Business Environment Report: Innovation, CSR, and Economic Analysis

This report examines the business environment, focusing on the concepts of innovation and corporate social responsibility (CSR) and their impact on businesses, specifically using AVEVA Plc and G4S PLC as case studies. The report defines innovation, categorizing it into incremental, semi-radical, and disruptive types, and discusses its effects on sales, profit, and operations. It also explores the relationship between innovation and economic development, emphasizing technological advancements. The second part of the report delves into CSR, its significance, and corporate governance, highlighting its benefits for companies like G4S. It discusses CSR activities, the role of the board of directors, and the application of Archie Carroll's CSR model. The report aims to provide insights into how businesses can leverage innovation and CSR to enhance their market position and achieve sustainable development.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Innovation and their impacts..................................................................................................1
TASK 2............................................................................................................................................3
Corporate social responsibilities and activities of chosen company in relation to CSR........3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is a refers as a entire micro and macro factors that influence a
business (Nair and Paulose, 2014). As per the today's scenarios both corporate social
responsibilities as well as innovation is considered as a base of the business competencies.
Innovation and CSR are useful for the organisation in order to develop their brand image into
market and offers opportunities in order to save costs. In this report the chosen company is
AVEVA Plc which is leading British multinational technology firm. Its headquarters is in
Cambridge, UK. Other one is G4S PLC, this is multinational security service provider company.
Its headquarters is in London, United Kingdom. The aim of the report is to describe innovation
and their effects upon economic progress. Its practical illustration and innovation impact on
operations, sales and many more. Understanding about corporate social responsibilities and their
significance. Apart from this CSR model and their practical applications are also mentioned in
this report.
MAIN BODY
TASK 1
Innovation and their impacts
Innovation is refers as a implementation of the new formulated products or procedures,
new methods of marketing or company within practices of business, external relations and so on.
This facilitates a limit into penetration market and give a effectual connection for market
development which can leads towards various opportunities mainly in developed nation (Edquist,
2013). Technological innovation consists creation that obtained from research and technology
developments which are independent of products and services initiatory. Moreover this is the
effective technical ideas implementation which is a new for the firm for creating its. In case
AVEVA Plc want to do innovation in its services or products then they can apply different
technical innovation like incremental, disruptive as well as semi radical (Technological
innovation types. 2015). Incremental technology, this kinds of technology is generally little but
have valuable goods and methods developments. This is usually has advanced version of word
processing programme which enable whole clients to build new types of documents with
effectual manner. Semi radical, it is the form of technology that normally based on present
understandings about technologies. It used knowledge in such a way that is different from past
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one. Disruptive, this generally change the traditional one as well as recently provides a new
goods or services and technologies that are more handy. This also, visualise the ideas about
current enterprise and supply chains. All the above mentioned technology innovation kinds are
helpful for company to so its task more speedily and quickly (Owen, Bessant and Heintz, 2013).
Due to this firm can obtain high profit, accessing of data become simple and also develop the
communication in order to describe whole things with clarity to its staff members subordinates,
supervisors and many more so that it can capable to perform its task in more efficient way. Thus,
AVEVA Plc can use incremental technology as it aids them to develop their goods or services
such as asset performance, plan and schedules, software and many more in successful manner.
As well as this is also useful to acquire high profit. AVEVA Plc is leading British multinational
IT firm which facilitates engineering as well as industrial software. It is generally develop from
government funded computer aided design centre that was introduce in year 1967. this is listed
in London stock exchange and is constituent of FTSE 200 Index.
Innovation as well as economic development relationship, innovation is usually
considered as a new but some are very much crucial than others this estate large modifications.
This have impact upon society and economy which leads towards essential economic growth.
Within the developed countries like UK, this is very much common but manytimes there are
recessions. But in few years itr have been observe that whole economic output maximises. This
is also, anticipated that gross domestic product will increase manytimes. From this perspective
economy causation is not so easy. The relationship among economic growth as well as
innovation is considered as complex and multifarious. Generally innovation enables growth but
improvement is also important for the investment and demands that leads towards innovation.
Modification in technology is the crucial determinant of economic growth. Rapid growth rate
can be achieved due to the advancement of technology. As per the Schmpter, this is observe that
progress of technology is the determinant of economic improvement. If the level of technology
become constant the development will also not occurred or stop. Therefore, changes in
technology keeps on growing economy effectually. Also innovation are accountable for the
economic development in the developed countries like United Kingdom. As technologies are
modifying the capital goods imports as well as exports also get maximised. Also, this enhances
the national income an d allow units of capital to enables a labour unit to increase manufacturing.
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Usually innovation is a introducing something creative in particular company (Goldberg,
2013). This can improve its activities for maximising the productivity or allow organisation to
expand present quality of the goods. This also, effects the sales, profit, operation and many more.
Sales is considered as a transactions between 2 parties at which buyer receives goods or services
such as tangible and intangible and other assets against money. Innovation also effects ales
because innovated services or goods feedbacks as well as reviews are effective and clients of the
AVEVA Plc such as usefulness of software then its sales may enhanced but if that software will
not perform effectively then its sales minimises so, this refers as a risk for the chosen company.
Profit is considered as monetary benefits that is realised at the time of acquiring the revenue
amount from the activities of business as well as exceeds they expenses, cost, and taxes which is
needed to sustain operations. So, innovative products or services plays a significant role into
profit maximisation. For example: in case sales of the AVEVA Plc maximises because of
creative products then their profit get impacted automatically. As an outcomes if sales enhances
them profitability will also increase and vice versa. Operations are known as the practices of the
business that firm involve fro transforming the raw material into finished goods or services. For
example: in case innovation is done through AVEVA Plc into its services or practices then their
operations get effected. As respective company operations are monitoring, controlling and
optimising performance for delivering the maximum advantage. So, due to innovation all their
operation will perform at advance level which may be difficult to manage through firm.
TASK 2
Corporate social responsibilities and activities of chosen company in relation to CSR
CSR is refers as an business approaches that conduct their functions towards sustainable
development by offerings benefits of economic, environmental and social for stakeholders. This
is the concepts which perform many practices (Idowu and et.al, 2013). The main aim of
corporate social responsibilities is to ensures that company functions their enterprises in such a
way so that it should be ethical. It consists various activities like respects for the human rights,
optimal working surroundings, environmental activities and many more. CSR is significant for
the organisation either that are profit or non profit as well as for clients and staff members as
well. This aids firm to improve their reputation among people, also maximises brand awareness
and recognition, enhances customers engagement and so on.
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Corporate governance is considered as a process by which the corporations can be
governed. In simple term, this is a tool that is utilise through firm for guiding as well as
managing its operations and activities as per the guidance and also the expectation of
stakeholders. It also involves a set of relationship between member of boards, management,
shareholder and others stakeholders of the organisations. This gives a structure by which
organisational goals can be developed and also, the way of accomplishing that objectives as well
as observing performance are determined (Vlachos, Panagopoulos and Rapp, 2013). Corporate
governance is advantageous for G4S PLC company in many manner like it increase economic
growth and success of the firm. Moreover, it can capable to obtain investors confidence in
effectual way which aids organisation in maximising its capital in ethical manner. Through their
it can minimise their cost of capital that assists in performing task in proper way. Also, this will
effect the share price of the firm. Further more, by adapting corporate governance selected
company can capable to reduce their risk, wastage and mismanagement at work area.
G4S PLC plays a essential in the society. By their initiatives towards corporate social
responsibilities, this enhances its images between community at which its normally operates
through its services. Its integrated accounts as well as reports involve their socio- economic and
environmental reporting, up gradation on their material problems, case studies and many more.
As through their corporate social responsibilities initiative proposes respective firm to increase
the value creations within society as well as community. As per the information provided in the
websites of G4S PLC, CSR is significance for them and this is a part of their strategy. They
trusted to care for few world precious assets and to assure protection, safety as well as welfare of
the individuals in whole world. Its workers approx 570000 offer services which build a safe and
healthy environment where various individuals work and live. According to the G4S PLC
corporate social responsibilities report of year 2016, their development is better in the area of
CSR that are human rights, health and safety as well as anti bribery and corruption (G4S Plc CSR
report. 2019). So, respective firm performed the global human rights assessment and business
units over team have undertaken the risk assessment of local human rights. Moreover,
communicating whistle-blowing system awareness can be developed so that its results highlights
in maximising issues and also the strategies can be formed in respect of Groups anti bribery and
corruption.
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Board of directors are considered as a group of individuals who observe or supervise
activities of the firm so that it can be performed in an effectual way. this leads towards
maximisation into profit ratio and market share. Board of directors are the form for all kinds of
organisations like government institutions, profit and non profit. These individuals are usually
elected to represents the shareholder and it formulate rules and policies so that firm can
performed their task in appropriate way. In context of G4S PLC shareholder, it conduct different
activities that leads towards their succession like it can improve their fair practices at wrok area
through which workers get encouraged as well as motivate them to perform in appropriate
manner. It also assign work to their workers as per its knowledge, skills that assists them in
performing task effectively (Hillary, 2017). It will also leads towards responsibility of staff
members which will do the task in good manner this aids them to accomplish its objectives.
Moreover, board of directors of respective firm should maintain transparency at work area that
encourage their workers and it also undertakes the stakeholder at the time of formulating policies
for work.
There are also few aspects that must be undertaken through G4S PLC broad of directors.
Therefore, it can perform the task in effectual way. Such as it must see that none of the workers
are in pressure as this impact their work and performance as well as their should be proper
distribution of power that visualise equality within workers. Furthermore, their broad of
directors also view risk management so that it can face problems in appropriate manner that may
occurs while performing the task or in future.
Corporate social responsibilities model is established by Archie's Carroll, this is
considered as normal framework which aids to represent how as well as why company should
attain its social accountabilities (Meiners, Ringleb and Edwards, 2014). CSR involves business
conduct so that they are law bidding social and ethical responsibilities supportive. Few Carroll's
Corporate social responsibilities pyramid characteristics are this formed on profit basis after that
the business needs to ensure that it comply with overall laws and norms. This particular model
includes four accountabilities which are explained below with its application.
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(Source: CSR Model. 2019 )
Economic responsibilities, it concentrates upon producing company product or services
that are needed by society and sell them for generating profit. Through this G4S PLC can obtain
profit as this is the way by which it will benefit community for longer time. For example, Novak
has describe 7 responsibilities of company which are firm have shareholder that required a
reasonable returns in context of their investment, this also have staff who need protection and
equal paid work. Moreover, it has clients which demand for effective quality in appropriate way.
Legal responsibilities, this demands that firms follow regulations as well as play by the
game norms. When company ignore their legal responsibilities then the price of the business
will be higher (Golob and et.al., 2013). With the help of this G4S PLC can follow regulations
and other laws like competition,. Health and safety and so on. For example, In case of Microsoft,
they has faced a long going anti trust case within Europe for mistreatment its non-competitive
position to disfavour it competitors which results in tough settlements against company.
Ethical responsibility, it usually involves societies expectations in legal and ethical
context. This consists their accountabilities as well as tit is not essential that it should be imposed
by regulations but they are expected from ethical company by individuals and government.
Through this G4S PLC can conduct beyond laws narrow requirements such as suppliers and
employees treatments. Also, assist to perform morally and ethically. For example, In Shell case,
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where government decisions was converse for oil platform disposing after campaign and
disagreement by individuals as well as societies.
Philanthropic responsibilities, this is positioned at the top of pyramid and is focused
more on deluxe things such as improving the living standards of the employees, local societies
and many more. Many responsibilities in Philanthropic can be arguable and requirements
abstract examination which focused on this. With the assistance of this respective responsibilities
G4S PLC can accomplish its duties towards societies by performing charitable donations and so
on.
CONCLUSION
As per the above report it has been summarised that innovation is a most important aspect
that help in managing changes in the firm on the basis of basic requirements and needs. Through
this, a firm can choose different path of working that can provide them long term sustainability
easily. In this process, it also required for a firm to pay their maximum attention in corporate
social responsibilities through which they can provide their contribution in social development
practices. All these activities assist in developing a success path for firm with the help of new
and innovative ideas in business firm
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REFERENCES
Books and journals
Edquist, C., 2013. Systems of innovation: technologies, institutions and organizations.
Routledge.
Goldberg, D. E., 2013. The design of innovation: Lessons from and for competent genetic
algorithms(Vol. 7). Springer Science & Business Media.
Golob, U, and et.al., 2013. CSR communication: quo vadis?. Corporate Communications: An
International Journal. 18(2). pp.176-192.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Idowu, S. O. and et.al., 2013. Encyclopedia of corporate social responsibility (Vol. 21). New
York: Springer.
Meiners, R. E., Ringleb, A. H. and Edwards, F. L., 2014. The legal environment of business.
Cengage Learning.
Nair, S. and Paulose, H., 2014. Emergence of green business models: The case of algae biofuel
for aviation. Energy Policy. 65. pp.175-184.
Owen, R. J., Bessant, J. R. and Heintz, M. eds., 2013. Responsible innovation (Vol. 104).
Chichester: Wiley.
Vlachos, P. A., Panagopoulos, N. G. and Rapp, A. A., 2013. Feeling good by doing good:
Employee CSR-induced attributions, job satisfaction, and the role of charismatic
leadership. Journal of business ethics. 118(3). pp.577-588.
Online
Technological innovation types. 2015. [Online] Available through
<toolshttp://www.gistic.org/the-innovation-of-technologies-and-its-three-types/>
G4S Plc CSR report. 2019. [Online] Available through
<https://www.g4s.com/social-responsibility/csr-reports>
CSR Model. 2019. [Online] available through <https://research-methodology.net/carrolls-csr-
pyramid-and-its-applications-to-small-and-medium-sized-businesses/>
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