Impact of Corporate Social Responsibility on Organization's Performance

This report analyses the impact of corporate social responsibility on organization’s performance. It includes a literature review, business plan, and proposed solutions.

Running head: DISSERTATION
Dissertation
Name of the Student
Name of the University
Author Note

1DISSERTATION
Table of Content
Part 1:.........................................................................................................................................2
Introduction................................................................................................................................2
Background to the study.........................................................................................................2
Research problem...................................................................................................................3
Research Objectives...............................................................................................................4
Research Questions................................................................................................................4
Methodology..........................................................................................................................4
Conceptual Framework..........................................................................................................4
Part 2: Literature Review...........................................................................................................6
2.1 Corporate Social Responsibilities....................................................................................6
Corporate Social Initiatives implemented by the brands.......................................................7
CSR affecting the supply chain of the organization...............................................................9
Factors that positively influence brands to embrace CSR...................................................10
Theories related to Corporate Social Reasonability.............................................................13
Part 3- Business plan................................................................................................................16
Executive summary..............................................................................................................16
Company and business concept (product/service)...............................................................16
Industry and market analysis................................................................................................17
Marketing, operational, management plans:........................................................................19
Financial plan, projections, break-even analysis, risk analysis............................................21
Conclusions..........................................................................................................................21

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Part 4........................................................................................................................................23
Executive Summary.............................................................................................................23
Presentation of company, problem and context.......................................................................24
Presentation of conceptual framework.................................................................................24
Presentation of proposed solutions.......................................................................................25
Risks associated with the solutions..................................................................................26
Discussion of alternative approaches and reasons for choosing the particular approach....26
Conclusions and Limitation.................................................................................................26
References................................................................................................................................28

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Report Title- Impact of corporate social responsibility on organization's performance-
A case study of House of Fraser
Part 1:
Introduction
This research report consists of a detailed analysis on the impact of corporate social
responsibility on organization’s performance. Corporate social responsibility significantly
contributes to the success of different corporate institutions and it is usually viewed as
voluntary activities which are performed by the firms to operate in an economic, as well as
environmentally sustainable manner. Businesses performs corporate social responsibilities to
gain governments’ support in the market where they operate, to build an effective social and
brand image and of course to benefit the society or environment where the business is being
operated. Certainly, effective corporate social initiatives have positive impact on the
organization’s performance but this has again been a competitive initiative as there are
several large brands joined the race. Consequently, CSR activities are strategically
implemented so that it eventually benefits all stakeholders involved in the businesses. So, to
understand the real-world scenario of corporate social responsibilities and its impact on
business performance, CSR efforts of House of Fraser, UK has been considered in the report.
Purpose of the report is to analyse the impact of corporate social responsibility on
organization’s performance.
Background to the study
According to Saeidi et al., (2015), many corporate institutions in the developed
nations have observed the significance of behaving responsibly towards society and
particularly in UK social responsibility has been working since 1992 to help customers
sustain their commercial success in a way that shows respect for the ethical values, people,

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communities, as well as the environment. Erhemjamts, Li and Venkateswaran (2013) stated
the fact that demand from the government and customers to organizations on ethical
behaviour also led to an engagement in the CSR activities. Thereby, the businesses have tried
to incorporate CSR activities as the part of their business approaches (Farooq et al., 2014).
Organizations with sound CSR initiatives are able to develop good corporate images and
maximize loyalty from consumers and employees. Scholars show that firms that care for the
environment and demonstrate good CSR practices were able to enhance consumer purchase
with respect to enhanced investment appeal.
The idea of corporate social responsibility has become significantly supreme to
developed economy and the evolution of CSR has guided business firms to change their
ideology from profit maximization to social issues that significantly bother on the
environment of operation. In the field of corporate social responsibility, Petrenko et al.
(2016) mentioned that sustainable development and reduction of poverty are the significant
issues that are required to be addressed by governments particularly in the developing nations
but it is known that governments cannot the fulfil the needs without the contribution of the
private sector. Furthermore, the policy makers started paying a great amount of attention to
potential contribution of private organizations to such policy objectives. As the issue of
sustainable development become more significant, corporate social responsibilities have
become an element that identify such issues and it often turns into more viral in the regular
operations.
Research problem
It has been identified that understanding the importance of CSR in business, all larges
business today are in the rush of implementing the initiatives, which eventually lead to
competition in the market. This is a significant issue as the market has been dynamic in
nature and businesses have varied types of pressure including the pressure of market

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dynamics and appropriate CSR initiatives. Thus, it is highly important to learn how
businesses today are dealing with CSR activities and impact that CSR creates on business
performance. Research requires analysis of real-world scenario based on the CSR activities to
learn how and to what degree CSR is influencing the businesses today.
Research Objectives
 To understand the importance of CSR activities in businesses
 To analyse the impact of CSR activities on House of Fraser’s performance
 To develop suitable CSR strategies to help businesses achieving its performance
Research Questions
 What is importance of CSR activities in business today?
 What is the effect of CSR activities on House of Fraser’s performance?
Methodology
Research design is kind of a plan to study research questions, while research method
is more of a strategy applied to implement that plan. To analyse the impact of corporate
social responsibility on firm’s performance, it is always effective to choose secondary
research method. Secondary research method would allow researcher to analyse the context
of the study with the real-world scenario and contemporary issues related to CSR activities of
House of Fraser. So, to perform primary research, primary data has been collected. Secondary
data would be collected from books, journal articles, websites, annual reports and blogs of
House of Fraser, UK.

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Part 2: Literature Review
This section of the report is a review of existing papers that are performed on the
corporate social responsibilities by the businesses. There has been an increased consensus
that corporate social responsibility is mostly significant for the sustainable development of
organizations. A considerable stream of scholarly research emerged in the literature indicate
that corporate social responsibility orientation is the foundation of stimulating long-term
stability, growth and sustainable performance in the most dynamic as well as changing
environment. The review on corporate social responsibility has been performed considering
twenty journal articles published 2012 onwards.
2.1 Corporate Social Responsibilities
According to Homburg, Stierl and Bornemann (2013) CSR is a concept whereby
organizations tend to integrate social as well as environmental concerns in their business
operations as well as in their interaction with the stakeholders on a voluntary basis. On the
contrary, Eccles, Ioannou and Serafeim (2014) stated that CSR is considered to be influenced
by institutional environment in which organizations operate or it is the surrounding where the
firm is located, it could compel the organization into becoming more responsible by dealing
with the issues that are presently affecting the environment. A corporate social responsibility
is observed to be as an action which the organization decides to take that could adequately
affect identifiable social stakeholders’ welfare.
On the other side, Cheng, Ioannou and Serafeim (2014) performed a study in the
context of CSR and stated the fact that corporate social responsibility is more of a self-
regulating business model which helps an organization to become socially accountable
particularly –to itself, its stakeholders, as well as the public. Thus, it can be mentioned that by
practicing corporate social responsibility or implementing them accordingly, organizations

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can be more conscious of kind of influence they are having on all elements of society with
the inclusion of economic, environmental and social. Hence, Cheng, Ioannou and Serafeim
(2014) arguably stated the fact that in order to engage in CSR means, in a general course of
business, an organization could run in ways that improves society and environment rather
than contributing negatively to them. According to El Ghoul et al. (2011), corporate social
responsibility is a wide concept which can take several forms on the basis of the company
and industry. Authors of this paper also gave the example that with the help of CSR
programs, philanthropy as well as the volunteer efforts organizations are most likely to
benefit the society but they are able to boost their own brands simultaneously. In response to
this statement, Park, Lee and Kim (2014) mentioned that CSR activities tend to forge a
stronger relationship between employee and corporations. This means that organizations
could boost the morale and could help both organizations and employers to feel more
connected with the external around them.
Corporate Social Initiatives implemented by the brands
CSR is more of continuing commitment by business to behave ethically as well as
contribute to the economic progress while enhancing improving the quality of life of the
workforce and the community. Kitzmueller and Shimshack (2012) performed a survey and
mentioned the fact that almost 55%of consumers are ready to pay more for the products when
they come from socially responsible brands. For example, it was found that the large
beverage brands like Starbucks has ranked fifth as the most socially responsible organization
as per Fortune 500. On the other side, the organization Starbucks supports Ethos Water which
is another organization better known to deliver a clean water for more than a billion people.
The organization Walt Disney primarily focus on the community, environment as well as the
volunteerism elements as the corporate social responsibility initiatives. On the other side, Jo,

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and Harjoto (2011) mentioned about the health and well-being brand Nuskin which talk
about the initiative called Nourish the Children.
The brand has taken the initiative of donating nutrient-rich meals to community’s
needy children. Dhaliwal et al. (2012) mentioned that when it comes to initiative of social
responsibility, the large software development brand Microsoft should not go unnoticed.
Authors of the study have highlighted that Microsoft helped out the non-profit organizations,
where the employees fundraising events that help out is through the annual employee giving
campaign where the employee of the firms tend to attend the fund raising events. In this
context, Orlitzky, Siegel and Waldman (2011) arguably mentioned that due to technology
advances have facilitated the ways of implementing corporate social responsibility. Most of
the large brands today apply corporate social responsibilities leveraging the technology. In
response to this statement, Servaes and Tamayo (2013) mentioned that as the purpose of
social responsibility is to make people aware and benefit the community, it can be effectively
done by through technology such as digital medium. Servaes and Tamayo (2013) also
mentioned that social media is a large platform where the audience or the community of
distant location can be approached. This fact is found in a recent initiative where Search
Engine Giant Google has launched a video featuring severe risk of smoking to raise
awareness of community health and well-being. This message gained a tremendous
popularity in world’s community as raising awareness against is a contemporary social issue.
So, according to Hopkins (2012), during the implementation of corporate social
responsibility, focus of the brand should be on the large community, so that eventual
repercussion would meet the objectives of applying CSR activities. Moreover, when a brand
is able to focus on a large community it become easy for the brands themselves to maximize
the market awareness.

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Goss and Roberts (2011) mentioned the fact that corporate social responsibility has
been the necessity instead of nicety. Organizations have observed the benefits, shareholders
supported the initiatives and stakeholders appreciates the initiatives. However, Homburg,
Stierl and Bornemann (2013) argued that why retailers should support CSR that blow up
millions of pounds and it is not manufacturing anything to justify the shareholders’ money
allocated for the CSR initiatives. Homburg, Stierl and Bornemann (2013) mentioned that
corporate scandals at Euron, Worldcom as well as others have probably made people distrust
the big businesses. Consequently, non-government organizations or the NGOs have started to
criticize and battle with the MNC. It has also been identified that the trends of ranking and
ratings pressurized organizations to report the non-financial performance along with the
financial outcomes.
CSR affecting the supply chain of the organization
Farooq et al. (2014) mentioned the fact that business must have to enhance the supply
chain visibility to identify labour issues on the basis of geographic locations. In fact, it is
noted that governments as well as the federal regulations are constantly tracking whether the
businesses are taking the right measures to stop or prevent such issues. In the context of CSR
today, increasing number of businesses tend to report on their CSR programs, organizations
should utilize the appropriate solutions to particularly integrate their suppliers into the CSR
programs. Tang, Hull and Rothenberg (2012) mentioned there is a long series of elements
that go into the selection of appropriate suppliers for a business, particularly from suppliers’
purchasing habits leads times as well as product quality and consistency. It has also been
identified that businesses might want to reconsider the areas along with appropriate reports of
human trafficking business of ramification on multi-tier suppliers. It can be added that such
CSR program areas could include the ensuring that products are produced ethically, with the
inclusion of fair employee play, safe working conditions as well as the legal working hours.

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On the other side, Kim, Li and Li (2014) mentioned the fact that increasing consumers
demand is just another indicator which might continue to intensify the need for complete
supply chain viability. This means that more and more products that consumers could
considers instead of only sticking to the quality and place the products came from.
Solutions against the factors
Nikolaeva and Bicho (2011) talked about several ways business could take proactive
steps to learn about the issues that are affect the supply chains and how it should be resolved.
Lim and Tsutsui (2012) mentioned that the organizations should be cognizant of regional as
well as government regulations that affect nations that are home to some particular aspects of
the supply chain. Organizations should leverage the supply chain risk prevention sources. The
organizations should identify brands’ CSR programs that are significant elements to resolve
the ethical issues. Moreover, the organizations should develop deeper relationships.
Organizations should develop a sustainable relationship with the suppliers and
simultaneously create trust.
Factors that positively influence brands to embrace CSR
Frias‐Aceituno et al. (2013) arguably stated that corporate social responsibility is not
going to resolve world’s issues and hence CSR is more of a way for the organizations to
benefit themselves and simultaneously benefitting the society. Dhaliwal et al. (2014) talked
about the factor of innovation which strongly influences the need of CSR.
Innovation: Cheng, Ioannou and Serafeim (2014) mentioned the fact innovation
could be an over-used term and just typing the word in the search bar of Amazon is most
likely to bring up almost 150, 000 items. However, in the context of CSR, innovation is an
enormous benefit to a society and organization. Hence, Cheng, Ioannou and Serafeim (2014)
linked the elements of communication and sustainability because the brand McDonald has

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linked these elements in its CSR and Unilever is able to innovate products like hair
conditioner that mostly use less water. Hence, the fact indicates that without sustainability,
the company is not able to research. Moreover, the initiatives related to developments might
not lead to establishment of such product (Park, Lee and Kim 2014).
Cost Savings: Kitzmueller and Shimshack (2012) argued that cost saving is one of the
most easiest area for a brand to stat engaging in sustainability is to use it as the most effective
way to minimize and reduce the cost. Irrespective of the fact that it is using less packaging or
less energy, these savings perfectly add up. For instance, the brand General Mills is on a path
to minimize its energy savings exactly by 20% by 2015 (Jo and Harjoto 2011). This means
installing energy monitoring meters on some piece of equipment at its Covington, the
organization saved at least $600,00 (Dhaliwal et al. 2012
Brand Differentiation:
As put forward by Orlitzky, Siegel and Waldman (2011), in the past, the fact brand
differentiation was one of the primary factor organizations embraced corporate social
initiatives. For example, the brand Timberland was able to find their voices as well as
incorporate brands’ values into their business model (Orlitzky, Siegel and Waldman 2011),
Nonetheless, Hopkins (2012) argued that as CSR has more been a commonplace and using it
differentiate the brand could be harder to do. Likewise, the brand Coke and Pepsi tend to look
to grab as much market as they can from each other. It has been identified that both
organizations tend to offer water bottles made particular from sustainable packaging as
effective. Eventually, although the organizations are not necessarily going to see strong
differentiation benefits, hence diminishing returns on brand differentiation as an indication
that CSR takes.
Lost term thinking:

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Goss and Roberts (2011) mentioned that CSR is an effort to look at the
organization’s long-term interest as well as ensuring that future of the brand is sustainable.
So, the terms to sustainability to CSR initiatives are effective. It can be mentioned that it is
more of a shift from worrying about the next fiscal quarters’ financial outcome to the
influence that business decisions today have on the financial outcomes.
Customer engagement:
Farooq et al. (2014) stated that what is the point of doing CSR anyone does not know
about it properly and thereby, market awareness is highly important. For example, it has been
learnt that Walmart developed itself in the market as the leader on environmental effort
(Nikolaeva and Bicho 2011). Hence, Tang, Hull and Rothenberg (2012) mentioned that
Walmart is more of a leader operated and ad campaign which was designed to increase
awareness regarding the environment and the choices of the products that customers could
make. So, with the help of CSR, brands can help to engage with the consumers in new ways.
Employee engagement:
A put forward by Lim and Tsutsui (2012), along the similar, if the employees do not
know what is happening, organization is actually missing the opportunity. For instance, the
brand like Sara Lee generated a cross-functional global sustainability working team to form a
strategy for the sustainability. Under a gross range, the Solo Brand has generated the
sustainability Action Network to guide employees in a large set of services offered by the
community and these are centred on CSR’s priorities.
Retaining top talent
It has been identified that there are several employees who often the feel the need of
being something bigger. In this context, Frias‐Aceituno et al. (2013) stated that social
responsibility could empower employees to leverage the corporate resources at their disposal

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to do the required good. On the other side, when the employees of some public corporations
get behind such initiatives, the outcomes are outstanding. This means that being part of the
strategy helps the greater good which can boost employee morale and it could lead to greater
productivity in the workforce. This means that knowing a product and service are most likely
help with the social causes and this could eventually create a state of pride and such pride
shows the relationship with the fellow employees.
Theories related to Corporate Social Reasonability
Cheng, Ioannou and Serafeim (2014) mentioned the fact that as per the conventional
view of corporation, it exist primarily to make benefits out of it. So, on basis of this money-
centred perspectives, to the degree that business is significant, they could apply the moral
dilemmas increasing as the struggle for the profits proceeds. This means, while the dilemmas
continue to be significant throughout the economic world, when the business area considered
as holding a great range of economic as well as civic responsibilities as the part of their
regular operations. Park, Lee and Kim (2014) mentioned that there is a large set of issues that
should be confronted as well as managed outside and independent of the effort for money.
Kitzmueller, and Shimshack (2012) mentioned about some particular elements that are highly
associated with the implementation of CSR.
Economic Responsibility: It is learnt that economic responsibility is about making
money, which is required by simple economy and such obligation is more of a business
version of human survival instinct. Jo and Harjoto (2011) mentioned that originations that do
not make profits in the modern market economy –are often doomed to succumb. On the other
side, non-profit organizations tend to make money but it could pour back into their work. In
addition to this, both private and public firms could operate within a turning profits.
However, Servaes and Tamayo (2013) argued that for a bulk operation, there should be an
amount of profits and without them there cannot be any sort of plan and ethics.

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Legal responsibility: Hopkins (2012) mentioned the fact that legal responsibility are
subject to rules and regulation. Like the economic responsibility is not controversial but this
legal responsibility should be understood as proactive duty. In this context, Goss and Roberts
(2011) mentioned that such laws and regulations are not the boundaries that organizations
cross over if the penalty remains low, rather responsible brands tend to accept the rules as the
most socially beneficial and sprit of the limits.
Ethical responsibility: As put forward by Tang, Hull and Rothenberg (2012), ethical
responsibility is about doing what is good even when not required by the letter or spirit of the
law. It has been identified that this theory is mostly similar to the theory of keystone’s
obligation. The whole thing mostly depends upon a coherent corporate culture that
particularly views the business itself as the citizen in the society along with the kind of an
obligation that citizens usually entail.
Triple Bottom line
Nikolaeva and Bicho (2011) performed a study on CSR and mentioned about triple
bottom line which is more of a form of social responsibility that dictates that corporate social
responsibility leaders could tabulate the bottom line outcomes with respect to the economic
terms. There are some fundamental keys to these ideas; for example Lim and Tsutsui (2012)
mentioned about that three column responsibility which should be kept separately and the
outcomes reported independently. Eventually, the organization should remain sustainable.
Dhaliwal et al. (2014) arguably mentioned the fact that at the juncture of ethics and
economics sustainability remains as the long-term maintenance of balance. According to the
principle of theory proposed by John Elkington, how the balance is achieved has been
reviewed in the following.

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Economic Sustainability: Farooq et al. (2014) mentioned that economic sustainability could
value the long-term financial solidity over more volatile and short-term profiles. As per the
model of triple-bottom-line large organizations tend to have a responsibility to generate the
business plans which allow stable as well as the most prolonged actions. It can be added that
such bias with respect to duration could make companies hesitant regarding investigating in
areas like dot-coms.
Social responsibility: Tang, Hull and Rothenberg (2012) mentioned the fact that social
sustainability is most likely to balance in people’s lives and they people lead their life. This
means in a world where few fortune 500 executives tend to haul down million a year,
millions of people on the other hand, elsewhere in the world are living on day to day earning
which cannot go forever. This means when the imbalance grows, the rich are most likely to
get richer and the poor get poorer and there are some chances that society might collapse in
anger. So, when a business is required to be stable for a long time, opportunities and wealth
should be spread to cover as many communities as possible.
In this context, Kim, Li. and Li (2014) mentioned that fair trade movement could fit
this ethical imperative to generate and spread opportunities and wealth. This means this
concept was developed and refined as an idea particularly in Europe and then all large
businesses that run after the fair trade often ask the large producers in the rich nations. Thus,
to guarantee that suppliers in developed nations receive reasonable payment for their goods
and services, raw economic laws of supply demand do not require it. This means a long-
series of ethical arguments can be arranged to particularly support this fair trade but in the
front of sustainability.

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Part 3- Business plan
Executive summary
This research report is a business service plan which revolves around Corporate
Social Responsibility initiative of House of Fraser, UK. The purpose of the plan is to
implement a CSR initiative to strengthen the market position in the retail sector and build a
suitable public image. Proposed CSR initiative is about establishing educational plan for the
children of orphan house in UK. The education plan includes cost of children who are
living in the orphan house but they are deprived from required education in today’s social
structure. Plans will be promoted on social media and traditional media channel such as the
importance of orphan education in the society. CSR initiative of developing educational
program for the children in Orphan House of Fraser has been set to target the broad market
for its promotion because it will be promoted through social media channels.
Company and business concept (product/service)
This business plan is the implementation of an existing service which is aligned to the
CSR objectives of House of Fraser. Project aims to implement a CSR initiative to strengthen
its brand image in the market. The proposed CSR initiative is about establishing educational
plan for the children of orphan house in UK. The education plan includes cost of children
who are living in the orphan house but they are deprived from required education in today’s
social structure. So, the proposed plan focuses on the social responsibility of the business.
Stakeholder value proposition: The values that customers of House of Fraser would
observe with this CSR initiative is transparency towards the responsibility of the
organization. Customers may intend to choose the premium service as the brand is not
making unnecessary profits, rather the money is invested for the social development.

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Shareholders of House of Fraser would receive profits in business due to the assurance of
customers’ loyalty, and increase customer base.
Strategy: The strategy of developing this educational program is to find two recognized
orphan house and make a contract of 10 years. This means for ten years, House of Fraser
would bear the cost of education of 100 children selected from two orphan house. To create
an impact of the program of sales, the plans would be promoted on social media and
traditional media channel such as the importance of orphan education in the society. The
detail of plan would be printed in the packaging of every product sold at the outlet.
TimeLine
Plans Goals Time required
Create contracts with the
recognized Orphan house
in UK
Select 100 children from the
orphan house to make fund
their educational plan
This could take a month
Stipulate the funds
required for 10 years
educational plans 100
children
To ensure all selected
children receive equal
support and care for their
education
Allocation of fund may take
6 months
Industry and market analysis
The department store in the retail industry has gained tremendous popularity in the
recent time due to technology advances allowing wide market reach and demands of products
enabled by the stable in economy in UK. Souza-Monteiro and Hooker (2017) opined that
retain sector is highly vital to UK’s economy and especially in 2017, the sector generated
£395billion and the sector housed 319000 retail in business. Varley (2014) criticized that

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competition in the retail sector of UK is highly competitive –especially, the growing presence
of Tesco, Waitrose, Sainsbury, Marks and Spencer are making the competition tougher.
However, Patten, and Zhao (2014,) argued that retail sector in UK is under pressure, several
retailers find themselves in an uncomfortable position because the margins are often squeezed
between weakening demands as well as increasing cost. Furthermore, it is also learnt that
consumer confidence is crumbled in the retail sector of UK and this is particularly reflected
in slowdown of global economy and a china/US trade war. Furthermore, it has also been
identified that at the end of 2018, e-commerce came out as 20% of all retail sales. Even
though the majority of sales still take place in stores, bulk of growth is coming and it is most
likely to come from online (deloitte.com 2019). Thus, Tidy, Wang and Hall (2016)
mentioned that for some retailers, online is fast becoming channel along with the shift and
there is a significant need of balancing investment growth with the score of profitability.
Monios (2015) performed a survey and found that almost 87% of customers are most
likely to purchase the product if the company supports something they care about. Authors of
this article has stated the fact that about three-fourth of millennial are intended to pay more
for sustainable offering and the brands in the retail sector are taking notes and actions. For
example, Unilever in the recent time bought 7th generation and Schmidt’s Natural to resolve
customers’ demands as well as the naturally source products.
The proposed CSR initiative of developing educational program for the children in
Orphan House of Fraser would target the broad market for its promotion because it can be
promoted through social media channels. Each social media platform including the
company’s own website will promote this proposed plan, while the brief of the plan would
also be given the package of each product. So, the customer receiving the product through
online can also be aware of the same, as packaging contains CSR initiative of the brand as
well. The competitive advantage associated with the plan is, emerging customer base which

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can be gained through the initiative. All members of the orphan house, staff of NGOs, in UK,
customers who are conscious about social development would develop loyal relationship with
the brand.
Marketing, operational, management plans:
Operational plan
Organization name or XYZ orphan house
in UK
Building the relationship status
XYZ orphan house in UK –Supplier 1  Developing a bond of 5 years with
the orphan house
 Contract would be generated by
negotiating the funding necessary in
the required section of education
 Rearrange or renew contract
agreement
Supplier 2:  Develop the contract bond of years
with orphan house of a different city
in UK
 Fund allocation for each children
wold be negotiated on the basis of
season education the institutes hold
 Selection of children would be done
on the basis of existing educational
experience of the children
Service provided Key terms of relationship

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Fund of the educational program of 100
children would be provided
 The selected institutes for the
educational charity and funds are not
supposed to receive funds from other
brands.
 Institution must have to provide an
official receipt of the fund required
for children education
 The orphan house should not take
help from other brand for those
selected children
Managerial plan
In order to manage and market the stated CSR plan, a major attention would be given
on the social or the digital media channel.
Website: A detailed description of the proposed CSR plan –the fund supply for the
education would be given in the official website of House of Fraser. Hence, the websites are
used to market the product because contains each tiny detail of the initiatives in the CSR
section of the page. So, any consumer visiting the site can certainly have an understanding
about the CSR initiative of House of Fraser. So, brands’ CSR goal would be fulfilled
E-commerce- All e-commerce sites where House of Fraser sells its products and
services would promote the proposed CSR programs.

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Advertising: In order to promote the initiatives, the plan should use or leverage the
social media channels such as Facebook, YouTube and Twitter as well as some e-commerce
portals.
Advertising in the print media: The proposed plan should be advertised in
traditional media such as Magazine, top selling News Paper. In addition, the package of each
product item should contain the brief of this proposed CSR plans.
Financial plan, projections, break-even analysis, risk analysis
(Referred to Excel file)
Financial challenges that House of Fraser might face
It is worth stating that applying the financial responsibility as stated above could be
challenging because the organization House of Fraser is running an operation in a market
which is highly competitive. The major challenge in practical work is that the proposed CSR
needs high cost and corporations’ adequate financial resource to train the employees. It can
be an enormous financial burden to the organization because the stated market is relatively
competitive and thereby, House of Fraser is most likely to face a steady competitive tension,
inadequate backing from the government as well as other non-government firms besides the
enormous cost of implementation. On the other side, it has been predicted that as the idea is
emerging to consumers, lack of support from customers as well as investors is certainly a
significant challenge to the organization.
Conclusions
Business plan was about the implementation of an existing service which is aligned to
the CSR objectives of House of Fraser. CSR initiative is about establishing educational plan
for the children of orphan house in UK. There is a series of values that consumers as the
stakeholders might receive due to the stated CSR plan. Customers of House of Fraser would

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observe that this CSR initiative is transparency towards the responsibility of the organization.
To create an impact of the program of sales, the plans would be promoted on social media
and traditional media channel such as the importance of orphan education in the society. In
addition to this, CSR needs high cost and firm’s adequate financial resource to train the
employees, while existing burden is already creating pressure on House of Fraser due to the
increasing competition in the market.

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Part 4
Executive Summary
This research report is a consultancy project description which includes the business
operation of House of Fraser. The project is done to derive suitable solutions against
problems that House of Fraser faces in its operation. Purpose of the project is to develop
effective CSR plan for the organization. House of Fraser is in the need of good CSR initiative
which would strengthen its reputation in the market. In order to determine the necessary
social initiatives of House of Fraser, competitors’ approach towards the environment and
economy have also been compared and contrasted. The business has been advised to develop
suitable CSR approaches such as development of education and development of healthcare
programs in the communication where the organization is presently running its operation

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Presentation of company, problem and context
House of Fraser is known as a department store in the retail sector of UK which
provides a large series of products –such as men and women cosmetics, kids’ apparel, beauty,
home furnishing and electronic products. The annual revenue of HOF is £1.52 billion in
2018. The overall employee strength of House of Fraser 6000 (Houseoffraser.co.uk 2019).
Although, House of Fraser is running its operation rapidly in UK market, market reputation
or the brand image of the firm is most likely to diminish in the forthcoming months as the
CSR initiatives of the organization requires serious attention. Large brands in the sector are in
the rush of applying innovative CSR initiatives, thereby, House of Fraser faces the challenge
of innovating its CSR initiatives. Consequently, House of Fraser is in the need of good CSR
initiative which would strengthen its reputation in the market.
Presentation of conceptual framework
Economy and environmental
sustainability is significant
concern
Pressure from the
government
Competitors’ approach
towards social responsibility
Increased brand exposure to
market in the retail sector

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The above conceptual framework is used to approach the problem that House of
Fraser presently faces with respect to corporate social responsibility. It has been identified
that economic sustainability and environmental sustainability are major concern that brands
must be aware when running a large operation. Sustainability initiatives taken by the brand
towards the environment often create positive impact on consumers and market. Conversely,
sustainability can be achieved when there is a less gap between needy and rich in the
environment. Schramm-Klein et al. (2016) mentioned that large global brands should provide
a significant return to the environment where it is presently operating.
So, to approach the problem, existing environmental and economic sustainability of
HOF have been reviewed. On the contrary, governments demand from the corporations have
also been considered because it is most similar demand that every business has to take into
account when considering a macro market (Amatulli, De Angelis, Korschun and Romani
2018). It is learnt that existing initiatives of House of Fraser towards government’ demand
were little challenging to difficult which has an adverse impact on the organization. Thus, to
determine the necessary social initiatives of House of Fraser, competitors’ approach towards
the environment and economy have also been compared and contrasted. On the basis of the
gap, solutions about the CSR approaches have been developed. In order to analyse and
approach the issues, secondary data has been collected from the secondary sources such as
journal article, blogs, official websites of the retail brands, and blogs.
Presentation of proposed solutions
House of Fraser needs to develop suitable CSR approaches such as development of
education and development of healthcare programs in the communication where the
organization is presently running its operation. Brand could fund a healthcare setting in the
community or it could invest on the education of needy children who are deprived of the
basic education. The investment in education may generate the opportunity of receiving

26DISSERTATION
global environmental sustainability initiative award which is highly necessary for enhancing
brand image and investment on the healthcare setting could lead to high brand acceptance in
the market.
Risks associated with the solutions
Investing in the healthcare setting could be challenging and it may require enormous
investment because demands of healthcare setting with respect to staff and technology are
rapidly changing. In such context, investment on the setting requires large capital.
(Soundararajan and Brown 2016) Moreover, if plan is similar to other brand in the market,
outcome of the initiative may not be suitable enough to gain public acclaim
Discussion of alternative approaches and reasons for choosing the particular
approach
Instead of investing in healthcare, brand could invest in country’s national sport such
as Badminton. This initiative would help the brand to gain government’ support as well as
the public support. Country’s national sport is associated with public emptions, and investing
on the emerging talents will increase people awareness towards the brand. This solution is
more effective because it is cost-effective but it has the potential to receive governmental
support because already remains under the pressure of developing the new talents for
country’s national sport (Taylor, Vithayathil and Yim 2018). In such case, brand is most
likely to observe growing public acceptance with respect to the CSR effort and this could
eventually reflect on sales.
Conclusions and Limitation
House of Fraser faces the challenge of innovating its CSR initiatives. Economic
sustainability and environmental sustainability are major concern that brands must be aware
when running a large operation. House of Fraser is suggested to develop suitable CSR

27DISSERTATION
approaches such as development of education and development of healthcare programs in the
communication where the organization is presently running its operation. If plan is similar to
other brand in the market, outcome of the initiative could fail to achieve public acclaim. The
major limitation of the project is that research about the CSR issues that HOF faces has been
done with secondary data only. Primary data has not been used to investigate the issue.

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