Effect of Corporate Social Responsibility on Business Performance: A Case Study of Asda

Identify the effect of corporate
social Responsibility on business
performance. A Case Study of
Asda

Table of Contents
1. INTRODUCTION.......................................................................................................................4
1.1 Background of Research................................................................................................4
1.2 Organisational Background..........................................................................................5
1.3 Significance of problem..................................................................................................5
1.4 Statement of purpose......................................................................................................6
1.5 Statement of the problem...............................................................................................6
1.6 Aim and Objectives........................................................................................................7
1.7 Research Questions........................................................................................................7
1.8 Dissertation structure.....................................................................................................7
2. LITERATURE REVIEW............................................................................................................9
2.1 Challenges faced by Asda while implementing a corporate social responsibility program
within a business.....................................................................................................................9
2.2 Concept of corporate social responsibility.....................................................................11
2.2.1 Environment Sustainability....................................................................................13
2.2.2 Charitable donations...............................................................................................13
2.2.3 Corporate activism..................................................................................................14
2.3 Effect of corporate social responsibility on business performance and productivity.....14
3. Research methodology...............................................................................................................17
3.1 Introduction....................................................................................................................17
3.2 Research philosophy.......................................................................................................17
3.2.1 Positivism...............................................................................................................17
3.2.2 Interpretivism..........................................................................................................17
3.2.3 Pragmatism.............................................................................................................17
3.2.4 Justification of the choice.......................................................................................18
3.3 Research Approach.........................................................................................................18
3.3.1 Deductive................................................................................................................18
3.3.2 Inductive.................................................................................................................18
3.3.3 Abductive................................................................................................................18
3.3.4 Justification of the choice.......................................................................................18

3.4 Research method............................................................................................................19
3.4.1 Quantitative.............................................................................................................19
3.4.2 Qualitative...............................................................................................................19
3.4.3 Mixed method.........................................................................................................19
3.4.4 Justification of the choice.......................................................................................19
3.5 Research Strategy...........................................................................................................20
3.5.1 Questionnaire Survey..............................................................................................20
3.5.2 Interview.................................................................................................................20
3.5.3 Mixed of both.........................................................................................................20
3.5.4 Justification of the choice.......................................................................................20
3.6 Sources of Data Collection.............................................................................................21
3.6.1 Primary data collection...........................................................................................21
3.6.2 Secondary data collection.......................................................................................21
3.6.3 Justification of the choice.......................................................................................21
3.7 Sampling.........................................................................................................................21
3.8 Reliability.......................................................................................................................22
3.9 Validity...........................................................................................................................22
3.10 Ethics............................................................................................................................22
3.11 Limitations of the research...........................................................................................22
4. Data analysis and findings.........................................................................................................24
4.1 Frequency distribution....................................................................................................24
4.2 Data Interpretation..........................................................................................................25
5. Conclusion and recommendations.............................................................................................35
References......................................................................................................................................39
Appendix........................................................................................................................................41
Questionnaire:.......................................................................................................................41

1. INTRODUCTION
1.1 Background of Research
This investigation is based on identifying the effect of corporate social responsibility on
the business performance and productivity of business. Corporate social responsibility generally
reflects the accountability and commitment of the business to contribute to the wellbeing of
society and communities through different social and environmental measures (Wang, Zhang,
and Zhang, 2020). It is also considered as the important ideas that a company should play a
positive role in the community as well as consider the social and environmental impact of
business decisions. It is increasing more important in today’s competitive world as well as can
take on different forms such as pro-bono work, donating products, volunteering activities,
contributing finance or money, employee community service days, eco-friendly practices along
with the other creative activities. Corporate social responsibility plays an important role in
improving the brand image of business and also helps in attracting large number of customers
towards the company (Bacinello, Tontini and Alberton, 2020). It helps company to increase
employee retention and engagement. As today employees seeks for a higher purpose other than
their salary package. They like to enjoy working on those companies that have positive public
image. CSR initiatives of the company incorporate volunteering programs that foster certain
values like loyalty and empathy in the business. It results better teamwork along with the
camaraderie in between employees. Operating business sustainably came at a huge cost to the
company but it save their operating cost later. By implementing solar plants in the business may
become more costly for the company in starting but it saves their cost later by decreasing their
electricity expenses. It also help company to protect the environment also as more consumption
of electricity may harm their business. Besides this, corporate social responsibility can improve
the perceptions of customers towards their brand. Today’s corporate world, the competition is
very stiff and it an create challenging for the company in order to set themselves different in the
eyes of their customers. Companies can take social responsibility more seriously in order to win
consumers and develop a platform for marketing and earning attention of their audience. There
are mainly four types of CSR efforts which can be implemented by the organisation such as
volunteer projects, environmental initiatives, ethical labour practices and charity work. With the
help of the CSR program, company can improve the morale and motivation level of employees

within workplace (Hernández, Yañez-Araque and Moreno-García, 2020). It also helps in creating
stronger bond between corporations and staffs so that they can feel more connected and work
productively. The main role of corporate social responsibility is to give back to the community
and provide positive social value. Organisation generally turns to corporate social responsibility
for making difference and building positive brand (Hou, Lu and Hung, 2019). Thus, CSR plays
an important role within business as it helps in improving customer perception about the brand,
increases the appeal to investors and also attracts and retain talented employees within
workplace.
1.2 Organisational Background
The chosen organisation for this investigation is Asda, it is retail brand that focuses on
offering wide range of products and services to its customer including grocery, financial services
and general merchandise. The brand was established in 1949 by Peter and Fred Asquith and Sir
Noel Stockdale. The vision of the brand is to encourage everyone to be honest and open. Strategy
of Asda is to strengthen their business and also its supply chain unit in order to fulfil the need
and demand of customers. The aim of Asda is to make life easier for the customers and offer
them better quality of products and services. Asda ensures that their customers may feel satisfied
with the products and services of brand so that strong customer base can be created. The brand is
considered as one of the renowned supermarket chains. Beside its supermarket, the organisation
also offers assistance for insurance and payment services and also mobile phone provider. Thus,
Asda is successful for offering low-cost products to its consumers which help in attracting them
and improving the business performance.
1.3 Significance of problem
The problem which is being identified within this research is that organisation faces
various issues while implementing effective corporate social responsibility program within
workplace. These problems can create a great impact on the overall business productivity and
performance (Kraus, Rehman and García, 2021). It is necessary for an organisation to mitigate
these issues as it can create a negative impact on the brand image and reputation. The importance
of this problem is that it can enhance the brand loyalty among the customer due to which the sale
and profitability of the business increases. Thus, it is necessary to overcome the issues as it helps
in enhancing the success rate of business. Reducing the challenges while implementing corporate

social responsibility can help in increasing the financial performance and organisational growth
of business.
1.4 Statement of purpose
The main purpose of conducting this research is to identify the effect of corporate social
responsibility on business performance. Corporate social responsibility plays a significant role
within business as it helps in making business profitable and also increases customer loyalty
(Javed and et. al., 2020). Therefore, corporate social responsibility also boosts the engagement of
employees as they prefer to perform in the company that are more socially and environmentally
concern (Zhong, Ren, and Song, 2022). Thus, the rationale behind conducting this research is to
examine the mellifluence of CSR activities on the performance and productivity of business.
This investigation focuses on providing detailed understanding about the role of corporate social
responsibility for enhancing the business performance. This research also focuses on achieving
the dual perspective of the investigator such as personal and professional perspective. The
personal perspective of the researcher will be accomplished as it helps in increasing their
fundamental skills including research skills, communication skills, presentation skills, time
management skills and many others. These skills are helpful in improving their career
perspective due to which they can attain better career opportunities in future. On the other hand,
in terms of professional perspective this investigation helps in developing the individual skills
due to which they can conduct their future research in effective and efficient time period. These
skills are helpful for the researcher as they can gran the future opportunities in appropriate
manner. Thus, this research provides in-depth information related to the corporate social
responsibility and its influence on the overall productivity and performance of business.
1.5 Statement of the problem
The problem within this investigation is that organisation faces different challenges while
implementing corporate social responsibility program within workplace. The issues can create a
great impact on the overall productivity and performance of business (Nave and Ferreira, 2019).
Thus, it is necessary to focus on overcoming these challenges by implementing various
strategies. These challenges also create a negative impact on the performance of business and
also it influences the customer base.

1.6 Aim and Objectives
Research aim:
This research aims to identify the effect of corporate social responsibility on business
performance.
Research Objectives:
 To identify the challenges faced by Asda while implementing CSR program within
business
 To analyse the effect of corporate social responsibility on the business performance and
productivity of Asda
 To analyse the concept corporate social responsibility in context of UK retail industry
 To recommend the strategies adopted by Asda for reducing the corporate social
responsibility implementation barriers within workplace
1.7 Research Questions
 What are the challenges faced by Asda while implementing CSR program within
business?
 What is the effect of corporate social responsibility on the business performance and
productivity of Asda?
 What is the concept of corporate social responsibility in context of UK retail industry?
1.8 Dissertation structure
The current investigation includes different chapters which are explained below:
Introduction: This section is considered as one of the important parts within dissertation
as it elaborates about the chosen topic in clear manner. In the current research, the introduction
chapter includes background of the research, about the chosen company, significance of the
problem, statement of purpose, statement of problem, aim and objectives of research, research
questions and dissertation structure. Thus, this chapter focuses on providing detailed information
about the chosen subject matter so that reader can get overview of the topic. It provides detailed
information related to the chosen topic and also give reason behind conducting the investigation.
Literature Review: Literature review is other chapter of the research which focuses on
collecting second hand information related to the chosen topic. This section increases the
knowledge of the researcher related to the proposed study. Literature review address the research
questions in systematic manner and also provide understanding about the chosen topic.

Researcher generally collects second hand information by using various scholarly sources such
as articles, books, newspaper, journals and others.
Research Methodology: This section focuses on providing information related to
different research methods which can be used by investigator for collecting and obtaining data
related to the proposed study. In the current research quantitative research method is used by the
researcher for accumulating the information. By using quantitative research method, researcher
will use deductive approach, positivism philosophy, survey strategy, questionnaire and other
methods for obtaining the data. Quantitative research method is useful within this investigation
as it collects information within limited time period and within allocated budget.
Data Analysis and Findings: Data analysis and findings is another chapter that focuses
on taking out the findings within the investigation. In this research, questionnaire will be
designed by the researcher in order to collect the information about the chosen topic and also
know the perception and opinion of the third person related to the subject matter. Frequency
distribution analysis is also used by the investigator for analysing the collected information in
significant way.
Conclusion and Recommendations: This section provides the short summary of all the
chapters so that reader can understand about each section in appropriate manner. The conclusion
part generally wraps up the ideas and also leaves the reader with final impression. On the other
hand, few suggestions are also given by the researcher in order to improve the performance and
productivity of business in better manner. In this chapter few strategies are recommended by the
investigator so that company can overcome the issues faced while implementing CSR program
within workplace.