Analyzing Innovation, Business Ethics, and CSR at Future plc

This report examines the impact of innovation, business ethics, and corporate social responsibility (CSR) on the business environment of Future plc, a media company. It highlights how innovation drives growth, improves customer relationships, reduces waste, boosts market position, and enhances employee relations, ultimately maximizing return on investment and adding value to society. The report also emphasizes the importance of business ethics in maintaining trust, ensuring fair practices, and building a positive reputation. Furthermore, it explores how CSR initiatives, such as donations, charity, and sustainability efforts, contribute to a company's reputation, build trust with the public, and foster positive relationships with consumers and employees. The analysis includes Carroll’s pyramid of corporate social responsibility, focusing on economic and environmental responsibilities, and concludes that integrating ethical practices and CSR enhances long-term sustainability and profitability.

Business Environment Coursework

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Impact of innovation on modern business organisation..............................................................1
Impact of business ethics and CSR on modern organisation.......................................................3
CONCLUSION................................................................................................................................6
REFERENCE...................................................................................................................................8

INTRODUCTION
Business environment is the surrounding of the business. In order to bring positive business
environment, management should make sure to avoid corporate politics and also should have
treat their every employees equally. Never discriminate them whatever their religion or colour is
treat them equally and fairly. Future plc is the media company which write magazines on various
topic which are related to technology, fashion, clothing, games, music, photography etc. this
report will discuss about the impact of innovation on the organisation. Further it will also shed
light on the impact of social responsibility and business ethics.
MAIN BODY
Impact of innovation on modern business organisation
Innovation-
innovation means something new which is introduced in the business. It refers to the developing
new things. In simple language innovation can be new product or services which is launched by
the company in order to attain competitive advantage (Russell and Smorodinskaya, 2018).
Innovation is having direct relation with business and technology. Innovation takes place in
every place or in every area of the business.
Innovation plays important role in the success of the organisation. Future plc also does
innovation timely so that they can take competitive advantage because to to survive in this
competitive environment nowadays is not the easier task. Customers tastes and preferences also
changes now and then. So that is why to opt innovational practice has become compulsory.
Business requires something new to survive in the market. Innovation is helpful in increasing
growth, productivity and profitability of the business. It further helps in bringing improvement
in business field. Below are the innovation benefits to the company-
improving sales and customers relationship-
if company will fail to provide any innovative products or services in the market then there are
probability that they can louse their customer share because customers will get attracted to the
competitors who will provide innovative products or services (4 ways innovation can help your
business., 2020). If company will give extra time and efforts and invest in their research and
development team then they can provide innovative products to their customers. When customer
will see that company is fulfilling their demand then they will help them in increasing their
sales. If company want to know that what to introduce in the market then they can take survey
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with the customers in order to know their preferences. By doing survey company can able to
know that where improvement is required or if there is any need to appoint innovation team or
not. When company will fulfil demand of customers then it will be helpful in building good
relationships within company and customers.
Reducing waste and costs-
innovation helps business in reducing waste so that business can concentrate on the long term
goals. Innovation also helps in improving the operational efficiency (Mardani and et.al., 2018).
Company can achieve smooth order processing, reducing machinery idle time and avoiding
production bottlenecks. Basically future plc come up with innovation so that the waste can be
eliminated. When company will reduce waste then they get various benefits like better customer
service, low costs, increased profit margin, increasing competition etc. for reducing the costs
organisation should have appoint expert which will guide them to do so.
Boosting market position-
innovation helps in understanding market changes easily and rapidly and also help company in
grabbing opportunities. Basically the main feature of innovation is that it helps company in
standing out different as compare to their competitors. When company will produce different
products and services then only they will be able to attract more competitors. Company can able
to innovative if they analyse market trends on regular basis because by seeing market trends
only company can decide that what to bring in the market and what customers are actually
demanding (Sorescu, 2017). If company want to take every opportunity then they have to listen
to their customers, suppliers and also have to carefully see that what their competitors are doing.
If competitors has came up with innovative products then future plc should have also launch
innovative products so that they will not lose on their market share. Company can also analyse
that what other countries company which fall in the category of same industry are doing. As it
will also helps in getting various innovative ideas in the mind.
Improving employee relations-
innovative workplace helps in the growth of the employees. Employee should have feel proud
about the company in which they are working or the products they their company is
manufacturing. If employee will start taking pride then it will increasing their level of
productivity and also decreases employee turnover rate (Mahrani and Soewarno, 2018). As
every employee wanted to work in those company which have good brand image in the market.
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Innovation plays vital role in brining good brand reputation. Always ask feedbacks from the
employees in areas like marketing, products etc. as young talented employees have various new
ideas which will bring innovation. Managers should have appreciate employees if they have
come up with any new ideas because that will motivate them in bringing more new ideas.
Maximizing return on investment-
if company will come up with innovative ideas or will come up with constant innovation then it
will helpful in increasing competitive advantage and also helps in increasing profitability and
performance of the company (Schoemaker, Heaton and Teece, 2018). It is seen that those
organisation which focuses on innovation have likely to increase their profits and generate more
revenue. Although to measure ROI is not easy and difficult. But it can be said that innovation
will definitely helps in increasing sales of the company. So company should have chose
innovation over not choosing it.
Add value to the society-
innovation always helps in creating more value to the society. Example in medical field or
technology field often innovation takes place and it is essential also because innovation brings
many facilities to the public. If company will use innovative technology then it will reduce
consumption of the resources which are human resource, raw materials, equipments etc. further
it also provide sustainable solutions to the company. Technology plays vital role in bringing
innovation. Company can easily innovate their products or add any new feature to their products
by using different technology.
Development of new market-
with the help of innovation, company can easily enter in new market or can target new
customers (De Silva, Howells and Meyer, 2018). Innovation is the best method to beat your
competition. In the new market launching existing product which brand is also selling does not
make any sense. If company wanted to attract more customers then they has to come up with
new products or services. In order to penetrate in the market also company require new products
as customer get bored by using same products so that is why they always want something new.
Impact of business ethics and CSR on modern organisation.
Business ethics-
business ethics is concerned about business practices and policies which include various subjects
like insider trading, discrimination, corporate governance, corporate social responsibility etc.
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basically business ethics is the guidelines which are given to the company and which every
company has to follow. Ethical practice is necessary (Vynnychenko and Majewska, 2017).
Public also support those companies which follow ethical practice while carrying their business.
Ethics make sure that some extent of trust is properly maintained between organisation and
consumers. It is the responsibility of company to deal fairly with their every customer and
employees. Future plc make sure that they do not discriminate on their employees on the basis of
colour, race, gender, age, religion, caste etc. as every employees are treated equally and
employees are promoted on the basis of their performance. Business ethics deals with the moral
value. It make sure that what company should have done legally and right in order to maintain
competitive advantage.
Business ethics helps to gain employee morale and loyalty and also helps in maintaining bond
between management and employees. If company will operate as per ethical practice then there
are possibility that they will survive in the market for longer time. Business ethics also helps in
building good reputation in the market (Hartini and et.al., 2020). If company will have good
market image then they will be able to attract more investors and business will also easily get
funds. Those company which do not follow ethical practices discourage investors to invest in
such companies. In order to avoid negative implications companies are using their resources to
follow business ethics. Future plc have also came up with ethical workplace by appointing right
talent for the right position. Business success is directly related to the business ethics.
Impact of corporate social responsibility
CSR-
social responsibility is the self regulation of the business through which company can contribute
in the society by giving donations, charity, spreading awareness etc. CSR is the voluntary
practice by the company and company doe it through their wish. It helps in increasing the
reputation of the company in the market if they will serve the society.
Social responsibility helps in building trust of the public on the company. As many customers
believes that they would like to purchase from those companies which has indulged in social
activities (Sims, 2017). If company will provide voluntary services or giving charity helps in
getting trust of the people. It further helps in making company more popular in the market and it
even increases brand image of the company. It builds positive relations within public and
company. When company will do something good for the society then automatically they will be
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able to connect more public. So it can be said that corporate social responsibility build more
healthy relations with consumer and organisation.
Further it also helps in retaining top performer in the organisation. As they no employee will
leave that company which have good image in the market and social responsibility brought good
image. Company should have also provide positive workplace surroundings. When employee
will get good working environment then they motivate and that will increase their level of
productivity (Chavan and Carter, 2018). Good environment also helps in enhancing employee
engagement which will brought good employee experience. Talent people tend to work in those
organisation which do high level of CSR. As a result it will attract more customers and helps in
retaining employees for longer time period in the organisation.
Sustainability can be achieved by the business with the help of social responsibility.
Sustainability helps business in serving various long term benefits. In order to become social
responsible future plc have started using renewable resources and also emitting carbon
emissions. Company also laid down various campaigns in which they spread awareness about
pollution or various diseases like cancer etc. company should also spread awareness in their own
company to save electricity. They should have asked their employees to turn off lights and
devices which they are not using. As every little step will be helpful in saving electricity. CSR
helps company in generating more profits.
Carroll’s pyramid of corporate social responsibility
this is the social responsibility model which have four elements which are as follows-
economic responsibility-
this responsibility is done by the firm and under this firm take financial related decisions which
is good for the society (Dierksmeier and Seele, 2018). Company do not always think for making
more money. Company will think to make money but in good manner. Example business can
choose such supplier which deliver them sustainable material. Even company has to pay more
costs for them but they want to save environment. Future plc have transparent system of salary
payment and also they make sure that salary is given in fair manner. They do not discriminate on
the basis of gender and even respect and promote their female employee equally.
Environmental responsibility-
business should have adopt environment friendly practice. Company contribute in decreasing
pollution, green house gases, carbon emissions etc. they also have build waste management
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system (Sánchez‐Torné, Morán‐Álvarez and Pérez‐López, 2020). If waste will get managed
properly then the pollution will get reduced. It is also the responsibility of the company to save
environment in every manner. Environment responsibility can varies as it is based on nature,
size and industry of the business. As some companies uses renewable sources of energy and
other uses sustainable material. Future plc also organise various recycling programs which will
spread awareness.
Ethical responsibility-
ethical responsible refers to make sure that business are following fair and good business
practice (Adnan, Hay and van Staden, 2018). It is important that company should have treat all
their customers, employees, shareholders equally. There should be no favouritism in any
manner. Every person deserves respect. Every employee should have given pay by the company
on the basis of work done by them. Future plc make sure that they provide wage to their workers
according to their work and they never pay less to their employees.
Philanthropic responsibility-
in today's world it is expected from the organisation that they should have pay something to the
society because they are using resources of the society and also society is helping them in
increasing their sales. So now it is the turn of company to pay back to the society. Future plc
gives lot of charity and donation. They also have associated with various charity homes as they
do charity on regular basis (Advantage, 2020). Company have also helped various small
business to come up by helping them through funds because they believe that small companies
are helpful in the economic development.
CONCLUSION
Through this report it can be concluded that innovation has great impact on the modern
companies. Innovation is necessary in today's world if company want to attain competitive
advantages. Customers preferences changes quickly and they always demand something new. If
company will not innovative time to time then they can lost their market share. Innovation is not
easy because it requires research and development, experts have the proper knowledge and they
understand market trends properly and hence they produce innovation products. Innovation is
the costly process but if company will go for innovation then it will help them in gaining long
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term profit. This report has also explained about corporate social responsibility, company has to
give something to the society because it is public only which helps company in getting profits,
future plc gave many charities and understands the importance of social responsibility. Business
ethics are also discussed in this report. Business should have follow ethical practices. They
should not always focus on getting more profits only but they should have also ensure that they
are not harming people or the environment.
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REFERENCE
Books and Journals
Adnan, S.M., Hay, D. and van Staden, C.J., 2018. The influence of culture and corporate
governance on corporate social responsibility disclosure: A cross country
analysis. Journal of Cleaner Production. 198, pp.820-832.
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
Strategies in Transitioning and Emerging Economies, 65.
Chavan, M. and Carter, L.M., 2018. Sustainable business ethics education. In Meeting
Expectations in Management Education (pp. 149-170). Palgrave Macmillan, Cham.
De Silva, M., Howells, J. and Meyer, M., 2018. Innovation intermediaries and collaboration:
Knowledge–based practices and internal value creation. Research Policy. 47(1), pp.70-
87.
Dierksmeier, C. and Seele, P., 2018. Cryptocurrencies and business ethics. Journal of Business
Ethics. 152(1), pp.1-14.
Hartini, S. and et.al., 2020. The role of religiosity and social influence on perceived business
ethics and its impact on the purchase of creative industrial products. Espacios. 41(19),
pp.370-379.
Mahrani, M. and Soewarno, N., 2018. The effect of good corporate governance mechanism and
corporate social responsibility on financial performance with earnings management as
mediating variable. Asian Journal of Accounting Research.
Mardani, A. and et.al., 2018. The relationship between knowledge management and innovation
performance. The Journal of High Technology Management Research, 29(1), pp.12-26.
Russell, M.G. and Smorodinskaya, N.V., 2018. Leveraging complexity for ecosystemic
innovation. Technological Forecasting and Social Change. 136, pp.114-131.
Sánchez‐Torné, I., Morán‐Álvarez, J.C. and Pérez‐López, J.A., 2020. The importance of
corporate social responsibility in achieving high corporate reputation. Corporate Social
Responsibility and Environmental Management. 27(6), pp.2692-2700.
Schoemaker, P.J., Heaton, S. and Teece, D., 2018. Innovation, dynamic capabilities, and
leadership. California Management Review. 61(1), pp.15-42.
Sims, R.R., 2017. A contemporary look at business ethics. IAP.
Sorescu, A., 2017. Data‐driven business model innovation. Journal of Product Innovation
Management. 34(5), pp.691-696.
Vynnychenko, N.V. and Majewska, U., 2017. Evaluation of business ethics for the formation of
public finance.
Online
4 ways innovation can help your business., 2020. [Online]. Available through:
<https://www.bdc.ca/en/articles-tools/business-strategy-planning/innovate/4-ways-
innovation-can-help-your-business>
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