Business Environment Report: Innovation, CSR, Technology at Next PLC

This report analyzes the business environment, examining the impact of innovation and technology on economic progress and organizational performance, with a specific focus on Next PLC. The report defines different types of innovation, their contributions to economic growth, and how businesses utilize technology in their operations. It investigates how technological advancements influence operations, sales, and profits, comparing Next PLC's performance before and after technology implementation. Furthermore, the report evaluates the significance of Corporate Social Responsibility (CSR) for organizations, defining corporate governance and CSR, providing a brief history of corporate governance in the UK, and outlining the importance of CSR for businesses. The analysis uses Archie Carroll's Pyramid of CSR to assess the company's CSR initiatives.

BUSINESS AND BUSIENSS
ENVIRONMENT

EXECUTIVE SUMMARY
This project report is based on understanding and knowledge regarding innovation and
technology through which sales, profits and operations of management can be affected. This
reports highlights types of innovation and their impact on the growth of organisation and
contribution in economic growth and how technology and innovation influences the generation
of sales and profits of the companies. This project also represents the importance of corporate
social responsibility and their evaluation with the help of using Archie Carroll’s Pyramid of
CSR.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
TASK 1............................................................................................................................................4
Types of innovation and technology and how it creates an impact on the economic progress of
country and on organization........................................................................................................4
Impact of technology and innovation on operations, sales and profits of organization..............6
TASK 2............................................................................................................................................7
Define the importance of Corporate Social Responsibility (CSR) for the company...................7
Evaluation of Archie Carroll’s Pyramid of CSR.........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
Books and journals....................................................................................................................12

INTRODUCTION
Business environment is a merger of all internal and external forces which can create an
impact on the operations and functions of the business. Such factors of business environment
involve employee’s, customer demands, supply, management, distributors, innovation in
technology, socio-cultural responsibility, changing market trends, economic trends and
governmental involvement (Huang and et.al, 2016). Next PLC styled as next and is one of the
British multinational retail company which offers clothing, footwear and home decor products.
The company was founded in in 1864 in Leeds, UK by Joseph Hepworth and is owned by Next
holding limited. This project is based on the business environment and how innovation and
technological change can you create an impact on the economic process progress of the
organisation and of whole country. This report also involves the corporate social responsibility of
the business and their importance which can be evaluated with the help of Archie Carroll's
pyramid of CSR.
MAIN BODY
TASK 1
Types of innovation and technology and how it creates an impact on the economic progress of
country and on organization
Innovation and technology
Innovation is one of the basic source of competitive benefit which helps to drive
productivity and efficiency of the organisation and drive differentiation through which needs can
be met and competitive business position can be established and maintained (Abbas and Sağsan,
2019). Innovation help companies to meet the constant changing demands of the customers and
offer solutions to customers which are innovative and helpful in attracting and retaining
maximum customers. In relation to Next Plc, technological innovation starts with ideation
process and ends on commercializing viable product services which will meet the market
demand and it is helpful in driving the entrepreneurial spirit. It is a continuous process which
help Next Plc to bring internal and external development and meet the competitive business
environment and create business value in the industry.

Contribution of innovation and technology to economic growth
Technological innovation is a factor which can drive economic growth and human wellbeing.
There are several benefits of technological and innovation for the organisation and for overall
economy. Due to rapid change in technology and innovation, one of the fastest growing industry
is technological industry which focuses on enabling innovation and development in business
(Caputo and et.al, 2016). In context of Next Plc, it can be seen that innovation and technological
advancements have helped the company in brining attracting and efficient ideas which help them
to meet changing consumer and market demands. There are several contributions of innovation
and technological advancements which helps different companies and Next Plc in uplifting the
economic growth of the country, such contributors are mentioned below:
 Transformation of workplaces helps Next Plc in maintaining positive working scenario
and encouraging all employees to adopt change which will help them to work efficiently
and enhance their skills and performance in meeting the required standards of
performance and organisational objectives.
 Technological advancement and innovation in the business lead to increase in
productivity and improves the overall standard of living of all employees and overall
society of the organisation. Through innovation and technology, Next Plc can bring
change in the productivity and performance of their employees by offering them required
training to perform the assigned roles.
 By innovation and technology, Next Plc can save time for performing the assigned roles
and responsibilities and bring innovative ideas which will help in improving organisation
brand image and contribute in economic growth. With the help of technological
advancements, Next Plc can use better technologically advanced machines which can be
used for performing the work efficiently.
Use of technologies by companies in their operations
Due to rapid change in technology companies focus on adapting latest technology which will
help them in performing the work by using innovative approach and face challenge and take
opportunities through which higher profits can be generated (Chuang and Lin, 2015). There are
different ways which helps Next PLC to operate by using different technologies in their
operations, such technological uses are explained below:

 Communication- It can be seen that it is easier for a company to communicate with their
employees with the help of technological advancement and interact with their employees
by using different source of telecommunication which involves email, text message,
social media, networking platforms and other communication media. Such
communication measures help Next Plc to interact with their internal and external
members and share all valuable information through which company can focus on
business expansion and maximum profits (Hojnik and Ruzzier, 2016).
 Project management- With the help of using advanced technology and project
management software it helps Next Plc to work together towards the accomplishment of
shared goal and overcome the potential issues which can arise. Such technological
involvement can help organisation to allocate task to their employees and ensure
continuity and productivity of employee performance in the organisation which will lead
to better brand image and higher business growth.
 Conferencing- This technological approach is used by many organisation which helps
them to connect and work together by using online platforms which can save time and
money of travelling. It can be seen that, this technological approach is time consuming
and internet barriers can be faced by the company such as poor connectivity which can
affect the communications of both the parties. Conferencing have helped Next Plc in
communicating with other partners working at different locations and business through
which they can focus on expansion and maximum profits for the business.
Impact of technology and innovation on operations, sales and profits of organization
Company overview
Next PLC is a public limited company who is deals in retail industry and offers clothing,
footwear and home products. The company have around 700 stores and operates in UK, Europe,
Asia and Middle East. The owner of the company is Next Holding Limited and it was founded
by Joseph Hepworth in 1864.
Use of technology in Next Plc
There are several technologies and digital transformation initiatives and software
purchases which have been undertaken by Next PLC (Kocak, Carsrud and Oflazoglu, 2017).
Such approaches help them to perform all the operations of the business effectively and meet

customer demands regularly which will maintain a position in the industry. Next Plc use
different technologies such as Oracle HCM Cloud for Core HR, Travel and Expenses for
expense management of the company, Kronos Workforce Central for workforce management
and others through which they can effectively and effectively perform their functions of the
management, generate higher revenues, earn maximum profits from their operations and majorly
focus on increasing the growth of the business.
Comparison of Next Plc before and after technological use
From the annual reports of the company, it can be seen that the company have generated higher
revenues and profits with the help of selling products and services via online platforms. Thus, it
has also helped Next Plc in making work more productive and easier through which better and
effective performance of the business can be maintained and this can be done by providing
accurate training to employees which can improve performance and the standard of living. From
the annual report of Next Plc, it can be seen that without using technologies, it was more
complex for the company to regularly meet the changing demand and the company was unable to
identify the changing market demand and perform all functions ad operations of the company as
effectively as later with the help of different software’s and technologies (Shin, Kim and Yang,
2018).
Findings
With the help of offering products and services via e-commerce and media platforms, it
can be seen that Next Plc has covered more market share and attracted more customers through
which they can generate higher revenues and profits and gain competitive advantage for their
business. The growth of the business has been increased with the help of inline business and the
age group of 30 are the most customers which are attracted by the offers, goods and services
which are provided by the company. From the annual report of Next of 2021, it can be seen that
customers have placed maximum orders with the company in the last 10 months which has also
helped them in retaining maximum loyal and potential customers.
TASK 2
Define the importance of Corporate Social Responsibility (CSR) for the company
Corporate Governance and Corporate social responsibility

Corporate governance is a mixture of rules, processes and laws which defines how our
business will operate, regulate policies and this also controls the functioning of the business. This
involves internal and external factors which can influence interest of company’s stakeholders,
suppliers, customers, government regulators and management (Chaffee, 2017). Corporate
governance helps an organisation to build an environment of trust, accountability, transparency
and offers financial stability, business integrity and supports stronger business growth. In other
words, corporate governance is the way how organisation is governed. It is the interaction
between various internal and external participants who contribute in shaping the performance of
the business. This deals with identifying measures which are helpful in taking effective strategic
decisions for the business through which strong and balanced economic development can be
made. Corporate governance is helpful for a business as it lowers the capital cost, creates
positive impact on the share prices, ensures corporate success and economic growth. In relation
to Next Plc, it helps the company in creating brand awareness, minimize corruption risk, reduce
wastage and ensures proper fair protocols and procedures which are followed by the top
management and whole organisation for the achievement of objective.
Corporate social responsibility is a business model which helps a business to be socially
accountable to their stakeholder’s, society and to themselves. It can also be called as corporate
citizenship and operate in ways which can contribute in improving the environment and the
society. Practicing corporate social responsibility is essentially for consumers and companies as
it is a great approach to raise moral in the workplace. With the help of corporate social
responsibility, Next Plc can organize campaigns and initiatives which can be a benefit for the
society.
History of Corporate Governance in UK
The concept of Corporate governance in UK was started in the late 1980’s and 1990’s. The
regime involves various laws, rules and practices which ensures that all companies must operate
with integrity and must be accountable for the operations which ae performed by them (Crane,
Matten and Spence eds, 2019). There are two main an important corporate governance codes
which are followed by companies in UK, such codes are:
 The Financial Reporting Council which is UK Corporate Governance Code.
 The Quoted Companies Alliance QCA Corporate Governance Code.

Importance of CSR
Corporate social responsibility (CSR) is an approach of an organization which helps them to
bring sustainable development by offering economic and socio-cultural benefits (Grayson and
Hodges, 2017). In context of Next Pl, it can be seen that there are several corporate social
initiatives which are organized by the company, some of these programs heled them to focus on
their suppliers, customers, products, their people, community and environment. Some of the
importance of CSR for Next Plc can be seen as follows:
 Increased brand value- With the help of CSR, Next Plc can organize initiatives which
can be helpful for the company to create brand awareness in the industry and attract more
customers to the brand and maintain their goodwill in the industry through which they
can gain competitive advantage and offer benefits to the society.
 Incline in sale- CSR will help Next Plc to attract more customers through which they can
enhance the sale of their products by offering sustainable and customers centric products
and services.
 Higher employee engagement and retention- By promoting CSR initiatives, Next Plc
can create brand awareness and enhance the productivity of the business as this will be an
effective approach through which maximum number of employees can be retained and
encouraged to willing engage in all managerial operations of the company which will
eventually lead to higher sales, revenues and earning maximum profits.
Evaluation of Archie Carroll’s Pyramid of CSR
Archie Carroll’s Pyramid of CSR
This pyramid of Corporate Social Responsibility quotes that there a business needs to
fulfill responsibility at four levels, which involves: economic responsibility, legal responsibility,
ethical responsibility and philanthropic responsibility (Jankalova, 2016). It is a multi-faceted
framework which argues how and why a business must meet their social responsibilities.
Economic responsibility- This is the lowest level of pyramid and depicts the first and basic
responsibility of the business which is to be more profitable. As without making profits, a
company will not be able to pay wages to their workers, employees and this will lead to
employee turnover. By maximizing profits, it will help the business in surviving and sustaining

for a longer span of time and create initiatives which can be beneficial for the society and can
bring socio-cultural change.
In context of Next Plc, it can be seen that this level of pyramid is the responsibility of the
business to produce products and services at reasonable and budgetary prices which can meet the
demands of the customers on time.
Legal responsibility- The second level of responsibility which has been quoted in the pyramid is
the legal responsibility of the business which must be followed by the companies (Liang and
Renneboog, 2017). This is one of the most important and major responsibility from four
responsibilities as, this level dictates how a company must operate and function in the
marketplace. Several factors such as employment laws, tax regulations and other health and
safety laws which are stated by the government must be followed by the organisation.
In context of Next Plc, this level of pyramid ensures that all CSR initiatives of the
company follows all laws and ethics which are pre-determined by the government bodies.
Ethical responsibility- This level of pyramid depicts the ethical way of dong the right thing by
the organisation through which they can benefit the society and bring change in the society. This
level of pyramid not just only focus on ethical approaches of employees and company whereas,
this level also focuses on making customers comfortable for purchasing the offered products and
services.
In context of Next Plc, all the initiatives which are planned and performed by the
company are followed ethically and focuses on offering befits to the society and the customers.
Philanthropic responsibility- This is the top level of the pyramid which revolves around
responsibility which focuses on doing what is right and which can hold true value of the
company and offer back to the society (Tran, 2019).
In context of Next Plc, the company focuses on doing the right thigs which must bring
advantage to the society.
CONCLUSION
From the above project report, it can be concluded that here are several changes in the
internal and external business environment which can influence the functions which are

performed by the companies. Innovation and technology is one of the changing factor of
business environment which has created positive as well as negative impact on the management.
Innovation and technology can create a huge impact on the sale, operations and profits of the
company. It can be seen that corporate social responsibility pays a crucial role in the brand
positioning as this helps the business to spreads awareness and take initiatives which can be
helpful for the society.

REFERENCES
Books and journals
Abbas, J. and Sağsan, M., 2019. Impact of knowledge management practices on green
innovation and corporate sustainable development: A structural analysis. Journal of
cleaner production. 229. pp.611-620.
Caputo, M and et.al., 2016. Exploring the impact of open innovation on firm
performances. Management Decision.
Chaffee, E. C., 2017. The origins of corporate social responsibility. U. Cin. L. Rev.. 85. p.353.
Chuang, S. H. and Lin, H. N., 2015. Co-creating e-service innovations: Theory, practice, and
impact on firm performance. International Journal of Information Management. 35(3).
pp.277-291.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Hojnik, J. and Ruzzier, M., 2016. The driving forces of process eco-innovation and its impact on
performance: Insights from Slovenia. Journal of cleaner production. 133. pp.812-825.
Huang, K. E and et.al., 2016. Innovation and technology creation effects on organizational
performance. Journal of Business Research. 69(6). pp.2187-2192.
Jankalova, M., 2016. Approaches to the evaluation of Corporate Social Responsibility. Procedia
Economics and Finance. 39. pp.580-587.
Kocak, A., Carsrud, A. and Oflazoglu, S., 2017. Market, entrepreneurial, and technology
orientations: impact on innovation and firm performance. Management Decision.
Liang, H. and Renneboog, L., 2017. On the foundations of corporate social responsibility. The
Journal of Finance. 72(2). pp.853-910.
Shin, J., Kim, C. and Yang, H., 2018. The effect of sustainability as innovation objectives on
innovation efficiency. Sustainability. 10(6). p.1966.
Tran, B., 2019. Corporate social responsibility. In Advanced Methodologies and Technologies in
Business Operations and Management (pp. 270-281). IGI Global.