Analyzing Corporate Governance and CSR in the UK: A Focus on G4S Plc

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Business Environment

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
1. Demonstrate and understanding of different types of innovation and technology and how
they have impacted the economic progress of the country, with particular emphasis on the
business organizations.................................................................................................................2
2. Give practical illustrations of how innovation and technology have impacted the operations,
sales and the profits of your chosen company.............................................................................4
Task 2...............................................................................................................................................6
1. Demonstrate an understanding of corporate governance.........................................................6
2. Explanation of Archie Carroll’s Pyramid of CSR- economic responsibilities, legal
responsibilities, ethical responsibilities and philanthropic responsibilities.................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

LIST OF FIGURES
Figure 1: Archie Carroll’s Pyramid.................................................................................................8

Introduction
Technology and innovation play a vital role in a business environment in terms of ensuring
business growth and sustainability. The report currently will discuss the technology and
innovation how the impact on country economic progress and growth. The report will also show
that how will the technology and innovation impact on the business profitability, sales and
operations such as Card Factory Plc which is chain gift items and greeting cards in all around the
UK. Also, the report will define corporate governance as well as also show the corporate social
responsibility of the G4S Plc through using the Archie Carroll’s Pyramid model.
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Task 1
1. Demonstrate and understanding of different types of innovation and technology and how they
have impacted the economic progress of the country, with particular emphasis on the business
organizations.
Define technology and innovation
The innovation refers generally to create and change the effective ideas, product and processes.
For the business, it means to implement innovative ideas, improve the existing services or create
dynamic products. The innovation can enhance the likelihood of the succeeding of the business.
The technology, on the other hand, is unique and innovate methods, tools and techniques that
help in minimizing the efforts of human and thus enhance the business efficiency and
productivity (van and Rubalcaba, 2016). The innovation is a thing that leads towards innovative
ideas, restructuring remodelling, things and methods while the technology is scientific
knowledge applications for the practical purpose that is especially in the business sector.
How technology and innovation have contributed to country economic growth
Technology and innovation have great importance or ensuring and enhancing the economy
effectively growth and development. The innovation main benefits are that in economic growth
its contribution ensures the maximum output and higher productivity in the response to minimum
outputs. The innovation provides the benefits to the general public, consumer and business by
enhancing customer satisfaction, workers’ wages, profitability and productivity. Thus, the
innovate technologies; method and idea support an economy in terms of increasing their
performance level, productivity and efficiency.
For effective growth and development of the economy, technology is a primary source in
developed and underdeveloped countries. It is important that technology is change with time
changes as unchanged technology and constant can stop the growth and progress of the economy
(Baller et al., 2016). An economy can grow rapidly with the introduction of the latest technology
because the economic growth and technological advancement are related to each other.
According to the research, this is determined that economy those make more technology and
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investment grow faster than those of economy who focus on less on the technology and capital
formation.
How organizations can use innovative technologies in their business operations
Presently, the business is investing more in new tools and technology in terms of enhancing the
business profitability, performances and productivity. The business from different sectors is
using different kinds of tools and technology to improve business efficiency and productivity. It
will support the employee so that they can perform their assigned work effectively by the help of
different techniques as well as also helps in accomplishing the business goals and objectives on a
given time. The effective operations of the business are ensured through improving the customer
services, automation, project management and communication in business. These all can be
achieved and ensured by using the new tools and technologies in the business (Wallace, 2017).
For example, the organization can use information technology or communication like the
internet, telephones, computer and mobile phones etc to properly communicate or share the
information and also ensure the business effectively operations.
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2. Give practical illustrations of how innovation and technology have impacted the operations,
sales and the profits of your chosen company.
Describe new technologies and how they are being used by the organization
Card Factory Plc will be taken in the task in terms of identifying and understanding the
technology and innovation impact on the business. The Card Factory is the chain of the gift
stores and greeting cards located in the UK. This organization uses the different tools and
technology to distribute, marketing, developing and designing the gift items and the greeting
cards. Card Factory Plc also uses the new and latest technology for delivering, developing and
designing the quality products to their consumer based on market current trends. From recent
years, the organization is focusing more to develop new ideas and products to their customers
(Schnackenberg and Tomlinson, 2016). Also, this organization has a strong network of
distribution by which they are delivering and distributing the items and cards in a quick manner
so that maximum customer satisfaction can be gained.
The organization also uses the digital technology and social sites such as information technology,
social media and internet for distribution and promotion of the products in terms of attracting the
target market and consumers. The organization is ensuring maximum consumer satisfaction
through delivering quality and innovative products on the time. Also, it has its online websites by
which they can promote their business by taking the product order online and also resolve their
queries related to services and goods on time. They can use the appropriate transport facility to
make and distribute a quick delivery service to the consumers on time. They are using Lyft and
Uber taxi to deliver the products and services to the address of the consumer (Drucker, 2017).
Comparison of profits and sales of the organization after and before the introduction of the
innovative technologies
When the online and digital technology is introduced the organization profits and sales has been
boosted up. Based on data and study, this has been determined that organizational sales rise up to
2.8% in the 2016 year along with the increased revenue by 500% to up to £1m. Also, there are
big changes has been seen in the organization profits and sales after the implementation of digital
technology. Card Factory Plc started to promote its order by using an online platform by taking
order online and also aware of the consumer related to the use of the products and services.
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When a transportation facility has been introduced such as Uber and Lyft the organization make
the fast delivery of the gift item and the greeting cards. It will lead to high consumer satisfaction,
and thus business sales and profits are increased (Kogan et al., 2017).
Comment on findings
Based on the above discussion, this has been determined that technology and innovation are
influencing greatly the organization operations and thus increasing the business profitability and
sales. The organization also is developing and designing new products by applying and creating
new methods and ideas. The advanced technology has provided full support to the business in
supplying, developing and designing the quality and new products to the consumer in a quick
manner (Gerasimov and Gerasimov, 2015). Also by statistical data, this is determined that huge
hike was there in the business profits and sales after the introduction of the latest technology in
an organization.
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Task 2
1. Demonstrate an understanding of corporate governance
Define corporate governance
Cooperate governance is a system of processes, practices and rules through which organization is
controlled and directed. It essentially involves balancing the organization interest such as senior
management executives, financiers, community, government, customers, and suppliers (Tricker,
2015). It also provides a framework to attain the organizational objectives; this encompasses
every management sphere from internal controls and actions plans to cooperate disclosure and
performance measurement.
Brief history of corporate governance in the UK
The corporate governance evolution is started in the early 90s based on Cadbury report on
cooperate governance financial aspect and by which code of practice is attached. Cooperate
governance main aim is to regulate and control the organization as well as also check that these
all organization are following the sustainability through providing the benefits equally to
business stakeholders such as general public, government, customer, employees, management,
suppliers and shareholders. In the year 1995, the Greenbury report set the principles of an
executive director which is resulted in the fat car scandals (Andreou et al., 2016).
Derek Higgs in 2002, is the investment banker is given a brief of looking at the cooperate
governance as well as also build the previous reports for producing the comprehensive, single
code. Higgs report in early 2003 it came out and was welcomed by some of the leading
organizations. Higgs report is passed and forwards to Financial Reporting Council (FRC) and
after this government of the UK established body by involving the various members from
industry, professions and commerce. FRC is consulted with all and produced then the revised
code which is based on Higgs Report recommendations. However, based on research, this has
been determined that that organization that has the good cooperate governance are even more
productive and profitable than that of others.
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Board of the director responsibilities
Different cooperate entities form are there such as public limited company and private limited
company. The public limited company is permitted to issue or offer their securities effectively to
the public, but the private limited company did not allow them to do this. The private limited
company is limited wither by share or guarantee, but the shares limit the public limited company.
The public limited company have the two directors at least and in which they must be the natural
person, but the private limited company has one director only (Wang and Sarkis, 2017). FRC
(Financial Reporting Council) established the corporate governance framework in the UK in
which all the organization that is listed are needed to be reported to FRC which show that how
are they applying the annual reports and code in its accounts. In the organization all these
directors have numerous responsibilities and duties in which some of them are mentioned below:
Independent judgement exercise: In an organization, the board of director posses the duty for
taking the independent decisions and judgement without confirming and concerning others. Also,
they possess the duty to take the main decisions in an effective manner which is beneficial for an
organization as well as also able to fulfil cooperate social responsibility (CSR) activities.
Act in the power conferred by organization constitution: The duty of the broad of the director to
act as per to the organization authority and the responsibilities. Also, a certain limitation is there
in which they perform and act their duties and responsibilities in terms of fulfilling cooperate
social responsibilities and also providing several benefits to an organization (Dixon-Fowler et al.,
2017).
Promote the organization success: The main duty of the board of director is to promote
organizational success so that many investors can be attached to an organization and thus also
guarantee them of getting the good return.
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2. Explanation of Archie Carroll’s Pyramid of CSR- economic responsibilities, legal
responsibilities, ethical responsibilities and philanthropic responsibilities
Define corporate social responsibility
It is defined as corporation’s obligations and responsibilities toward the stakeholders which
include the general public, government, communities, suppliers, customer and employees and
those stakeholders who have stake or interest in growth and profits of the organization. This is
the corporations and business organization responsibilities to satisfy all stakeholders’
expectations and needs for ensuring effective business sustainability growth and development
(McWilliams, 2015). The organization for this needs to provide the quality services and products
to the consumer, fair wages to an employees, safe environment to general public or community
and a high return to the investors.
Demonstrate your understanding of the four areas of CSR as identified by Archie
Carroll’s.
The Archie Carroll’s defined that four responsibilities are there of the business organization and
corporations so that they can fulfil the business sustainable growth. In the present task, the G4S
has been taken which is the largest security service which is located in London and is measured
by the revenues. The G4S Plc responsibility is to meet and fulfil the need for CSR in terms of
making an effective business sustainable growth. Archie Carroll has defined the four
responsibilities which is G4S Plc has used to meet with the needs are as follows:
Figure 1: Archie Carroll’s Pyramid
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(Source: www.tutor2u.net, 2019)
Philanthropic responsibilities: Every business discretionary and voluntary activities are
embraced by corporate philanthropy. As per this, the organization needs to take part in social
programmes and activities even this is not required or mandatory by law. G4S Plc has a need to
take part in community programmes, give the monetary gifts, done the good or services and
engage in a programme of community development (Carroll, 2016).
Ethical responsibilities: To meet with the legal and economic responsibilities and obligations
towards society, this is important for an organization to operate the business functions effectively
and also perform their several activities in terms of meeting with all ethical obligations.
According to this, the organization is needed to focus that they do not make any of the policies,
perform the activities and set the standard which is prohibited by society and even is harmful to
the society.
Legal responsibilities: The business has some of the legal responsibilities such as G4S Plc
towards a society which is permitting sustainable business growth. The organization also has to
ensure that this must provide and produce the service or products to the consumer so that they
can meet with the minimum legal requirements and operate their business based on regulations
and rules of the government as well as also meet with society legal requirements.
Economic responsibilities: For G4S Plc it is important to meet with an economic responsibility
through providing the investor with a good return on the investment, incentives and profits to the
owners and shareholders. For an organization this is important to offer the employee the
satisfactory wages and management in terms of making the cost-effectiveness decisions,
marketing strategies, make investment and also develop the effective decisions so that it helps in
providing enough benefits to an economy as well as also maintain the good conditions of the
business (Gomez and Meynhardt, 2019). A society permit the organization of making sustainable
business growth so fir this is necessary to meet with the society economic needs through selling
and producing the gift items and greeting cards based on their requirements and needs.
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