Corporate Governance, CSR, Organic Growth And Leadership In Lloyds Bank: Case Study

1469 Words3 Pages
bulb-icon

Recommended: The stakeholder theory of the corporation: concepts, evidence and implications summary

3 Corporate governance, CSR, organic growth and leadership in Lloyds Bank
The Helping Britain Prosper Plan, by Lloyds Bank, ensure them to run business activities responsibly to provide the global impact that has the element of social, ethical and environmental implications (Lloydsbankinggroup.com, 2016). To achieve this, they are working within the financial market and try their best to maintain high standards of integrity and conduct good value (Lloyds.com, 2016). They believe as a large organisation; they have the responsibility and obligation to serve the society and the community.

Conversely, since Lloyds is envisaged as economic entities in the financial industry, they do have fiduciary responsibility made to the shareholder, which …show more content…

It was after 1980, the stakeholder theory emerge and interpret as a challenge and debates either to be injected into company operation and responsible to meet the demands of both shareholders and society (Carroll, 1999). The debates continue but after 2008 financial crisis, the stakeholder theory evolve as a core concern to every firm and it discipline are known as Corporate Social Responsibility (CSR) (Leeson, 2015).

Thus, to hold the balance between economic and social goals, a framework call Corporate Governance is created (CG)(Vieira, Jorge and Canadas, n.d.). Or other authors like Nasrullah (2008) explain their relationship, as CSR is a comprehensive version of CG 's model.

Either way, CG encourages the efficient use of resources and equally strengthens accountability for the stewardship of that resource (Vieira, Jorge and Canadas, n.d.). An effective CG characterised robust scrutiny, which provides important pressure for improving society, community or CSR in general and improve management, leading to more effective implementation of the chosen interventions, better service delivery, and, ultimately, better outcomes (IFAC, …show more content…

The implementation of Environment Steering Group that report to Corporate Responsibility Steering Group require several specific business division to devote on social responsibility elements in Lloyds bank’s Environmental Management System (Lloyds Banking Group, 2011). For example, Group Property division has responsibility for energy efficiency and Group Procurement division for recycle efficient. Even one of their Group Executive Director is a member of the Corporate Leaders Group, who leads on climate change and the environment externally (Publications.parliament.uk,

Show More
Related

  • Milton Friedman's Essay Analysis of The Social Responsibility to Increase Profit

    720 Words  | 2 Pages

    So before we go in greater detail on the different perspectives related to social responsibility, one might question the meaning of social responsibility. It is generally agreed that social responsibility is defined as the business obligation to make decisions that benefit societ...

    Read More

  • Friedman vs Freeman

    1937 Words  | 4 Pages

    Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.

    Read More

  • Stakeholders in Airport Decision Making

    1401 Words  | 3 Pages

    Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.

    Read More

  • The Effects of Corporate Social Responsibility on International Business

    1540 Words  | 4 Pages

    Corporate Social Responsibility (CSR) is the set of regulations that an organization makes to protect and increase the society in which it functions. There are three areas of social responsiblity: Organizational stakeholders, the natural environment and general social welfare.

    Read More

  • Article Review: The Importance Of Corporate Social Responsibility

    1093 Words  | 3 Pages

    A corporations CSR should be shaped in order to fit the goals of the corporation, although every corporation’s CSR should differ, since most have different goals and different communities behind them. The CSR should be molded into fitting the corporation’s goals in order to make it easier on the corporation in giving back to the community while achieving its goals. For example, a corporation located in a desert wishes to be more efficient, by reducing water usage it is not only creating lower costs, which result in higher revenue, but also helps the community by not taking up so much water. Taking this into consideration, it is critical that the corporation goals and values are established and clear throughout the corporation, they should be developed by the board or directors and CEO, and the highest managerial level should stress their importance to the rest of the corporation. By making the goals and values at the top branch of the corporate hierarchy, it will be simpler for the corporates community to develop in order to nurture those goals and values. Therefore, a corporation can reach the “shared-value,” a value for both its shareholders and community in a simpler manner that can result benefiting the corporation in the end as well. Throughout the article many examples are given of actual corporations that have benefited and changed their CSR in order to fit their goals, therefore, providing solid proof that these methods work. Nevertheless, as acknowledged by the author’s themselves, most of the corporations taken into consideration where one’s that Harvard CSR students were employed

    Read More

  • General Electric's Corporate Social Responsability

    1774 Words  | 4 Pages

    According to Mike Peng, Corporate Social Responsibility (CSR) is the consideration and response to issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with traditional economic gains the firm seeks. CSR is a way in which a company seeks to achieve a balance between profit, environmental concerns and social imperatives. This is known as the ‘Triple-Botto...

    Read More

  • Corporate Social Responsibility

    1700 Words  | 4 Pages

    In recent years, companies are becoming socially responsible and now stakeholders almost expect a company to have CSR policies. Therefore, in twentieth century, corporate social responsibility (CSR) became an important development in public life (Barnett, ND).Corporate social responsibility is defined as “the ways in which an organisation exceeds the minimum obligations to stakeholders specified through regulation and corporate governance” (Johnson, Schools and Whittington, N.D cited in March, 2012). Stakeholders can be defined as “those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends” (Johnson, Schools and Whittington, N.D cited in March, 2012). There are many purposes for this essay, the first purpose is to descried the key principles of corporate social responsibility and explain their importance for stakeholders. Secondly, is to show how far this company follows those principles in order to be accountable to at least three of its stakeholders. In this essay, three stakeholders, environment, customers and employees will be evaluated respectively and the key principles of the stakeholders will be examined.

    Read More

  • Business Ethics: Cost-Benefits Analysis

    921 Words  | 2 Pages

    Evan, W. M., & Freeman, R. E. (1988). A stakeholder theory of the modern corporation: Kantian

    Read More

  • Pros And Cons Of Corporate Social Responsibility

    1485 Words  | 3 Pages

    I begin this essay by defining CSR, there are many definitions for this term by various different theorists, and EU says that CSR is "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis." On the other hand, Sloman et al. define it as "The concept in which a firm takes into account is the interests and concerns of a community rather than just its shareholder". Davis and Blomstrom (1966), say it "Refers to a person’s obligation to consider the effects of his decisions and actions on the whole social system". These definitions differ from one another in many ways but they agree that CSR involves taking the environment into account and therefore, one must look take social responsibility.

    Read More

  • They Fought For Their Country

    589 Words  | 2 Pages

    Они сражались за Родину known as They Fought for Their Country, was a movie directed by Sergei Bondarchuk. It was released a month after the Vietnam War ended in 1975. The movie is based on the book They Fought for Their Country, written by Mikhail Sholokhov. The movie takes place in Russia in July, 1942 during World War II. The movie is about members of the Red army who protect their bridgehead, an advanced position seized in hostile territory, from the German army whilst Soviet troops cross over the bridge.

    Read More

  • Essay On Corporate Governance

    1768 Words  | 4 Pages

    This course work aims at examining issues corporate governance failure at the Royal Bank of Scotland (RBS). It also tries to establish the relationship between corporate governance effectiveness and profitability within UK banks. A very recent issue within this area is also including towards the end of the course work.

    Read More

  • Views on Corporate Social Responsibility

    1003 Words  | 3 Pages

    While the concept of an individual having responsibility is commonly recognized, modern views have lead to the emerging issue of corporate responsibility. Business Directory.com defines corporate social responsibility as, “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources.” But such a concept has been much disputed since at least the 1970’s.

    Read More

  • Corporate Social Responsibility

    1916 Words  | 4 Pages

    Business organizations regularly run into demands from various stakeholders groups when conducting day-to-day business. These demands are generated from employees, customers, suppliers, community groups, governments, and shareholders. Thus, according to Goodpaster, any person or group of people that can shape or can be shaped by attainment of the objectives by an organization is considered a stakeholder. Most business organizations recognize and understand their responsibilities to these groups and endeavor to honor and fulfill them. These responsibilities are often communicated to the public by a statement of principles or beliefs. For many business organizations, corporate social responsibility (CSR) has become an essential and integral part of their business. Thus, this paper discusses the two CSR views: the classical view and the stakeholder view. Furthermore, I believe that the stakeholder view has brought ethical concerns to the forefront of businesses, and an argument shall be made that businesses would improve both socially and economically if CSR, guided by God’s love, was integrated into their strategic planning.

    Read More

  • Corporate Governance and Social Responsibility in Business

    3628 Words  | 8 Pages

    Masaka, D (2008) Why forcing corporate social responsibility is morally questionable, Electronic Journal of Business ethics and organizational studies, 13, 1 pp. 13-21

    Read More

  • The Importance Of Corporate Citizenship

    768 Words  | 2 Pages

    Examples of Stakeholder’s could be: managers, directors, employees etc. It is based upon a conceptual framework approach in which it provides moral and ethical values to a business organisation. When in practice, majority of organisations are mainly going to focus on corporate social responsibility. The reason for this is because CSR is seen to have a big impact on the firm as many people are recognising that there is a increasing number of businesses that are both socially and environmentally friendly. On the other hand, if the government doesn’t intervene with companies in terms of both regulation and legislation, this means that firms will only be concentrating on the accounting figures. If companies are primarily focusing on the accounting figures, this indicates that businesses are not taking in the social and environmental impact of the activities within the organisation. In (Liu, Fellows and Tuuli, 2011), it refers to corporate citizenship values in which it considers and identifies the different demands of the stakeholder groups to see where the overall value of the company comes from taking into thought the environment and

    Read More

More about Corporate Governance, CSR, Organic Growth And Leadership In Lloyds Bank: Case Study

Open Document