Kainos PLC: Impact of Innovation & CSR in Business Environment Report

This report provides an in-depth analysis of Kainos PLC's business environment, examining the influence of innovation and technology on its sales, profit, and overall growth. The report highlights how Kainos PLC leverages innovation, such as its automated testing platform, to gain a competitive edge, expand its market reach, and enhance customer satisfaction. It also delves into the importance of Corporate Social Responsibility (CSR) for Kainos PLC, discussing its benefits in terms of public image, brand awareness, competitive advantage, customer engagement, and employee engagement. The report explores how CSR initiatives contribute to the company's sustainability and long-term success, emphasizing the alignment of business practices with societal expectations and the creation of shared value for stakeholders. Furthermore, the report outlines the positive impact of innovation and CSR on the economic development in the UK.

Business Environment

EXECUTIVE SUMMARY
Business environment is changing continuously and in the present time it is
becoming a challenging situation to meet the changing requirements. Innovation is the
key to enjoy success and sustainability in the business. Innovation helps businesses to
introduce with changes that are required to work with challenging environment. Kainos
PLC is required is meet innovations as through innovative ideas growth, sales and
profitability enhances and improved to great extend. Innovation when implied with social
responsibility then in that case it leads to generation of good public image of the
organisation. Implication of innovation that satisfy large number of consumer group
helps in achieving long term success and achievements that are targeted.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impact of innovation and technology on sales, profit and growth of Kainos PLC................1
TASK 2............................................................................................................................................5
Corporate social responsibility and its importance for Kainos PLC......................................5
Archie Carroll’s (1991) CSR model.......................................................................................7
CONCLUSION ...........................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment is termed as the sum total of all the internal and external
factors that affects business operations. Analysing the business environment helps to
scan the changes that are taking place in the day to day operations. Accessing a
business environment helps to improve business performance by early adaptation of
changes that are taking place through innovation and technological improvident. In this
project report to elaborate the concept of business environment Kainos Group plc is
considered. It is a public limited organisation deals in software industry (Bah and Fang,
2015). Headquarters are situated in Northern Ireland's since 1986 and key people in the
company are John Lillywhite and Brendan Mooney. Project report contains impact of
innovation and technology on sales, profit and growth of the organisation. Together with
this importance of CSR is defined for businesses.
TASK 1
Impact of innovation and technology on sales, profit and growth of Kainos PLC
Innovation generally refers to changing processes or creating more effective
processes, products and ideas. Innovation means changing business model and
adapting all the environmental changes in the organisation so that better products and
services can be introduced. Carl Mitcham (1978) defined technology as “human making
or using of material artifacts in all form and aspects”. Technology introduction through
innovation has become part of personal and professional life of each individual.
Innovation and technology changes leads to globalization and leads to success of an
organisation. Kainos PLC develops information technology solutions for businesses and
organisations particularly in the public, healthcare and financial service sector. Working
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in an industry which is based on technology and innovation it is very important for
managers of Kainos PLC to become adoptive with business environment. For example
technological development such as Information Technology has improved level of
performance and scale of operations in business in India and this leads to economic
growth and development. Business uses new technology for managing level of
production through implementing a automated system that helps to calculate level of
production required to meet market demand.
Kainos PLC is positively affected by innovation and technological changes that
takes place in the business environment (Clarke, Li and Xu, 2016). As in the present
time innovation leads Kainos PLC to develop software as per the requirements of a
business organisation based on their personal preference. Innovation and technological
changes drive focus of Kainos PLC towards software development and for this new and
experienced workforce who are capable to meet changes are hired in the organisation.
New features are added in the process of software development that helps testing of
software development in automated manner. Through this innovative change operations
of Kainos PLC are performed quickly and consistently validate the new functionality.
Adaptation of innovation in the organisation and implementing them with technological
development helps Kainos PLC to launch their Kainos Smart automated testing
platform. This automated system helps in containing tests that are essential in the
process of software development for various business organisations by Kainos PLC.
Innovation helps Kainos PLC to become one of its kind organisation in the industry as
Kainos PLC is the only automated testing tool on the market that is designed exclusively
for use with workday (Eling, and Schaper, 2017). Innovation and technological
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development in the business environment leads to enhance markets boundaries for
Kainos PLC to DACH, US, Benelux and now to Nordics. Using innovative that leads to
maximise consumer satisfaction level with latest technology helps Kainos PLC to serve
its large number of consumers with computer software that are customised for them and
enhance their performance.
Innovation helps a business to grow at national and international level.
Successful exploitation of new ideas if crucial for every business that leads to improve
business processes and products served in the market. Innovation leads to enhance
efficiency and most importantly improve profits of business organisations. Innovation
and technological development possess positive impact on sales made by Kainos PLC.
As software for business organisations are developed so that each activity can be
performed in well defined manner. When innovation is introduced then more effective
and productive goods and services are provided by business organisations. Existing
and targeted consumers are served with best products which they desire for and that
leads to enhance sales. More and more amount of sales leads to widen the market
share captured by Kainos PLC. As this software organisation possess a automation
system wh9ich is one of its kind and this features through innovation make the
organisation to have a global presence. Expanding business to international level helps
Kainos PLC to grab new markets and attracts consumers across the boundaries
(Fabuš, 2017). This will help to generate more and more sales in the national and
international market. So, it can be said that when innovation and technology will be
implemented in the Kainos PLC in required manner as per Mantke demand then in that
case it will add more and more sales for Kainos PLC.
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Profitability through innovation and technological development is affected in
positive manner when consumers are served with goods and services they demanded.
A growth in revenues form overall operations for this organisation is recorded to be
56%. Kainos PLC through innovation and technological changes become successful to
adopt a system in which tastes that are required for software development is conducted
in automated manner. This features helps to generate customised software requited by
number of business organisations to operate in most profitable manner. Satisfying
consumers more effectively and providing services across national boundaries will help
to generate more and more profits for Kainos PLC by making more and more sales.
When size of operations in Kainos PLC is enhanced then in that case it will leads to
generate financial benefits through economies of scale. Operating cost of organisation
will be charged on number of operations and this will minimise cost and eventually
profits will be improved (Georgescu and Popescul, 2015).
When growth of an organisation is considered in relation to adaptation of
innovation and technological improvement chances for getting positive growth is more.
Adopting both the tools will maximise profitability of business so that each activity can
be accomplished in more profitable manner. One of the most innovative program was
launched by Kainos PLC for students of university. In this “Earn as you learn” initiative is
launched. Students are provided an opportunity to make contribution towards business
innovation of organisation which their ideas and earnings will be provided to them on
the basis of their learnings. When innovation is done for an organisation then in that
case growth in the internal business environment takes place as many opportunities is
available with business. Kainos PLC with introduction of innovation becomes one of its
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kind and this becomes the greatest strength to enjoy sustainability. Innovation also
helps in competing with other businesses in more effective manner so that competitive
advantage can be enjoyed and business can grow at national and international level.
Economic development is referred to enhancement of standard of living of
individuals belongs to a particular nation. When innovation is introduced then it leads to
provide more better goods and services that improves quality of life that each individual
was enjoying in UK. When innovation will be made then it will not impact to a particular
group the whole economic development in UK will take place. More and more amount of
economic development is a result of innovation that is supported and accepted by
citizens residing in UK.
Innovation helps to become successful and generate profitability when it is
implemented in the most appropriate manner in any industry (Hamilton and Webster,
2018). While adopting innovation and technological development in Kainos PLC it must
be considered that it is done on a valid idea. Only valuing options will be considered for
innovation and that idea must be analysed in detailed manner. Innovation must be
introduced on the basis of priorities that a business organisation wants in achieve in
long or short run. Kainos PLC must consider its idea of innovation very critically as
dealing in software development industry can make an innovation obsolete in small time
duration.
TASK 2
Corporate social responsibility and its importance for Kainos PLC
The term corporate governance become vogue in UK in the year 1991-1992.
Investors in business all belongs to general public and they leads to contribute more
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and more towards social responsibility so that society is provided with services that they
deserve. Corporate Social Responsibility is a self-regulating business model that helps
a company to become socially accountable for all the acts performed while providing
offered goods and services to large number of company (Kozubíková, Homolka and
Kristalas, 2017). This is one of the important business practice that helps to met with
standards set by society for a business to be accomplish. The overall aim is to create a
positive impact on society as a whole while maximising the creation of shared value for
the owners of the business, its employees, shareholders and stakeholders. Operations
of Kainos PLC will be performed in such manner so that exception of general public for
the organisation for social benefit will be accomplished. Their are several benefits that
Kainos PLC will enjoy while contributing towards CSR. Some of the importance of CSR
for Kainos PLC is defined as follows-
To improve public image: Generating a good public image is very crucial for
business organisations as it will provide success and sustainability in the competitive
market. Consumers decision to buy goods and services offered by Kainos PLC will
highly depends on the public image possessed by company.
Increase brand awareness and recognition: In order to achieve CSR business
organisations contributes their finances for social welfare. This act when performed by
Kainos PLC in national and international markets the brand awareness and
recognisance among general public will improve.
Competitive advantage: This is one of the most important advantage that a
business organisation enjoys while contributing for CSR. By embracing CSR Kainos
PLC will stand out of the competition in the industry (Okeyo, Gathungu and Peter,
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2016). This organisation will be considered as socially responsible and all the activities
for generating revenues also considers social responsibility as their priority to achieve.
Improve customers engagement: When Kainos PLC is contributing towards
social welfare and a system which leads to sustainable development is followed by the
business then it must be introduced to society at large. For this companies make post
on social media channels and make all the efforts so that society at large get aware with
their contribution. This will help in enhancing consumers engagement with brand and its
operations.
Create employee engagement: Similar to customer engagement, organisation
must ensures that employees in the organisation must be aware regarding CSR.
Individuals while working in an organisation must ensure that organisation in which they
are working is responsible towards society as this will improve their productivity to give
full contribution. Human rights, social welfare, equality all attracts talented employees to
join and remain with Kainos PLC (Prajogo, 2016).
Benefits for employees: When CSR is followed by a business organisation then
in that case it leads to contribution towards positive attitude of employees. All the
workforce will be embrace with CSR and will volunteer personal and professional
growth while performing various business activities.
Archie Carroll’s (1991) CSR model
Archie Carroll’s (1991) CSR model is a simple framework that helps to argue how
and why an organisation should meet their social responsibilities. One of the most
important feature of this model is that CSR is built on the foundation of profits and for
every organisation profits must come first. After this business organisation must ensures
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that operations must comply with all laws and regulations. When several options are
available to a business organisation then option which helps in meeting ethical duties
must be selected so that each individual will get benefited (Archie Carroll’s CSR model,
2019). InArchie Carroll’s (1991) CSR model a pyramid is established and all the
responsibilities in form of their priority is mentioned. The pyramid in this model shows
four responsibilities that are as follows-
Economic
 As per this responsibility business organisation must possess profits as their
primary concern.
 Profitability is the only way through which a business can sustain in long run in a
society.
Legal
 Business organisation needs to obey laws and regulations imposed for
profitability. For example- health and safety regulations at workplace,
competition law and employment law.
Ethical
 This reflects the responsibilities to act morally and ethically.
 With this responsibility social welfare held as primary concern.
Philanthropic
 At this stage responsibilities to give back to society.
 Various charities and donations are made by businesses for social welfare.
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Sources: Archie Carroll’s CSR model, 2019
Archie Carroll’s (1991) CSR model while applicable to Kainos PLC then
operations that provides monetary benefits to the organisation must be conducted on
priority basis. For example- innovative software facilities must be introduced on
continuous basis so that more and more revenues can be generated in long run. While
operating in UK and at other international platform each business organisation must
ensures that laws and regulations that are established for businesses must be followed.
Together with this specific application of any regulating on software development
business or IT businesses must be considered by managers or operators of Kainos
PLC. After completion of these two steps in the models operations of Kainos PLC must
be ethical so that society at large can be benefited with ethical behaviour used in
operations. For example- when new innovation is introduced in the organisation then
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Illustration 1: Archie Carroll’s CSR model, 2019

employees working in Kainos PLC will be trained to adopt the changes rather then
removal form their post.
At the last stage Philanthropic stage is achieved in which Kainos PLC make
financial contribution form profits to social welfare related to employees, environment,
society and governance. This organisation with an intention to promote IT profession
encourages schools and universities and students involved in IT sector (Reyes, Roberts
and Xu, 2017). Local schools in UK, various universities and IT education at workplace
is given primary concern and large amount of financial support is made in this respect.
CSR Hub Generates Consensus Ratings on 17989 companies form 141 countries and
Kainos PLC is ranked at 73 position. This ranking reflects that contribution of
organisation towards CSR is remarkable. The organisation is ranked at 21 for
employees CSR contribution and 49 for implementing governance. When whole
scenario is considered then it can be said that Kainos PLC is one of the leading
organisation in software development industry which is contributing a considerable
amount social responsibility. All these efforts by organisation will help in gaining good
market image and attain sustainability by fighting with all the available competition in the
market.
CONCLUSION
From the above project report it has been concluded that innovation is one of the
important tool that helps each business organisation to sustain in the competitive
market. Innovation requires technological development and when both the tools are
present the it becomes beneficial for a business to gain competitive advantage.
Innovation and technological development when made as per taste and preference of
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consumers then it leads to enhancement of sales, profit and growth of business.
Businesses are operated in society and each business organisation to sustain for long
run and to establish good market must make contribution towards CSR. Different
models will be used to make the CSR strategy more effective.
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REFERENCES
Books and Journals
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Clarke, G., Li, Y. and Xu, L. C., 2016. Business environment, economic agglomeration
and job creation around the world. Applied Economics. 48(33). pp.3088-3103.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European
Journal of Operational Research. 258(3). pp.1082-1094.
Fabuš, M., 2017. Current development of business environment in Slovakia and Czech
Republic.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of
collaboration and communication for business environment. Procedia
Economics and Finance. 20. pp.277-282.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.
Kozubíková, L., Homolka, L. and Kristalas, D., 2017. The effect of business
environment and entrepreneurs’ gender on perception of financial risk in the
smes sector. Journal of Competitiveness.
Okeyo, W. O., Gathungu, J. and Peter, K. O., 2016. Entrepreneurial orientation,
business development services, Business environment, and performance: A
critical literature review. European Scientific Journal October 2016. 12(28).
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business
environment in delivering business performance. International Journal of
Production Economics. 171. pp.241-249.
Reyes, J. D., Roberts, M. and Xu, L. C., 2017. The heterogeneous growth effects of the
business environment: firm-level evidence for a global sample of cities. The
World Bank.
Online
Archie Carroll’s CSR model. 2019. [Online]. Available through:
<https://www.growyourgiving.org/giving-blog/pyramid-corporate-social-
responsibility>
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