Corporate Social Responsibility Report: John Lewis Analysis

This report analyzes the Corporate Social Responsibility (CSR) practices of John Lewis, a UK-based retail firm. It defines CSR, explores its background, and examines the regulatory framework, including ISO 26000, the Environment Protection Act, and health and safety regulations. The report delves into environmental issues like recycling, sustainability, packaging, and pollution, as well as political issues such as supplier location, supporting local businesses, and fair trade. Social and community issues like employing disadvantaged people and sponsorship are also discussed. Furthermore, it evaluates the benefits of CSR to employees, its impact on the supply chain, business performance, and marketing strategy, while also addressing potential conflicts with shareholder expectations. The report reviews John Lewis's CSR policy, assesses the extent of voluntarism, recommends changes to benefit stakeholders, and evaluates the potential impact of these changes on business performance, culminating in a comprehensive conclusion.

Corporate Social
Responsibility

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Define corporate social responsibility..............................................................................1
1.2 Background and changing attitudes to CSR.....................................................................3
1.3 Describe the regulatory framework for CSR....................................................................3
1.4 Environmental issues in CSR...........................................................................................4
1.5 Environmental and political issues in CSR......................................................................5
1.6 Social and community issues in CSR .............................................................................6
TASK 2 ...........................................................................................................................................6
2.1 Evaluate benefits of CSR to employees ..........................................................................6
2.2. Evaluate impact of CSR on supply chain .......................................................................6
2.3 Impact of CSR policy on business performance .............................................................7
2.4 Impact of CSR on marketing strategy..............................................................................7
2.5 Potential conflicts which arises between needs and expectation of shareholder's ..........8
TASK 3 ...........................................................................................................................................8
3.1 Review CSR policy of specific business .........................................................................8
3.2 Evaluate extent of voluntarism in CSR policy.................................................................9
3.3 Recommend changes to CSR policy to benefit stakeholders ..........................................9
3.4 Evaluate potential impact of changes in CSR on business performance .........................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Corporate social responsibility refers to different activities and tasks which related with
helping the poor people and children (Bartlett and Devin, 2011). It also includes the corporation's
initiative to evaluate and taking responsibility for firm's effect on environment or social welfare.
Company can perform CSR tasks such as providing donation to charitable institutions, create
strategies so that there is less pollution etc. Company has set an objective that understanding
CSR issues and impact of the policies. Hence, enterprise can earn more revenues and can
maintain good image in society. Assignment describes about John Lewis which is a retail firm
and sell clothes to users which was established in U.K. Report explains about the understanding
of current corporate social responsibility issues faced by business. It also discusses about the
impact of social tasks policies and strategies in different stakeholders and various
recommendations for responsible business practice.
TASK 1
1.1 Define corporate social responsibility
Corporate social responsibility is a business approach contributes to be aware of impact
of their business on the society such as stakeholders and the environment (Definitions of
corporate social responsibility - What is CSR, 2018). It is a broad concept in which company has
to behave properly and contributes to welfare of society. Firm also creates strategies and policies
related to environmental concerns and social concerns. For example, Unilever is a multinational
organization and it is related to food and beverage sector. One of the distinct initiative taken by
firm is the 'sustainable tea programme'. On partnership model with Rainforest alliance (an NGO)
Unilever, objective of firm is to source all the Lipton and PG tips tea bags from Rainforest
Alliance Certified. It offers farmers to differentiate their products as being socially, economically
and environmentally sustainable.
Triple bottom line is an accounting framework which includes three parts social,
environmental and financial. It is adopted by company so that they can monitor their
performance (Benn and Bolton, 2011). It consists of top level management, policy investments,
programmes, signatories to voluntary standards and different principles.
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Source: Corporate social responsibility, 2016
It is interpreted from above image that corporate social responsibility helps in optimum
utilization of resources, sustainability, ethics, sincerity, long term policies etc. It also creates
goal, evaluate market and give responsibility to workers.
Source: Corporate social responsibility, 2018
Illustration clearly defines that corporate social responsibility helps in contributing to
social activities as well as assist in development of ecology and economy.
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Illustration 1: Corporate social responsibility
Illustration 2: Corporate social responsibility

1.2 Background and changing attitudes to CSR
Background of social responsibility was traced back in ancient times. First stage is
development happened thousand years BC where different authorities introduced regulations
where staff members are punished for being careless during their work (Brik, Rettab and
Mellahi, 2011). During the industrial revolution, this concept grew to a big level and it is
important in society. In 1920's, new stage began that social responsibility was not seen as ethic
but it become a different concept. John Lewis has not learned to handle the changes and they do
not had recognized the responsibilities for future of civilization.
The ideology of CSR has emerged as a response to pressure from business side of
growing leftist settlement and trade union movement in last third of XIX century.
Changing attitude to CSR
Firstly John Lewis has to ensure that activities do not cause harm to the environment,
which means to show the friendliness with environment in production process and their business
activities. Hygiene of staff members is also a matter of concern. Staff members need to raise the
awareness of environmental protection work. To ensure clean environment, company can
contribute to raising productivity and they can also improve the work efficiency.
Initially people didn’t consider CSR an effective activity but now a day’s people attitude
have changed. Persons think that company has to perform activities related to CSR so that firm
can help the poor people and hence organization can maintain positive image in minds of all
people in society. Hence, people attitude has changed related to CSR activities.
1.3 Describe the regulatory framework for CSR
Various rules and regulations are created by Government so that company can perform
social activities in order to promote CSR practices. Regulatory framework for CSR in John
Lewis is described below:
ISO 26000- Social responsibility, 2010: This regulation provide guidance on the methods
through which business and companies can operate their activities in socially responsible
manner. It means acting in an ethical and transparent manner which contributes to health and
welfare of society. It helps the company to translate principles into their actions and share best
practices relating to CSR.
Government, NGOs, industry, consumer groups and labour organizations are involved
and they represents an international consensus.
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Environment protection act, 1986: It is the act which is created by Parliament of India.
Main purpose is to execute the decisions of United Nations Conference on human environment.
This act is related to protection of environment and prevention of hazards to people
(Campopiano and De Massis, 2015). In this manner, firm can improve standard of living of many
people. It is an umbrella rule which provides designs to provide framework for central
government coordination of various activities of central and state authorities established under
previous laws (Epstein, 2018).
Health and safety regulation, 1974: It is the legislation that provides that create
strategies and policies related to good health of all people. It help in creation of strategies so that
they can easily protect the life of all persons. Hence, company can create rules to protect workers
from accidents. It protects the staff members from risk and accidents such as theft, losing of data.
Thus, staff members can perform in effective and efficient manner.
Human right legislation, 1998: It is a law which was passed in 1998 in U.K. This right
means the rights in U.K. Court and compels the public companies including government, police
and local councils to treat all persons with fairness, dignity and respect.
It protects all persons such as young male and female to protect their rights and achieve justice
every year. Hence, company can use this act so that staff members can easily protect their rights.
In this manner, John Lewis can perform their activities properly.
Compliance with employment legislation: There are many employment law which firm
has to follow so that company can survive in market and can maintain positive image in society.
It consists of age discrimination act, 1967 which means that there should be no discrimination on
basis of age against workers aged 40 and older. Hence, John Lewis can use this act and treats all
staff members equally. They do not perform any discrimination on basis of age.
1.4 Environmental issues in CSR
There are different environmental issues and problems which is faced by company. Issues
faced by John Lewis are described below:
Recycling policies: Company can create recycling policy in which it recycles all
materials. Hence, it is a time consuming method and sometimes staff members do not adopt this
policy. So, it has to explain all workers about the advantages of this policy so that all employees
can easily adopt the policy.
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Sustainability: It is difficult for company to sustain the resources for future. All persons
are consuming the resources so it is difficult for company to preserve the resources for future
generations (Fransen, 2011). It is a major issue and company has to create plans and policies to
preserve the resources for individuals. Hence, firm can earn more revenues.
Use of packaging: Company do not have to use polythene bags and hence they have to
pack the products in different manner (Hiller, 2013). It is also a problem for the company as
they have to think in different manner. Hence firm has to find another method and has to create
policies to make the packaging very attractive.
Logistics of delivery and use of scarce resources: John & Lewis has to determine the
vehicles to transport the products from one place to another location. They have to hire big
trucks as then only they can transport the products and hence they have to give huge rent to truck
owners. Firm also tries to use resources which are scarce and it is also a challenge for enterprise.
Pollution and carbon footprint: Company has to create policies so that there is no
pollution in environment. Carbon foot print means the pollution level including carbon dioxide
and methane gas which pollutes the environment. Hence firm has to create policies so that they
can reduce the level of pollution which is also a tough challenge for the company.
1.5 Environmental and political issues in CSR
There are different environmental and political issues in CSR. Issues faced by John and
Lewis are described below:
Location of suppliers: Sometimes it is difficult for company to find the location of
suppliers. Hence firm has to waste the time in finding the location of suppliers so that firm can
contact them. Organisation cannot focus on important activities. This directly wastes time and
firm cannot perform all activities in proper time.
Supporting local business: John Lewis do not have huge amount of money so that they
can give finance to other local businesses. Hence it is difficult for company to give support to
small businesses. Thus firm cannot earn huge revenues.
Supporting developing countries: Company do not have huge finance to provide to
developed countries. Hence it cannot support the developed countries. Through this they cannot
earn huge revenues and cannot maintain good image in minds of all people.
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Fair trade: Company has to perform fair trade and do not transports illegal products and
items to other countries. It is also a major issue and at same time firm do not have to import
illegal products. Thus company has to create strategies for performing fair trade.
Non acceptance of global agreements: It is difficult for company to accept the global
agreements such as Kyoto. Kyoto is done so that there can be reduction in carbon dioxide level
in country (Kim and Park, 2011). It is also a big issue which is faced by company.
1.6 Social and community issues in CSR
There are different social and community problems which are faced by company. Issues
faced by John Lewis are described below: Employing socially disadvantage and disabled people: If socially disadvantage people
do not have proper and effective knowledge in performing the work then they cannot give
good results. Hence, organization cannot perform well and cannot finish their activities in
time (Mason and Simmons, 2014). Sponsorship: In this step, company promote the product and services through many
programmes and events. Due to this reason firm has to invest huge money and thus firm
cannot focus on other important activities and tasks.
 Encouraging education and training volunteers: Organization tries to enhance
knowledge of staff members by organizing various training programmes. Hence it has to
waste money on promotional activities. Thus they cannot focus on other tasks which
hampers their performance.
TASK 2
2.1 Evaluate benefits of CSR to employees
There are different benefits of SCR to staff members. Benefits of employees in John and
Lewis are described below:
Improved working conditions: Organization has given donation to many charitable firms.
Hence organization can earn huge revenues and thus they can give more salary to staff members.
This can directly increase the standard of living of many workers.
Lack of discrimination and compliance with regulation: There is no discrimination
among staff members and all workers follow the rules and regulations. This directly motivates
workers to perform well and can give superior results.
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Whistle blowing policy: This policy means that employees can report the illegal
activities, misconduct or failure to act within the Council. This motivates workers and this results
in improving the performance of workers (Matute‐Vallejo, Bravo and Pina, 2011).
2.2. Evaluate impact of CSR on supply chain
CSR has a huge impact on supply chain of company. Impact of CSR on supply chain of
John Lewis are:
Ethics in production: There are various ethics which are related to production. Company
produces and quality of product and give superior services to people. This is possible only due to
CSR. This results in development of various ethics in company (Melo and Galan, 2011).
Responsible sourcing: Due to CSR activities and tasks, company can focus on social and
environmental aspect other than cost and quality. Hence they can protect the environment and
firm can maintain good image in society.
Reduced transportation costs and carbon footprints: Firm can directly reduce
transportation cost due to CSR activities and tasks. Firm can also decrease the carbon dioxide
level in environment and can maintain positive image in society.
Use of technology in supply chain management: There is use of advanced technologies
in market. Hence company has started using latest techniques and tools. This results in enhancing
the production level and organization can earn huge revenues.
2.3 Impact of CSR policy on business performance
There is a huge impact of CSR activities on business performance of organization. Impact
on John and Lewis are:
Improved sales: Organization creates various policies and plans to perform CSR
activities. It results in increasing the sales and hence company can enhance the market share.
Improved profits: Organization can easily increase their profits by performing many
social activities. This helps the organization to maintain positive in society.
Conflicts of interest between stakeholders: Various stakeholders have different interest
and they give different advices to company. For example, customers say that organizing
programmes to reduce poverty is effective. While managers say that explaining users by going to
the home in efficient. Thus there are conflicting interests in the company.
Competitive edge: Firm can easily maintain competitive advantage by earning huge
revenues. Thus organization can give strong competition to other companies.
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2.4 Impact of CSR on marketing strategy
There is huge impact of CSR on marketing strategy. Impact on marketing strategy of
John Lewis is described below:
Ethical policies and brand differentiation: Through CSR activities firm can create
ethical policies and rules (Minch, 2011). Hence firm can perform better and this results in
improving performance of firm. It also helps the company in creating different products and
hence this results in brand differentiation (Grinstein and Blekher, 2015).
Recognition of various cultures: Firm helps the poor people and thus it can easily help
the persons which belonging to different cultures. Hence it can promote diversity and thus it can
earn huge revenues.
Cause related marketing campaign and conflicts: Due to CSR activities company can
easily run marketing campaign with a particular reason. This helps the company to earn huge
profits and can increase the market share.
Sometimes there are conflicts and issues also as all stakeholders give different advices to firm.
Customer willingness to pay more for ethical products and shareholders return for
investment: Due to marketing strategy of company sometimes users can pay more as
organization is selling more ethical products. This helps the firm in earning huge revenues. This
also helps the company to measure the profitability through adequate return on investment ratio.
Increased costs: It results in increasing the cost of company as firm is performing many
social activities. Hence firm can easily earn huge revenues and can enhance the market share.
2.5 Potential conflicts which arises between needs and expectation of shareholder's
There are various issues and conflicts which arises in stakeholders. For example staff
members wants that sponsorship activities can promote the social activities and if company do
not organize the sponsorship programmes then, company cannot satisfy the needs of all
employees. This leads to conflicts and problems in the company. Potential conflicts include the
differences between need and expectation of stakeholders. Staff members want that staff
members want that they are promoted to higher level and CSR percentage has to be increased.
But company has in only come percent of CSR and do not promote staff members. This is a
potential conflict as there is deviation between requirement and expectation of workers.
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TASK 3
3.1 Review CSR policy of specific business
Message trust is a not for profit organization which creates various strategies and policies
to help poor people. It was established in 1992. Company provides support to many charitable
trusts and give shelter to 12 homeless female asylum seekers with a safe place so that they can
sleep every Sunday throughout the Winter.
Good seeds gardening is an activity which is performed by the company. It helps the firm
in creating effective and efficient policies and hence it can maintain good image in society
(McWilliams, 2015).
For example, Marks and Spencer has launched plan A in which they have create many
objectives. It includes three challengers such as increasing pressure on finite resources, rising of
social inequality and need for healthy and sustainable lifestyle. In 2015 they had saved many
plastic bags so that they can raise the money for charities.
3.2 Evaluate extent of voluntarism in CSR policy
Volunteering is performed in company. Hence firm can easily earn huge revenues and
can enhance the market share. Different pressure groups are there which protest against
company's CSR activities (Wagner and Disparte, 2016). Hence, firm has to explain all these
pressure groups. Firm has recruit educated and competent employees so that they can perform
activities related to volunteering efficiently and effectively. This helps in earning huge revenues
and firm can maintain positive image in minds of all people.
3.3 Recommend changes to CSR policy to benefit stakeholders
Various changes are organised so that form can run their functions in proper manner.
Company. Firm is adopting the business policies and ethical leadership. It is also creating ethical
rules in production and sales. Various codes of conduct are followed by firm and different
environmental reports were created by company so that they can perform activities in effective
and efficient manner. This helps the firm in earning huge revenues.
Company can adopt the ethical leadership so that company can increase the satisfaction
level of customers and the employees. Firm can adopt ethics in production so that supplier can
also follow the ethical rules and ethical rules in sales so that company can increase satisfaction in
minds of local communities. At same time owners are satisfied as company is following the
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ethical rules and regulations. Hence changes in CSR policy give many benefits to different
stakeholders.
3.4 Evaluate potential impact of changes in CSR on business performance
There are various factors which impact the business performance. Company can maintain
positive in minds of all people and they can increase their sales and revenues. Enterprise can
create rules and policies so that it can manage the risk related to future (Hopkins, 2016). Firm
can also maintain competitive edge on other companies and can retain staff members for longer
period of time.
If company is following all the rules and regulations, then firm can easily maintain
positive image in minds of people in society. At same time, it can deal with many risks such as
firm can create that products which are beneficial to society. This results in improving the
business performance. Hence, firm can increase the sales and generate more revenues.
Organization can also maintain competitive edge on other companies.
CONCLUSION
From above report it has been concluded that corporate social activities are important for
every company. Various current corporate social responsibility issues are faced by company that
are solved through designing specific strategy or report. Understanding impact of CSR activities
policies in various stakeholders. Recommendations are given for responsible business practice.
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