The Effect of CSR on Business Performance: A Case Study of Asda

This report examines the effect of Corporate Social Responsibility (CSR) on the business performance and productivity of Asda, a major UK retail chain. The study investigates the challenges Asda faces in implementing CSR programs, including issues related to environmental sustainability, charitable donations, and corporate activism. The research employs a mixed-method approach, combining quantitative and qualitative data collection through questionnaires and analysis. The report reviews the concept of CSR within the UK retail industry, analyzes the collected data, and presents key findings on the relationship between CSR initiatives and Asda's financial performance, brand image, and employee engagement. The conclusion provides recommendations for Asda to overcome CSR implementation barriers and improve its overall business outcomes, offering strategies for enhancing customer loyalty, attracting investors, and retaining talented employees. The study highlights the importance of CSR in today's competitive market and its potential to create a positive impact on both business and society.

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.

2. LITERATURE REVIEW
2.1 Challenges faced by Asda while implementing a corporate social responsibility program
within a business
As stated by Ertem-Eray (2020), CSR has a major impact on the overall society as it is
considered to be the system of belief that is made to help society. It is an ethical framework that
the company requires to follow so that proper balance can be maintained in the economy. After
digitalization, companies are interacting with customers differently. That is why the customers
are not only concerned with the products or services. They are also concerned about the various
policies and practices of the company regarding society. Another issue is that CSR requires a
high cost of expense and tension of competition to the company. Along with it, less support
from the customers was also an issue. The main challenge is the implementation of CSR was
difficult where the managers are not working properly and changing their focus now and then. It
is a fact that the main aim of the company is to earn profit and the CSR allows the company to
keep the interest of people as the main priority. And this can be a major issue for the business
goals while taking essential decisions. Implementing CSR is one the complex tasks as it clashes
with the main motive of the companies. It can also be seen that is not easy to find a suitable
NGO for implementation. The term CSR is defined as the concept of the management under
which the companies take care of the interest of society. With the help of CSR, the company can
enhance its image and the level of trust can be made publically. As the customers prefer to deal
with such companies who are involved in activities to improve society as a whole. The relations
can also be improved with the customers and it tends to build a positive environment. That is
why the customers feel connected and engaged with the company. The long-term benefit of CSR
is related to its suitability as it helps the company to build a sense of community among the
customers. Some people also think that they are to sacrifice their profit to enhance the CSR of
the company. Nowadays it can be said that it is not enough for the company to present the best
products or services at a reasonable price only. Customers also expect the companies to bring a
positive impact on the world and society.
According to Turker, (2018), CSR is one of the best ways in which the company will be
able to attract more employees. Moreover, it can also be seen that the local community lacks
interest while contributing to the CSR activities of the company. Also, people have less

knowledge and information about it and the companies are not that interested to make efforts to
raise the level of awareness. Communication is not done at that level between the company and
the community. There is also a lack of transparency and non-availability. Even when the
company is following the steps still the impact is negligible in the eyes of society. It can also be
seen that companies that work for the betterment of the whole society then they rarely get the
credit. Most companies work for society but some customers think that they have some hidden
motive in it. It can also be said that the hard work of the company will not be noticed. The
companies do not have clear statutory guidelines about CSR which can be an issue for the
company. There are major issues such as it requires a good investment while installing the CSR
strategies. There are some issues such as there is a lack of vision in the CSR activities and
implementing CSR strategy can be a complex process. That is why every company wants to have
a good image in the eyes of its customer to compete with the other companies in the market. To
attain this, the companies are required to take responsibility for CSR. The companies which are
promoting CSR activities then they will be able to elevate the level of brand awareness and
increase employee satisfaction. Most customers prefer to buy products from such companies
which are doing something for society. The image of the company is the main and that is why
the companies which are doing great for others will be preferred by the customers. The self-
regulating business model that enables a company to be socially accountable to itself, its
stakeholders, and the broader public is what is meant when we talk about corporate social
responsibility. Additionally, it is known as corporate citizenship. Corporate social responsibility
(CSR) aids business operations that harm society and the environment. Both a company's social
position and brand image are beneficial. It is the best method for boosting motivation and self-
esteem at work. It is a brand concept that depends on the company and the industry, can take
many different forms.
In the opinion of Verma and Gustafsson (2020) companies face difficulty while
implementing CSR as well as in its effectiveness. The main challenge that company faced while
implementing CSR is it requires higher cost and corporations in adequate financial resources in
order to train their staff. It has been analysed that the greatest challenge that company faced
while implementing and developing CSR are steady competitive tension, inadequate backing
from the government and other public non-government organisations beside the huge cost of
implementations. Another challenge that company may face while implementing and

establishing CSR in their business are lack of support from their investors and customers. Further
challenge includes difficulty in changing traditional business practices to CSR agenda that
needed greater commitments of leaders in managing as well as changing their behaviour and
focus. Due to lack of expertise and capability of managers to successfully implement desired
changes that also considered as the challenge that company while implementing CSR in their
business. A change is not an easy task for the business as well as it needed commitment and hard
work for making a desired change. For implementing CSR in their business, company need to
face these challenges. To implement it more effectively in their business company need to use
excellent strategies that help in dealing with these challenges in better manner. It leads
improvement in brand image and reputation of the company.
2.2 Concept of corporate social responsibility
According to the point of view of Gomez-Trujillo, Velez-Ocampo, and Gonzalez-Perez
(2020) corporate social responsibility is referring to the model of self-regulating business which
helps the company to be accountable socially by itself, its stakeholders and the public. It is also
called as the corporate citizenship. Corporate social responsibility helps company to make the
efforts to operate in the ways to degrade the society and environment. It helps in improving the
brand image of company and also reduce the negative influence from society. CSR is the best
way to raise the morale and confidence of employees within the workplace. It is the concept
which can be conducted in many forms that depends on the company and the industry. With the
help of corporate social responsibility, company can improve their brand image and also
enhances the profitability of business. It is necessary for every company or industry to be
socially responsible and also need to understand their account and its shareholders. Companies
that adopts CSR programs gives back it to society which helps in attracting more and more
investors and customers towards the brand. It is the strategy which is implementing by the large
corporations or companies. In relation to UK retail industry, corporate social responsibility plays
a vital role because it helps the industry to measure and control their effect on the society. It is
the strategy that helps to make the industry, society and environment better and positive.
Corporate social responsibility within retail industry also helps in retaining the talented staff
within workplace. It gives the positive effect to the retail industry because it helps to strength the
brand and also create the synergy in enhancement within brand. It is necessary for retail industry
to promote their brand by collecting the response and comparing to the other competitors. CSR

activities are becoming popular in retail industry as it focuses on making the world better place
and increasing more profit for the retailers. It is the best strategy for retail industry in order to
increase their sale. It also helps in improving brand recognition, increasing the business
reputation, increases customer loyalty and sale, saving the operational costs, improve the
financial performance many more.
In the opinion to Sung, Tao, and Slevitch (2020) social corporate responsibility is the
concept of management which helps the companies to integrated the social and environmental
factors in their operations of business and helps to interact with their stakeholders. It is the term
which is used to describe the company's productivity which gives back to the community. In
relation to UK retail industry, corporate social responsibility is the most important term that
helps to develop the overall productivity and performance of the industry. CSR in retail industry
helps to improve the employee retention strategies within the company that makes more profit
for the company. It is help to integrated the industry by socially and environmentally which helps
the industry to understand and analysis the culture of the society. It is increasing the employee
performance for the better image of the company. Retailers needs to promote their product and
brand that can be possible by the help of corporate social responsibility. It is helps to attain the
positive response from comparing to the others competitors. The concept of corporate social
responsibility within retail industry helps to create the plan for the brand enhancement with the
market and strengthening the brand for the awareness (Trewern, and et.al., 2021). there are many
benefits of the corporate social responsibility for the retail industry which includes it is helps the
industry in better brand recognition, increased the sales and customer loyalty as well, increase
the positive brand reputations, increasing the greater ability to attracting the talent and retaining
the staff, save the operational cost, improve the financial performance of the industry and many
more. CSR is referring to the responsibility to take the social and environmental decisions for the
company. It is impact on the profit margins which helps to attract more potential customer
towards the company and its services. It is the comprehensive plan for the industry which helps
to design, analysis and execute the corporate social responsibility initiatives. With the help of
corporate social responsibility, it is helps to focus on the areas, designs, communication and
programs that increase the company's productivity and performance.
Corporate social responsibility (CSR) is significant to business since it fosters client
loyalty and aids in the expansion of organizations. Because such people favor working for