Evaluating the Role of CSR and External Factors on Business

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This essay explores the significant impact of social, economic, cultural, and environmental factors on business development, emphasizing the necessity for organizations to understand the dynamic environment and adapt their marketing approaches accordingly. It discusses the importance of analyzing political and technological factors, using the PESTLE model for situational analysis, and integrating digital technologies for business improvement. The essay also highlights the role of Corporate Social Responsibility (CSR) activities in enhancing business recognition, promoting transformational leadership, and improving customer perception. Furthermore, it underscores the implementation of ethical codes of conduct, such as CIMA's code and FREDA principles, to eliminate ethical issues and foster a positive business environment, while cautioning against assumptions in business forecasting and stressing the importance of accurate business analysis through CSR activities. Desklib offers a platform to explore similar solved assignments and past papers.

BUSINESS CONTEXT OF BUSINESS 1
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Table of Contents
Introduction................................................................................................................................ 3
Discussion.................................................................................................................................. 3
Conclusion..................................................................................................................................5
Reference list..............................................................................................................................6
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Introduction
In the world of competition, it is difficult to sustain in the market without having effective
marketing approach and knowledge of external environment. It has been observed that trends
of businesses are changing at a rapid rate that indicates every organization requires analysing
the needs of customers and other stakeholder groups. Hence, this study will discuss about the
impact of social, economic, cultural, and environmental factors in the business development
process. Moreover, discussion of impact of corporate social activities (CSR) has been
explained in order to improve the leadership skills of the modern organizations. Moreover, it
is important to maintain ethics for abiding the rules of business environment and gaining
positive impact from the customer.
Discussion
Understanding the nature of dynamic environment is important for measuring the business
reliability. As mentioned by Alcover et al. (2017), business firm cannot be able to operate the
marketing activities effectively if the marketers are not aware about current taxation policies.
Hence, it can be said that gathering string information about the political factors can help the
business to have knowledge of the changing trends of government. On the other hand,
technology is continuously changing, hence, businesses such as Tesco and Greenergy
requires to study about the digital technologies like e-commerce technologies and other for
gaining better business improvement.
Technological innovation guides the organisation to gather real time data based on their
present business issues so that they can tackle their business issues accordingly. In order to
decrease man force issues, retail industry has implemented advanced technological software
so that they can crosscheck each activity with high accuracy. Marano and Kostova (2016)
opine that CCTV cameras have been implemented in each section of internal areas in order to
decrease the chance of illegal activities within short time interval. Current organisation
nowadays used modern technology in their service so that they can bring intangible benefits
and it guides them to maintain perfect internal organisational culture. Moreover, advanced
technology allows the current organisation to manage their internal conflicts as it includes
diverse types of channel media that are videos, info graphics, and virtual reality. However,
low integration between business operation and advanced technology often provides wrong
information in front of senior team and it adversely affects their performance level in front of
their internal and external stakeholders.
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The company’s executives perform situational analysis by using PESTLE model so that they
can interpret their external factors. In order to manage political issues, they use advanced
technology in order to keep them updated about recent political laws that government has
implemented to manage business issues. Intense fluctuation of market share after Brexit
adversely affects their GDP rate and low employee turnover often adversely affected
performance level of retail industry and other industry in competitive market. On the
contrary, Wilson and Popp (2017) argue that current organisations are highly committed in
CSR activities so that they can improve their recognition and identification in competitive
market. Henceforth, it can be said that each organisation needs to incorporate right
technology in their business procedure so that they can handle their each business activity
with high accuracy. Moreover, technological advancement guides the organisation to
implement innovative feature in their business service in order to get competitive advantage.
It has been monitored that CSR activities guide different enterprise to prepare different
business solution against their each issue so that they can manage the issues in right direction.
Marano and Kostova (2016) stated that the senior team of the enterprise incorporates green
technology as they focus on CSR activities and therefore, it makes the environment eco
friendly in nature. Moreover, it has been observed that CSR activities create a positive impact
in their team dynamics as they guides leader of the enterprise to understand emotional
demand of each employee. Henceforth, it can be said that this CSR program allows leader of
an organisation to follow transformational leadership model. Leaders provide constant
guidance to each employee and it improves creativity and performance level of employees in
their office premises.
CSR program aids the current enterprise to focus on their customer perception and they
change their planning procedure in order to decrease gap between their service and
perceptions of customers (Richter et al., 2016). Therefore, this strategy allows the enterprise
to increase their interaction with all their potential customers in merchandise market. In order
to improve ethical code of conduct, enterprise follows CIMAs code of conduct and FREDA
principles in order eliminate ethical issues from their business environment. Tidd and Bessant
(2018) opine that CSR activities allows leader to provide accurate training to employees so
that they can use modern technology and their judgemental mind to tackle each business
issues.
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It has been observed that the green concepts are implemented in the enterprise business
activities such as decrement of plastic usage in retail industry. Therefore, it can be said that
CSR program allows the organisation to decrease pollution error and makes the environment
much healthier in nature. Using modern technology, higher officials of organisation follows
public interest statement so that they can decrease the chance of governmental penalties and
taxation error and it creates a positive impact on their business strategy. CSR activities also
reduce discrimination issues and it allows the enterprise to implement right payment strategy
so that they can maintain right culture in their business (Tidd and Bessant, 2018). On the
other hand, it has been observed that senior team often assume different business factor so
that they can manage their future business issues. However, this prediction might create
chaotic attitude in the internal environment and it can decrease profit level of the enterprise.
Therefore, the senior team should prepare right business analysis after using CSR activities in
order to handle their business issues as per its priority.
Conclusion
In this essay, importance of CSR activities has been highlighted so that current organisations
can manage their business issues accordingly. PESTLE model is used by the enterprise in
order to execute situational analysis. CSR program guides the current leader to follow
transformational leadership model in order to increase internal culture of the enterprise. CSR
activities impact on environmental factors, social factors and cultural factors has been
highlighted.
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Reference list
Alcover, C.M., Rico, R., Turnley, W.H. and Bolino, M.C., 2017. Understanding the changing
nature of psychological contracts in 21st century organizations: A multiple-foci exchange
relationships approach and proposed framework. Organizational Psychology Review, 7(1),
pp.4-35.
Marano, V. and Kostova, T., 2016. Unpacking the institutional complexity in adoption of
CSR practices in multinational enterprises. Journal of Management Studies, 53(1), pp.28-54.
Richter, N.F., Sinkovics, R.R., Ringle, C.M. and Schlaegel, C., 2016. A critical look at the
use of SEM in international business research. International Marketing Review, 33(3),
pp.376-404.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Wilson, J.F. and Popp, A., 2017. Industrial clusters and regional business networks in
England, 1750-1970. Routledge.
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