Impact of Innovation and CSR on Lloyds Bank's Business Environment

This report examines the internal and external factors influencing Lloyds Bank's business environment. It delves into the impact of innovation and technology on the bank's operations, performance, and efficiency, highlighting investments in digital services and the benefits of digital data storage. The report also analyzes the importance of Corporate Social Responsibility (CSR) for Lloyds Bank, discussing how CSR improves public image, brand awareness, and cost savings. Archie Carroll's CSR model is applied to assess Lloyds Bank's responsibilities, including economic, legal, ethical, and philanthropic aspects. The analysis covers the implications of technology and innovation, its impact on profits, growth, and competitive advantage. The report also stresses the importance of employee motivation and customer satisfaction. The report concludes with a summary of key findings and recommendations for Lloyds Bank.

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
Impact of innovation and technology..........................................................................................3
TASK 2............................................................................................................................................6
Importance of CSR for Lloyds Bank Plc.....................................................................................6
Apply Archie Carroll’s (1991) CSR model.................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals....................................................................................................................11

INTRODUCTION
Analysing the internal and external factors of the business environment is very important
before making any decisions for the organization. Lloyds bank is a British bank which is having
its headquarters in London. The further report is going to analyse the impact of innovation and
technology in the organization and the CSR of organizations in the market.
MAIN BODY
TASK 1
Impact of innovation and technology
The impact of innovation and technology on the operation, performance and efficiency of Lloyds
bank is immense. Lloyds bank has invested £3 billion into innovative technologies that can help
their business operations towards providing their customers with increased and enhanced digital
services through the internet. This was done as a straight consequence of the customer trend
which resulted in decreased the number of transactions of Lloyds banks done through their
physical banks and a steady increase of transactions by Lloyds bank’s customer through digital
means. This investment into innovation and technologies has effectively increased the
productivity, performance and efficiency with which Lloyds banks provides their financial
services to their customers. Using digital means of operations increases Lloyds bank’s
performance and efficiency as all their operational, financial and customer data is now stored
through digital means, as opposed to the previous means of using paper (Martínez-Román and
Romero, 2017). This has increased the performance and efficiency of Lloyds bank’s operations
as they used to encounter issues that paper based storage of operational, financial and customer
data provides such as misplacement of documents due to human errors, and the trouble to
manage immensely large sets of documents. Having all their operational data readily available on
digital storages which can be readily accessed by authorised employees of Lloyd Banks has also

increased the operational performance and efficiency ofLloyds banks, as they now don’t have to
fetch these documents when the need arises, instead simply being able to access them through
their internal servers, making the financial operations conductedby Lloyds bank’semployees
much faster than before (Ungureanu, Pop and Ungureanu, 2016). Using digital means of storage
also increases the data privacy and security of Lloyds bank’s operational andtheir consumer’s
personal and financial data which is highly confidential, sensitive in nature and cannot be
exposed to external sources.
There is a lot of improvement in because of the help of technology and innovations in the
organization. There is a huge growth in the profit and sales growth of the organization which is
making the economic stability of the organization in the market. When there is innovation and
technological changes coming in the organization it is very essential for the organization to make
sure that the employees of the organization are motivated so that they can help Lloyds bank to
get more customers in the organization. There are more than 75,000 employees working in the
organization which is why the bank is ranked 7th best bank in the competitors in this industry
(Schenk, 2017). Lloyds bank has been in this industry from a long run which is why they are
aware of the changes which are required in the organization so that they can compete with their
competitors in the market. Technological and innovation are two most important factors to make
the sales of the organization increase so that the customer base in the market can increase which
can make the organization have a better competitor advantage. The bank has started online
services which are going to make the organization have a lot of profit and have a successful run
in the market. It is very important for the organization to have a successful run for them in the
market because the competitors are increasing and to overtake those the organization will have to
find different ways through which the organization can grow. It is very important for the
organization to provide the customers with what they need so that the organization can have
loyal customers and trust of them as well.
There have to be easier methods and updating of the customers on their accounts from time
to time so that they can feel safe and comfortable with the bank. Technological changes in the
organization are protecting the data and information of the customers but also keeping them
updated which is making the bank grow even more in this industry which is a great factor for
the organization (Cressey, 2018). There are a lot of ideas which are coming up in this industry

which have to be adopted by the organization so that there is a better functioning of the
organization. There are a lot of advantages which Lloyd bank is having in the organization
which is a great factor for the organization which is going to help the organization to get a
competitive advantage which is good for a long run. Impact of innovation and technology on
company profits and growth within Lloyds bank can be understood with the fact that the bank
has been highly within profitability margins in recent years through strong implementation of
technology. Lloyds bank uses various new innovative business models, creative ideas and
research technologies to reach high end global benchmarks in serving customers. Profits and
growth have been highly increased in the new business frameworks with strong determinants of
using latest technology networking systems through which customers worldwide can be served
effectively and goodwill can be potentially increased among other competitive business
frameworks. The bank uses various metrics to reach various productive benchmarks, keenly
address the customers preferences for online services and functionally be actively present on
online websites and networking parameters through which further productive targets can be
attained. The impact of innovation and technology within Lloyds bank can be analyzed with
strong customer goodwill it has attained which has helped in reaching profits and growth within
business scenario. Customers are highly appreciative for the latest technology bank uses to
serve customers with quick access to bank websites and online portals, which highly connect
business goals and parameters on which the company operations are established. Innovation and
technology frameworks with latest use machinery has determined various growth options for
company through which further goals can be developed to reach global customers worldwide.
Financial reports are analysed with strong growth and profitability which has enabled company
to deliver strong expansion into various horizons internationally (Blank and Naveh, 2019).
The reports shows company has strongly used technology and networking system to keenly
achieve the customers set benchmarks and enhance the various targets of profitability which are
planned. Bank has successfully created its business innovation and technology usage through
various websites implementation and portals through which creativity can be enhanced for long
term growth on company models. Technology is not only strength of internal management but
also works as an evocative business strategy to combat huge competition worldwide and take
strong business expansion decisions which will further add to strategic planning. Employees
within bank are highly technology trained and skilled to serve customers with best services

based on their requirements and company business goals which are structured within
framework. Innovation and technology has brought bank to strong fundamental strength where
the high quality strength has encompassed further productive targets completion and also aimed
for reaching further productive. The company business plans and strategic plans to reach global
benchmarks and the synergy of technical efficiency has highly brought various high end targets
completion and has determined various arenas on which further progress can be attained. Lloyds
bank has emerged as one of the best commercial bank dye to high ease within services and
financial services to customers where strong business ethics are also maintained to keep
customers records within privacy. These factors have added to growth and profitability within
company business performance and relative growth towards expansion of services to
international horizon (Baek and Matsumura, 2019).
TASK 2
Importance of CSR for Lloyds Bank Plc
Corporate Social responsibility is a very important term or practice that is being used by the
companies in order to minimise the environmental as well as the social impacts that are
associated with the operation and activities that are undertaken by the company. Basically it is an
art of giving back a part to the nature and the community from whom all the resources are
extracted. There are various benefits of CSR that makes it extremely important for organisations
to adopt CSR activities and Lloyds bank being an international organisation can generate various
benefits by adopting these CSR practices:
Improved Public Image: Their Corporate Social Responsibility leads to an enhancement in the
assessment of the public image because when customers acknowledge the investments that
Lloyds Bank is making towards the society, then the image of the brand automatically improves
and they will prefer to gain services from that particular bank only. They perceive the company
to be brand that is committed to serving the public and therefore, they will increasingly support
the brand and its purpose (Cressey, 2018). Therefore, it is extremely necessary to highlight the
company through the CSR activities that they are performing.

Brand Awareness: When the company conforms to different CSR activities and also integrates
ethical traits or options in the choices that they make for their business performance and
management, then it automatically leads to a better brand name and awareness regarding the
ethical practices of the brand also increases the trust of the society and people on the brand
increases simultaneously where the recognition that the brands receives increases and ultimately
leads to improvement in the sales of the business. Therefore, it can be termed that the CSR also
assists in improving the awareness or the popularity of the Lloyds bank in positive context and
hence avoid any troubles that they might get into.
Cost Saving: The cost saving can be inculcated by the better management of the CSR activities
and this direct increase the profitability of the organisation. The CSR activities for Lloyd banks
can help them in saving the incurrence of many unnecessary costs such as fuel costs for
transportation of employees by promoting commute through bicycles or car pooling etc. or the
paper i.e. stationary cost by aiming to go digital etc. are some of the aspects of the manner in
which cost can be saved by the bank (Ungureanu, Pop and Ungureanu, 2016). Therefore, it can
be ascertained that the CSR activities also help in increasing their profitability of the organisation
thus making it necessary to complete the different activities.
Apply Archie Carroll’s (1991) CSR model
Archie Carroll’s CSR is a framework which supports argue how an organization fulfils
their social responsibilities and why it is crucial for organization. It also helps company to
generate high profit by practicing in their operations. Its is the main benefit of the CSR model as
compared others. The framework was proposed by Archie Carroll who highlighted different
types of receptibilitiesof company through pyramid. Corporate Social responsibilities can be
defined as the process of analysing business behaviour in term of economical profitability, meet
with the laws and ethics,and social supports (Visser, 2016). The model is basically dependent on
the four responsibilities that are enlisted into pyramid. Lloyds Bank plc is a British retail and
commercial bank which operates in various countries through subsidiaries and offers number of
product services i.e. banking and insurance to the customer. The Archie Carroll’s CSR model is
applied in the Lloyds Bank to analyse it’s responsibility in the banking industries.

Figure 1: Carroll’s CSR pyramid
Source: Carroll’s CSR pyramid, 2019
Legal responsibility
The legal responsibility represents that it is primary responsibility of organization to
comply with the fewer rules which has been imposed by government. Organization mustfollow
the rule while operating it’s function within business. The legal responsibilityof CSR is to
business operation must performed within government requirements. When a business operates
in different countries then company must comply with various national and local regulations.
The businesssupplies those goods and services which fulfil minimum legal requirements. Lloyd
Bank operates in various countries through it’s subsidiaries i.e. Lloyd Banking Group, Lloyd
Bank International Limited and others. Company offers number of services i.e. Financial service
compensation scheme, insurance and other to the customer under national and local rules. It
denotes organization follows legal responsibilities.
Economic responsibility
The economical responsibility is one of the most essential responsibility of CSR model
which indicates duty of companies like they must develop such kind services or products which
meets society needs and leads profitability within company. There is an example to understand
the concept such as shareholders invest it’s funds in company to expect and demand to get
reasonable return on their investment. While employees expectcompany,they provide safety and
transparency in decision-making process. On the other hand, customer wants that they get value
of their money by the company. In other word, they desire to get good quality products or

services along with fair prices from the company (Wong and Reevany, 2019).The major
economical responsibility of the CSR is that organization should be profitable. Another
responsibility is this organization can survive in market when they support society prolong time.
Let’s talk about Lloyds Bank that offer finance and insurance services to the customer.
Organization keeps balance scoresheet that is prepared by staff on regular basis so that each
customer easy to get account detail. Organization provides healthy working environment to the
employee which promotes them to give high performance at workplace. Organization keeps
customer segmentation strategy which helps them to develop different type of products i.e.
consultancy service, insurance services and others. it leads economical benefits for the customer
and in return gets good profit margin on products. It shows organization follows economical
responsibility effectively within banking sector.
Ethical responsibility
The ethical responsibility is quite similar legal responsibility but major different is this.
Ethical responsibility offers rule and regulation in the context of society while legal
responsibility gives rule and regulation in the context of government. The society wants
organization must conduct its operation’s and business in an ethical manner. Ethical
responsibility performs in the way which fulfil society expectation (Zafran, 2018). Apart from
this, organization must adapt ethical and moral standards and comply with them so that builds
trust between society and business. Lloyd Bank merged with Trustees Saving Bank and comply
with overall rules and regulation. Organization provides 24 hours telephones an online banking
service that denotes Lloyd practices ethical responsibility in their working.
Philanthropic
Philanthropy responsibility encompasses voluntary and practices of businesses. In other
word, from the past few years, society expects to the business that they take part in social
activities i.e. funding, donation, voluntary works, community development and other
discretionary contribution from the group of staff or stakeholder. The responsibility is to give
back to the society in term of time, charitable donation. Lloyd Bank offers donation to charity for
developing society lifestyle.Lloyd Banking Group plc collaborates with mental health, UK for
the five year. Organization provides economical services to 3000 charities for helping people to

overcome social evils. Hus organization involves in number of social activities that indicates
Lloyd follows philosophy responsibility effectively (Carroll’s CSR pyramid, 2019).
CONCLUSION
The report above help in concluding that innovation and technology are some of the key aspects
that can be used specifically by Lloyds bank plc for which the sudy was conducted and it was
also concluded that the results in all the factors has been positive. Further the necessity of
completion of CSR activities and the implementation of the Archie Carroll’s model was also
implemented in context of Lloyd bank plc.

REFERENCES
Books and Journals
Baek, I. G. and Matsumura, E. M., 2019. Individual Creativity and Organizational Innovation:
Can We Reconcile Creativity with Management Control Systems?. China
Management Accounting Review. 8(2).
Blank, T. H. and Naveh, E., 2019. Managing Creativity and Process Tensions in
Innovation. IEEE Engineering Management Review.
Cressey, P., 2018. Technology and banking: the use of information technology. In Information
Technology and Workplace Democracy (pp. 173-192). Routledge.
Martínez-Román, J.A. and Romero, I., 2017. Determinants of innovativeness in SMEs:
disentangling core innovation and technology adoption capabilities. Review of
Managerial Science.11(3). pp.543-569.
Schenk, C., 2017. Category Archives: Money & Banking. Business History Review. 91. pp.105-
128.
Ungureanu, M., Pop, N. and Ungureanu, N., 2016. Innovation and technology transfer for
business development. Procedia Engineering.149. pp.495-500.
Visser, W., 2016. The future of CSR: Towards transformative CSR, or CSR 2.0. In Research
handbook on corporate social responsibility in context. Edward Elgar Publishing.
Wong, T.A. and Reevany, B.M., 2019. UNDERSTANDING CORPORATE SOCIAL
RESPONSIBILITY (CSR) AMONG MICRO BUSINESSES USING SOCIAL
CAPITAL THEORY. International Journal of Business & Society. 20(2).
Zafran, M., 2018. Effects of Corporate Social Responsibility on Customer Brand Choice in
Baltic Region: Mediating Role of Product Involvement Level. European Integration
Studies. 12(1). pp.172-182.
Online
Carroll’s CSR pyramid. 2019. [Online]. Available Through:- <
https://www.toolshero.com/strategy/carroll-csr-pyramid/>