An Evaluation of Kingfisher PLC's Business Environment: A Report

This report provides a comprehensive evaluation of Kingfisher PLC's business environment, focusing on innovation, technology, and corporate social responsibility (CSR). The report begins by defining innovation and technology, and then examines their contribution to economic growth. It explores how businesses, specifically Kingfisher PLC, utilize new technologies in their operations, particularly in e-commerce and employee development. The report then delves into corporate governance and CSR, defining both and tracing the history of corporate governance in the UK. Kingfisher PLC's CSR is evaluated through Archie Carroll's pyramid, examining its economic, legal, ethical, and philanthropic aspects. The analysis highlights Kingfisher PLC's commitment to sustainable practices and its use of technology to enhance customer experience and improve operational efficiency. The report uses the company's annual reports to support the analysis and concludes with a summary of the key findings regarding Kingfisher PLC's approach to innovation, technology, and CSR within its business environment.

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An Evaluation of Kingfisher PLC Business Environment
Alex Roxapc
Affiliation
Date

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Table of Contents
An Evaluation of Kingfisher PLC business Environment...............................................................4
Task 1: Introduction.........................................................................................................................4
An Evaluation of Innovation and Technology.................................................................................4
How Innovation and Technology Have Contributed to Economic Growth of a Country...............4
How Business Organizations use New Technologies in Their Operations.....................................6
Impact of innovation and technology on Kingfisher PLC...............................................................6
Overview of Kingfisher PLC.......................................................................................................6
Utilization of New Technologies by Kingfisher PLC.................................................................7
Task 2: An Evaluation of Corporate Social Responsibility.............................................................8
Defining Corporate Governance and Corporate Social Responsibility.......................................8
History of Corporate Governance in the UK...............................................................................9
Importance of CSR for Kingfisher PLC....................................................................................10
An Evaluation of Archie Carroll's Pyramid of CSR..................................................................11
Application of Economic CSR at Kingfisher PLC................................................................11
Application of Legal CSR at Kingfisher PLC.......................................................................12
Application of Ethical CSR at Kingfisher PLC.....................................................................12
Application of Philanthropic CSR at Kingfisher PLC...........................................................13
Conclusion.....................................................................................................................................13
Bibliography..................................................................................................................................15

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Executive Summary
The report was tasked to evaluate various aspects regarding innovation and technology as
well as corporate governance and corporate social responsibility (CSR). The study evaluated
innovation as a process of generating new outcomes such as the introduction of new products.
On the other hand, technology regarded different ways man fashions tools and machines in the
need to understand the environment. Both innovation and technology were evaluated to
contribute to the economy by enhancing labor productivity that translated to a high output in
producing goods and services.
The study evaluated Kingfisher PLC to utilize new technologies by providing e-
commerce platforms where consumers were able to access their products. The study
consequently evaluated corporate governance as a system to which organizations are governed.
On the other hand, corporate social responsibility regarded a regulatory model where
organizations should be socially accountable. Kingfisher PLC was evaluated through Archie
Carroll's pyramid as socially accountable. Regarding observing ethical aspects, Kingfisher PLC
was observed to put in place anti-bribery and anti-corruption policies.

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An Evaluation of Kingfisher PLC business Environment
Task 1: Introduction
Businesses and organizations do not exist in isolation. As such, businesses depend on the
environment to thrive in their daily operations. Businesses are often subjected to working around
internal and external factors that affect their delivery of service and products. The factors may
regard how they respond to customer needs, manage employee expectations, and develop
products based on innovation and technology as well as observing different organization
structures.
To this understanding, the study will seek to evaluate the importance of different types of
innovation and how they have impacted economic progress. The study will consequently assess
the importance of corporate governance and corporate social responsibility for Kingfisher PLC.
An Evaluation of Innovation and Technology
The term innovation regards a process to which new outcomes are generated. Regarding
business, innovation implies the introduction of new ideas in developing new products and
services. According to (Vernardakēs, 2016), innovation is largely dependent on the output it
provides as compared to the process. On the other hand, technology regard to different ways
tools and machines are fashioned by a man to understand the environment while increasing their
control (Vernardakēs, 2016, p.30).
How Innovation and Technology Have Contributed to Economic Growth of a Country
According to (Morrisson, 2017), the economic growth of a country regards an increase in
the production capacity of goods and services to the market. There are varied factors that

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contribute to economic growth such as human capital and labor force. It is also worth noting that
technology and innovation also play a great role in contributing to economic growth.
Technology and innovation contribute to increasing the labor productivity for producing
goods and services. As (Boddy, 2016), posits, labor productivity is the output created by each
person in different segments of the economy. The combination of technology and innovation
leads to the advancement of new products that are essential in improving labor productivity. An
example is the use of computers to enhance remote working by staff. This aspect has enhanced
continuous productivity thus enhancing economic growth (Morrisson, 2017, p. 94).
Both technology and innovation have enhanced better living standards. The living
standards often relate to how people live in an environment. The transformation of technology
has been linked to an increase in levels of income due to the creation of job opportunities in
sectors that did not exist. Access to online platforms whereby people can work remotely in
different work segments has been a factor that has increased wages. As such, this has
transformed into economic growth due to more disposable income for the population (Needle,
2015, p. 60).
Technology and innovation have also enhanced to minimize costs and reduce wastage of
resources. Both innovation and technology have resulted in cutting production costs thereby
necessitating an increase in the production of goods and provision of services. This has improved
revenues for organizations as well as the per capita income for a country. This scenario has also
applied to the reduction of wastage of resources. An example is the use of renewable sources of
energy. This has increased more output against the same input leading to economic growth
(Vernardakēs, 2016, p.34).

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How Business Organizations use New Technologies in Their Operations
According to (Vernardakēs, 2016, p.44), technology has been essential in bringing
businesses closer to customers and clients in real-time. In increasing customer service, the
business has resulted in using technologies such as email to send customers a portfolio for the
products they offer. The use of social media platforms has enhanced increased convenience for
customers who have questions for the company. This has been implemented through online chats
and provision of self-service platforms to purchase products (Vernardakēs, 2016, p.44).
Businesses have also used new technologies in managing projects for their respective
organizations. As (Morrisson, 2017, p.112) posits, organizations have continued to become more
complex. This regards the management of staff, customers as well as daily operations. An
example of these technologies is the customer relationship management systems (CRM's) that
have been essential in managing customers while also allocating tasks and deadlines to the staff.
Businesses have also utilized new technologies through automation in the production of
products. According to (Vernardakēs, 2016, p.45), automation is the replacement of manual
effort to produce goods and services by the use of machines. Automation has remained relevant
in improving the quality of products as well as enhancing efficiency in the production lines. An
example is the use of barcode scanning software in allowing the business to analyze products and
act on real-time data (Vernardakēs, 2016, p.45).
Impact of innovation and technology on Kingfisher PLC
Overview of Kingfisher PLC
Kingfisher PLC is a home improvement company based in the UK. The company offers
home improvement services and products to trade professionals and customers. The company
retails its products in the stores and through e-commerce platforms. The company owns and

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operates 1350 stores spread across nine countries in Europe. These countries include Russia,
Ireland, France, Romania, Poland, Turkey, Spain and Portugal. The company operates under
various retail banners such as Castorama, Brico Depot, Screwfix, Trade point, B&Q as well as
Koctas. The operation in these operational areas accounts for 77, 000 staff. The company retail
profit in the year ending 2019 was approximated at £786m while the total sales in all the
countries totalled to £11.5bn. The company is headed by a board of directors where Andrew
Cosselett is the chairman while Thierry Garnier is the Chief Executive Officer (Kingfisher PLC,
2020).
Utilization of New Technologies by Kingfisher PLC
Kingfisher PLC has critically identified the shift of customers to online platforms in the home
improvement industry as opposed to the normal retail stores. As such, Kingfisher PLC has
accelerated the online shopping experience through E-Commerce platforms such as their website
and the presence of a robust mobile application. The website has depicted important visualization
and inspiration showcasing the company products as well as home improvement services.
Through e-commerce platforms, consumers have accessed products on an immediate basis.
According to the (Annual Report, 2019), there has been a high propensity regarding tools such as
electrical, heating and cooling systems as well as plumbing tools. The company has further rolled
out the click and collect initiative in the aim of connecting customers to the 1350 stores
distributed in their areas of operation. According to the chairman of the company, this
technology has rapidly increased revenues during the Covid-19 crisis (Annual Report, 2019).
Kingfisher PLC has enhanced the capacity of its employees by making use of online
digital platforms with consistent learning and development programmes. Through the kingfisher
Academy launched in 2018, more than 35,500 colleagues drawn from the store-based

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departments and trading management departments have completed the online modules. This
online learning platform has been essential in equipping knowledge to employees in their own
free time. As such, employees have been flexible at the workplace. According to the (Annual
Report, 2019), over 15,000 hours of face-to-face and more than 11,000 hours of online learning
have been logged to date (Annual Report, 2019).
The company has also used technology in the aim of realizing greener, healthier and
affordable homes to the public. Through the use of technology, Kingfisher PLC has created
resource-efficient materials to create sustainable home products. These products have included
LED lighting and water-efficient taps. The LED lighting has enabled to achieve an estimated
30.4% reduction in energy use while the water-efficient taps have contributed to 42.3% in-home
water efficiency (Kingfisher PLC, 2020).
The sales and profits of the company have greatly increased after the introduction of new
technologies. Regarding the creation of sustainable homes by use of the new technologies,
kingfisher PLC sales have increased from 800,000 homes in 2017 as compared to 2 million
affordable homes in 2019. Regarding e-commerce sales, the company group sales accounted for
8% in 2019 as compared with 6% in 2018. This translated to an increase in retail profit of £786m
in 2019 as compared to £656m in 2018. As such, technology can be observed as a key aspect in
developing organizations by streamlining services and increasing revenues (Annual Report,
2019).
Task 2: An Evaluation of Corporate Social Responsibility
Defining Corporate Governance and Corporate Social Responsibility
The term corporate governance regards to a system through which organizations are
directed and governed. According to (Aras and Crowther, 2016), through corporate governance

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shareholders have been given the power to appoint directors and auditors in an organization. On
the other hand, corporate social responsibility is a regulatory model for businesses that ensures
companies are socially accountable. According to (Aras and Crowther, 2016, p.34), social
accountability is provided to the employees, stakeholders as well as the general public.
History of Corporate Governance in the UK
The corporate governance of UK is contained in various legislative texts dating from
1992. The first corporate governance code of UK was drafted in 1992 by the committee on the
financial aspects of Corporate Governance. This came about due to a growing concern about the
standards of financial reporting and accountability. This report was subsequently published in
1992, famously known as the Cadbury Report after Sir Adrian Cadbury. This report made three
basic recommendations in which the responsibilities of the Chair and CEO to be separated.
Another recommendation required boards to have at least three non-executive-directors
(Financial Reporting Council, 2018).
Consequently, the corporate governance code has changed over the years to
accommodate various amendments and concerns. In 1994, the Greenbury committee established
by the confederation of British industry amended the corporate governance code to review the
level of salaries and bonuses being paid to senior executives. In 1998, the Hampel committee
recommended that the chair of the board should be seen as the leader of non-executive directors.
In 1999, the Turnbull committee was established to evaluate how risk management should be
carried out by organizations. This followed the commissioning of Sir Derek Higgs to review the
roles of independent directors and the audit committees in 2003. The Corporate governance code
has continued to experience different changes until 2018, whereby a comprehensive review of
the code was done. The 2018 UK corporate Governance code is the latest to be published

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applying to the financial years that commenced on 1 January 2019 (Financial Reporting Council,
2018).
Importance of CSR for Kingfisher PLC
According to (Aras and Crowther, 2016, p.38), businesses have extra responsibilities to
society beyond the aim of making profits. This aspect has been embraced by many businesses for
various benefits. According to (Morrison, 2017, p.115), corporate social responsibility helps a
business to meet moral obligations by giving back to society. The benefit of this is increased
awareness of the business brand. Another importance of corporate social responsibility has been
to build goodwill with consumers, employees and stakeholders. Regarding the employees, a
company aims at enhancing loyalty and productivity. In the case of stakeholders, a company
helps to build a strong reputation for its products and services (Aras and Crowther, 2016, p.39).
Kingfisher PLC has been observed to practice corporate social responsibility by
protecting customers from the Covid-19 virus. The company has enforced strict social distancing
and safety measures to protect consumers and colleagues from Covid-19. Among the measures
have been to provide gloves and masks to the staff while limiting the number of customers in the
store (Annual Report, 2019).
The company has also been at the forefront of supporting communities. As part of its
corporate social responsibility commitment, the company in March ring-fenced a huge stock of
personal protective equipment (PPE) that was donated to the frontline healthcare workers. The
donations of this personal protective equipment's amounted to over £2.5 million. This was made
in form of donations to the communities and the health authorities (Annual Report, 2019).
Kingfisher PLC has also stepped up efforts in tackling the global challenge of climate change in
its operations. The company's effort to cut on carbon footprint has complimented the government

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efforts to achieve zero carbon by 2025. In realizing this, the company has reduced greenhouse
emissions by 18% in 2019 as compared to 14% in 2018 (Annual Report, 2019).
An Evaluation of Archie Carroll's Pyramid of CSR
Archie Carroll's Pyramid is a simple framework that outlines the need for organizations
to meet various social responsibilities. The model proposes that profit is the primary need for an
organization. This is followed by enhancing of laws and regulations and finally meet the
philanthropic and ethical duties.
Fig 1.1: Illustrating Carroll's Pyramid model
Source: (https://www.tutor2u.net/business/reference/carrolls-csr-pyramid).
Application of Economic CSR at Kingfisher PLC
Aras and Crowther, 2016, p.40, illustrate that the primary responsibility of a business is
to be profitable to survive in society. In the need to remain profitable, Kingfisher PLC has
conducted customer research in the various market it operates to understand the customer needs
and issues. Continuous customer surveys have led the company to develop home-improvement

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needs that have been best-in-class. This initiative has earned loyal customers for the company
translating to an increase in profits. The company has recorded over £11 billion in sales in all its
operations in 2019 as compared to £10.6 billion in 2018. The company has also resulted in the
click and collect platforms that have indicated an increase in the sales of home improvement
products.
Application of Legal CSR at Kingfisher PLC
According to (Aras and Crowther, 2016, p.40), the legal aspect of corporate social
responsibility requires businesses to obey laws and regulations set in a business environment. As
such, Kingfisher has consistently abided by the Government in mitigating the spread of Covid-
19. The company has followed the various guidelines proposed by the government. These
guidelines have included ensuring sanitizer stations are placed in the stores as well as limiting
the number of customers in the store. The company has observed employment policies such as
providing for statutory benefits for employees in various work contracts. The company has also
abided by the government in reducing chemicals in their products. This has been achieved by
partnering with groups such as Green Chemistry (Annual Report, 2019).
Application of Ethical CSR at Kingfisher PLC
According to (Boddy, 2016, p.76) businesses must act ethically and morally while
providing for goods and services to the public. Kingfisher PLC has set out a human rights policy
whereby it has observed the risks that the business may affect human rights. A key area is
modern slavery whereby the company through a partnership with Slave-Free alliance has
promoted the upholding of human rights. The company has engaged staff and suppliers
inconsistent training to help spot signs of modern slavery. The company has also put in place
anti-bribery and corruption policies planned to enhance more transparency while conducting