Innovation and Technology, CSR: A UK SME Perspective Report

This report examines the crucial roles of innovation, technology, and corporate social responsibility (CSR) within the context of UK-based SMEs. It begins by defining different types of innovation, including incremental, disruptive, architectural, and radical, and explores how technology impacts business operations, such as communication, customer service, project management, conferencing, and automation. The report then analyzes the impact of technological innovation on Next plc, a major UK retailer, detailing how the company implemented technologies like online payment systems and laser sensors to improve security and enhance customer experience. Furthermore, the report highlights the importance of CSR, corporate governance, and their impact on a company's public image and brand recognition. It emphasizes the significance of CSR practices for maintaining a positive brand image and attracting customers in the modern business environment, concluding with an overview of the benefits of CSR for companies like Next plc.

INNOVATION AND
TECHNOLOGY AND
IMPORTANCE OF
CORPORATE SOCIAL
RESPONSIBILITY CSR

Executive summary
Innovation and technology are the two words which rule the corporate culture in this
modern world. In order for a company to survive in the market place it must be creative and offer
some innovative products to its customers while being up to date with the technology. This
report deal with the importance of innovation and technology on a UK based SME and the
importance of an organisation to have a corporate social responsibility.
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TABLE OF CONTENTS
Executive summary..........................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
1.Different types of innovation and technology..........................................................................1
2.Impact of technology of Next plc.............................................................................................3
TASK 2............................................................................................................................................4
1. Importance of CSR..................................................................................................................4
2. Archie Carroll’s pyramid of CSR............................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
Books and Journals......................................................................................................................8

INTRODUCTION
Innovation is the concept of referring to process by an individual or an organization for
undertaking of new ideas about products, process, ideas, and ways of business activities.
Innovation in technology can be said as introduction of new technology which is implemented in
a business for improving its performance. This project different types of innovation are
discussed. This project also explains the use of new technologies in business organization. With
the help of this project the impact of technology on operations and sales is shown on the Next
plc. This project also shows the importance of CSR in the company.
MAIN BODY
TASK 1
1.Different types of innovation and technology
Innovation is the concept of referring to process by an individual or an organization for
undertaking of new ideas about products, process, ideas, and ways of business activities. In the
modern world the companies are increasingly coming up with new and effective strategies for
improving their potential in the competitive markets. Innovations are strategies which a company
utilizes for gaining competitive advantage in the market. Innovation in technology can be said as
introduction of new technology which is implemented in a business for improving its
performance (Fiorino, C., and et.al., 2020). With the help of innovation in technology companies
are successful in affecting their sales, profit and their overall growth. Different types of
innovation are,
 Incremental innovation is the utilization of existing technology for increasing the
customers value in an existing market.
 Disruptive innovation is application of new technology in a new market which has
established competitors.
 Architectural innovation is increasing of new customers with entering a new market with
an existing technology.
 Radical innovation is the type of innovation when new company is formed or over taken
by an existing one by revolutionizing technology.
The digital sectors of the UK economy has been accelerating faster than any other
industry in the economy. Studies have found out that the digital technology companies of UK
have grown themselves by 4.5% in one year by creating huge impact on the economic growth of
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the company. The company saw a growth of 1.7% in its GDP in that very period of the company.
This shows how new technologies by making the operations in the country faster and cheaper
can improve the productivity in an economy.
A business organization can use technology in many ways for improving its operations,
Communication :
In an organization communication between the employees and the managers is very
important. Most of the organizations use a technology for connecting them. Mobile phones are
the necessity of each an every employee in an organization. With the help of technology in
communication nowadays emails, texts messages can be sent on social networking websites to
people situated anywhere in the world. This helps the company to communicate with customers
and also increase its operational activities (Gobble, 2018).
Customer Services :
Customers services are improved by many organizations with the help of technologies.
Companies have customers services number on which the customers can call for any issues
regarding the product or services. This helps the company to satisfy the customers by providing
them the necessary solutions to their problems.
Project Management :
Project management software of an organization keeps the organization together and also
helps it to overcome issues. With the help of this software the employees are allocated task with
deadlines. This also helps the employees to send messages and updates with each other which are
working on particular project. This software allows the manager to keep and eye on what's going
on in the operations.
Conferencing :
Business meeting are very time-consuming and expensive because the individuals have to
travel for these meeting. With the help of technologies like internet on phones and laptops online
conferencing have become huge part of the business of the company. This helps the operational
activities of the company.
Automation :
Technological development has improved the operations of the business so much that
now they are happening with the help of robot. There robots are designed for automatically
completing the tasks designed to them.
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2.Impact of technology of Next plc
Next plc is the chosen company in this scenario. This company is a multinational
clothing, home products and footwear retailer. This company has more than 700 stores out of
which 500 of these stores are situated in UK, along with its head office. In the terms of sales
annually Next plc is the largest retailer in UK. This company is listen on London stock exchange.
This company was founded in Leeds by a person named Joseph Hepworth. Next plc initially was
started as a tailor shop in 1864. This company in 2018 started its own online retailing for the
growth of business.
The innovation of technology which was brought by Next plc can be explained by the
following, From the study of observations was carried out by the company to understand the
behaviour of the consumers towards this fashion retailer. The study developed that the company
needed to make their focus towards the ease of uses of technology in the store and also improve
engagement with customers by technology. This step helped the company to find out the method
for application of technological innovation. This company has developed great customer's
confidence in their market. Even though there are entry of lot of new players in the market. This
brought up the necessity to need to be innovative for beating the competition. The consumers are
now expecting the company to offer more in transaction (Coccia and Watts, 2020).
Next plc being a clothes retailer used technology in innovation of multiple factors. This
referred to implementation of new ideas into the operations or products for affecting the
production process or sales of the company. This company decided to utilize this technological
innovation in the payment system of products. Due to the growth in digitalization in the banking
sectors. More and more people had started using cashless payment methods for purchasing. Thus
the company felt a need to introduce technology for fulfilling this need of the customers. This
turned out to be a great idea. This made all the transactions online and decreased the threat of
human errors during the transaction.
Next plc also introduced services like a laser sensor technology in its shops. This
technology was implemented for improving the security in the shops. Shops of Next plc were
experiencing lots of cases of shoplifters in its stores. This new technology had a laser sensor
which started to buzz if the product has not been billed on the counter. This allowed the company
to be tension free from the shoplifters in the shop. With the help of little security the company
was able to maintain security. This company utilized these innovation in all of its stores and it
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performed significantly. Prior to making these innovations the profits of the company were not
increasing because there was not online payment method and shoplifters were causing
unnecessary losses to the business of the company. The company's annual profit in 2018 had
dropped by more than 8.2% prior to making these changes. But after bring these innovations the
sales of the company continued to grow and the profit increased by 11%. Along with these things
company also made lot of small technological innovations. To just improve the physical stores as
they were the main source of business for the company. The development of new digital
platforms on the stores brought the company the opportunities to improve the customer
experience. One of those small technological innovation were in the changing rooms which
showed the person waiting whether it is occupied or not. And the rooms were designed in a way
that it enhanced the changing experience of the customers. Another one of the change which the
company did was to introduce screens in the stores which showed the advertisements of the
products and offers available to the customers. This change was made to influence the
purchasing decision of the company.
TASK 2
1. Importance of CSR
Corporate governance is said to the set of laws, rules and procedures which are applicable
for controlling and regulating the organization. This term holds within itself the factor that affect
the interests of the shareholders, suppliers, stakeholders and also regulations of the government
and management. Corporate social responsibility are the practices and polices which are
undertaken by companies which also have the motive to influence the world positively. This idea
of CSR is for the companies to objectives which are meant for the society. The CSR of a
company does not decrease its profits just because it is about the responsibility towards the
society. CSR is combination of making profit while serving the society as a business (Yun, Kim
and Yan, 2020).
The corporate governance in UK has been recognized as a very effective model. This
model has influences the decision of many other countries in Europe and Asia. With the help of
Corporate governance in UK internation companies are attracted more and more for gaining the
access towards the investors. These investors are very well assured by the government and its
obligations. The corporate governance of UK comprises market guidance, laws and also codes of
practices. The Companies Act 2006 and the regulation of Financial Conduct Authority (FCA) are
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responsible for the default rules and legal standards for corporate law and order in the country.
These practices of corporate governance in the country is also responsible for these long term
success of a company (Jimenez-Jimenez, Martínez-Costa and Rodriguez, 2019).
 According to the corporate governance of UK the company's must have separate CEO
and chairman in its structure. This is because the corporate governance have described
their separate responsibilities.
 As per the corporate governance of UK there should be a proper balance between the
both executive and non-executive directors of the company.
 Corporate governance of this country wants the companies to have a strong and
independent audit.
 There should annual evaluation of the performance of the board in this country.
 The corporate governance of the company also encourages the rights of the share holders
effectively which want to engage with the companies.
CSR is important to every company in the market. For next plc which on the terms of sale
is the largest retailer in UK. CSR is important to this company because it helps them in
maintaining their positive image. Many customers nowadays expect from the brand that they
leave positive impact over them and on the society. CSR is very powerful for determining the
success of a business. From a study it was shown that 90% of the consumers were ready to
boycott that company which was not following its business practices. All of these consumers
expected from the companies to follow their Corporate social responsibilities. The importance of
CSR in Next plc are,
Improved Public image :
The success of fashion industrial companies are the result of their public image as the
consumers check the public image of the brand before buying products from it. The public image
of the company lets its sustain the talented employees in the organization. Bad public image
results in employees leaving an joining competitors.
Brand recognition :
When a company follows its CSR with full honesty and responsibilities. It becomes
successful in building its image in the world. This makes the brand of the company recognised
worldwide which helps the company to expand its business worldwide.
Advantages in competition :
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In the market which is this competitive there is very less difference between the products,
and services between the companies. In this case the company with better CSR is the one which
develops trusts and public image among the customers. This helps in gaining competitive upper
hand in the market.
Employee Engagement :
The employees for this company is its backbone, they are the one which are involved in
all the process of the company. The CSR strategies are very important to the employees of the
company. The employees of the company do not want to work for a company which does not
have a good public image as it is neglecting the CSR.
Customer Engagement :
The customer engagement of Next plc is very good, but it can be better if the company
participates more in the CSR activities. If the company participates in a CSR activity and then
posts it on social media the public image of the company improves and automatically the
customer engagement also improves for the company. Customer follows social responsibility
while selecting their brands.
2. Archie Carroll’s pyramid of CSR
Carroll’s pyramid framework explains the reasons why the organisations must take social
responsibility. It puts the spotlight on the four most important responsibilities including
economic, legal, ethical and philanthropic. The base of pyramid is focused on profit. Company’s
foundation must be built on laws and regulations keeping in mind the demands of shareholders.
Company must also meet the ethical responsibilities. The four components of Carroll’s pyramid
are:
Economic responsibility: This marks the lowest level of pyramid representing the first
responsibility a business must show to achieve profitability. When there is no profit then the
company will not be successful in paying their employees for their work. Because of this
employees will leave or lose their job from before starting other corporate social responsibility
activities. Earning profits is the only way for the company to survive in the market for long term
and benefit the society. It is sole responsibility of the organisation to produce products and
perform services at affordable prices which are demanded by the customers. Stakeholder expects
reasonable return values on their side of investment and the company must fulfil these
expectations.
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Legal responsibility: Second level of the Carroll’s pyramid is about following the legal
responsibilities. It deals with the legal obligations that the organisation must obey because if the
law. This is an important responsibility out of the all four levels as this level represents the ways
in which organisation conducts its business in the market area. Some examples of legal
responsibilities are labour and employment laws, tax regulations of the host countries, health and
safety of all the individuals working in the company and so on. Failing in following these
responsibilities could be very harmful for the company’s business.
Ethical responsibility: If the organisation works ethically, it comes in favour of its
customers. Having ethical responsibility is showing the right thing to do and being fair in
whatever the situation might be and work while avoiding any harm to the business. The company
must not only follow the law but also work in an ethical way. It is not mandatory to work
ethically but it is good to follow the ethical responsibilities. This helps in building company’s
reputation among its customers. It shows the stakeholders that the company works with a moral
and people are comfortable in purchasing the goods and services that ethically working
organisation is providing them. Working in eco friendly way, treating the employees properly are
few of the examples of being ethically responsible.
Philanthropic responsibility: This is the top of the pyramid occupying the smallest
space. There are many businesses which are boycotted and criticized because of their carbon
footprint and their contribution to pollution. To balance such criticism, company must give
something back to the community from where they take so much.
CONCLUSION
With the help of this project it can be concluded that innovation in technology is
important for the success of the business. In order for a company to survive in the market place it
must be creative and offer some innovative products to its customers while being up to date with
the technology. This report deal with the importance of innovation and technology on a UK
based SME and the importance of an organisation to have a corporate social responsibility.
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REFERENCES
Books and Journals
Ahmad, T., 2018. Carroll’s CSR Pyramid: An Epic Philosophy.
Coccia, M. and Watts, J., 2020. A theory of the evolution of technology: Technological
parasitism and the implications for innovation magement. Journal of Engineering and
Technology Management. 55. p.101552.
Fiorino, C., and et.al., 2020. Technology‐driven research for radiotherapy innovation. Molecular
oncology. 14(7). pp.1500-1513.
Gobble, M.M., 2018. Digitalization, digitization, and innovation. Research-Technology
Management. 61(4). pp.56-59.
Jimenez-Jimenez, D., Martínez-Costa, M. and Rodriguez, C.S., 2019. The mediating role of
supply chain collaboration on the relationship between information technology and
innovation. Journal of Knowledge Management.
Lu, J., and et.al., 2020. Modified Carroll’s pyramid of corporate social responsibility to enhance
organizational performance of SMEs industry. Journal of Cleaner Production. 271.
p.122456.
Yoo, K.S. and Kim, Y.D., 2017. A Study on the Effects of Entrepreneurship and Innovation
Activities of Venture Enterprises on the Increase Firms' Revenue. Journal of the
Korea Convergence Society. 8(12). pp.329-341.
Yun, J.J., Kim, D. and Yan, M.R., 2020. Open innovation engineering—Preliminary study on
new entrance of technology to market.
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