences to make business
decisions, falling back upon the moral and religious backgrounds for guidance. People feel
pressurised sometimes to take decisions unethically to make profits so the firms are designing
special criteria which mentioned to take decisions at a right time under certain terms and
conditions to maintain the ethics in the organisation.
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In the same way, corporate social responsibility is also connected with moral values to contribute
to the society for maintenance of the standard of living of the society regarding the healthcare
and education to make a strong economy of the country so that it becomes a strong competitor
amongst the world (Zadek, Evans and Pruzan, 2013). Conducting the CSR activities is not only
beneficial for the society as well as it provides a different environment to the employees so that
they can refresh their energies and reduce their stress of work. It results to work more effectively
as it works as break from work.
 Transparency - It is a kind of ethics in which the honesty and openness are included.
The firms need to modify the morale of the employees to work hard focussing on the
main target of the firm as per the predictions were made by the senior authorities. There
are certain things like hidden agendas and conditions, availability of information required
for collaboration, cooperation and collective decision making as well as minimum degree
of disclosure to which agreements, dealings, practices and transactions are open to all
verification. Essential conditions regarding free and exchange offer having genuine
reason will mandatory to provide a true service to the customers. Transparency is a
highly relevant for the Barclays Bank as it provides its services with satisfaction of their
customers which is impossible without generating the trust factor amongst the customers.
Sometimes it reduces the profit but helps in retaining the customers which results long
term benefits for the Barclays Bank.
 Promotion of fair trade practice - It is a social aspect in which the target mentioned is
to help the producers so that it will help to make contribution regarding the developing
countries to achieve the better trading conditions as well as promotion of sustainable
farming to boost up the social and environmental standards (Van Der Aalst, 2013). Fair
trade practices can promote the sustainable development by providing the better security
of rights and trading conditions. Fair trade is based on core beliefs like producers have
power to express their unity amongst consumers, the world trade practices which are
currently exist promote unequal distribution of wealth between different nations and
buying the products from producers in developing countries at fair price is more efficient
way of promoting the sustainable development than traditional charity and aid. Barclays
Bank did not upset their customer by denying them to help them to reveal source of
money and at same time they need to make sure to avoid unethical aspects.
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 Diversity issue - Barclay Bank consider that all the employees in their organisation
should be treated in same manner. There are various culture in the world and organisation
can learn many things which knowing thinking of people who are lived in various
locations (Gustafson, 2012). Equality is an important part of ethical and Barclays make
major changes in their plans and policies that are related to human resource for increasing
variety.
Therefore Barclays Bank association is famous for their good service and provide better
return but still they has been faced charges different unethical activities that need to be done by
them in the previous years that are as follows :
 Money laundering - An enterprise has been faced various issues and problems which are
totally related to money exchange. They mainly found offender in this and punished
within the tremendous amount of 1.52 billion dollars. Such incident happen at one time
and its impact are reflect on the company goodwill in the large market place.
 Abusive mortgage practices - Many people lost their home because of the Barclays
Bank. They also given penalised for this type of immoral exercise because they develop
rules for poor and rich people in different manner.
Relevance of CSR to Barclays Bank and its impact on organisation
 Open banks in rural areas - Such firm are mainly famous for their serving patter where
rich customers contribute more in their profit. But they understand that they have certain
social responsibility by which they easily run business in the community and they take
important step for open new branch in India where they easily earn maximum
profitability.
 Freshwater sustainability - Such activity of Barclays Bank is related to providing safety
to the environment (Chang, 2016). They need to work for sustaining freshwater so that
natural resources is decreasing and it may create some trouble in all over the world in
future time period. There are some people which may find CSR very little bit that are
inapplicable for the companies work and also saving freshwater which is very important
topic due to deficiency of drinkable water.
 Promoting education - Such organisation is earning is earning maximum income in
billions of dollar. They mainly working in those area which provide education to those
people who does not afford their studies especially in primary and secondary level. Bank
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are providing vocational training to public where they get employment. Women
empowerment is another work which has to be done within an organisation. It is
necessary to fulfil the corporate social responsibility which help in increasing their
goodwill and earned appreciation from whole world. It is shown as positive which
directly impact on income.
 Community investment - All the organisation of banking industry are mainly
responsible for developing and funding various programmes, projects etc. which
supporting the society where they can operated (Hodgkinson and Healey, 2011). This will
put very little financial burden but still it is important part of CSR activities.
ii) Effectiveness of organisational response
Barclays Bank face different allegations which are related to the wrong adoption of
dishonourable practices. It is one nation incident, they was fined large amount of fine in different
countries. In certain cases, they manage different matters in appropriate manner but in the rest of
the case they fail to take right steps. There are various issues or problems which does not effect
in proper way:
 Relation with drug kingpin - Barclays bank does not accept their mistakes that they
help drug seller and at the ending point they give payment at around $3 billion in form of
fine. It is not first time when they doing some mistakes, in earlier they were found culprit
in the case of money laundering for many times and they cannot make that image where
they they does not promote unethical practices among customers (Amin, 2014). The firm
can not intentionally helped but because of their weak regulations and low ethical
standards they does not do correct things.
 Poor performance - Barclays bank face many type of issues and problems which are
occurs at the time of performing tasks. They must find and search creative and productive
solution for their employees.
 Following are major ethical problems which Barclays corporation managed in impressive
way
 Money laundering - The company make teams which deal with such type of issues and
problems and they perform task in proper way. This division has been accepted large
amount in tax which does not pay at the time of doing wrong work. They beginning work
for making system where employees should monitoring them.
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 Fair management - Most of the people make claim for this bank so that they mainly
focus on their potential customers where do not care about their small clients (Naheem,
2015). Company has been learnt from their mistakes and they begin cultural promotions
of communicating openly in effective manner.
CSR activities
Barclays is a multinational bank and a large financial provider across UK. It is among the
most successful bank having universal global reach. They are offering products and and services
across corporates, individuals and investment banking currently they are also focussed on
investing in profit maximisation and wealth management in more innovative and effective way
by reaching out to different corners of the globe ,till the starting of year 2018 they are able to
expand their reach over 40 countries having a large strength of employees over 120000.
Barclays marshalled in 4 major businesses like Personal & Corporate banking (wealth and
investment management ),Barclaycard, Investment Banking and Africa. They are primarily
premiere listing on The London Stock Exchange and it is an integral part of FTSE 100 Index
and a secondary listing on New York Stock Exchange and Qatar Holdings is an investment
portfolio of State Of Qatar is considered as the largest shareholder of the company (Orlitzky,
Siegel and Waldman, 2011). Vitali et al. In a paper says that Barclays is the most powerful
transactional corporation in factors of ownership and having a corporate control over global
financial stability and are capable of giving stiff competition in market competition.
SWOT ANALYSIS OF BARCLAYS
Strength
 They have a assert and strength of having huge number of employees arouse 12000
working dedicatedly for the bank.
 They have the versatility and are dealing in sectors like retail banking,wealth
management which are the major source of income and helps in contributing to the
comprehensive growth of the organisation
 They have the huge experience of banking as over 300 years .
 they have a good brand value so they merchandising large pool of events .
 The brand visibility is shown in the international market
 due to sponsorship they are known world wide so it is sometimes easy to get the
investment deals
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 due to its huge assert they can focus on the concentrate on the acquiring small and local
banks to establish the grass roots
Weakness
 In recent times the economic crises is being observer across UK due to global crisis and
impact of BREXIT has lead to loosing out of investors of Barclays .
 They have faced critics and different controversies like the political and legal after
funding to the Zimbabwean government.
 Have to face legal cases in African countries e.g. Recently they have faced the case of
apartheid and are accused of money laundering which has drastically damaged the image
of the organisation in global front (Sharma, Sharma and Devi, 2011).
 The management policies sometimes lack as they target the expansion instead of
employee development.
 They are not much developed in digital factor which may be cause of global threat in the
digital world
Opportunities
 Amongst the oldest banking company so for keeping with the common scenario they
must upgrade themselves to digital banking effectively which will increase there reach to
Asian giants where the scope of digital banking is increasing drastically
 Must have the transparency in cash transfer which will generate trust and faith among the
investors
 Must seek great opportunity in expansion in developing countries where economic
growth is increasing effectively
 They should promote and generate schemes where they can make youth invest in bank
for linger term
 One must focus on spreading where the cost of living is increasing in countries as the
purchasing power will increase the company will find easy to lay foundation of banking
in those countries
Threats
 Different companies have different economic policies and trading practices they may
change rapidly which will make loss of equity
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