An Examination of Tesco's Corporate Social Responsibility Management

This report delves into Tesco's corporate social responsibility (CSR) initiatives, examining how the UK's leading retailer integrates social and environmental concerns into its business practices. It highlights Tesco's commitment to CSR, driven by stakeholder expectations, ethical considerations, and the desire to contribute positively to society. The report explores Tesco's approach to CSR, including its environmental efforts to reduce energy consumption and emissions, its sourcing strategies focused on fair trade and local suppliers, and its commitment to corporate sustainability through employee well-being and diversity. It also analyzes how Tesco's CSR activities influence consumer purchasing decisions, fostering customer loyalty and enhancing the company's competitive advantage. Ultimately, the report demonstrates how Tesco's dedication to CSR not only benefits society and the environment but also contributes to its overall business success.

Running head: CORPORATE SOCIAL RESPONSIBILITY-MANAGEMENT
CORPORATE SOCIAL RESPONSIBILITY-MANAGEMENT
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Executive Summary
The key purpose of this report is to study the role of corporate social responsibility (CSR)
practices or initiatives undertaken by one of UK’s leading retailers, Tesco. A range of factors
have beenmentioned as significant in forming the existingdrive behind CSR activities. Efficient
CSR activities tend to increase superior stakeholder responsiveness of corporate ethical, social as
well as environmental behaviour; direct demands from shareholders along with investor
demands, pressure from associates in addition to an augmentedlogic of social responsibility. It
has been noted that CSR has gained growing recognition amongst business enterprises as a
significant constituent in new as well as rising forms of power and authorityas it aids them to act
in response to elementary modifications in the business setting as a whole. The report has offered
inclusive insights of the way Tesco, one of the leading UK retailers has been fundamentally
dedicated to CSR activities and the way company’s approach towards corporate actions have
been persuading its business performance.

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Table of Contents
Introduction......................................................................................................................................3
Tesco Approach to CSR activities and Ranking..........................................................................3
Tesco’s CSR activities.................................................................................................................5
Tesco’s approach to CSR influence consumers’ purchasing decisions.......................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
Within the previousdecade corporate social responsibility (CSR) has been receiving drive
across the business sector. With its substantial success it is seen to be ever moreelevated on
boardroom programmes. Majority of the UK’s chief retailers are recognized as foremost
employers who carry onremaining efficiently at the top edge of innovation and progress(Mann et
al. 2014). Furthermore, many of the UK retailers in recent times have considered the influences
their business operations have on the environment, society as well as on the financial system.
This growing influence have led the companies to attain interest to converse their promise to
CSR to their stakeholders, clientele, workforce, to government and lastly to the public in general.
CSR is significantly embedded in the appreciation that businesses are significant part of the
public and that as such they comprise immense competence to make a constructive contribution
to social purposes, objectives and targets. Rangan, Chase and Karim (2015) have noted that
different organizations comprise a diverse range of conceptualizationsregarding CSR. However,
Commission of the European Communities perceive CSR as an idea in which business
organizations integrate social as well as environmental issuesin their business performance in
addition to interactions with shareholders on anintentional basis. The purpose of the report is to
evaluate the way Tesco, one of the leading UK retailers have been intrinsically committed to
CSR and the way company’s approach towards corporate actions have been influencing its
business performance.
Tesco Approach to CSR activities and Ranking
CSR is essentially central to Tesco because it develops significant business sense in the
U.Kretail industry. It is about being a responsible and diligent organisation where the company’s
shareholders, clientele and others will expect the company to act in a responsible
manner(Ailawadi et al. 2014). Tesco primarily execute business operations through its
supermarkets in over 10countries namely, the United Kingdom, Poland, Czech Republic, South
Korea, Taiwan as well asHungary, Ireland and Malaysia and comprises a market leading position
in 6 of these countries which includes the U.K. Reports of Baden (2017) have revealed that
Tesco comprising over 1900 stores in the U.K andwith over 222,000 workers and serving a

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population of 60 million in theUnited Kingdom has sustained as one of the core market of the
Tesco with over 1900stores. However, the primary strategy of the company lies on providing
supreme and exceptional value and extensive choice for consumers by ensuring that the
company’s market share continues to elevate(Ailawadi et al. 2014).
The UK business majorly represents over 85% of the company’s revenue and employees
more than 79 % of its work force. Hou et al. (2016) have noted that Tesco policies and
regulations have been structured in accordance to the UK business standard. Tesco’sbusiness
performance and employment practices have helpeditsbusiness to attain a substantial position
and develop into the major contributor to the UK economy at both National as well as local level.
However as the company expands, their international business will in order togenerate local CSR
reports which will centre the issues relevant to the market they operate in. The company’s CSR
strategy is supported by a well-established cross-functional CSRcommittee. The primary aim of
the CSR committee is to attain a minimum of four times a year(Tesco.com 2019).
Tesco’s CSR activities have been consistently acknowledged by environments associated
with CSR. Reports of authors have revealed that the organization executes various actions from
the area of CSR which has aided the company to receive highest diamond award. Moreover,
according to ESG or CSR rating, Tesco for its sustainable CSR performance has attained the 86th
position in 2017 among 31,583 companies worldwide (Candelo, Casalegno and Civera 2014).
Tesco CSR / ESG Ranking

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Source: (Rangan, Chase and Karim 2015)
Tesco’s CSR activities
Environment-Environmental issues have been recognised as the earliest and recently the most
universally stated range of CSR strategies in the midst of UK major leading retail organizations
such as Tesco. These environmental concernstake account of energy consumption raw material
used as energy emissions water consumption volume of packaging recycling and chemical usage.
Tesco is fundamentally committed to reduce energy usein addition to emissions of greenhouse
gases. The organisation as per Khan and KoracKakabadse (2014) has spent substantially in
energy economy plans and is aiming to decrease energy use per square foot by 55% within 2019.
However it has been reported that the company contributes to the U.K emissions trading scheme
and is highly inclined in generating an absolute cutback of79000 tonnes of greenhouse gases
more than 5 years at the direct gap of 190 stores. Moreover, the volume of Tesco greenhouse gas
production into the air generate from the transportationallocationtask force which has led to the
increase in the number of cases of product delivered per litre of oil consumed(Tescoplc.com
2019). Furthermore, Tesco has recognised the disposal of waste tends to create a considerable
burden on the atmosphere and information of implementingprocess in order to eliminate waste
materials for reuse process to decrease this crisis and further encourage its suppliers in the usage
of less packaging(Lyon et al. 2018).
Sourcing- The sourcing of food has become an increasingly contemporary and controversial
subject for large retailers like Tesco. The company has been recognizing that their consumers
have the power to be fullyconvinced in the food they pay for. Tesco’s approach to CSR is
primarily rely on a range of values namely justified terms of business, developing health and
safety along with equal opportunities, protection of children. Reports of de Jong and van der
Meer (2017) have revealed that for example, considering the fair terms of trading, Tesco has
emphasized that while distributors have to take actionfor the extremely competitive setting
whereby it will try to mitigate unnecessary use of its size in order to generate inequitableand
excessive demands on suppliers. Furthermore, the code of conduct related to the safeguard of
children take account of the International Labour Organisation (ILO) conventions on child
employment as the lowest standard in addition to aprobability that employers will support

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qualified young employees to be present at classes or take part in education or government
funded educational plans (Ailawadi et al. 2014).
Meanwhile,Szczuka (2015) has mentioned that while global sourcing has continued to
expand Tesco, it has acknowledged the company to engage with local as well as regional
suppliers. Lyon et al. (2018) for example have maintained well-established strategy of addressing
local as well as regional food products in order to aid its clientele to support small scale local
food producers. Reports have revealed that throughout the U.K, Tesco currently has been selling
over 2,700 local lines along with labels on the range of lamb, pork and other red meats.
Nonetheless, drawing relevance to these factors,Szczuka (2015)has shed light on the emphasis
which Tesco has put on the significance of ‘being local and buying locally’. Tesco has reportedly
established regional buying teams in order to help in the classification of local suppliers. The
company further facilitates several farm quality assurance schemes within the United Kingdom.
Simultaneously, Tesco has shed light on its dedication towards local supply in its global business
operations. For example,in Thailandlocal products have been sponsored by guaranteeing in sales
space for local food producers and on the other hand in Poland Tesco have established a
partnership with Poland now campaign with an objective to promote Polish produce.
Additionally, several UK leading retailers have implemented a variety of facilities in order to aid
customers suffering from disability(Tescoplc.com 2019). These services include wide aisle
checkouts, electric shopping vehicles, hearing equipments, online shopping facility with home
delivery services and PWD accessible restrooms. According to reports of Candelo, Casalegno
and Civera (2014), in 2015 Tesco has re-launched its healthy living club which aims in offering
explicit information to consumers on general health weight loss as well as green and organic
products. Meanwhile, in the same year Tesco to attain competitive advantage has eliminated all
artificial flavours and prohibited the use of mechanically recovered meat in its food products.
Corporate sustainability- Khan and KoracKakabadse (2014) have reported that a major
proportion of leading retailers such as Tesco and Sainsbury have been exhibiting their
commitment to the stakeholders by claiming the importance of employee treatment to attain
success. Tesco has been exhibiting its commitment towards employee sustainability through
varied approaches such as by incorporating equal remuneration and benefits for both men and
women employees, improved employee training and knowledge development sessions along

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with work life balance. Tesco, as a leading UK food retailer has been increasingly committed
towards recruiting and retaining culturally and socially diverse human resources by emphasizing
on attracting the most proficient and experienced employees and achieving the needs of the
communities in areas where they operate in (Tesco.com 2019).
The socially responsible commitments typically have been reinforced by the prerequisite
of an incorporated resilient work setting and by supporting the need to proficiently balance work
and personal engagements. Furthermore,Rangan, Chase and Karim (2015) have shed light on the
need for modern organisations to target employees who have the potential to serve customers as
primary component to the company’s values principles and further highlight the importance of
recruitment and retention. For example, Tesco in order to advance its CSR activities has been
offering its workforce with incomparable benefits, packages which include equal remuneration,
flexible working hours and leaves, profit sharing, subsidized meals along with employee
concession, vouchers for employees children as well as generous amount of retirement
fund(Baden 2017).
Tesco’s approach to CSR influence consumers’ purchasing decisions
Tesco has been highly proactive in driving innovation and growth through its
CSRactivities. In several ways they have developed into one of the dominant retail players
within the whole of the UK food supply chain. According to Khan and KoracKakabadse (2014),
corporate social responsibility activities have proven to be directly linked to customer
satisfaction and their purchase behaviour which typically results in improved consumer loyalty
and engagement. Fernie and Sparks (2018) have mentioned that Tesco has adapted several CSR
activities by means of sustaining its recruits, contributing to environmental crisis and product
distribution in order to stimulate its consumers to perceive its brand and having superior service
quality. The extensive range of CSR activities of Tesco ranging from environmental crisis to
employee development havelead its stakeholders identify its competencies thus resulting to be
psychologically attached and gather support for the company and improve its intentions in its
business practice (Jones, Hillier and Comfort 2014). Tesco has been efficiently establishing its
trust with its key stakeholders especially customers and employees which have resulted the
company to cut its organizational expenses and hence improve financial performance and gain

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competitive advantages position in the UK retail sector. According to reports of Spyra (2017),
Tesco for its UK stores has beenstrengthening its foundation by substantially investing in the
shopping experience and enhancing the company's product range quality and service. It has been
revealed that majority of Tesco consumers have distinguished its efficient CSR performance and
subsequently the company has anticipated introducing the new Tesco and its establishedCSR
performance to each and every client(Jones, Hillier and Comfort 2014).
Conclusion
Therefore from the above discussion, it can be concluded that Tesco has evidently
exhibited its own approach to CSR with considerable variations in its substance, nature and the
level of reportingprocedure. The company’s perception that fundamental interest of all
stakeholders fundamentally influence the company’s economic viability and retention of key
stakeholders who play decisive role in Tesco’s continuing growth and economic stability and
security for the stakeholders and further to enhance their market position. Moreover, it has been
noted that Tesco’s environmental initiatives primarily seek to deal with efficient reduction of
energy use and waste generation it also purposes at reducing the company’s expenses.
Furthermore, focusing on social issues such as resilient and flexible working environment, health
and safety at work,convenient working hours, proper balance of work and life improved in
addition to employee training and knowledge development along with management growth all
play significant role in supporting as well as promoting steadiness reliability,security, efficiency
and productivity within the workforce.

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