Assessing Innovation, Technology, and CSR at Lloyds Bank (Report)

This report examines the significant impact of innovation and technology on Lloyds Bank's operations, sales, profits, and overall growth, alongside an analysis of its corporate social responsibility (CSR) initiatives. The report begins by defining innovation and its crucial role in business success, particularly within the banking sector. It then delves into how digital banking and technological advancements have transformed Lloyds Bank's operations, including digital payment methods and AI-driven processes, leading to improved efficiency and reduced costs. The report further explores how innovation has positively affected sales through new distribution channels and expanded market reach. Additionally, it highlights the positive effects of innovation on profitability, such as cost reduction through automation and increased customer engagement. The report also discusses the importance of sustainable innovation and concludes with an overview of Lloyds Bank's CSR efforts, including financial support for youth, promotion of women leaders, community investments, and environmental initiatives, all aimed at enhancing brand value and attracting ethically aligned consumers. The report emphasizes the significance of CSR in boosting employee morale and productivity, and in addressing climate change issues, and promoting diversity within the company.

Asses the impacts of
innovation and technology
and how it has affected the
operations sales profits and
growth of one of the following
company Lloyds

EXECUTIVE SUMMARY
Innovation can be considered as a product and practice which has been developed using
creative knowledge and which has been brought for the customers for the first time. This
innovation has several effects on the various aspects of business like its growth, sales and
profitability and most of the effects are positive and favorable for the firm. This has been
discussed in report along with CSR. Corporate social responsibility is a self regulating business
model which requires business to practice responsibly considering its effects on society and
stakeholders of the organization.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impact of Innovation and Technology.........................................................................................1
TASK 2............................................................................................................................................4
Importance of Corporate social responsibility for Lloyds Bank.................................................4
Archie Carol CSR model.............................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation can be defined as bringing something new from the existing products and
services. It can be based on the needs and demands of consumers. This is basically been used in
order to increase the brand reputation and value of firm. Corporate Social Responsibility is a
management concept whereby companies integrate social and environmental concerns in their
business operations and interactions with their stakeholders. Present report will lay emphasis on
Lloyds bank. It is a British commercial bank which has been headquartered in England and
Wales. Assignment will lay emphasis on importance and benefits of innovation and technology
and how it affects sales of company. It will also lay focus on the importance of corporate social
responsibility.
TASK 1
Impact of Innovation and Technology
Creative idea, unique thought and imagination through which one creates something new
is known as Innovation. Innovation has become very significant contributor in success of an
organization. in order to stay in competition and keep continuously growing in the market it is
very important that organizations keep innovating their existing product and also bring new
products so that they can provide value to their customers (Sarkar and Kumar, 2017). All the
type of industries and organization operating under the industries are working on giving value to
their customers and banking industry is also one of them. Lloyds Bank Plc is one of the bank
operating under banking industry. Banks are involved in providing banking services which are
retail banking and commercial banking though service of the banks has remained same which are
deposit, giving loans etc. but their forms and way of giving services has evolved and innovated.
Digital Banking is an important innovation in the banking service and this has enabled
Lloyds Bank Plc to interact with their customers in various forms. Banking services are also
being provided in various forms which have positively affected the business of Lloyds Bank Plc.
There are various ways in which Lloyds Bank Plc bringing innovation in its operations and one
of the important elements is that it creates an environment of innovation in the organization.
Effect of Innovation and Technology on operations of Lloyds Bank Plc
Innovation has made very important effect on the operations of Lloyds Bank Plc.
Innovation and digital banking has made several changes in operations such as digital payment
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methods is one of the major operational change in the banking business which is possible
through innovation and technology.
This is operation change that customers can pay through their mobile and internet and
this is a convenience for customers (Sharma, 2017). But to keep digital payments convenient is
the responsibility of Lloyds Bank Plc. Such as ensuring easy transfer of the payments and
exchange of the money over digital platforms is responsibility of Lloyds Bank Plc. These are
also associated with risk and safety concern as people share their information and this is
important that operations at Lloyds Bank Plc ensure safety and privacy of the information of the
customers over digital platforms. This innovation has reduced the queues in terms of size but has
increased the number of customers over digital banking. Though not at bank but at different
places customers are of bank and later several choices and operations of banks are being carried
out through digital transformation such as management of bank account and related banking. All
these are effect of digital banking on the operations of the bank.
Operations at the bank have improved as banks are able to perform several operations
through AI and Smart Machines (Korobov, 2017). This also improves performance and increase
productivity and cost effect of this are also positive for the bank.
Effect of Innovation and Technology on the Sales of Lloyds Bank Plc
Increasing sales in one of the important reason that organisation innovate their products.
Innovation in Lloyds Bank Plc has also made impact on its sales. Digital platforms and digital
banking which is a part of banking services have also worked as new channels of distribution.
Banks can sell their services from extended platforms so can customers purchase the services
from those platforms. This is why innovation has made positive impact on the sales of Lloyds
Bank Plc. One of the example for this is that from the mobile banking application of Lloyds
Bank Plc customers can purchase other services. This increases customers for bank in terms of
its various other services.
Increasing population with knowledge in digital banking and technology is also
favourable for increasing sales of the bank. Digital banking has become a performance standard
for the banks and Lloyds Bank Plc can compare its digital services through others and improve
its digital services to increase its customers (Campanella, Della Peruta and Del Giudice, 2017).
One of the biggest advantages of Digital banking is that banks can develop new markets and
target different customer segments to increase their market reach, market share and customers.
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Expansion in market means increase in potential customers and this result in increase of the
customers. Lloyds Bank Plc can promote its products to people where it is not exist in form
physical existence but it can provide its services to them through digital banking (Khoshsima and
et.al., 2018). This is positive impact on the sales of the bank through innovation and technology.
Effect of Innovation and Technology on Profits of Lloyds Bank Plc
Innovation which has been brought by Lloyds Bank Plc has proved to be favourable in
terms of increasing their profit. The increase in sales and customers is direct indicator of increase
in the profits of Lloyds Bank Plc. But increase in customers and sales are not the only indicator
of increased profit innovation has enabled Lloyds Bank Plc to reduce its cost which contributes
in its profits. Cost reduction in form of automation of processes which require less people and
less time to complete the operations of the bank. Technology has contributed to cutting cost of
the bank as they can complete their operations frequently and more efficiently (Herron and
Cloete-Hopkins, 2018). Process innovation which is directly aimed at reducing the cost of the
company increase profits of Lloyds Bank Plc. Innovative products attract more customers and
encourage them to buy the products of the Lloyds Bank Plc also make positive impact on the
sales of the company. These are all the elements which because of which profits of the Lloyds
Bank Plc gets positively affected. Innovation and technology also contributes in increasing
productivity of the Lloyds Bank Plc and this is also a contributor for the profit of Lloyds Bank
Plc.
Competition is one of the elements which might affect the profits adversely because
competition increases participants in the profitability of the industry and all the organisations are
adapting the latest technology and providing innovation products. In such condition it is very
important for the Lloyds Bank Plc that its innovation and technology can appeal higher value to
its customers (Degryse, Morales-Acevedo and Ongena, 2019). This is why it is very important
that innovation and technology advancement of Lloyds Bank Plc continues so that it can sustain
in the environment and this is possible through research and development.
Effect of Innovation and Technology on Growth of Lloyds Bank Plc
Growth of the firm is visible through various factors and innovation is carried out and
employed by the forms in its products and operations so that they can continue their growth.
Innovation has brought in Lloyds Bank Plc in form of growth in profit, growth in sales and
growth in market share. Other than these expansion of operation is also a form of growth and this
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is possible through innovation and technology advancement. In terms of growth one of the
important aims of the company which link growth with innovation is sustainable innovation.
Sustainable innovation means that company can rely on the innovation they are applying in their
products and practices for long time. This requires that product and practices are extremely
unique in terms of innovation. Innovation can become sustainable for Lloyds Bank Plc when it is
unique which a characteristic of innovation is and its important is that it is either inimitable or
difficult to imitate by the competitors (YuSheng and Ibrahim, 2019). So effect of innovation and
technology on growth and sustainable growth is positive and favorable for Lloyds Bank Plc.
TASK 2
Importance of Corporate social responsibility for Lloyds Bank
Corporate social responsibility can be defined as the management concept which takes into
consideration the social and environmental concerns, the main aim of this concept is to meet the
ethical regulations based on this (Lim and Greenwood, 2017). Engaging in CSR activities is
really necessary for Lloyds bank to enhance their brand value as well as reputation. It means that
business is been involved in taking interest related to all social and environmental issues, this has
assisted banking group in enhancing the profit margins and this has also helped them in
attracting consumers of the same ethical values. It has also been analyzed that it is necessary for
good business to operate in sustainable and ethical way. They need to make sure that resources
are been used in an adequate way and there is no wastage of resources. It has also been analyzed
from the research that company who is been engaged in performing corporate social
responsibility can boost up the morale of employees and also can assist them in increasing the
productivity and efficiency level of firm. Lloyds bank has been involved in supporting
financially to young people so that they can participate in many sports related events. They are
also been involved in promoting women as the prominent leader.
Firm has been engaged in motivating and providing equal opportunities to women so that
they can be at the top position. They are also involved in supporting communities financially and
also engaged in donating financially to the charitable foundations. Corporate social responsibility
is really important so that the company can enhance their brand value as well as brand
reputation. They tend to attract consumers of the same value. It created the good will for the
brand and their profitability is also been increases through performing it (Kim, 2019). Lloyds
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bank is also been involved in investing their contribution in addressing the climate change issues.
They have commitment to address all environmental changes issues. Company has been engaged
in working towards reducing the carbon emission. They are also investing in renewable energy.
This has assisted firm in enhancing their brand value and has also assisted them in achieving
their goals and objectives.
Corporate social responsibility is very essential in order to increase the profit margin as well
as sales related to business. This will assist them in building their brand value as well as will also
help them in increasing their revenue. Lloyds bank is also been involved in making and
implementing diverse culture in firm (Rahman, Rodríguez-Serrano and Lambkin, 2017). They
are been motivated to recruit culturally diverse employees. In corporate social responsibility it is
very essential for firm to make sure that equal opportunity is been provided to all employees who
are working at the same level. Discrimination must not be take place for the people who are
working at the same position as this will reduce the morale of employees to work in toxic
environment. It has also been analyzed that Lloyds bank is also been involved in sponsoring
education of women who are living in rural areas and has no access to resources. This has
assisted firm in enhancing their brand value as well as reputation. They are nurturing strong bond
with communities by recruiting diverse employees. They are ensuring to build trusted
relationship with the help of corporate social responsibility activities.
Archie Carol CSR model
The Archie Carol corporate social responsibility model encompasses and works on four aspects.
It includes legal, ethical, economical and discretionary.
Economic responsibility: Lloyds banking group is been involved in creating profits by engaging
in various corporate social responsibility activities. This has assisted in them in increasing the
value of their business and has also helped them in growing and achieving objectives. They make
sure that shareholders have adequate resources with them so that their goals and objectives can
also be achieved. Fulfilling this responsibility can assist firm in growing and also increasing their
brand value.
Legal responsibility: In this Lloyds bank needs to be engaged in fulfilling all legal activities
implemented by government. They need to make sure that all laws and rules are been followed
by Lloyds bank so that their brand value increases and it will also assist them in increasing
goodwill of firm which is really necessary for their growth. It has also been inlayed that
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company needs to be involved in distributing some amount of profit into CSR activities which is
one of the rules of government. This will help them in attracting potential customers towards
them (Ali, Frynas and Mahmood, 2017).
Ethical Responsibility: In this Lloyds must be engaged in making sure that all corporate social
responsibility activities are been conducted by them in an ethical way. They must not be engaged
in making use of any illegal ways to do task. They also needs to make sure that belief, values of
individuals are not been hampered by them.
Discretionary responsibility: In this Lloyd bank is been responsible for the development of
society and community. They need to make sure that they are financially supporting certain
community for theory growth. They are also been involved in promoting women as the
prominent leader.
CONCLUSION
On the basis of above discussion it can be concluded that innovation and technology has
become centre of growth and competition of the firms. This is why it is important that firms to
pay required attention to this aspect of the business so that they can grow in form of sales,
operations, productivity and performance. These are important for firms and this is why
innovation and technology can help firms in achieving such goals. Innovation and technology
also contribute in sustainable growth of the company because this provides several advantages of
the innovation in products and practices. Another part of the report included importance of CSR
for the companies and there are various reasons which state importance of CSR for the
companies. Mainly this is for self governance and responsible business practices and other than
these are for presenting good image of the firm in front of society and its stakeholders. CSR was
also discussed in context of Archie Carol CSR model.
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REFERENCES
Books and Journals
Ali, W., Frynas, J.G. and Mahmood, Z., 2017. Determinants of corporate social responsibility
(CSR) disclosure in developed and developing countries: A literature review. Corporate
Social Responsibility and Environmental Management, 24(4), pp.273-294.
Rahman, M., Rodríguez-Serrano, M.Á. and Lambkin, M., 2017. Corporate Social Responsibility
(CSR) and Marketing Performance: Role of Commitment to the Customer Relationship.
In Creating Marketing Magic and Innovative Future Marketing Trends (pp. 667-671).
Springer, Cham.
Kim, S., 2019. The process model of corporate social responsibility (CSR) communication: CSR
communication and its relationship with consumers’ CSR knowledge, trust, and
corporate reputation perception. Journal of Business Ethics, 154(4), pp.1143-1159.
Lim, J.S. and Greenwood, C.A., 2017. Communicating corporate social responsibility (CSR):
Stakeholder responsiveness and engagement strategy to achieve CSR goals. Public
Relations Review, 43(4), pp.768-776.
Sarkar, A. and Kumar, R., 2017. Impact of Financial Innovation on Banking Reserve Ratios-
Evidence from Indian Banking Sector. Wealth: International Journal of Money,
Banking & Finance. 6(2).
Sharma, D.J., 2017. A study on innovation in banking and its impact on customer
satisfaction. IOSR Journal of Economics and Finance. 1(1). pp.70-74.
Campanella, F., Della Peruta, M.R. and Del Giudice, M., 2017. The effects of technological
innovation on the banking sector. Journal of the Knowledge Economy. 8(1). pp.356-368.
Khoshsima, G and et.al., 2018. Managing Exploratory-exploitative Innovation in Banking
Sector. Industrial Management Journal. 10(1). pp.35-60.
Degryse, H., Morales-Acevedo, P. and Ongena, S., 2019. Competition in the banking sector.
In The Oxford Handbook of Banking.
YuSheng, K. and Ibrahim, M., 2019. Service innovation, service delivery and customer
satisfaction and loyalty in the banking sector of Ghana. International Journal of Bank
Marketing.
Herron, C.J. and Cloete-Hopkins, N., 2018, November. Big Data Innovation and the Application
of Systems Thinking and Standards for Business Resiliency in the Banking Sector.
In International Conference on Emerging Trends in Electrical, Electronic and
Communications Engineering (pp. 383-395). Springer, Cham.
Korobov, Y., 2017. Global banking: transformation, innovation & competition. In SHS Web of
Conferences (Vol. 39, p. 01012). EDP Sciences.
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