Impact of CSR on Brand Image in UK Retail Sector: A Study on Tesco

Research Project

Abstract
This report has been described about what are the ways through which CSR practices are
impacting on company’s brand image operating in UK in retail sector. The main reason for doing
this research is to analyse whether there is positive or negative impact of CSR initiatives on retail
firms and its brand image. It has been also discussed about different CSR practices undertaken
by companies to resolve issue. Apart from it, an in depth analysis has been done about various
CSR trends and how CSR practices impact on different retail business that are operating in UK.
Moreover, the relationship between CSR and brand image is been explained as well. For this
study quantitative analysis research approach is taken. furthermore, hypothesis is been developed
to determine significant relation between brand image and CSR practices. Along with it, the
sample size taken is 30 managers of Tesco. The findings of study state that through the various
CSR activities such as charity, donation and support to victims of a sense of community allowing
it to build strong connection with public. This relation is useful in strong brand image of
organization.

Topic: To assess the impact of CSR of company’s brand image operating in UK retail sector:
A study on Tesco.
CHAPTER 1: INTRODUCTION
1.1 Introduction and background of research
Corporate social responsibility (CSR) may be defined as a commitment which is done by
the company for behaving ethically. In other words, it implies for the initiatives which are
undertaken by the firm for providing workforce as well as their families with quality life and
welfare activities for local community & society at large. Brand identity is defined as the sum of
the brand expressed as a product, organization, person and symbol. For creating a positioning of
the brand image in the market CSR is vital for the company to adopt (Lins, Servaes, and
Tamayo, 2017). It reflects that the corporate is functioning its business with compliance of
ethical and social factors so that it could achieve the growing position in the future. The current
research project is based on Tesco which offers wide variety of retail products & services to the
customers. In this, the present study will highlight how CSR initiatives impact brand image of
Tesco (McWilliams, 2015). Hence, this study will present qualitative investigation related to
CSR and thereby helps in assessing the influence of CSR initiatives on customer's attitude and
thereby company’s brand value.
1.2 Background of company
TESCO is the one of the largest retail chain in the UK. It offers multiple sort of items from
grocery to garments in its store. CSR is one of the buzzing concept in 21st century as it is
believed that firm is making use of society resources and due to this reason, it must also take few
steps for welfare of society. Considering this concept TESCO every year conduct CSR activity in
its premises and under this it first launch its CSR campaign in 1996 in which main aim was to
protect energy at workplace. In this regard employees were instructed to ensure avoid wastage of
energy in premises. After performance evaluation it was observed that 35% energy consumption
reduced on per square foot. TESCO gave minimum 1% of its profit after tax on charity for
helping poor and helpless people. Thus, it can be said that TESCO understand its responsibility
towards society.

1.3 Significance of the study
The present study and its outcome are highly significant for several such as Tesco, retail
sector firms and other scholars. Findings of this study will provide assistance to UK sector firms
including Tesco in understanding the extent to which CSR has impact on company’s brand
image. Referring such study, business units can develop competent framework for the near future
pertaining to CSR. Along with this, other scholars who want to conduct study on similar topic
can use the findings of this study. By taking into account overall assessment other scholars can
identify gap and thereby develops hypothesis for further study. In this way, current study and its
output will assist to companies, other scholars as well as government to a great extent.
1.4 Research statement
Aim: The aim of present study is to investigate the impact of CSR activities or initiatives
on the brand image of Tesco.
Research objectives:
 To assess the trend of CSR initiatives in retail sector.
 To identify CSR activities performed by Tesco.
 To ascertain relationship between CSR and brand image of Tesco. To recommend CSR initiatives that Tesco can undertake for enhancing brand image.
Research questions
Q.1 What kind of CSR is done by Tesco in the recent times?
Q.2 Does CSR impact brand image of Tesco?
Q.3 What relationship exist between CSR and brand image of Tesco.
Rationale of the project depicts that CSR has been adopted by every corporation in order
to function ethically and fulfilling the sustainable responsibility towards the society (Flammer,
2015). CSR has both positive and negative impacts on the brand image of the company. It helps
in creating the strong brand image while criticism against the organization leads to negative
effect on the reputation of the entity. In today's changing world it has become mandatory for
every firm to work with the objective of welfare of the society. From this study it is analyzed that

CSR influence the working and sustainability of the enterprise in the changing circumstances
(Saeidi, and et.al., 2015).
1.5 Structure of report
Step -1 introduction to study
1.1 Background, 1.2 significance 1.4 Aims and
objectives
Step 2- Literature review
2.0 Introduction 2.1 theme 1
Step 3 Research methodology
3.0 Introduction 3.1 research philosophy 3.2
research approach 3.3 Data collection 3.4 Sampling
Step 4 Data analysis
Step 5 Conclusion and recommendations

CHAPTER 2: LITERATURE REVIEW
Introduction - It is the second chapter that provide theoretical insight of overall research topic.
in this the researcher analyse secondary data taken from previous articles, journals, etc. and write
it in study. The data is evaluated that provide views and opinions of other authors on CSR.
Beside this, it also becomes easy for user to read and understand and gain knowledge about
research topic. This is the main chapter of study. It is written on basis of objectives developed
and according to themes. Here, each theme can be further divided into sub themes. From that it
become easier to go through entire chapter. This chapter presents the literature review to cover
all objectives and also representing the answer of each objectives in the form of LR theme. The
LR will provide data previous CSR initiatives taken and how it differs from now.
Theme 1: The trend of CSR initiatives in retail sector.
According to Agus Harjoto and Salas, (2017), there is a substantial importance of CSR in
the achievement of the organization under the retail sector. The attempt of CSR and
reprehensibility completion by the organization is analyzed on the basis of set benchmarks in the
industry. In the UK many of the high street supermarkets including Morrison, Tesco, Marks and
Spenser have build up their own strategies and community championships who works in the
communities and local areas. Some of them are indulged in the activities of donating funds for
the areas affected by floods by setting up the point of collection for donations. Other than this
Tesco, ASDA and Aldi are engaged in setting up collection of the charity for the local food
banks. Sanisbury works for conversion of the anaerobic digestions into energy. Moreover, the
Tesco also donate surplus to the charity which it collected from various foods vendors of hoses
who are willing to contribute to the charity. Most of the retailers collected the funds from local
charity and donate them to the local causes.
On the other hand, Andreu, Casado-Díaz and Mattila, (2015) is of the opinion that the
corporate social responsibility does not stick To a single responsibility rather it is a wider terms
which defines the duty and obligations of the retail outlets in UK with various aspects. This
includes the different area to which the companies in retail sector owes a care of duty. Theses
sectors are first the company under which it required to maintain the profitability bad maximize
the wealth of the shareholder. The second sector to which businesses have duty is the society