Corporate Social Responsibility: A Key Activation of Corporate Social Responsibility

CORPORATE SOCIAL RESPONSIBILITY IS A KEY ACTIVITY OF CORPORATE PRACTICE WORLDWIDE Introduction 3 Impact of CSR on 3 different companies 3 Comparison of CSR practices for all three companies 7 Influence of the country’s governance system on CSR report 11 Conclusion 14 Introduction Corporate Social Responsibility is a self-regulating business model that helps the organisation to be socially accountable. In this study, Corporate Social Responsibilities of Tesco PLC, Suning Commerce Group Co and Woolworths Group will be discussed properly. Tesco has also implemented

CORPORATE SOCIAL RESPONSIBILITY IS A KEY ACTIVITY OF CORPORATE
PRACTICE WORLDWIDE

Table of Contents
Introduction......................................................................................................................................3
Impact of CSR on 3 different companies........................................................................................3
Comparison of CSR practices for all three companies....................................................................7
Influence of the country’s governance system on CSR report......................................................11
Conclusion.....................................................................................................................................14
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Introduction
Corporate Social Responsibility is a self-regulating business model that helps the organisation to
be socially accountable. Adequate Corporate Social Responsibilities are needed to be taken into
consideration for improving social benefits. In addition, CSR related activities help the company
to conduct community services and environmental development based on the requirement of
society. With the assistance of the appropriate CSR report, the market stability of the companies
can be improved. Moreover, the potential market reputation of numerous companies can be
developed in an effective manner.
The study will focus on describing the CSR activities of three companies which operates in three
different countries. In this study, Corporate Social Responsibilities of Tesco PLC, Suning
Commerce Group Co and Woolworths Group will be discussed properly. Tesco PLC is one of
the largest retailing company which mainly operates in the UK and European market. Suning
Commerce Group Co is one of the largest retailing group in China. Furthermore, Woolworth
Group is situated in Australia and has a huge market share in the country. After discussion, the
activities of corporate social responsibility, a comparison between all three companies have been
properly described. Based on the comparison, the most effective CSR policy will be identified in
this study. Finally, the study will focus on evaluating and understanding the influence of country
governance on the CSR policy. In relation to the discussion of country governance, the issues in
the CSR activities will be discussed in this study.
Impact of CSR on 3 different companies
Corporate Social Responsibility is a business model that helps in the self-regulation of the
company and also establishes a social connection with the stakeholders, the public and also itself
within the organization. Corporate Social Responsibility helps the organization to be conscious
regarding the various aspects of society. CSR monitors the environmental, social and economic
aspects of the business (Schrempf-Stirling, Palazzo and Phillips, 2016). Moreover, when an
organization engages itself with the operation of CSR, it signifies that the organization is
enhancing the environment and the social conditions, in which the business is operating, instead
of only providing contributions for the betterment of the society.
Overview of Tesco CSR operations
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Tesco is regarded as the largest food retail organization, that has maintained the quality standard
of its products, and has also retained its customers for a long time. More than two million
customers are served by Tesco every week. The organization has more than 85 stores operating
worldwide. Tesco has implemented a Corporate Social Responsibility statement according to the
strategy and value of the organization. While implementing CSR on its business operations the
company has also considered suppliers, society, property, customers, surroundings, and the
employees (Nyame-Asiamah and Ghulam, 2019).
The major areas in which Tesco focuses on CSR are the society, economy, raising funds and
charities, and the environment. Tesco has conducted Environment awareness campaigns and also
motivated the staff of the organization to indulge themselves in the activities. Tesco has
successfully combined CSR with various resource management. The combined resource
management that has been implemented by Tesco is recycling of bag, controlling the wastes and
emissions (Shaw and Shaw, 2019). Tesco has been successful in establishing a charitable trust,
which has become the equipment of fundraising for the staff. Furthermore, Tesco has also
focused to improve its system of carbon labelling. Carbon labelling helps in measuring the
carbon dioxide emission of other organization which is operating near to Tesco. The operational
process of carbon labelling is a complex process and that has only been accomplished by the
Tesco organization.
Tesco has also implemented a different committee to regulate the Corporate Social
Responsibility operations of the business. The committee of Tesco CSR consisted of cross-
functional executives, and conducted a meeting, four times in a year. The first published CSR
report of Tesco is in the year 2001. In its CSR activities, Tesco supports the local communities
by donating amounts from the pre-tax profits to different charities and other social working
organizations. Funds were also raised for supporting the local communities from the customers
and the employees of the organization. CSR activity which has been undertaken within the
organization is of educating and empowering the workers, as the employees of the organization
made progress in their career. Tesco stores have prevented their employees from joining unions
and also protected their labour and human rights. Employee health and safety is another CSR
activity that has been implemented by Tesco. In 2015, more than 1539 employees of Tesco were
injured and suffered bad health, and that has resulted in the poor work of the business, still, the
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organization has provided funds for the welfare of the employees, as a part of their CSR activity
(Karim et al. 2015).
The other CSR activity of Tesco is to promote gender equality and minorities. 57 per cent of
employees of Tesco are female workers and the organization does not have any percentage gap
for paying their male and female employees (Felgate and Fearne, 2015). Tesco has undertaken
sustainable sourcing as a CSR activity and has developed Sustainable Farming Groups, and the
company has more than 650 dairy farmers.
Overview of Suning Commerce Group CSR activities
Suning Commerce Group is considered as the largest non-government retailer in China. The
organization operates its business in more than 1600 stores, operating in 700 cities of Japan and
China, and the business is based on the platform of e-commerce (Chen et al. 2015). The
organization deals with various service merchandise, baby care products, content products,
cosmetics, 3C products, Household commodities, general merchandise, books, and home
appliances. The organization has also won an award for its CSR activity in Philanthropy
Innovation Summit 2017.
Major CSR activities that have been undertaken by Suning Commerce Group are carbon
labelling and funds raising for charity. As stated, the organization is operating its business in
China, and there are many other manufacturing factories. Factory emission is most harmful to
society, and the organization has undertaken carbon labelling as their CSR activity (Hong, 2017).
Carbon labelling is a major step to involve society in the operation of the organization. Carbon
labelling monitors the level of carbon dioxide emitted from the various factories and also by the
organization itself. While manufacturing the baby products, the organization focuses on to use
the most natural substituents that are available for developing the products.
Suning Commerce Group has included Philanthropic initiatives in their CSR activities, which
signifies providing time, resources and money to charities, and also to other organizations. The
donations which are provided by the organization are based on various causes that need
assistance such as relief in the causes of natural disaster, funds for providing clean water, funds
for conducting educational programs in the underdeveloped cities, and for protecting the human
rights. The organization has also focused on economic responsibilities which will facilitate the
growth of the business through CSR activity (Chen et al. 2015). The business has involved itself
in CSR practices as it had helped them in improving their business operation and also engaged
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Suning Commerce Group in sustainable practices. The company uses recycled products for
manufacturing as it is of great benefit for the environment and benefits the company by
decreasing the cost of raw materials, consumes a minor quantity of resources.
The other CSR activity that has been undertaken by Suning Commerce Group is regarding the
reduction of child mortality and promoting gender equality, along with that empowering women.
The reduction of child mortality has been undertaken by the organization to pursue a sustainable
development goal. Child mortality reduction is performed by the organization by providing
nutritious foods and staples to the poor families for sustenance (Huang, Pan and Liu, 2017).
Promoting gender equality and empowering the women is done within the organization, as the
major number of staff of the organization are women, and they are provided with equal salary as
that of the men workers of the company.
Overview of Woolworths CSR activities
Woolworths is a grocery chain business of supermarkets, operating in New Zealand and
Australia. Woolworths operates 1000 stores in Australia. The CSR activities that have been
undertaken by Woolworths are promoting gender equality and empowering women. Their CSR
activity based on this fact is regarded as encouraging diversity. In the organization, 40 per cent of
the position of senior managers and executives are to be occupied by the women employees
(Pulker et al. 2019). Woolworths has focused on the concept of no salary wage gap, which
signifies that the salary of the employees does not depend upon the gender of the employee. The
third CSR activity that has been adopted by the organization is that new members who are
entering the organization as an employee have already completed the unconscious bias training.
Woolworths has also implemented certain CSR activities which are for the customers, society
and the environment. The workplace of Woolworths has focused on maintaining the health and
wellbeing of the employees, people, and customers. For improving the environmental condition
Woolworths has set up an aim as their CSR activity is that zero food waste is going to be
deposited in the landfill, which means that the organization aims at recycling the wastes. The
organization has also focused on the recyclability of the packaging that they use for its brand,
which has helped them in contributing to the circular economy (Frigerio, 2017). The
organization has also focused on substituting their raw materials and commodities with the
sustainable alternate components available in the market, it has created a benefit for the society
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and has also raised awareness for sustainable and eco-friendly products among the people of the
society.
Woolworths has also adapted carbon labelling as their CSR activity, and the company has
reduced 15 per cent of its carbon emissions after their commitment to society. For controlling the
emissions, the company has developed natural refrigerants. The organization has also monitored
that there is no leakage in the refrigerants. The company also conducts various social programs,
so that they can portray the natural ingredients of their products and can attract the customers to
consume healthy and sustainable products (Amin-Chaudhry, Pomering and Johnson, 2019).
Woolworths has also focused on reducing the child mortality of both Australia and New Zealand.
It was reported that there is a large rate of child mortality, which signifies that children below the
age of 14, are having died due to lack of nutrition and also because they cannot suffer the
adverse environmental condition with lack of food. The organization food and nutrition to the
children and also to the families who are starving. The organization does charity and also
conducts educational programs for children who cannot afford to have an education. Funds are
also raised by Woolworths for natural disasters and other emergencies. Employees, customers
and the organization itself are responsible for raising funds for charity (Devin, and Richards,
2018).
Comparison of CSR practices for all three companies
It has been seen that all companies have developed their CSR policies in recent years. Based on
the CSR policies of all three companies, the comparison has been provided below:
i) In relation to CSR practices, capturing social trends in highly important for the organisation.
Based on the CSR policy of Tesco, it is seen that the organisation has focused on evaluating the
societies demand. According to Shaw and Shaw (2019), the senior executives of Tesco has hired
skilled and trained employees who focus to collect relevant data regarding social trends from
government and non-government organisations. After collecting the data, it is forwarded to the
investors and the board of directors. The board of directors evaluates the current capabilities of
the company and selects appropriate community services in the UK market. In addition, it has
been seen that executives of Tesco have focused on investing in the government environmental
programs which include waste management, tree plantation and other eco-efficiency activities.
Based on government support, Tesco implements its CSR activities in the UK market.
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In relation to the CSR report of Suning Commerce Group Co, it is seen that the organisation
focuses on the statistical matrix to evaluate and identify the current CSR trends. Based on
internet service, the organisation collected relevant data regarding the social trends in China.
After collecting the data, it is stored and forwarded for further processing. Appropriate tools and
technologies are used to calculate the demand for trends and give appropriate scores based on its
demand. The score of trends helps the senior executives in analysing the potential social benefits.
Based on that, appropriate activities such as energy efficiency, waste management and
community services are taken into consideration by executives of Suning Commerce Group Co.
Finally, based on the CSR policy of Woolworths it is clear that the CEO involves both internal
and external stakeholders in the social activities. Unlike Suning Commerce Group Co and Tesco,
Woolworths Group does not focus to conduct only external CSR activities. The employees
collect appropriate data from internal stakeholders such as employees, donors, and board
members and identify their issues. Based on the collected data, the organisation presents its CSR
report which discusses the social responsibilities approaches for the upcoming year. It helps
clearly understand the activities of this company, for instance, the organisation has set a target to
maintain cultural diversity in the year 2020. Along with cultural diversity, gender equality,
reduction of salary gaps, reduction of carbon emission and workplace safeguard is targeted for
2020 (Woolworths Group, 2019). The trends regarding community services and environmental
activities are captured through proper market evaluation.
ii) Recent social activities help in forecasting the improvement of social benefits in the next
business year. The CSR report of Tesco is describing that in rent times, management has
conducted various CSR activities in different countries of Europe. The Ireland branch of Tesco
has focused on conducting charity event for the poor and homeless people (Edinger-Schons et al.
2019). The charity event of Tesco Ireland was started in the year 2001 and it occurs each year
from that year. The company report has shown that it had provided millions of dollars in the
charity event in Ireland. Based on the charity event, the organisation has developed a proper
market reputation in Ireland.
Moreover, in the year 2007, the CEO of Tesco had announced that a new environmental strategy
taken by the management. The environmental strategy was based on identifying appropriate
business techniques for reducing wastage of resources. New business methods regarding
recycling were taken into consideration by the organisation in 2007 which helped the company to
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save natural resources. Moreover, according to Manning (2018), the recycling process helped in
avoiding massive carbon emission in the environment. It had helped to establish a healthy
environment for both employees and customers. Since 2007, the organisation is maintaining the
strategy regarding recycling in various European branches so that the company can avoid a
business crisis.
In relation to the CSR report of Suning Commerce Group Co, it is that in recent times the
management participates in national charity even in China. In the national charity event various
CSR topics such as reduction of pollution, community services to poor and homeless people and
tree plantation are discussed (Kolk, Dolen and Ma 2015). In the past decade, Suning Commerce
Group Co has contributed millions of yen for the development of an environment of China.
Moreover, the organisation has provided job opportunities for poor people in the Chinese market
so that they can maintain an appropriate lifestyle per year. In the Philanthropy Innovation
Summit 2017, this company had a partnership with other donors and donated 1.3 billion Yuan
for the government charitable projects in the Chinese market (Amity foundation, 2019). The
projects are based on the health and safety of the society which includes providing appropriate
medicines for deadly diseases. Based on this activity, the market position has continuously
increased in the past years.
Based on the management activities regarding Woolworths, it is seen that the management has
focused on people, planet and prosperity. In 2019, the organisation has gathered relevant data
regarding the management activities in the organisation. In relation to people, the organisation
has maintained cultural diversity in 2019 and focuses to improve it in 2020. The senior
executives have conducted proper research on the background of employees and understood their
cultural aspects. Based on that, the organisation has shown proper respect for each culture and its
tradition while conducting the business activities properly. Based on that, the organisation may
reduce the employment issues in the upcoming years.
Furthermore, in relation to the planet, the organisation has taken part in various government
environmental programs. The environmental programs have helped to improve the waste
management activities of Woolworths. Moreover, as stated by Amin-Chaudhry, Pomering and
Johnson (2019), the organisation has focused on reducing the carbon emission in the
environment which will assist in establishing a healthy environment. Finally, based on
prosperity, the organisation is trying to mitigate the gaps between the employees and
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management. The organisation has introduced a new business policy that can help assist in
mitigating the gender gap in the company. Moreover, senior executives are forced to avoid
discrimination in the management and provide equal opportunities to each employee. Avoiding
discrimination has helped to avoid management issues and the business relationship was
developed in an effective manner. Finally, the organisation has donated one per cent of its
earnings before interest and tax to community and partnership programs.
iii) Social accountability refers that the organisations are forced to take appropriate
measurements regarding business ethics. The ethical consideration of Tesco is based on
accountability and integrity between society and organisation (Tesco, 2019). The organisation
has properly identified trends and taken appropriate actions to capture it. After capturing the
trends, the organisation has introduced an appropriate corporate social responsibility report. The
CSR report has described the activities of the company to capture the trends of the society and
which activities are successfully achieved by the company. The senior executives have
confirmed that they included authentic data in the CSR report which was reviewed by external
investigators. Therefore, the progress of Tesco in CSR activities can be clearly measured.
Suning Commerce Group Co has also presented a CSR report based on the rules of the Chinese
government. It is clear that the organisation has provided a detail description of the management
activities to capture social trends. In addition, the organisation has described the charity event
and the approximate amount that was donated by this company (Davidson and Yin, 2019). Based
on this report, the organisation has increased its social benefits in recent years as they maintained
accountability and transparency.
The Woolworths Group has followed the rules of the Australian government and presented
appropriate CSR report. It is seen that the organisation improved the interaction with the
employees for gaining their trust. In addition, the management has clearly explained all the
activities and requirement taken into consideration for capturing social trends. In addition, the
future target regarding corporate social responsibilities has been clearly described by the
company. After discussing with both internal and external stakeholders, the organisation has
presented the CSR report (O'Faircheallaigh, 2017). Proper business ethics of the company has
helped in developing the potential market reputation in the Australian market. Based on that, the
organisation has gained the confidence the society in future.
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Influence of the country’s governance system on CSR report
It has been seen that the governance system of a country has a significant impact on CSR. Based
on the governance system, the CSR process can be improved or may degrade in future. The
influence of the countries governance system have described below:
i) Influence of the UK governance system on CSR of Tesco:
In relation to the UK government policies, it can be stated that the government is a driver of
corporate social responsibilities. It is clear that the government focused on developing a new
governance structure for further improvement (Karim et al. 2015). In addition, it has been seen
that in that the UK government has understood the issues of companies and provided proper
support. In the past years, numerous companies in the UK market had faced issues regarding
employee management. The senior executives had failed to maintain a positive work culture and
the employment issues increased. Due to the negative work culture in the companies, the
management has failed to maintain business efficiency and potential business growth had
mitigated. In order to stabilise this situation, the UK government had focused on introducing
labour policy in CSR. The labour policy had forced the senior executives to avoid the cultural
gap and respect each employee in the country.
Furthermore, the UK government has introduced rules and regulation regarding wages and
salaries. Based on the rules of the government, it can be understood that the organisation is
forced to provide an appropriate salary to the labours based on their skills and qualification. In
case labours have the quality to be a senior executive, then it is necessary to promote those
labours. The labour policy has helped the organisations to avoid unnecessary employment issues
in the UK (Souza-Monteiro and Hooker, 2017). In addition, the companies have developed their
effectiveness as the potential employee performance increased. As a result, the organisations
improved their market share and set a long term market plan in future.
Similarly, the UK government has introduced unemployment and conservative push for CSR.
Based on the unemployment and conservative push, the government has tried to mitigate the
issues regarding unemployment. Including the employment and conservative push in CSR had
helped the companies to focus on hiring numerous candidates for appropriate job opportunities.
As one of the most important demands of society is to receive a proper job, the policy is
beneficial for them. The organisations have also increased their potential social benefits based on
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this policy (New, 2015). As a result, the unnecessary issues regarding the massive
unemployment rate was controlled by the UK government.
In relation to the governance system of the UK, the CSR activities in Tesco has improved
effectively. The organisation was capable of evaluating the current demands of society through a
government agency. In addition, Tesco has evaluated the environmental requirement and
conducted the activities properly with the assistance of government support. Therefore, it can be
stated that the UK government has provided full support to the company regarding social
responsibilities. As per Jones and Comfort (2018), in relation to the support of the UK
government, Tesco may improve its business effectiveness in the forthcoming years.
ii) Influence of the Chinese governance system on CSR of Suning Commerce Group Co:
The government of China has also provided appropriate rules and regulation regarding corporate
social responsibilities. Based on corporate social responsibilities, the Chinese government has
presented a new guiding strategy. In the past years, corporate social responsibilities have not
been taken seriously in China (Mdpi, 2019). Therefore, issues regarding pollution, gender gap,
unemployment and health and safety measurements have constantly expanded in China. In order
to mitigate this issue, the government of China has focused on promoting CSR policies for the
organisation. In addition, based on the motivation of the Chinese government, the national
charity events have been introduced.
The government of China has evaluated issues regarding corporate social responsibilities and
introduced CSR events for developing sustainability. Based on that, the management issues can
be avoided in the upcoming years.
In addition, it has been understood that the government of China has developed various CSR
programs in the country. Each program depends on a particular CSR issue. The organisation in
China focuses on investing in CSR programs for developing social benefits. Based on that, the
government of China has been capable of developing awareness for CSR and reduce the
potential issues in an effective manner. As per Chen et al. (2015), in recent times, the strategy
regarding corporate social responsibilities has developed by the Chinese government as a new
Meta governance system. The Meta governance system is a government network that helps the
business organisation in evaluating and identifying the potential governance of the country. It is
seen that with the assistance of Meta governance system, the organisation can achieve the CSR
activities in an effective manner.
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Furthermore, it has been seen that the Chinese government had focused on an exhibition of
corporate adherence so that customers can understand their benefits. Based on corporate
adherence, Suning Commerce Group Co is forced to maintain an appropriate business
relationship with the customers. Based on that, fraud, negative mindset and informal behaviour
can be avoided by the companies. Moreover, the employees are forced to respect the cultural
background of the consumers (Bilińska-Reformat and Dewalska-Opitek, 2018.). Based on the
cultural background, the potential crisis of the companies can be mitigated. As a result, the
potential business share of Suning Commerce Group Co may develop in the future.
ii) Influence of the Australian governance system on CSR of Woolworths Group:
In relation to the Australian governance, it can be understood that numerous environmental
programs have been taken into consideration. In the opinions of Williams (2017) it is clear that
the Australian government has developed sustainability agencies known as FaCSIA and DEH.
These two organisation has currently focused on developing activities regarding environmental
awareness in the country. These groups suggest to other organisation to participate in various
environmental events which can reduce the pollution rate in the country. In addition, based on
the environmental events the organisations of Australia have mitigated the potential rate of
carbon emission. In addition, companies can avoid the negative impact of air pollution and
global warming based on these programs.
In addition, it has been seen that the companies in Australia are forced to maintain waste
management system based on government rules. In recent times, tourism sites in Australia have
been corrupted based on inappropriate waste management. The waste material has polluted the
sea and rivers which forced the Australian government to take appropriate action against it (Aph,
2019). Therefore, the Australian government has included wasting management in CSR which
helped in avoiding water pollution. Moreover, based on waste management, the potential carbon
footprint has also mitigated by the companies. It helps in establishing a sustainable working
environment for the companies.
The Australian government has also developed policies regarding employee management and
organisational culture in CSR activities. In order to avoid the issues regarding employment, the
Australian government has introduced policies regarding employee management. The policy
clearly states that companies should provide equal job opportunities to each employee and avoid
discrimination (O’Brien et al. 2018). In connection with the government arrangement of
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Australia, the CSR exercises in Woolworths has improved viably. The association was equipped
for assessing the present requests of society through the government office. Furthermore,
Woolworth has assessed the natural prerequisite and directed the exercises appropriately with the
help of government support. In this process, it may be expressed that the Australian government
has given full help to the organization with respect to social obligations (Rao and Tilt, 2016). In
connection with the help of the Australian government, Woolworth may improve its business
viability in the anticipated years.
Conclusion
In relation to the above discussion, it can be concluded that Corporate Social Responsibilities
have helped the organisation in improving management effectiveness. Tesco is viewed as the
biggest sustenance retail association that has kept up the quality standard of its items and has
likewise held its clients for quite a while. Tesco has additionally executed an alternate board of
trustees to control the Corporate Social Responsibility activities of the business. The board of
trustees of Tesco CSR comprised of cross-practical administrators and directed a gathering,
multiple times in a year. The principal distributed CSR report of Tesco is in the year 2001. In its
CSR exercises, Tesco bolsters the neighbourhood networks by giving sums from the pre-charge
benefits to various foundations and other social working associations. Assets were likewise
raised for supporting the social networks from the clients and the representatives of the
association.
On the other hand, major CSR exercises that have been attempted by Suning Commerce Group
are carbon naming and assets raising for philanthropy. As expressed, the association is working
its business in China, and there are numerous other assembling processing plants. Industrial
facility outflow is most hurtful to society, and the association has embraced carbon marking as
their CSR movement. Carbon naming is a noteworthy advance to include society in the activity
of the association. Carbon naming screens the degree of carbon dioxide radiated from the
different production lines and furthermore by the association itself. Finally, Woolworths has
additionally actualized certain CSR exercises which are for the clients, society and the earth. The
work environment of Woolworths has concentrated on keeping up the wellbeing and prosperity
of the representatives, individuals, and clients. For improving the ecological condition
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Woolworths has set up a point as their CSR movement is that zero sustenance waste will be
saved in the landfill, which implies that the association targets reusing the squander.
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