Social responsibility of business: Assignment

Social responsibility of
business

Table of Contents
Introduction......................................................................................................................................3
Lo 1 Theoretical underpinning academic articles and other sources of theory. .............................3
LO2 Tesco social responsibility.......................................................................................................5
LO3 Conclusion on social responsible behaviour .........................................................................6
LO4 Recommendation ....................................................................................................................6
Conclusion .....................................................................................................................................7
References .......................................................................................................................................8

Introduction
Social responsibility is the framework of the business towards the society, employees,
government , shareholders of the business. The CSR activities are done towards the welfare of
the employees for their effective working of the business. The social responsibility is must for
each and every organization to develop they play an act towards the welfare of the society. The
social responsibility is done to maintain the economy of the society. The social responsibility is
helpful to engage large number of customer with the business. In this report it shows how an
organization uses stakeholders theory for the development of their business and satisfy the wants
of all the stakeholders of the business. The report shows the social responsibility done by the
Tesco and it effects on the business.
Lo 1 Theoretical underpinning academic articles and other sources of theory.
Social responsibility of the business are taken care effectively for the success of the
business. The company needs to follow social responsibility for the success of the business. In
this report we are going to show how stakeholder theory of Edward freeman effects the social
responsibility of business.
Stakeholder theory
The stakeholders theory shows how an stakeholders of the company effected by the
working of the organization(Friedman, 2007.). The stakeholders theory shows the reason of the
inefficiency of the parts of the business.. The company aim is to satisfy wants of all the
stakeholders with earning profit in the organization.
Suppliers
The suppliers are main source of the raw material to the business from which
organization is able to conduct business. The supplier are reason for the success of the business
and to develop an effective chain of suppliers a business needs to conduct a research on the
market about the available suppliers and choose one of them who is effective towards the
development of the business. The supplier are the reason to play a social responsibility of the
business towards the society. The Tesco needs to full fill all the wants of their suppliers by
providing fair amount for their raw materials. The payment to suppliers is done on time. The
regular orders are given by Tesco to their suppliers.

Employees
The Tesco needs to take care of their employees effectively. Make them familiar to the
organization provide them sense of belonging to the business(Drucker, 1984.) . The positive
work environment is provided to the employees. Provide opportunities to employees to bring
their innovative ideas. The fair and effective treatment on the performance of the employees.
Proper guidance is provided to the employees.
Consumers
The consumers are the main reason for whom the plans of business of a business are
drawn. Tesco needs to know the wants of the consumers and provide quality products that satisfy
the human wants and introduce innovation in their product to satisfy the wants of the customer.
Provide proper information about the product to the customer.
Society
The Tesco needs to earn profit as well as effective work is done towards the society. The
Tesco needs to provide the standard of living to the customers and society. Help in development
of the underdeveloped areas of the society.
Government
The Tesco needs to follow all the rules and regulations set by the government. The
guidelines by the government is must be followed, pay the fair taxes set by government and
timely payment done by the company.
Positive impact of stakeholders theory
The stakeholders theory helps Tesco to bring smooth working in their business. This
theory helps business to develop their work and satisfy wants of everyone involved with the
organization(Zairi and Peters, 2002.). The stakeholders theory helps Tesco to identify the
objectives of the business. In stakeholders theory company gain their employees and customer
loyalty towards their brand.
Negative impact of stakeholders theory
The Tesco need to know that by satisfying wants of each and every stakeholders they
effect the profit of their business. Sometimes organizations are not able to come up with
satisfying wants of each and every customer is effects the success of the business.

LO2 Tesco social responsibility
The Tesco is the one of the leading companies in U.K involved in the retail business.
Tesco needs to done some CSR activities for the development of their organization in near
future. CSR activities of Tesco required for their growth in the organization and regular
development of their business. The Tesco need to prepare the framework to analyse the
performance of their CSR activities. The needs to play some activities are given below
Environmental Responsibility
The Tesco is growing company and know the effect of their company over the
environment. To maintain the brand image and develop their business in the market prepare the
policies for their business that will not effect or harm environment of the society. The Tesco
develops the concern towards the environment in the minds of their employees to achieve the
organizational goals of the business(Friedman, 2002.) . The Tesco needs to minimize the wastage
of resources and reduce the pollution from their product that effects the development of the
society.
Societal responsibility
The Tesco needs to fulfil all the responsibility related to the society. The Tesco needs to
make their employees as well as customers towards the welfare of the society. The Tesco needs
to provide charity, finds to the society, and try to influence the customers towards consumption
of healthy food. The Tesco provides the healthy food to the society at low prices.
Economic responsibility
The Tesco try to bring efforts for the success of the and increase the profit of their
business. The Tesco try to become a reason for the economic growth and development of the
territory. The Tesco try to provide the employment to the young generation. Try to give
opportunities to the territory to grow.
LO3 Conclusion on social responsible behaviour
The social responsibilities are required for the success of the business. Each and every
company has to play a social responsibility towards the society. The responsibility are required
for the development of the organization(Frynas, 2009.) . Each and every person who is a part of
the business needs to play an important role in the development of the society. The business try
to put a positive impact over he development of the society.

Advantages of social responsibility of the business
The social responsibility helps business to develop in the market. helps to improve
marketing strategy of the of the business and develop an effective relation with public. The
interaction with the customers increases with the help of the CSR activities helps in development
of the business and gain benefits in the market(Davis, 1967.) . When employees of the
organization become stakeholders then they feel sense of belonging and it improve their efforts
towards the success of the business.
Disadvantages of social responsibility
The social responsibility sometimes effects the working of the business. The organization
which are new in the market then the profit of those organization is affected by their CSR
activities. The employees sometimes feel that they are getting less pay on the work done by them
due to CSR activities the business needs to done some CSR activities for the success of their
business which reduces the profit of the business. The small business who works on the limited
background the CSR activities becomes costly for those businesses.
LO4 Recommendation
The social responsibility of the business needs to be effective and helps in the
development of the organization. The companies need to make their social responsibility that
effects the success of their business. The social responsibility are effects towards the success of
the organization. The employees of the business are treated with care to initiate the CSR
activities(Adams and Zutshi, 2004.) . The CSR activity is done to help the business to grow in
the market. The activities are performed by keeping in mind the success of the business. The
CSR activities are able to provide the standard or living to the society and helps to be a part in
development of the society.
Conclusion
The social responsibility of the business must be fulfilled by each and every organization.
The social responsibility helps business to grow and expand their working in the society. The
report shows how an organization develop their business with effective use of the CSR activities.
The business needs to be effective to satisfy the wants of the customer. The report shows the
positive and negative impacts of the CSR activities with the help of different theories. The Tesco

prepare a theory like economic activities, environmental activities for the development of the
business. The advantages and disadvantages of the CSR activities to the business

References
Books and Journal
Friedman, M., 2007. The social responsibility of business is to increase its profits. In Corporate
ethics and corporate governance (pp. 173-178). Springer, Berlin, Heidelberg.
Drucker, P.F., 1984. Converting social problems into business opportunities: The new meaning
of corporate social responsibility. California Management Review (pre-1986),
26(000002), p.53.
Zairi, M. and Peters, J., 2002. The impact of social responsibility on business performance.
Managerial Auditing Journal. 17(4). pp.174-178.
Friedman, M., 2002. The social responsibility of business is to increase its profits. Applied
Ethics: Critical Concepts in Philosophy, 5, p.57.
Davis, K., 1967. Understanding the social responsibility puzzle. Business horizons. 10(4). pp.45-
50.
Adams, C. and Zutshi, A., 2004. Corporate social responsibility: why business should act
responsibly and be accountable. Australian accounting review. 14(34). pp.31-39.
Frynas, J.G., 2009. Beyond corporate social responsibility. Oil Multinationals and Social
Challenges.
Moon, J., 2002. The Social Responsibility of Business and New Governance 1. Government and
Opposition. 37(3). pp.385-408.
Davis, K., 1960. Can business afford to ignore social responsibilities?. California management
review. 2(3). pp.70-76.