Contemporary Issues in Business Management: Impact of Corporate Social Responsibility on Management and Leadership Perspectives

This report evaluates the impact of Corporate Social Responsibility on management and leadership perspectives in Tesco. It analyzes stakeholder views on the strategic direction of the company and their influence on CSR activities.

Contemporary Issues
in Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critical evaluation and analysis of the impact of contemporary issue of Corporate Social
Responsibility on various management and leadership perspectives.........................................3
Analysis of stake holders view on strategic direction of the company.......................................7
Stake holders influence on Corporate Social Responsibility activities.......................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Contemporary issues are found by break down of decisions,communications,allocation of
the resources and many others in the underlying techniques(Cantista and Sádaba, 2020). The
most concerned issues of management are technology and competitive advantage, shortage of the
skills,s downsizing and right sizing, shortage of resources,surplus,telecommuting and many
more. Contemporary managements is refereed to the control of processes,resources and
innovations in the business organizations for achieving the pre determined goals within the
existing, possibilities,conditions and limitations according to the economic and social rationality
of economic activities. Promoting the Corporate Social Responsibility in business requires
approaches which fits into the needs and capacities of the business and not affect the economic
viability of the business. Proper implementation of the Corporate Social Responsibility brings
various competitive advantages like improved access to capital and markets, enhanced sales and
profits,operational cost savings, productivity and quality(Costello, 2020). The report is based on
TESCO which is a multi national company established in the year 1919 and deals in groceries
and home products(Gautam, 2021). This report will mention the evaluation of impact of
selected contemporary issue which is Corporate Social Responsibility on management and
leadership. The analysis of stakeholders view on this and the level of influence on the strategic
direction of the business organization.
MAIN BODY
Critical evaluation and analysis of the impact of contemporary issue of Corporate Social
Responsibility on various management and leadership perspectives
Corporate Social Responsibility- It is a form of self regulation which reflects the
business accountability and commitment for contributing to the well being of communities and
society by different environmental and social measures. Corporate Social Responsibility plays a
significant role in the organizations brand value, consumers attraction, employees and the
investors, also the retention of talents and the success of the business. A business organization
can implement 4 types of Corporate Social Responsibility efforts are environmental initiatives,
charity work, ethical labour practices and volunteer projects(Lansbury, Johnson and Van den
Broek, 2019). Corporate Social Responsibility evolves from the voluntary choices of companies

to compulsory regulations at regional national and international levels. For ensuring the
authenticity of Corporate Social Responsibility the organization must look at the
values ,mission of the business and core issues for determining the initiatives which align with
the goals and culture of the company. Corporate Social Responsibility is crucial as it improves
the consumers perception towards your brand and attracts and retains the employees. It also
increases the appeal to investors.

Impact
Nowadays companies are facing economic,social and environmental challenges like
globalisation,economic recession, growth of population, natural resources exploitation,inequality
and many more. Tesco which has taken on a visible role in the society which goes beyond the
business core and beyond the requirement of law leading to the added value for the business
organization and society. Leadership and management plays a important role in implementation
of corporate social responsibility which shows the growing interest of company towards the
ethics as they are facing economic,social and environmental challenges. The fast pace of change
is forcing the management and leaders to finds many creative and innovative solutions for coping
with multiple stakeholders who have interests, needs and requirements which sometimes may
lead to conflicts. Corporate Social Responsibility has become one of the news organization
challenges over the last few years. Various perceptions of Corporate Social Responsibility have
generated series of misunderstandings and have created barrier for organizations in the way of
approaching Corporate Social Responsibility opportunities and challenges(Pius, Alharahsheh and
Adesanmi, 2020).
ON BUSINESS
In starting the company Tesco did not took responsibility seriously and pretended when
it came to environment known as brainwashing. But after customers have become more
responsible, aware and educated on various issues like global warming and unethical labour
practices which have began demanding the business practices which benefits the whole society
rather than business only. Earlier Tesco only focused at the bottom lines but in present times they
have been socially and environmentally more responsible. Besides the loss of consumers who
are socially aware, Corporate Social Responsibility has affected the ability of business in
attracting top talents and also impacts the job satisfaction levels of employees and rate of
retention. The next generation of employees who will enter the workforce later on seek out the
companies who have a clear and effective strategy of Corporate Social Responsibility. If TESC
do not keep Corporate Social Responsibility on priority than they may have the risk of losing
top talents. The business which follow the Corporate Social Responsibility have mores happier
and more satisfied employees as feels they are working for a socially conscious employers which
give them a sense of purpose(Sembiring and et, al., 2021). Tesco have invested more in the

employees and work harder for creating a workplace which employees enjoy leading to
enhancement of productivity. Corporate Social Responsibility strategy has helped the company
in retaining the current employees for longer period of times. The rise of online platforms have
affected the significance of Corporate Social Responsibility. Organization which have unethical
practices of business are exposed affecting operations of the business. Social media have also
worked as a tool for highlighting the organizations Corporate Social Responsibility activities
leading to increased sales,extensive consumer reach and positive feedbacks(Swar, Chetan and
Singhal, ., 2021).
On Management and Leadership
In the ever changing world the need for building more caring business organizations and
societies is also increasing. Each business has its own social purpose and TESCO also has but it
does not mean that all the businesses results in positive social change. Tescos business is
uniquely positioned for changing behaviour of people for benefiting society. It is connected to
the concept of corporate social responsibility allowing the management and leadership for
making a positive impact on the society and on the reputation of the society. For being a more
social responsible organization in the contemporary world has become more important than
before. The expectations of the society have also changed from the business as now the business
are not only the medium for earning money but serving the society so the management also has
to change the ways of operating the business by focusing more on the social issues and see
whether they can solve it(Tarique, 2021). Corporate Social Responsibility also has impacted the
working and thinking of leaders as now they have to develop the policies and plans which align
to the mission of corporate social responsibility. The management of Tesco have to refrain from
destructive and unethical practices of businesses likes unfair labour practices,environmental
pollution and many more. Management and leadership of Tesco is finding challenges to fulfil
the financial obligations of the business organization. On other note it has helped them in
adding value to the company by increase in profitability, attracting new customers and in
identifying new opportunities. By the application of Corporate Social Responsibility in the
business enterprise it is helping company to gain leading position in the industry which it
operates. Corporate Social Responsibility has also helped the management and leadership to
improve their goodwill in the firm by effective and efficient use of Corporate Social
Responsibility activities in welfare of society and employees. Government governs the frame

work in which the companies operate and sees the operations of the company are according to
the law. For maintaining the business operations firm must work in a legally and socially
acceptable way. Strategies and activities implementation also come in this framework and
needs to be regulated for ensuring that customers are not mislead. Governments also govern the
Corporate Social Responsibility activities as part of the governing function and have various
tools for facilitating the collaboration among businesses and society. So they have the
significant influence on the decision making of management and behaviour also(Taylor, 2022)
(Turuk, 2021).
Analysis of stake holders view on strategic direction of the company
Stakeholders are the identifiable peoples group which affects the achievement of
business organizations goals and objectives. In short the individuals, group which have a direct
stake in the company as they can impact the firms actions,objective and policies. The main
stakeholders in the business enterprise are creditors,
consumers,directors,government,employees ,owners,suppliers,unions. It is a self legitimacy that
all stakeholder are not equal and various stakeholders are entitled to various considerations. The
concern for stakeholders is for having influence on the developing and implementation of
business strategy as it will have crucial effect on strategies of the company for dealing with
operations of the business. Stakeholders concern by directors has significant implications for
corporate governance. The approach of stakeholders to the role of governing board for
negotiating in interest of the firm. The theory of stakeholders is grounded in the belief that
Corporate Social Responsibility and stakeholders relationships are the important aspects which
the Tesco must manage. Corporate Social Responsibility aims at defining the roles and
responsibilities of business has to fulfil, the concept of addressing issue whom business is
responsible. Both of these concepts are closely interrelated but the Corporate Social
Responsibility is suffering from abstraction level, as it offers a practical approach for measuring
the performance of business organizations and the key groups of stakeholders.
The theory is witnessing a revival and dominance in the Corporate Social Responsibility
context. Adopting the model of stakeholder as the potentially and insightfully for identifying the
issues and establishing the measures of performance. The data of Tescos stakeholders
managements can be collected and help in compare with other enterprise across the sectors.

Corporate Social Responsibility in the perspective of stake holders
Businesses have spent many years for marketing Corporate Social Responsibility and not
the organisation economic resources. The internal stake holders of TESCO are the group who
directly involve in the operations of the business like executives,employees and unions, the have
direct effect on the companies strategic plans. The internal stake holders are the most influential
group in the business as they development, design, structure and business conduct. Their
attitudes towards the policies decide whether it will be a success or not as they participate in the
formulation and implementation of the corporate strategies which includes the activities of
Corporate Social Responsibility and reflecting,representing and supporting social norms.
Employees like to work in the firms which are ethical means how they engage with the society.
Employees of Tesco are important in the success and influencing the decision making of the
firm. The management of the company must know about the attitudes and sentiments about the
activities of Corporate Social Responsibility. Unions who are the group which protects the
interests and working conditions of the employees also have importance in influencing the
Corporate Social Responsibility activities as it is related to them only. They have the potential to
assist the company in achieving objectives and social interest also which includes the Corporate
Social Responsibility activities. Media has the crucial role for informing the society about the
issues which are of public interest. So they must be unbiased. They are the indirect stake holders
which operates independently and is the bridge between company and stake holders. Media can
shape the opinion about the company and its Corporate Social Responsibility activities.
Various perspectives of Corporate Social Responsibility
Many stake holders are in favour and some are against the policies of Corporate Social
Responsibility in the business organization. The most influential factors are maximization of
profits and free choice. But the lack of skills in employees leads to lack of responsibility.
Corporate Social Responsibility makes the business sense as they considers the social and
environmental accountability one can have for business. For example- Tescos business exist in a
relationship with the external environment where they deal with large environment determinant
to important extent how successful they are. Resource based view identifies strength of this
environmental relationship with the business and exchange of outputs and inputs with the

environment determining the business process quality. So it can bes implied that business which
are socially responsible which are viewed as positive asset.

Stake holders influence on Corporate Social Responsibility activities
The concept of Corporate Social Responsibility can be unfamiliar but the need for
socially responsible firm is increasing day by day. It is a new concept and consumers and
investors wants the business organization which is environmentally and socially responsible.
Tescos approach to the social responsibility sometimes vary but one thing is common is more
emphasis on satisfaction and influencing the requirements of stake holders. In this context the
theory of stakeholders states that influence is the most significant factor which is encouraging the
adoption of Corporate Social Responsibility. In the shifting of expectations, the global business
is facing increased influence for opting or improving the Corporate Social Responsibility
endeavours. Corporate Social Responsibility is the strategy which gives competitive edge to the
business. It is viewed as the integral part of the firms competitive advantage which enhances the
landscape even without impacting the firms societal responsibilities. Corporate Social
Responsibility is the frame work for mitigating the negative consequences of process of business
and enhances the well being of the stake holders consisting of the environment. Corporate Social
Responsibility main message is that no harm must be done tos humans and environment. It is the
companies commitment for improving economic development while improving the lives of
peoples, employees, their families and society. Corporate Social Responsibility basically refer to
the business responsibilities towards the society,stake holders and those who are affected by the
practices and policies. There is a relationship between the stakeholders influence and Corporate
Social Responsibility practices which have positive,negative and mixed results. The stake
holders theory suggests that social responsibility influences the pressure for addressing the
minimization of negative impacts of environment, promoting the social progress and enhance the
economic growth. Foreign direct investment and Corporate Social Responsibility are also
related to each other as the investment based relations are more stronger than trade-based. In
Tesco the primary stake holders influence positively the Corporate Social Responsibility and
secondary stake holders influences the practical Corporate Social Responsibility. In addition the
stake holders demands influences the Tescos actions(Bondarenko and Pisareva, 2018) . As the
result the community stake holders, regulatory stake holders and the business stake holders
pressurize the business. This pressure has decoupled the risk by opting the symbolic than
substantive actions due to the ownership of the business or CEO. Stake holders are more

concerned about whether the organizations affiliation with the social act or not. The employees
and share holders have direct financial interest in the organizations which ensures that actions of
the business result in financial benefit. Corporate Social Responsibility impacts positively the
social outcomes and may be conveyed by corporate communication for notifying the
organizations internal and external stake-holders for contributing value. Stake holders plays
unique role in Corporate Social Responsibility implementation and for gaining stable values the
meeting of their demands is important. For ex- employees wants to work for companies like
Tesco, consumers wants to buy goods from enterprises which are responsible. Tescos stake
holders shows the increased interest of whether firms interacting socially and environmentally
ethically. The Corporate Social Responsibility activities of the firms enhances the companies
markets values and is negatively related to operational profitability of business. Tesco can
connect with the marginal stake holders when executives emotions influences the decisions of
managers. This engagement may elevate the group of beneficiary stake holders to the points
where they become important for the enterprise. The uncertainty of the business environment
have direct influence and complex environment has negative influence on businesses Corporate
Social Responsibility strategies and influencing the relationship among the stake holders
pressure and environment. Customers, executives, competitors and NGOs are the main
determinants for influencing the behaviour of firms in emerging markets. The relationships
among the influence of stake holders and different dimensions of Corporate Social
Responsibility endeavours to be inconsistent under the various theoretical perspectives.
It indicates that the diversified groups of stake holders inherently which have distinct
resources and expectations. Corporate Social Responsibility impacts the businesses Corporate
Social Responsibility engagement by sustainability practices of business. Business organizations
in different nations may affect the implementation of Corporate Social Responsibility practices
in several mechanisms because of different cultures of business and features of institutions.
Community,consumers,labour and social license are the important determinants of Corporate
Social Responsibility. Firms,situational features,corporate governance and socio economic are
determinants of CSR practices(AMA, 2021).

CONCLUSION
The above report concludes that Corporate Social Responsibility is very important in
building the image of the organization in the market. This report mentions the stake holders
influence on CSR adoption. The critical evaluation and analysis of effect of contemporary
issues of CSR on the management and leadership perception was also done. Brief analysis of
stake-holders view on strategical direction of the business organization was done. By adopting
CSR activities the culture of business. It affects the employees,stake holders,community and
consumer stake holders. The report states the CSR activities influence on business operations.

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