A Comprehensive Report on Innovation, CSR and Tech at Lloyds Bank PLC

This report provides a comprehensive analysis of Lloyds Bank PLC's approach to innovation, technology, and corporate social responsibility (CSR). The report begins by defining innovation and technology, then explores their impact on economic progress, illustrated with examples from countries like South Korea and China. It then examines how Lloyds Bank PLC utilizes technologies like selfie technology and Thought Machine to improve customer experience, streamline operations, and boost financial performance. A comparison of the company's profits before and after implementing these technologies highlights the positive effects. The report also delves into the significance of CSR and corporate governance for organizations, discussing the evolution of corporate governance in the UK and the benefits of CSR practices such as enhanced public image and competitive advantage. The report applies Archie Carroll's CSR model to Lloyds Bank PLC, outlining the company's responsibilities and their impact on sustainability.

Lloyds Bank PLC

EXECUTIVE SUMMARY
Innovation and technology are the most crucial aspect for an organisation as these highly
contributes in its growth and success and provides it competitive advantage over rivals in market.
Lloyds Bank PLC is one of the well known commercial and retail bank of Britain that employs
technology and innovation in its business processes. Innovative tools like selfie technology and
Thought machine assists in improving customer base and profitability of business. Corporate
governance and CSR are two most crucial aspects in which an organisation requires to engage in.
Archie Carroll’s CSR model define four responsibilities of organisation that it needs to follow
for attaining sustainability in market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BDODY................................................................................................................................4
TASK 1............................................................................................................................................4
1. Different types of innovation and technology and the way they have impacted the economic
progress of the country...........................................................................................................4
2. Impact of innovation and technology on operations, sales and the profits of chosen
company.................................................................................................................................5
TASK 2............................................................................................................................................7
1. Significance of Corporate Social Responsibility (CSR) for the organisation....................7
2. Application Archie Carroll’s CSR model to the organisation............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment refers to the collection of intrinsic and extrinsic factors that
impacts on functioning of business. Consideration of these forces helps company in running its
activities and operations successfully. In today's competitive world, creativity, innovation and
technology plays very crucial role in success of an organisation (Aithal, 2016). In this report,
chosen organisation is Lloyds Bank PLC which is a leading retail and commercial bank of
Britain. The bank was established in year 1765, around 254 years ago and its headquarters is
located in London, United Kingdom. This report covers different types of technology and
innovation and their impact on economic progress of nation. Moreover, influence of innovation
and technology on sales, growth and profits of company is assessed. At last, the report includes
significance of corporate social responsibility for organisation and application Archie Carroll’s
CSR model in context of Lloyds Bank PLC.
MAIN BDODY
TASK 1
1. Different types of innovation and technology and the way they have impacted the economic
progress of the country
Innovation and technology:
Innovation is the process of converting idea into solution or product that adds value from
the perspective of customers. It is all about the application of novel and useful ideas and involves
deliberate execution of imagination, initiative and information in deriving distinct or greater
values from resources as well as involves all the procedures through which new ideas are
developed and transformed into utile products and services (Chang, 2016).
Technology refers to the sum of skills, methods, techniques and procedures which are
utilized in the manufacturing of products or services or in attainment of particular goals and
objectives like scientific investigation. It is the implementation of scientific knowledge to
practical intent to human life (Technology, 2019).
Contribution of innovation and technology to economic growth of country:
In terms of economy, innovation is the creation and execution of technologies and ideas
that enhance products or services or make the production more effective and efficient. Innovation
is significant driver of economic growth that benefits businesses, economy and consumers as a

whole. Through innovation, productivity increases as greater output is generated from the same
inputs. With rising productivity, products and services are developed in more quantity and it
results in growth of economy. It enables the provision of reasonably priced and convenient goods
and services to mitigate changing needs of consumers (Cumming and Zahra, 2016). For
example: Countries like South Korea and China are among the leading examples of growth and
progress through innovation as it improves their economic standing through maximizing the
inflow of foreign technology, increased investment in research and development etc.
In economic development, technology is regarded as prime source and various changes in
technology significantly contribute in growth and development of underdeveloped nations.
Technological level is crucial determinant of growth of economy as it contributes in improving
gross domestic product of country. It contributed to increase entrepreneurship, business
innovation, emergence of new industries and services, creation of job etc. For example, In OECD
countries, over 95% of business organisations have online existence. Internet facilitates them
with novel ways of competing for market share and reaching to consumers. Technology leads to
increasing business innovation that ultimately contributes to growth of economy.
The way business organisations use new technologies in operations:
In today's competitive business environment, all the organisations use new technology in
their operations as it helps them in gaining competitive advantage in market. For example:
Lloyds Bank PLC has introduced a new service that assists in managing its bookkeeping without
any mutual intervention. This keeper allows clients to get the information of their statements into
the accounting software directly. By using this service, the manual input of bank statement is not
required and minimises the time spend in reconciling accounts (Deasy and et. al., 2016). The
another example is Tesco, it introduce Tesco direct which is an online grocery platform which
includes the feature of click and collect whereby online orders are placed by customers and can
collect their bagged groceries at a point of their choice. This provides convenience to consumers
and enhance the profitability of Tesco by reducing home delivery cost. Apple is a well known
company which introduced tech kiosks in its operations that provides ease to customers in
making transactions or addressing unique needs.
2. Impact of innovation and technology on operations, sales and the profits of chosen company
Overview of company:

Lloyds Bank PLC is a retail and commercial bank of London, United Kingdom. The bank
was established in year 1765 in Birmingham and is a principle ancillary of Lloyds Banking
Group. The founder of company was John Taylor and Sampson Lloyd and is one of the largest
retail bank of Britain. It has numerous branches in England and Wales and provides 24 hours
online banking and telephone services to customers. The bank employs around 45,800
employees who helps in performing its operations effectively and successfully (Ferrell and
Fraedrich, 2015).
New technologies and their use in company:
Technology plays crucial role in growth and success of Lloyds Bank PLC. In order to
improve the experience of customers, bank has invested in digital technology and introduced
selfie technology to make the clients able to open their current account seamlessly online.
Sometimes, customers needs to provide ID to apply online through new application form. By
selfie technology, clients will be able to complete a simple sequential application process for
opening up their bank account and can take pictures of their passport or driving license in
addition with selfie images in order to confirm their identity (New selfie technology launched by
Lloyds Banking Group, 2016). Web based ID verification technology enables customers to
submit their images without needing any additional application. This simplifies the process of
current account application of bank for new customers and provides them with flexibility to
open their account easily and quickly even by sitting at their home. This assists company in
improving its customer base that ultimately impacts on its profits and revenues.
Apart from this, company has use cloud based banking platform from United Kingdom
fin-tech Thought machine by its information technology services relationship with IBM. This
machine has develop a cloud based banking infrastructure which is known as Vault. The
Thought Machine offer high volume, real time architecture which enables to manage billions of
transactions per day along with cryptographic security via smart contracts and centralised ledger
to make the bank able to introduce new products quickly (Lloyds to use core banking
technology, 2018). The feature of smart contracts cut down the time to introduce new products,
enable banks and customers to agree on terms and sign off extremely personalised agreements in
few minutes. Implementation of Thought Machine helps in bringing major transformation in the
banking group. It is the means of get over the reliance on legacy core infrastructure of banking at
large banks (Twomey, Jennings and Greene, 2016).

Comparison of profits of company:
After implementing the above mentioned technologies, the operations, sales and profits
of Lloyds Bank PLC are highly impacted. After executing Selfie technology and Thought
machine, the operations of company are improved that helps in increasing its customers base
and sales of product. Apart from this, it helps in improving profit ratios of company. By
analysing the income statement of company, the underlying profits of bank are increased by 6%
in year 2018 in comparison to 2017. The profit amount of 7628 million pounds in 2017 increased
to 8066 million pounds in 2018 (Lloyds Banking Group PLC - Annual Reports, 2018). Use of
technology in business operations leads the firm towards high growth and success and increase
it profitability ratio as well. It assists in enhancing its customer base that leads to improvement in
sales and revenues of Lloyds Bank PLC.
Findings:
As per the above analysis, it can be said that implementation of new selfie technology
helps bank in making the procedure of opening current account easy for customers. The another
technological innovation, i.e., Thought Machine supports Lloyds Bank PLC in managing
numerous transactions a day. Both the technologies assists in improving productivity and profits
of company.
TASK 2
1. Significance of Corporate Social Responsibility (CSR) for the organisation
Corporate Governance and Corporate Social Responsibility:
Corporate Governance refers to the combination of processes, laws and rules through
which companies are operated, governed or controlled. It encompasses the intrinsic and extrinsic
forces that influence the interest of stakeholders of an organisation including suppliers,
customers, management, shareholders and government regulators. It is the responsibility of board
of directors to develop a model for corporate governance that aligns the activities of business
with objectives (Ji-fan Ren and et. al., 2017). The concept of governance mainly emphasize on
bringing transparency in policies and procedures of company in order to ensure the conduction
of activities in ethical manner.
Corporate Social Responsibility refers to the practice where organisations attempts to
mitigate certain legal, commercial and ethical expectations set by society. CSR activities assists

in developing a strong bond between organisations and employees, motivates them and helps
them feel connected with the surroundings around them. The main purpose of corporate social
responsibility is to ensure that organisations are conducting their business operations in such a
manner that it will not harm the environment and the people living in society (Kljucnikov and et.
al., 2016).
History of Corporate Governance in UK:
Around 20 years ago, the word governance is existed barely, but now it is used very
commonly. In early 1990s, the revolution started with the report of Cadbury on financial aspects
of governance. It was attached with the code of best practice. At that time, aimed at listed
organisations and looking at corporate behaviour ethics and standards, the stock exchange and
city was adopted Cadbury code as a benchmark of good practice (Kolk, 2016). The Greenbury
report in year 1995 added some principles on executive directors remuneration in response to
“fat cat” scandals and the Hampel report brought these two unneurotic and develop the very first
combined code in year 1198. In year 2002, an investment banker, Derek Higgs was granted brief
to look at corporate governance again and develop on past reports to build a single
comprehensive code. In 2012, the revised version of corporate governance code in UK was
published. In 2016, the final draft to governance was published and in 2017, the proposals was
published for revised UK governance code.
Importance of CSR for organisations:
Corporate Social Responsibility is a vital concept for success of an organisation. There
are various benefits for organisations like Lloyds Bank PLC to engage in CSR practices such as
it helps in improving public image of bank and increasing its brand awareness as people are
more concerned about environment and society and if company engage in ethical practices, then
it assists in creating good image of bank in eyes of people. It also assists in providing
competitive edge to company over its competitors and increase customer engagement with brand
(Laudon and Traver, 2016). Corporate social responsibility practices supports Lloyds Bank PLC
in developing positive and productive work environment that ultimately leads the company
towards sustainable growth.
2. Application Archie Carroll’s CSR model to the organisation
The Archie Carroll's corporate social responsibility pyramid is a model that assists in
arguing how and why companies must mitigate their responsibilities towards society. This

framework states four main responsibilities of a business entity including legal, ethical,
economic and philanthropic (Schaltegger and Wagner, 2017). The four responsibilities in context
of Lloyds Bank PLC are mentioned below: Economic: This level of model is associated with the responsibility of a business entity to
be profitable as this is the only way through which firm can survive and benefit society
for longer duration of time. For fulfilling this responsibility, it is needed by Lloyds Bank
PLC to determines the way through which adequate profits can be generated in ethical,
legal and moral way. Legal: This is the second aspect of model which is related to responsibility of business to
compliance with all the laws and regulations made by government and the standards set
by society. These laws includes employment, health & safety, equality laws that requires
to be follow by Lloyds Bank PLC in order to fulfil legal responsibility (Wheelen and et.
al., 2017). Ethical: This responsibility of business organisations is associated with indulging in
ethical and moral practices. This component is closely linked with the second aspect as
they need to follow ethical responsibility along with compliance with law. In order to
fulfil this responsibility, Lloyds Bank PLC is required to act ethically towards the
concerning problem surrounding operational area and try to eliminate harm to
community.
 Philanthropic: This is the last component of pyramid which is associated with
responsibility of organisation towards welfare of society. Lloyds Bank PLC requires to
contributes towards educational, social, recreational and cultural purposes and give
charitable donations to fulfil this responsibility as this helps in improving living standard
and life quality of people living in society (Pearson, 2017).
Above mentioned are all the responsibilities that requires to be follow by Lloyds Bank
PLC in order to run its operations successfully and maintain long term sustainability in market.
CONCLUSION
As per the above mentioned report, it has been concluded that innovation and technology
plays very crucial role in growth and success of a business enterprise. These highly contributes in
economic growth of country by providing employment opportunities to people, encouraging
entrepreneurship and improving GDP of the country. The innovations like selfie technology and

thought machine helps bank in improving its productivity and customer base. Apart from this, it
is very crucial for organisations to follow CSR practices and brings transparency in its policies
and procedures as this supports in making good image of company in society.

REFERENCES
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Online
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