Impact of Innovation, Technology, and CSR: Lloyds Bank Business Report

This report provides an in-depth analysis of Lloyds Bank's business environment, emphasizing the roles of innovation, technology, and corporate social responsibility (CSR). The introduction defines the business environment and highlights the significance of innovation and technology for business growth, using Lloyds Bank as a case study. The report delves into the definitions of innovation and technology, elaborating on their contributions to economic progress. It examines various technologies employed by Lloyds Bank and their impact on operations, sales, and profits, including a comparison of financial data before and after Fintech implementation. Furthermore, the report evaluates the importance of corporate governance and CSR for the firm, exploring their historical context and benefits. The report also discusses how corporate governance frameworks and activities impact the direction and control of organizations. Overall, the report offers a comprehensive understanding of the business environment and strategic approaches employed by Lloyds Bank to achieve sustainable success.

Business Environment

Executive Summary
The reports provides an overview of business environment that is sum or aggregation of
all intrinsic and extrinsic elements of business like workers, customers, supply, demand,
management, suppliers, innovation, technology, market trends, economic changes and many
more. The document is based on Lloyds Bank which is Britain foremost financial organisation
that operates globally with the help of financial and insurance commodities. The written report
will define about innovation, technology and the importance of them within a business. Apart
from it, the information will consider regarding corporate governance and its importance for a
business firm.

INTRODUCTION
Business environment refers to that atmosphere in which a business organisation operates and
run its business. It can be an environment of external and internal components that influence how
the firm functions consisting workforce, consumers, administration, supply & demand and
business regulations. A business environment is an effective area in which ventures can
operating in appropriate manner by fulfilling consumers needs & demands and sustain or survive
till long term. Business environment is a vast concept but each of its aspects is equally essential
towards the success of a business (Hamilton and Webster, 2018). The larger a business grows the
more aspects it develops both internally and externally. This assignment is based on Lloyds Bank
Plc which is a British retail and mercantile bank that has its branches in England and Wales. This
firm was incorporated in 1765 and is headquartered in London. The firm operating its business
with the help of its banking and insurance products. The written document will consider
information about innovation and technology and its contribution in development of the
economic system of the nation. Further, will explain that how innovation affect functions, sales
and proceeds of a venture. Moreover, significance of corporate social responsibility and model of
CSR will define context of organisation.
TASK 1
Demonstrate understanding of innovation and the role of technological change in economic
progress
Definition of Innovation
Innovation refers to an activity of converting new ideas and thoughts into a business or
adding something new and valuable in existing products and services of a company that have
value and customers are ready to pay for that. In business, it is a process of commencing new
information, workflows, methodologies, services and commodities. Creation is important for the
growth and development of the business of the firm (Safar and et. al., 2018). The successful
exploitation of new ideas is crucial to a business being capable to develop its activities, bring
new and developed goods and services to marketplace, maximise its effectiveness and most
essentially enlarge its profitability.
Definition of technology
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Technology refers to skills, methods and processes that are used in a business to
accomplish goals. It is crucial for a business because it preserve information flow, administrate
connections, track procedure and preserve employee’s accounts. Technology makes it potential
for businesses to run adequately and appropriately with negligible workforce and assist to
minimise the cost of production operations.
Contribution of innovation and technology to the economic growth of nation
Innovation and technology is a fundamental driver of economic development of the
nation. When a company make innovation in its business products and services with the motive
of fulfilling needs and desires of target audiences, then the management of the firm used their
new and creative ideas so that they can offer valuable commodities and services to customers
that are able to satisfy them (Somers, 2019). This will help in enhancing the productivity and
improving the economic condition of the firm as well as the nation in which the firm operate.
Technology also makes contribution in economic growth of nation. There is different kind of
technology use by Lloyds Banks in its business such as customer services, promotion of goods
and services, maintaining records of employees and business data and many more that contribute
in the growth and development of the economic system of UK. The description technology
contribution is as under:
Direct Job creation- In Lloyds bank, the management of the firm use innovative
technologies in its business that helps in development of the firm. This will help in creating job
opportunities for the people of the nation. In this way the firm contribute in economic growth in
term of improving the employment rate of UK.
Contribution to GDP growth- By offering different kinds of financial products and
services to its customers with the help of different technologies like company website, mobile
application etc., Lloyds make contribution in the growth and development of the nation.
For example, In Barclays bank, the management of the company use different
technological innovation in its business. Block-chain technology continues to reason main
explanation in the monetary division. This technology has changes the way people think about
money. The respective company started discovering how to influence the technology over four
years ago because of large amount of possible submissions the bank saw in it, method beyond
block-chain’s best recognized submission in cryptocurency. This technology assists in securing
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financial transaction of the company and makes control over the creation o additional units and
verifies the transfer of assists.
Utilisation of new technologies in business organisations
There are several technologies are generated day by day and they are adopt by different
firm for the development and success of the firm. The description of some ways in which Lloyds
bank can use new technologies:
New communication technologies- By using effective communication technology like social
media tools chat-box and other can assist in making effective communication within the firm
(Newman and et. al., 2020). Promising effective attendance technologies will develop it easier
and more successful for management, speakers and technologists of each kind of form practical
arrangements cross wise the world.
Labour cost savings- The management of respective financial firm, the administration of the
firm can used new and innovative technologies in form of saving labour cost (Viriyasitavat and
et. al., 2018). For example, in term of customer service, the firm can use artificial intelligence to
provide the information of products and services that are offered by the firm. It will help in
saving the labour cost and investing in other essential business activities.
For example, In Barclays, there is different technologies use by the management of this
firm in its day to day operations like security technologies, data exchange innovative technique
and others. So that the firm can safe secure the business information by using innovative security
technology from data theft. By using effective information transmission techniques, the firm
deliver important information to its workplace individual in effective and secured manner.
Brief overview of the firm and practical illustrations of how innovation has impacted the
operations, sales and the profits
Overview of the company
Lloyds Bank plc is a British retail and commercial bank that operate its business globally
with the help of its banking and insurance products. This enterprise is established by John Tylor
and Sampson Lloyds in 1765 and is headquartered in London, UK. This financial institution is
the major retail bank in Britain and has a widespread system of branches and ATM in Wales and
England. There are 45,856 employees are making contribution in running the business of the
firm in more effective and efficient manner across the globe. This organisation offer 24 hour
telephone and online banking services to its consumers.
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Define the new technologies and how they are being used by a firm
There are different technologies that are utilised by a company in its business. The
explanations of some techniques that adopt by Lloyds bank in its business are as under:
Internet- It is the main and foremost technology that is used by the management of
respective firm in its business in form of operating its business online. With the assistance of this
technique, the organisation can offer its products and services online mode through company
websites and mobile application.
Research and development- It is another important technology that is adopt by the firm
to get and collect information about consumer’s needs and demands regarding financial
commodities and service of the firm. So that if changes are occurred then organisation aware
with that and offer products as per their requirements.
Chat bots- This technology also play an important role in business and used by Lloyds bank in
effective manner in term of sharing and transmitting important information and data to
employees or within the workplace so that all the people of the company are aware with each
thing that happen in the venture (Belas and et. al., 2018). It is also essential to minimise the
conflicts and issues.
Compare the sales and profits of the company
Before(using Fintech Technology)in 2013 Since(using Fintech) in 2015
Sales £376 million
Profit £6,166 millions
Sales £465 million
Profit £8,112 millions
Findings
Form the above information it can find out that before using Fintech technology, the firm
made sales of £376 million. However in 2015 after using Fintech in to their operation, they made
sales of £465 million. In 2013, before introducing this technology the profit margins of the
company is £6,166 millions but after implementing this tool in to business the profitability of the
venture is increased and it was £8,112 million (Kasemsap, 2018). So it has been identified that
by utilising effective technology and making technical innovation in business, the organization
can make development i term of increasing sales, improving profitability etc.
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TASK 2
Evaluate the importance of corporate social responsibility for the firm
Corporate governance
It is the grouping of system, procedures and legislation through which businesses are
function, keeping pace and inhibited. The group encompasses the intrinsic and extrinsic
components that influence the interest of a firm’s stakeholders consisting shareholders,
consumers, providers, administration controllers and administration. It consists the activities by
which organisations’ objectives are set and pursued in reference to social, regulatory and market
atmosphere. These involve determining the actions, policies, activities and determinations of
firms, their agents and influenced stakeholders.
Corporate social responsibility
It is a growing business activity that incorporates sustainable development into an
organisation’s business model (Toma and Mirica, 2018). It has a favourable impact over social,
economic and environmental components in term of developing organisation’s image, building
brand and motivating the business.
Brief history of corporate governance
Corporate governance first came in to vogue in 1970 in US. In 25 years CG has become
the topic of discuss globally by educational, controller, exclusive and shareholder. In 1930, a
remarkable democratization of shareholding took place among the period of World War 1st and
end of World War 2nd. The advantages of democratization and diversification based on the depth
of the stock market (Brkljač and Sudarević, 2018). Governance is a word that survived 20 years
ago but now it is in ordinary utilizes not just in corporations but also in contributions,
universities, local government and national health trusts. It has become shorthand to the method
a firm is function with definite emphasis on its veracity, answerability and risk administration.
The insurgency underway in 1990 with the Cadbury report on the economic features of
corporate governance that was attached a system of greatest preparation and activity. In UK
corporate governance includes of legislations, rules and practices that make sure those
organisations run with integrity and that those accountable for their administration are
responsible for their actions.
Importance of CSR for organisations
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Corporate governance is the frameworks and activities for the direction and control over
organisations. It is also mention the relations between administration, Board of Directors,
domineering shareholders and others. It is beneficial and important for companies because it
devises enterprise more responsible and transparent to capitalists and offers them techniques to
lawful stakeholder concerns like sustainable environmental and communal benefits. It makes
contribution in development and maximised contact to capital authorizes new savings, boosts
financial development and proposes employ options.
In Lloyds bank, corporate governance is crucial and essential for changing ownership
structure, enhanced investor, corporate performance and combating corruption. CG help
respective company in improving the public image and improving consumer involvement
because when company make transparency in its business activities and operations then investors
and clients are effectively and clearly aware about their funds (Kotaskova and Rozsa, 2018).
Apart from this, it also help the firm in gaining competitive advantages form the marketplace of
specific business sector. Due to maintain transparency in business, capitalist invest more in
comparison to other firm this assist in gaining competitive edge. Effective implementation of
corporate governance also helps in removing favouritism that help in retaining and getting attain
of employees within respective venture.
Explanation of Archie Caroll’s Pyramid of CSR
Understanding of the four areas of CSR
Archie Caroll’s Pyramid of CSR
It is a easy structure that disputes on the feature that why companies should assemble
their commercial social responsibilities. The pyramid was framed by Archie Carroll and
highlights on the main four accountabilities of the firm such as financial, lawful, moral and
philanthropic (Hamilton and Webster, 2018). All the 4 factors of this model of corporate social
responsibility set off each other but not mutually exclusive. The brief description of these four
components of CSR concept is as under:
Economic Responsibilities: - The economic accountability of organisations is about
manufacturing commodities and services that culture wants and to make earnings on them. Firms
have shareholders who imagine and require a sensible return on their savings, they have
workforce who want to do their jobs securely and moderately, and have clients that want
superiority commodities for reasonable cost.
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Legal Responsibilities:-This factor is legal responsibility that is to adhere to the legislation
and rules set by the society. It refers that the firm is not only focus on operating business and
earning profit apart from this, it should consider the laws and rules that are framed by the society
in term of running its business. It consist different laws like employment laws, tax regulations,
health and safety of workforce etc are some example of legal responsibilities that should be
follow by the firm for effective running of the business.
Ethical Responsibilities:- The ethical responsibility of businesses goes beyond society’s
normative expectations such as laws and regulation. A firm should not only be following the law
but also do their business carefully in ethical manner to shows their stakeholders that they are
moral and just. Being environmental friendly, treating suppliers, employees properly the frim can
make growth in its business.
Philanthropic Responsibilities:- The humanitarian accountability of businesses contains the
voluntary or flexible actions and activities of businesses. Philanthropy isn’t a literal liability, but
nowadays business is accepted by society to take part in such actions (Safar and et. al., 2018).
The character and magnitude of these actions are voluntary and are directed by companies’
demand to take part in community actions that are normally not ordinary from ventures in an
ethical sense.
Application the Archie Caroll’s Pyramid model to Lloyds Bank
This model can be applied by respective firm to meet its corporate social responsibilities.
It is essential for Lloyds because with the help of it company can take social accountability
beyond increasing profitability. In term of economic factor of this model, for the business of
respective firm to survive till long term and provide advantages to society, the responsibility of
the firm is to earn profits. In legal aspect, it is essential to follow and adhere laws and legislation
that are affiliated to the nature of Lloyds business, rivalry, employ and health & security between
others. In ethical component, it is also important for management of respective venture that it
should perform on the base of ethics and morals in community and go beyond the narrow
necessities of the law and order (Somers, 2019). In Philanthropic, the administration is
responsible to give back to society. This aspect of accountability embraces an essential place
even if it is discretionary in nature. This CSR model is important for the firm it help in conveys
the information that CSR has more than one element to it.
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CONCLUSION
From the above define content, it has been summarised that business environment mention
to the external and internal factors that affect the business of the firm in term of positive as well
as negative. Innovation and technology play an important role in the business of the firm in term
of making development or growth of the company or fulfilling consumers need in effective
manner. Corporate governance also make contribution in development of the business in term of
increasing customer base and maximising profits in form of making transparency or operating
business in successful manner by considering social responsibilities.
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