Analyzing Corporate Social Responsibility Impact on UK Supermarkets

This research project investigates the impact of corporate social responsibility (CSR) on the financial performance of the 'Big 4' supermarkets in the UK: Tesco, Asda, Sainsbury's, and Morrison's. The study aims to determine the relationship between CSR activities and financial outcomes, including profit ratios and investor relations. The research explores the supermarkets' CSR strategies, including their annual and sustainability reports, and assesses the extent to which these reports meet established guidelines. The methodology involves a review of existing literature and the analysis of primary data, focusing on financial performance metrics and CSR initiatives. The report also considers the significance of the research, its rationale, and the limitations encountered. The project seeks to provide insights into how CSR activities can improve a company's financial performance and sustainability within the competitive UK retail market. Ethical considerations are also addressed, ensuring the integrity and validity of the research findings. Finally, the report will provide conclusions and recommendations.

Research Project

Table of Contents
INTRODUCTION ...........................................................................................................................................3
Overview of the research............................................................................................................................4
Research aims and Questions .....................................................................................................................5
Research Aim.....................................................................................................................................5
Research questions:...........................................................................................................................5
Hypothesis ........................................................................................................................................5
Significance of the research...............................................................................................................5
Rationale of the research..................................................................................................................6
Limitations of the research................................................................................................................7
RESEARCH METHODOLOGY.........................................................................................................................7
Types of Research..............................................................................................................................8
Research design ................................................................................................................................9
Research Approach............................................................................................................................9
Data Collection Method/Analysis....................................................................................................10
Primary data:.........................................................................................................................10
Research choice...............................................................................................................................11
Ethical consideration ................................................................................................................................11
Research Plan............................................................................................................................................12
Conclusion and Recommendations ...........................................................................................................12
Reflection........................................................................................................................................12

INTRODUCTION
Research project is going to show how corporate social responsibility impacts upon
financial performances of big four supermarkets that are doing business in United kingdom and
in other countries as well like Tesco, Asda, Sainsbury's and Morrison's. Within United kingdom,
it can be said that the supermarkets are carrying a market share approximately to 76% or maybe
more than that which helps them in grabbing a good position not only in the UK market but it in
other countries as well. On the other side, corporate social responsibility is said to be crucial
element, which is playing important role for supermarkets like Tesco, Asda, Morrison’s and
Sainsbury’s. Building a positive image among customers with the help of CSR has become
normal in present time but it is also required for companies to focus upon financial performance
is well as this can directly e impact upon company’s performance level as well. Along with this,
many researchers has developed reports on both financial performance level of the company,
which good affected by CSR activities performed by them. But, this present research report will
help in focusing upon the four different supermarkets of United kingdom that are famous in all
over the world. This will automatically make the whole investigation to go much more authentic
and detailed in regards to the four supermarkets like ASDA, Tesco, Sainsbury’s and Morrison’s.
Therefore, it can easily be understood that focus that research is going to be built with
authenticity. Apart from that, it has been analysed that CSR activities are directly connected with
the investors and other sources from which an organisation within the supermarket can raise
funds for itself. Therefore, it is important for companies to perform CSR activities so that their
financial performances can be improvised based on the trends, just because in present time the
competition among different supermarkets like Tesco, Sainsbury’s, Morrison’s and Asda is high
in nature. It is much required for business organisations that are dealing within the supermarket
that conducting CSR activities is not only a part of making profits out of it, but it carries a wider
area that gets affected of the company. In simple words, CSR not only e helps a company in
enhancing the profit margins but it can also help them in sustaining within the competitive
market for a longer period of time and this can only be done through building a much effective
CSR act that could help company in grabbing the attention of investors. Along with this,
corporate social responsibility is also helping business organisation like Tesco, Sainsbury’s,
Morrison’s and Asda in reaching to new heights, where they raised competition for other retail

supermarkets like JS Supermarket, LIDL and so on. This has raised many questions not only for
the retail industry but for other fields as well, where corporate social responsibility is something
that could help business firms in reaching to new heights.
There are many cases, which came in front where an organisation was looking forward to
conduct the CSR activity, but somehow it lead the company to face a range of issues like less
attention of investors was being grabbed and many more. This happened because of the objective
that company was trying to improve profit margins through conducting CSR act. This made
investors realize that the company is moreover believing in earning profits, but it should also so
keep its focus upon social responsibilities as well that they are having in regards to the public of
all over the world.
Overview of the research
Companies that are dealing within the Supermarket industry of United Kingdom, has
faced a range of issues in regards to their financial performance in last few years. This has
happened due to less CSR activities, that has been done by the business organizations. This
impacted negatively upon overall financial positions of different supermarkets like Asda, Tesco,
Sainsbury’s and on Morrison’s as well. Therefore, for the famous supermarkets it will be
required for companies to take into consideration of all the activities that are directly linked with
the corporate social responsibility. This will help, business organisations like Tesco, Asda and
more to improve their overall financial position throughout the world. It is much required for
business organisations to develop a range of strategies in regards to the CSR, so that
development can easily be seen within the market of United Kingdom. If it is talked about,
corporate social responsibility along with the financial performance of a business company
dealing within retailing business sector as a supermarket. Along with this, it can also be said that
it is pretty much required for a business organisation to develop much more effective corporate
reports, as this helps in developing the interests of targeted investors. Various big organisations
has now developed both integrated non-financial along with financial information within their
annual reports.

Research aims and Questions
Research Aim
Present investigation research is being developed to analyse the impact of corporate
social responsibility reporting on the financial performance of the Big 4 supermarkets in the UK.
In order to attain this, researcher will be calculating the profit ratios of different organisations
like Asda, Tesco, Morrison’s and Sainsbury’s considering there financial books. In regards to
CSR, and the activities related to this are being done bye please 4 supermarkets and the
researcher will be comparing all of these organisations focusing upon theirs financial
performances. Researcher will use annual report, news articles, UK supermarket CSR report and
sustainability report to gather information on where these firms have been socially responsible.
Research questions:
 How the Big 4 supermarkets measure CSR ?
 Does CSR improve the financial performance ?
 To assess the extent to which CSR report meets the guidelines ?
 To provide the positive and negative impact the supermarkets have on social,
environmental and economy ?
Hypothesis
Based on the aims of the research, the hypothesis will be as follows:
 H1: There is a relationship between the CSR activities and the financial performance.
 H2: There is an impact between CSR activities and financial performance
Significance of the research
The reason behind conducting the investigation is to analyse how CSR activities could
help a business organisation that is dealing in the supermarket industry of United kingdom. This
title has been taken into consideration because of companies has kept their focus on CSR
activities only to improve their profit margins but they also should understand that how CSR acts
can help organisation to a wider context. It is important for companies to innovate themselves
and developed CSR activities in a way where they could help both profit margins of the company
and raise standards of living beings. In past few years, business organisations has let themselves
to go through range of problems in regards to their fundraising techniques. This happened due to

supermarkets like Tesco has only kept their focus upon enhancing the profit margins. Instead of
that, for running good range of profits it is required for the company to have positive image as
well within the market in which it is performing its operations.
The 76% market share which has been discussed above, it reached to a declining position
and this happened due to the involvement was found that organisations for less focusing upon
improving the living standards of citizens of United kingdom and of other countries. Here,
companies has kept their focus on enhancing the profit margins. In order to analyse the activities
done by business companies, like Tesco, Sainsbury’s, Asda and Morrison’s in regards to CSR,
researcher has taken into consideration of their annual reports that will investigator in pulling out
much more favorable outcomes in regards to the chosen topic. Another reason behind conducting
the investigation on the chosen topic is the self-interest of researcher and the trend which is
going in present time to less focus upon the standardization of living but to enhance the profit
margins of the company.
Rationale of the research
The vital reason behind conducting the research is to enhance the knowledge in regards to
how financial performance of various supermarkets can effectively improvised through
considering the corporate social responsibility activities. In past, if it is talked about various high
street supermarkets like Tesco and Morrison's they consists with their own policies in regards to
develop the interests of investors in their future plans. Here, an example can be taken is of a big
supermarket i.e. Tesco, where company has done charity for donations, from various local food
banks. This is one of the crucial strategy that has helped Tesco to improve the overall
performance level in regards to finance and funding.
This was done by organisation to grab the attention of investors, so that funds could
directly be raised for upcoming plan. There is another example can be taken of Morrison's, which
was effectively donated approximately £18 millions to the schools (21,000), in order to develop
mentality of students in regards to keeping the environment much more safe and effective in
nature as well. This has helped firms like Morrison's, Sainsbury’s, Tesco and Asda to enhance
their own performance level in much effective and efficient manner. But, there were many cases
that came in front of public like green washing activity and so on. This impacted negatively, not
only on company's image but on financial performances as well, because customer's opinion in

regards to the company got changed due to the wrong doings, that took place. Another reason
behind selecting the topic was self interest of investigator who has developed his interest in
regards to the chosen topic, due to corporate social responsibility is said to be one of the crucial
business factor that majorly aid business organisations in reaching to new heights.
Limitations of the research
Term, corporate social responsibility is said to be one of the crucial element that majorly
helps a business organisation in gaining competitive advantages through attracting customer's
towards different products and services. But, this factor is hard to study in depth because the
reason behind this is that in present business scenario, business companies that are dealing within
retail industry has kept their focus on improving profit margins. The researcher here, will be less
efficient and it is may be possible that overall investigation would pull out a less authentic based
data. Here base, which has been created by researcher will only focus on the sections impact on
financial performance of companies like Asda, Sainsbury's, Tesco and Morrison's which could
be considered as Big 4 Supermarkets of United Kingdom.
RESEARCH METHODOLOGY
Research methodology is being considered as a systematic plan, which could help in
developing an investigating research report. On the other hand, it is being found that many
sociologists has considered both qualitative along with the quantitative research methodology,
that may aid in pulling out favourable outcomes in regards to the chosen topic. This majorly
stays enclosed with different things like survey, experiments, participant observation, secondary
or primary data and more. Investigator mainly selects one research type from qualitative or
quantitative. It can be said that, without selecting effective method like research approach,
research philosophy, type of investigation, Data collection tools, sampling method, and many
more it is maybe possible that, corporal investigation might go wrong. since the researcher has
chosen to investigate on the topic that is impact of CSR activities on big for supermarkets of
United kingdom could help in reaching to new heights.
The investigator explains how the essential information and data to address the research
questions and objectives was gathered, shown and analysed. Data sources, research design, data
collection techniques, research instruments, research strategy, data presentation techniques,
analytical techniques, research reliability and validity could be considered as some of effective

approaches, that can be utilised in present investigating report. For this, research onion is
considered to be useful framework that can be used by investigator to identify best approach of
research. This framework has different layers which are shown as under:
Types of Research
Basically, there are two types of investigation can be done by a researcher, in order to
pull out favourable outcomes, it is the responsibility of investigator to take the right decision in
specified time frame so that correct information on the investigation can easily be carried out. In
present context, there are two basic types of investigation like quantitative and qualitative can be
utilised, that could help in reaching to new heights of knowledge in regards to the chosen topic.
Both of these researches are presented underneath:
Qualitative Research: This type of research is being done considering different
perceptions and ideas that particular individuals are having in regards to the chosen topic. It is
also said to be exploratory research, which majorly aid in enhancing the knowledge in regards to
the chosen opinions, reasons, motivations and so on a particular topic. Along with this, it can be
said that problems this type of research basically aid in improving the ideas or hypotheses for
potential quantitative research. Since, research conductor is looking forward to gather the
knowledge in regards to the chosen topic i.e. to analyse the impact of CSR upon financial
positions or performances of Supermarkets, of United Kingdom. With the help of this, maximum
benefits could easily be pulled out by researcher in specified time frame.
Quantitative Research: This research design relates to the design of a research project
which uses quantitative research methodology. The design varies depending on the method used,
which could be telephone interviews, face-to-face interviews, online surveys, or surveys by post
for instance. This type of investigation basically collects results in the form of numbers. Through
this, correct amount of results in numbers can easily be pulled out in specified time frame. The
data is supplied in a numerical format, and can be analysed in a quantifiable way using statistical
methods. Surveys can, however, be tailored to branch off if the respondent answers in a certain
way - for instance people who are satisfied or dissatisfied with a service may be asked different
questions subsequently.
In present investigating research, investigator has taken quantitative research to analyse
impact of Corporate Social Responsibility, on financial performance of different famous

supermarkets of United Kingdom. The basic reason behind utilizing this approach is that the
researcher was focusing upon analyzing the impact of Corporate Social Responsibility on
financial performances of 4 big supermarkets of United Kingdom. With the help of this,
maximum benefits can easily be gained by staff in a short span.
Research design
Developing a much more effective investigating design could help researcher in
conducting the investigation in a much more rightful manner. There are a range of research
designs like experimental, descriptive and more that can be used by an investigator, while
performing an investigation on a particular topic. Here, pulling out favourable outcomes stays
the main aim of investigator through selecting a much more effective and efficient research
design. In present context, researcher has utilised longitudinal design, the reason behind this is
selected topic, where investigator is looking forward to show the relationship among corporate
social responsibility along with the financial performances that four big and famous United
Kingdom's supermarket had in last five financial years from 2013 – 2018. Here, the reason
behind using longitudinal research design, was to analyse the repeated observations of the same
variables that has done the analysis on financial performances of ASDA, Tesco, Sainsbury's and
Morrison's in a longer run of 5 years. This is being considered as an observational study, where
the impact can effectively be analysed of Corporate Social Responsibility on financial
performances of big supermarkets of United Kingdom.
Research Approach
Research approach is a plan and procedure that consists of the steps of broad assumptions
to detailed method of data collection, analysis and interpretation. It is therefore, based on the
nature of the research problem being addressed. This is being considered as one of a crucial
section, that plays an important role for a researcher while conducting an investigation on a
particular topic. With the help of this, researcher could easily develop effective results in
specified time frame. Here, investigator has utilised deductive approach, and the reason behind
this was that the investigator has taken quantitative research into consideration. Basically,
research often translates into the use of statistical analysis to make the connection between what
is known and what can be learned by the investigation, which developer of research is looking
forward to analyse the financial performances of Supermarkets of United Kingdom and these are

Asda, Tesco, Sainsbury's and Morrison's. Along with this, it is said that analyzing the data with
quantitative strategies requires an understanding of the relationships among variables by either
descriptive or inferential statistics.
Descriptive statistics helps to draw inferences about populations and to estimate the
parameters is used because the research is based on existing theory and results of prior research.
On the other hand, it can be said that deductive approach is directly connected to quantitative
approach and on the second side, inductive approaches stays connected with with qualitative.
Considering the quantitative investigation, it can easily be said that A quantitative research is
more appropriate for this study because it assesses the relationship between CSR and financial
performance using data from the big 4 supermarket in the UK. A quantitative research study is
suitable when conducting research involving statistical figures because the data and information
are reliable. On the other side, it can also be said that since the business organisation,
Data Collection Method/Analysis
Data collection is method of collecting the data. In other words the systematic gathering
and collecting of data for a specific purpose from different sources. The researcher use this
approach while conducting the research and it has two method of data collection that are
expressed as Primary and secondary data. The main objective of this is to collect all the related
information about the issue and makes the decisions.
Primary data:
Primary data refers to that data which are collected for the first time for specific purpose.
This method is very effective but it consume so much time and cost of the researcher. This give
effective result to researcher while doing research. There are many method of collecting of
primary data , some are observation, survey, questionnaire, personal interview, focused groups,
experience telephonic interview, experiments. This has high accuracy and need specialized and
skilled person to collect data. This is been considered as one of the primary most Data collection
tool that could help in in collecting much more authentic data then secondary research but it
might take time as well in regards to pulling out the favourable information. Since the chosen
topic over here in present investigation is to analyse the impact of CSR activities on financial
performances of big four supermarkets of United kingdom like Asda, Tesco, Sainsbury’s,
Morrison’s where financial reports of all the four business organisations that are dealing in

supermarket industry e is going to be presented it is may be possible that choosing this type of
Data collection tool will not work. As the financial reports are going to be enclosed under this
type of investigation this could be considered as less usable type of Data collection tool for
present investigation and this is why researcher has taken into consideration of secondary
research rather than going for primary investigation.
Secondary data:
Secondary data are those which are previously collected by someone else with for a
specific purpose. As collecting this data, it saves the researcher time and cost. Secondary data
can be collected by news paper, weblogs, magazine, library, internet, online websites, journals
and many more. In this research, the researcher has used secondary data for conducting research
on” analyzing the impact of CSR on financial performances of four super market of United
Kingdom”. The secondary data is extracted form annual report of companies, published articles,
journals, books, weblogs, online websites and many more sources. As this save time and cost and
other resources as they are already available. The researcher has used pie chart, tables, graphs for
presenting and analyzing the various factors. Since the researcher is going to keep its focus on
analysing the five years of annual reports of Asda, Tesco, Sainsbury’s, and Morrison’s, this type
of data collecting tool will help in cooling of favourable outcomes in regards to the chosen topic.
Annual reports cannot be identified with the help of primary research tool and this is why
investigator has taken into consideration of this type of research data, where the information is
going to be gathered from annual reports from last 2013 to 2018. Through this, effective results
can easily be pulled out by researcher in in much effective and efficient manner.
Research choice
An analyst gives major emphasis on type of research design that are used while
gathering information that are utilised in conducting any investigation. There are systematic
structure that is in the form of hierarchy which include qualitative and quantitative techniques.
The researcher used these tools in an effective manner depending on the type of research
methodology. The qualitative techniques are used for gathering facts in form of question and
answers, by using likert scale where rating is done from highly agree, agree, neutral, disagree
and highly disagree. The questionnaire forms are prepared taking in consideration these ratings,
also both open ended as well as close ended question could be used by researcher. Whereas the

quantitative tools are used when numerical information have to be collected and ordinal scale
could be used by analyst in forms that has to be filled up by respondent.
Research philosophy
A research philosophy is being considered as the belief of an investigator in regards to the data
for a particular phenomenon has been taken to analyse its impact upon different factors. It
consists with different range of philosophies that can be utilised by investigator while conducting
an investigation on a particular. Here, it can be said that be data collection, analysation and its
utilisation basically it is all required for the researcher to listen to to all the aspects and perform
considering the dependent upon each other., analysed and used. The term epistemology (what is
known to be true) as opposed to doxology (what is believed to be true) encompasses the various
philosophies of research approach.
Time Horizon:
This element is considered as one of the most important techniques that are used by
analyst for identifying current time duration for completion of investigations. While conducting
research and finding solutions, most of the investigator uses effective Gantt chart which gives
innovative graphical representations of time allotted by manager while taking decision while
actually operating business activities for achieving long and short term objectives. In this
investigation, Gantt chart and timescales are used to represent the time which is taken to
complete research on selected topic. Gantt chart is a tabular representation of activities which are
conducted to complete an investigation. All the activities have given a determined time period
which can be estimated or fixed. Along with it, start and end dates are also presented on this
chart. With the help of this Gantt chart, an understanding can be built about the activities that
which task is important and time consuming. After developing gnat chart, timescales are
developed on the basis of the Gantt chart. These timescales are the graphical representation of
tabular presentation. In this particular investigation, where numerous tasks are planned to be
done, it is important to gain a quick insight about the time horizon each task requires. The benefit
which can be gained by these technique is efficiency and effectiveness in operations.