Hikma Pharmaceutical plc: Analyzing Innovation, Ethics & CSR Impact

This report assesses the impact of innovation, business ethics, and corporate social responsibility (CSR) on modern business organizations, focusing on Hikma Pharmaceutical plc. It begins by defining business organizations and innovations, highlighting how innovation enhances productivity, increases market share and profitability, and provides a competitive advantage. The report explores the interplay between innovation, R&D expenditure, and organizational performance, emphasizing the role of the economy in linking innovation with economic growth and survival. It then analyzes the application of innovation within Hikma Pharmaceutical, discussing technological, marketing, and process innovation strategies. Furthermore, the report delves into the meaning and importance of business ethics, corporate governance, and CSR, examining their influence on customer loyalty, positive work environments, and company image. The analysis culminates in recommendations for Hikma Pharmaceutical, suggesting strategies to enhance their innovation, ethics, and CSR practices for sustained success. Desklib provides access to this and other solved assignments for students.

BUSINESS ENVIRONMENT: COURSEWORK
WRITTEN PROJECT
BUSINESS REPORT
Student ID: Type Student ID here
Word count: Type word count here
The word limit is 2500 words, not
including the table of contents, tables,
diagrams, reference list, and
appendices.

Executive Summary
The term business environment refers to all those external factors which are outside
the control of organization and directly impact on the different functions of the business. Due
to this different types of challenges and problems has been faced by the company in order to
operate their different business functions in a very smooth manner as well as in running their
business organization(Allyson and Denslow, 2019). Different factor like technology,
consumer, supplier, stakeholder, government, competitor and many other has a huge impact
on the different business activities. It is very important for the management of the company to
identify all these factor in a very effective manner. Due to this they can enjoy a successful
position in the competitive market. The following report is going to give information on the
Hikma Pharmaceutical plc. This British company is multinational brand of United Kingdom
who deals in pharmaceutical products all across the globe. The company was founded by
Samih Darwazah in 1978 in Amman Jordan. The headquarters of the Hikma Pharmaceutical
plc is situated in London, England UK. The company offer non branded generic and in-
licensed pharmaceutical products. The main motive of the company to manufacture and
provide best quality products to the consumer. This report also covers the impact of
innovations on the modern business organization in respect to the chosen company.
Additionally, this report also covers the impact of the business ethics and the corporate social
responsibility on the modern business organizations.

Table of Contents
1.1.Executive Summary (250 words) ................................................................................................. 1
List of Figures...................................................................................................................................... 3
List of Tables ....................................................................................................................................... 3
1.2.Assess the impact of innovation on modern business organisations (550 words) ................4
1.3.Research, analysis, and application of innovation to [Insert your chosen company here]
(450 words)........................................................................................................................................... 5
1.4.Assess the impact of business ethics and corporate social responsibility (CSR) on modern
business organisations (550 words) ................................................................................................. 5
1.5.Research, analysis, and application of business ethics and corporate social responsibility
to [Insert your chosen company here] (450 words) .........................................................................6
1.6.Recommendations (250 words).................................................................................................... 7
1.7.References ..................................................................................................................................... 7
1.8.Appendix................................................................................................................................

Assess the impact of innovation on modern business organizations
Meaning of business organization
Business organization may be define as an entity which are incorporated for the
purpose of carrying out commercial activities. The main motive behind running the different
business organization is to earn more and more profit so that they can achieve a successful
position in the market(Aula and Mantere, 2020).
Meaning of Innovations:-
Innovations in respect to the business organization may be define as generating the
new ideas or adopting the new technology for the smooth functioning of the different
business operations. Innovations is being considered as the most important part of the
business organization as they help in improving the quality of the product and along with this
this also help in improving the efficiency of the employees. The importance of the innovation
within the business organization has been discussed below:-
 Enhance the productivity:- innovation has a huge impact not only on the
productivity of the company but also impact the efficiency of the employees. The
adoption of the new technology within the organization helps them to produce the
good quality of products in a very effective manner. This also help in reducing the
cost of production which help the in increasing their profit margin.
 Increases the market share:- Innovation is being considered as one of the most
important factor which help the company in increasing their market base all across the
globe. By producing new quality of products and by using different and unique
promotions techniques company can increase their market share.
 Increases the profitability: by using new ideas and new technology within their
different business function like in manufacturing process a company can increase
their profit margin. Innovative technology not only helps in reducing the cost of
production but also help in producing the goods and services in the large quantity
which directly reflects on the profitability of the company(Zhu and Liu, 2021).
 Enjoy competitive advantage:- innovation with in the business organization helps in
making a strong relationship between the market share and new product. Due to this
company can enjoy the competitive advantage over its competitor.
Organisational interaction with environmental aspects of innovation:
 The role of the economy, linking innovation with economic and financial growth,
and organisational survival:- innovation with in the economy plays a very important
role. The development of the innovation not only help in improving the economic
condition of the country but also helps the different organisation in improving their
sustainability in the market (Biloslavo, Bagnoli and Edgar, 2018) . In relation to the
economic and financial growth, these are totally related to the demand and supply of
the different product in the market. With the help of innovation organisation is able to
maintain and fulfil the demand and supply of the economy in a very effective manner.
Due to this the flow on money within the economy is being done in a very effective
manner which result in economic and financial growth of the economy
Innovation also help the organisation to survive in the competitive market. With the help of
innovation within the organisation company is able to work with higher productivity which
simply means that they can generate higher output with the same input. Along with this

innovation also help in producing the excellent quality of product. This helps the company in
improving their profitability as well as the market share. Due to this company can survive in
the competitive and dynamic market.
 Innovation and R&D expenditure, and performance:- innovation, research and
development department and the performance of the organization is interrelated with
each other. The R&D department of the company is responsible for the identifying all
the environment aspects of innovation in the market. With the help of this research
the organization is able to produce the product according to the need and demand of
the market. Along with this some expenditure have been done by the company in
order to do research in the market(Cristofaro, 2020) . But with the help of this
research company is able to analysis the trend of market which helps them in
improving their productive as well as performance of the company in the market.
Research, analysis, and application of innovation in relation to Hikma Pharmaceutical
plc.
Innovation in respect to the business organization may be define as the process of
evaluation the goods and services of the company with the help of new ideas and latest
technology in order to increase the profitability, market share, and productivity of the
company. In context to the Hikma Pharmaceutical plc, the impact of innovation has been
discussed below:-
 If the management of the Hikma Pharmaceutical plc, use the different types of
innovative promotional techniques like digital marketing or word of mouth then this
help them in developing a good image in the market which ultimately reflects on the
market share of the company.
 If the management of the respective company use new technology in their production
line or manufacturing of goods and services then this not only helps them in cutting
down the cost of their products but also help them in increasing their profit margin.
 Innovations has a huge impact on the productivity of the company. In relation to the
Hikma Pharmaceutical plc, if the management of the company use the new ideas and
technology in the different business function they this helps them in improving the
productivity of the employees as well as the whole organization(Götz, 2020) (Lewis
and et.al., 2017).
Different types of innovations strategies:-
 Technological Innovation:- Technology as a source of innovation is being
considered as one of the best innovation strategy for the company. With the help of
this strategy company not only achieve a successful position in market but also enjoy
the competitive advantages over their rivals. This strategy basically included the
involvement of new types of machinery within the production line of the company
and technological changes in their existing product.
 Marketing innovation:- If the member of the society is not able to enjoy the benefits
of innovations which is done by the company then it has been considered as
unsuccessful innovation strategy of the company. With the help of marketing
strategies the organization is able to present their innovations in front of the society
and people can easily find it. The first and the foremost objective of this strategy is to
open new markets for the company and increase their market base.

 Process innovation:- This innovation strategy includes the innovation of skills,
technology and structure due to which the goods and services of the company has
been produced and offer to the consumer (Orlova and et.al., 2019) . Basically process
innovation strategy includes the adaptation of new and advance production and
shipping methods. This not only saves the time but also save the money and help the
company to serve the customer better.
From the above discussion it has been understood that the marketing innovation
strategy is very good for the Hikma pharmaceutical plc. As in the modern world it is very
important for the company to make a good and healthy relationship with their customer.
Company can use marketing mix techniques which not only help the in developing good
relation with their customer but also help in conveying the benefits of the products in a very
effective manner.
Innovation helps the company in enjoying the competitive advantage:-
 With the help of innovation within the company they are able to distribute their
product to the consumer in a very effective manner. If the products of the company
are in the reach of the consumer or easily available to them then company can enjoy
the competitive advantage over their competitor.
 If the company include advance technology like artificial intelligence, cloud
computing, data science with in their organization then they can easily manage and
secure their data. With the help of these innovating techniques they can also enjoy the
competitive advantages.
Assess the impact of business ethics and corporate social responsibility (CSR) on
modern business organizations
Basically business organization is being considered as the whole structure in which
different types of activities has been performed in order to achieve the objectives of the
business which are set by the higher authorities of the company.
Meaning and Importance of business ethics, corporate governance and CSR in business
organization :-
Business ethics:- business ethics is basically a research or study of different business
practices and policies in relation to insider trading, discriminition, corrporate givernance,
biribery, racism and may more. The importance of business ethics has been discussed below:-
 With the help of proper business ethics company is able to gain the loyalty of the
customer's and along with this they are able to develop a good image in the market.
 Business ethics also help in developing a positive working environment within the
company due to ehich the productivity of the employees has been incresed.
Corporate governance:- basically this is the system in which the the companies are directed
and contrlled. The board of directors of the comnpany is responsible for making the rules and
regulations(Passlick and et.al., 2020) . The importance of the corporate governnance has been
discussed below:-

 With the help of effective corporate governance the compaany is able to perform in a
very positive manner and along with this, this also help in cultivating a good culture
of integrity.
 If the company have a solid corporate governance then this helps them in developing
a good image in front of the customer and their stakeholder. This provides them a
strong competitive advantage.
Corporate social responsibilities (CSR):- This is a businees models which helps the
compay to become responsible towards their employess and people of the society. The
importance of CSR has been discussed below:-
 If the company successfully operate their CSR policies and practices then they are
able to attract the consumer in a very effective manner which ultimately helps them in
improving their engagement with their consumer.
 If the organisation paid more focus towards the betterment of their employees and
member of the society then this help them in enjoying the competitive advanteg over
theri competitior.
Strategies and practices which are used by organization in a social manner
 Social responsibilities of the companies start with providing healthy and inclusive
workplace culture to their employess with in the company. By keeping this thing in
mind organisation create a healthy environment for their employes which result in
incresing and enhancing their productivity(Santoro and et.al., 2019).
 The companies who are socially responsible design and set the golos for their
employess in a very measurable manner. With the help of this strategies the
organisation can easilay accountable to their stakeholder and towards the society.
Strategic aspects of business ethics/CSR:
The moral argument for businesses to be socially responsible:-
It is very improtant for the organiosation to proviode good and excellent quality of the
product to theirm consumer at the time whwn they needed the most. If the company provides
their services in a very ethical manner then they can enjoy the competitive advantage. For
example like not offering the adulterate or bad quality of the product to the customer.

The business argument for businesses to be socially responsible
If the business organisation not follow the rules and regulatuions which are develop
and generate by the governemtent then this has been considered as an argument for business
to be socially responsible. This not only impact nagetively impact on the functioning of the
different business functions but ruien the image of company in the market (Schaltegger,
Hörisch and Freeman, 2019).
The strategic argument for businesses to be socially responsible
The strategies and policies which are developed by the company are eco friendly in
nature. The compaies have to use proper combunstuion strategy in order to decompose their
products. Along with this they also have to use eco friendly bags insted of palstic bags. This
impsct positively on the iamge of the company in the market.
The extent to which ethical business is profitable business
Ethical businees is profitable in different manner like this help in developing a good
image of the company in the market as well as in the minds of the customer. If company have
a goodwiil in the market then it is very easy for them to generate higher profit. Along with
this business ethics also help in achiveing a sustainable growth in the market for a long period
of time.
Research, analysis, and application of business ethics and corporate social
responsibility to chosen company
Carroll's pyramid of CSR model
This model was introduce by Archie Carllo. The policies of this model is highly
preferable by different types of organisation. This CSR model help the company in
identifying that how thy should take and perform all the social responsibilities. The four
responsibilities of the Carllo has been mentioned beliow:-
 Economic Responsibilities :- Without generating the revenue the company is not
able to paid salaries to their employees and along with this they are no able to
perform their different business functions in a very effective manner. In context the
Hikma company, the managemen of the company have to set the price of their goods
in a very affordable manner whioch result in increasing their sales.
 Legal responsibility :- this is the second level of the Carolls model in which

company have to follow the rules and rugulation whic are developed by the
government like labour and employment law (Shehata and Montash, 2019) . In
relation to the Hikma compaany, the mamnagemt of te company must have to follow
all the rules for the smooth functioning of all the business operations.
 Ethical responsibility :- In this level, organisation always ahve to dom right things
and along with this be always fair toward their employees and customer. In context to
the Hikma company, the management of the company have to focus on developing
excellent quality of produt and don't manufacture the duplicate products.
 Philanthropic responsibility – thisn level state that organisation have to use proper
carbon emission strategy and along with this they have to use the availabe resources
in a very effective manner. In context to the Hikma company, the management of the
company have to made their strategies by keeping in mind the environmental
protection law.
Recommendations
From the above report it has been concluded that innovation palys a very improtant
rolefor the company in achiveing a successful position in the market. Inovation has a huge
impact on the productivity, market share and profatibility of the Hikma Pharmaceutical plc.
This report concluded the interaction of different envitonmental aspects of innovations with
the environment. Along with this this report identified the differenbt innovationa strategies
and sugest a strategy to the respective company.
This report also concluded that if the compnay paid more focus towards the
betterment of the society or toward the better of their employees then they can set up a good
image in front of their custome and enjoy many competitive advantage. This reoport also
concluded a Carroll's pyramid of CSR model in relation to the Hikma Pharmaceutical plc.

References
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