Impact of CSR Initiatives on Tesco's Brand Image: Research Project

This research project investigates the impact of Corporate Social Responsibility (CSR) initiatives on the brand image of Tesco, a major UK retail chain. The study explores the background of CSR and brand identity, highlighting the significance of CSR for companies like Tesco. The research aims to a...Read More

Research Project

Table of Contents
Table of Contents.............................................................................................................................2
CHAPTER 1: INTRODUCTION....................................................................................................3
1.1 Introduction and background of research..............................................................................3
1.2 Background of company........................................................................................................3
1.3 Significance of the study........................................................................................................4
1.4 Research statement................................................................................................................4
1.5 Structure of report..................................................................................................................5
CHAPTER 2....................................................................................................................................6
Research philosophy..................................................................................................................11
Research approach.....................................................................................................................11
Strategy......................................................................................................................................12
Time horizon..............................................................................................................................13
Data collection...........................................................................................................................15
Data analysis..............................................................................................................................15
Ethical consideration..................................................................................................................16
Validity and reliability...............................................................................................................16
REFERENCES..............................................................................................................................17
Books and journals.....................................................................................................................17

Topic: To assess the impact of CSR of company’s brand image operating in UK retail sector:
A study on Tesco.
CHAPTER 1: INTRODUCTION
1.1 Introduction and background of research
Corporate social responsibility is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large. Brand
identity is defined as the sum of the brand expressed as a product, organization, person and
symbol. For creating a positioning of the brand image in the market corporate social
responsibility is vital for the company to adopt (Lins, Servaes, and Tamayo, 2017). It reflects
that the corporate is functioning its business with compliance of ethical and social factors so that
it could achieve the growing position in the future. The current research project is based on
Tesco which offers wide variety of retail products & services to the customers. In this, the
present study will highlight how CSR initiatives impact brand image of Tesco (McWilliams,
2015). Hence, this study will present qualitative investigation related to CSR and thereby helps
in assessing the influence of CSR initiatives on customer's attitude and thereby company’s brand
value.
1.2 Background of company
TESCO is the one of the largest retail chain in the UK. It offers multiple sort of items from
grocery to garments in its store. CSR is one of the buzzing concept in 21st century as it is
believed that firm is making use of society resources and due to this reason, it must also take few
steps for welfare of society. Considering this concept TESCO every year conduct CSR activity in
its premises and under this it first launch its CSR campaign in 1996 in which main aim was to
protect energy at workplace. In this regard employees were instructed to ensure avoid wastage of
energy in premises. After performance evaluation it was observed that 35% energy consumption
reduced on per square foot. TESCO gave minimum 1% of its profit after tax on charity for
helping poor and helpless people. Thus, it can be said that TESCO understand its responsibility
towards society.

1.3 Significance of the study
Corporate social responsibility helps the corporate in improving the image of the business
and its goods and services. It provides the firm with the competitive edge in the market. It
enables the entity in attracting the new customers and can create customer loyalty. Research has
shown that customers are more likely to choose products they perceive as being produced in a
socially responsible manner. Customers and clients are influenced by a company's reputation in
social and environmental areas. Company can win the new business through CSR practices. It
assists in strategic management of internal and external risks in social and environmental areas.
It generates positive publicity and media opportunities due to media interest in ethical business
activities. The importance of CSR increases with globalization as both investors and customers
have become very sensitive to societal issues. It minimizes the negative impact of business
activities and create wealth and value for shareholders and community as a whole.
1.4 Research statement
Aim: The aim of present study is to investigate the impact of CSR activities or initiatives
on the brand image of Tesco.
Research objectives:
 To assess the trend of CSR initiatives in retail sector.
 To identify CSR activities performed by Tesco.
 To ascertain relationship between CSR and brand image of Tesco.
 To recommend CSR initiatives that Tesco can undertake for enhancing brand image.
Research questions
Q.1 What kind of CSR is done by Tesco in the recent times?
Q.2 Does CSR impact brand image of Tesco?
Q.3 What relationship exist between CSR and brand image of Tesco.
Rationale of the project depicts that Corporate social responsibility has been adopted by
every corporation in order to function ethically and fulfilling the sustainable responsibility

towards the society (Flammer, 2015). The Corporate social responsibility has both positive and
negative impacts on the brand image of the company. It helps in creating the strong brand image
while criticism against the organization leads to negative effect on the reputation of the entity. In
today's changing world it has become mandatory for every firm to work with the objective of
welfare of the society. From this study it is analyzed that corporate social responsibility influence
the working and sustainability of the enterprise in the changing circumstances (Saeidi, and et.al.,
2015).
1.5 Structure of report
Structure of report is given below. Introduction: In this section of the report background of research topic and company is
given. Along with it aims and objectives of the firm are also given. Thus, it can be said
that basic overview of entire file is given in this section. Literature review: In this section varied scholar’s articles are reviewed and positive as
well as negative sides of research topic are explained in detail. Research methodology: In this section research approach, design, data analysis and
discussion section is prepared. Analysis section: By using thematic or statistical tools gathered data will be analyzed in
this report. Discussion: In this section results will be discussed in detail by considering literature
review section details. Conclusion: At end conclusion section will be prepared based on literature review and
data analysis results.

CHAPTER 2
The literature review in the research project includes the current knowledge of the
substantive findings as well as theoretical and methodological contribution to the research topic
of analyzing the impact of corporate social responsibility on the brand image of the organization
operating the retails sector and in particular to identify impact on the Tesco Plc. In the literature
review the data and information from secondary sources have been collected and this so not
represent any new or original experiment. In the below presented literature review different
theme are extracted from the research topic it evaluate in depth research and get an insight over
the effect of CSR on the brand image of organization operating in retail sector.
Theme 1: The trend of CSR initiatives in retail sector.
According to Agus Harjoto and Salas, (2017), there is a substantial importance of CSR in
the achievement of the organization under the retail sector. The attempt of CSR and
reprehensibility completion by the organization is analyzed on the basis of set benchmarks in the
industry. In the UK many of the high street supermarkets including Morrison, Tesco, Marks and
Spenser have build up their own strategies and community championships who works in the
communities and local areas. Some of them are indulged in the activities of donating funds for
the areas affected by floods by setting up the point of collection for donations. Other than this
Tesco, ASDA and Aldi are engaged in setting up collection of the charity for the local food
banks. Sanisbury works for conversion of the anaerobic digestions into energy. Moreover, the
Tesco also donate surplus to the charity which it collected from various foods vendors of hoses
who are willing to contribute to the charity. Most of the retailers collected the funds from local
charity and donate them to the local causes.
On the other hand, Andreu, Casado-Díaz and Mattila, (2015) is of the opinion that the
corporate social responsibility does not stick To a single responsibility rather it is a wider terms
which defines the duty and obligations of the retail outlets in UK with various aspects. This
includes the different area to which the companies in retail sector owes a care of duty. Theses
sectors are first the company under which it required to maintain the profitability bad maximize
the wealth of the shareholder. The second sector to which businesses have duty is the society
regarding the environmental protection and works toward sustainability. The last sector entities

are responsibility is towards the society and communities in which it operates. For complying
theses obligation the organization are now adopting a new way of setting the benchmarks and try
to do what the best performer in the industry is doing under the corporate social responsibility.
This including collection of charity ad making donation, to recycle the used resources and waste
management.
However, Bhattacharya and Kaursar, (2016) presents the opinion food manufacturers and
retailers select from of array of the approaches to the corporate social responsibility. The choices
to market the CSR varies form market to market and care considered over time, space and
product. There are 8 different themes that affects the decision of the CSR aspect under the retail
sectors of UK. This includes community health and safety, animal welfare, the environment, fair
trade, Labour, biotechnology, novel food, procurement and purchasing. Among all theses themes
the community health and safety is most popular practice in the UK. The retail organisations
works in the direction of making the communities and local area a better place to live in by
offering the ethical conduct and nutritions septically for the vegan and frequently vegetarians.
This is domes by inclusion of nutrition values in the foods and edible products offered ad
manufactured by theses related to maintain the heath level of the communities, local areas and
domestic people.
On the other hand Cha, Yi and Bagozzi, (2016) is of the view that that the Corporate
social responsibility adhered by the companies under the retail sectors of the UK are directly
linked by the management of the organisation to their supply chain, buyer relation, marketing,
market differentiation. This leads the organisation to have an obligation of the CSR over their
business in order to enhance the employee loyalty in the perspective of organisation
development. These are the factors that influence the organisation to abide with the CSR
policies. The recent trends in the retail sector in the UK in context of CSR is directly linked with
enhancing he valuation and reputation in the market. Organisation follows the social
responsibility in order to build an effective market position makes its employee loyal towards
organisation and makes an effective relation with their consumers. Moreover, to stand out in the
retail industry the organisation indulge in cut throat competition in order to have the best position
amount the competitors and rival in the context of achievement regarding the social obligation it
has met and the achievement it has made to make community and environment better place.

Conversely, Chang, (2017) presented a point of view that CSR and the valuation of the
business are interrelated. More the organisation indulge in CSR the more is valuation increases
In the current scenarios the leading organisations in the retail sectors are trying to reduce their
carbon foot prints and control the carbon emission from their establishments and factories. This
responsibility is directly related with improvising the environmental conditions and maintain
there ecological balance to provides a better environment to live and breath in to the
communities and people. For controlling the carbon footprints the organisation are dedicating a
larger and larger funds in this direction every year and increase their effectors to make the
atmosphere good. This is considered as the est trend tin the present time that is followed by the
organisations in the retail sector of the UK to adobe by their corporate social responsibility in
order to enhance their valuation as well meeting their obligation and responsibility towards the
society and the environment.
Theme 2: CSR activities performed by Tesco.
As per the view of Close Scheinbaum, Lacey and Drumwright, (2019), Tesco Plc is one
of the leading brans in the retail sectors with having 7000 supermarkets around the world. The
organisation initially started the practice of CSR voluntarily and then caught on with the
corporate world over the last few decades. Tesco have the best practises of CSR in the world
under the retail sector. Being in the retail sector to be in the CSR lifeline is one of the
achievement as this organisation do not excreta ant e waste which is one of the biggest
environmental threat to the world. The company have launched its first program back in 1996 for
energy awareness which was initiated toward reducing the energy usage and walking towards
reducing the waste. In the time frames of 10 years it has decreased it energy consumption
almost 3 % for all of its premises. Moreover, the company is also stepping forwards it engaging
in more practises and programmes of environmental protection, meeting social obligations and
increasing the employee loyalty.
On the other hand, Deng and Xu, (2017) was of the view that every year Tesco publishes
its ‘Corporate Social Responsibility Review’ outlining its approach, implementation and policies
in the coming year and the accomplishments in the past year. Tesco’s CSR strategy is basically
“to earn the trust of our customers by acting responsibly in the communities where we operate,
by maximizing the benefits they bring and working to minimize any negative impacts.” Tesco’s

board members discuss the CSR strategy with performance reviews every quarter. The board and
the executives receive quarterly updates on CSR performance, using which future risks and
opportunities are evaluated. The company has adopted several initiatives over the years
to fulfill its responsibility to society. These include charity, fund raising for a cause and
promoting education. These efforts are not limited to the UK but extend to other countries in
which Tesco operates. It has a major role to play in promoting health food among its customers
and strives to make health food available at affordable prices.
However, He and et.al., (2016) presented a view point about the CSR of Tesco as with
complying to the CSR as a responsibility it publishing them with creation of lot awareness and
pressure group. Tacos faces much pressure group is tescopoly who came up with their catch up
phrase that every little hurts. The tescopoly is linked with the organizations dealing win retail
sectors and determining the negative effects of the supermarket power. There are many
chapgions set up against supermarkets specialty for Tesco. They have created awareness among
the consumers which may have tune their belief of customers and make them believe that Tesco
is not exactly what they are. This is directly in the contradiction of the promises made by Tesco
which it made to people as to give them more to work and they being values for the organization.
This contradiction lead to fall in the reputation of the Tesco as the CRS of Tesco says one thing
and tescopoly says another. As 70% of the people who are consumers of Tesco believed that
industry and commerce do not pay enough attention to their social responsibilities.
On the other hand, Mantovani, de Andrade and Negrão, (2017) have an opinion that
Tesco is the leading organization in the retail sector which abide with all its corporate social
responsibilities. Every year it takes a step forward to enhance it CSR reports. Tesco have stated
that CR si good for the consumers and communities and makes good business sense. All
corporate responsibility performance data covers UK operations, and environmental data.
Corporate Responsibility is integrated into Tesco’s corporate governance structure and,
principally through its management ‘Steering Wheel’, into the day-to-day running of the
business. Tesco have local approach rather them global one on is decision making approach. The
consumers, conditions and proprieties differ between the countries it operated in and the
corporate responsibility reflected diversity for the approaches used by Tesco. It have grown as a
business and have created 16,000 new jobs in the UK, many in deprived areas with giving £7m

in computer equipment to schools, and have raised £2.5m for Barnardo’s, the Charity of the
Year.
On the other hand Moon, Lee and Oh, (2015) is of the view that Tesco committed to high
standards of corporate governance with an approach of managing the non financial risk of the
organization. The corporate social responsibility is considered to the broad part of corporate
governance which is fully integrated in its management, system and structure. The board of
Tesco considers financial and non-financial opportunities at the annual Conference and set the
account abilities for managing operational risks are clearly assigned to the managers. The author
present a view the organization is carrying out a good work by abiding with its all
responsibilities towards its employee and business, environmental protection and sustainability
and for the society and the communities and the people.
Theme 3: Impact of CSR on the brand image of Tesco.

CHAPTER 3
RESEARCH METHODOLOGY
Research methodology referred as the process that involves application of the particular
techniques which are been adopted while conducting the research study in order to gather,
assemble and evaluate the data. It defines the tools that are to be used for collecting the relevant
information in the specific research report. RM involves type, approach, philosophy, sources of
data collection and the ethical considerations etc.
Research philosophy
It is been defined as the belief about a way in accordance to which the data about the
phenomenon is to be gathered, used and assessed. The two main research philosophies that are
been determined involves positivism and interpretivism (Dumay and Cai, 2015). Positivism
philosophy means a theory which states that knowledge is based on the natural phenomenon and
their relations or properties. However, interpretivism refers to the philosophy that involves an
investigator fro interpreting the component of study and is considered as an approach to the
social science which opposes positivism of the natural sciences.
In accordance to this study, interpretivism philosophy has been used as integrates the
interest of the humans into the study and is the most suitable approach for assessing the
qualitative characteristics of the study. This philosophy aims at providing the methods in order to
develop an understanding regarding different CSR practices that has a direct impact on the
strategies developed by the firm in a better way.
Research approach
It refers to the plan and the procedure that comprises of steps of the major assumptions to
the detailed method of collecting the data, its analysis and interpretation. Research approach is
been chosen on the basis of the research problem. There are two main approaches that is been
used by an investigator that are inductive an d deductive approach. Inductive method is an
approach that begins with an observations and the theories that are been proposed towards end of
research process as the result of an observation (Wiek and Lang, 2016). On the other state,
deductive approach is mainly concerned with development of the hypothesis on the basis of the
existing theory and thereafter designing research strategy for testing the hypothesis.

In this research study, an investigator has used inductive approach as it aims at generating
useful meanings from a collected data-set for identifying the patterns and the relationships to
develop the theory. Inductive approach builds the learning of the researcher from the
experiences. Under this patterns, regularities and the resemblance in the experience are been
observed for the purpose of reaching to the conclusions.
Strategy
Mainly research can be conducted by using two type of the research methods that includes
qualitative and quantitative techniques (Fletcher, 2017). Qualitative methods involves the study
of the elements that cannot be expressed in terms of numbers whereas quantitative methods
focuses on the objective and statistical analysis of the data by making use of the computational
tools.
With reference to this research study, scholar has make use of the qualitative method as it
facilitates a better insights relating to the problem and helps in developing the hypothesis
regarding the impact of the CSR practices on the reputation of the firm in order make potential
qualitative research. This type of research also uncover the trends in the thoughts and the
opinions and in turn also provided a deeper insights towards the qualitative components of the
problem.
It means the practices that is been used in making the statistical analysis within which a
predetermined no. of the observations are been taken from the larger population. Specifically
there are two types of the sampling technique which can be utilized by the scholar that includes
probabilistic and non-probabilistic sampling technique (King and Mackey, 2016). Probabilistic
sampling refers to the tool in which the sample from the larger population are been chosen on the
basis of the probability theory which states that an equal chance is been given to an entire
population of getting selected. On the other state, non-probabilistic sampling referred as the
technique where samples gathered in the process are not given an equal chance of getting
selected.
In this research report, researcher has used random sampling method that is considered as
the probabilistic sampling where the sample is been selected based on an application of the
probability theory where equal chance will be given to the all the respondents for being chosen.

The sample of 30 managers has been selected by an investigator for conducting the study on
analyzing the effect of the CSR practices on the strategies of an organization.
Time horizon
Activi
ties/
weeks
1 2 3 4 5 6 7 8 9 10 11 12
Select
ing
topic
Frami
ng the
aims
and
the
object
ives
Cond
ucting
the
literat
ure
revie
w

Select
ion of
the
resear
ch
metho
ds
Gathe
ring
data
Asses
sing
the
data
Discu
ssion
Concl
usion
Reco
mmen
dation
s
Chan
ges as
per
the
client

s
Data collection
It means the process of collecting and measuring the information on the variables of an
interest in the established and systematic manners which enables a researcher in answering the
research questions, evaluating the outcomes and in testing the hypotheses. The two main
methods fro gathering data are primary and secondary sources of the data collection. Primary
sources of the data collection refers to the direct and the first hand information gathered relating
to an event, person and object (McCusker and Gunaydin, 2015). The main sources through
which the primary data are collected includes observations, questionnaire, surveys and the
personal interviews. On the other state, secondary data means the method under which the data is
collected from the published and already available sources such as books, articles, journals and
internet.
In this report, the researcher has used primary as well as the secondary method fro
collecting the data by structuring the questionnaire, conducting personal interviews with the
respondents, gathering information by making use of the books, journals, internet and the
articles. Primary sources helps in resolving the particular research issues and are stated as more
reliable with accuracy of the data because the data is been collected directly from the
respondents. However, secondary sources are also important and useful for developing better
understanding in relation to the research topic that is an impact of the corporate social
responsibilities on the strategies of an entity.
Data analysis
It refers to the process of applying the statistical and the logical techniques systematically
for describing and evaluating the data. Data could be analyzed by using two major techniques
that is SPSS and thematic analysis. SPSS is counted as the software package that is been used by
several researchers for making analysis of the complex data. On the other view, thematic analysis
emphasizes on examining, recording and pinpointing the patterns or the themes within the data.

Referring to this research report, researcher made use of the thematic analysis where
themes has been created on the basis of the research problem that is influence of the CSR
practices on the business strategies (Lushey and Munro, 2015). This method offers an accessible
and the flexible approach in respect of obtaining the qualitative data. It helps in determining the
patterns across the data-set for answering the research question that is to be addressed.
Ethical consideration
It is counted as the most essential part of a research methodology as it defines that the
researcher has conducted the study ethically that is with proper consent of the respondents and in
compliance with all the rules and regulations. While making this research study, all the ethical
aspects are been taken care that is the scholar has made filled the consent form which clearly
shows that the respondents were been given full freedom and has answered the research
questions as per their wish (Antwi and Hamza, 2015). Research participant were not being
subjected to cause any harm by an investigator and dignity has been given to the participant by
the scholar which in turn reflects that researcher has made the study in compliance with the
ethical values.
Adequate level of the confidentiality has been maintained by the scholar with ensuring
full protection or privacy of the data regarding the research. Anonymity of the individuals and
the organizations that is participating in the study has been ensured by an investigator. Any kind
of the deception and the exaggeration relating to the aims and the objectives of research is
avoided by researcher. An investigator has avoided any kind of the misleading information in
addition to the representation of the findings generated from primary data in biased manner.
Validity and reliability
Reliability means an extent to which the study generates same answers with the use of the
same instruments on a frequent basis (Hoddy, 2019). This research study is said to highly
reliable as the other researchers has also obtained the same results as same methods are been
used by the scholar. However, validity of the research could be stated as an extent to which the
requirements of the scientific methods had been followed during a process of developing the
research findings. By this it has been identified that this study is valid because researcher has
selected an appropriate time period for making the research report and appropriate
methodologies has been chosen by taking into account all the characteristics of a study. Scholar

has selected the most appropriate sampling method for a specific study and the respondents are
not been pressurized in any way for selecting any specific choices. This clearly indicates that an
investigator has ensured full reliability and validity of the data referring to this study.

REFERENCES
Books and journals
Agus Harjoto, M. and Salas, J., 2017. Strategic and institutional sustainability: Corporate social
responsibility, brand value, and Interbrand listing. Journal of Product & Brand
Management. 26(6). pp.545-558.
Andreu, L., Casado-Díaz, A.B. and Mattila, A.S., 2015. Effects of message appeal and service
type in CSR communication strategies. Journal of Business Research. 68(7). pp.1488-1495.
Antwi, S. K. and Hamza, K., 2015. Qualitative and quantitative research paradigms in business
research: A philosophical reflection. European Journal of Business and Management. 7(3).
pp.217-225.
Bhattacharya, S. and Kaursar, A., 2016. Study on corporate social responsibility as strategic
instrument for creating sustainable corporate brand value: an analysis with structural
equation modelling. Management and Labour Studies. 41(2). pp.88-106.Cha, M.K., Yi, Y.
and Bagozzi, R.P., 2016. Effects of customer participation in corporate social responsibility
(CSR) programs on the CSR-brand fit and brand loyalty. Cornell Hospitality
Quarterly. 57(3). pp.235-249.
Chang, H. H., 2017. Consumer socially sustainable consumption: the perspective toward
corporate social responsibility, perceived value, and brand loyalty. Journal of Economics
and Management. 13(2). pp.167-191.
Close Scheinbaum, A., Lacey, R. and Drumwright, M., 2019. Social responsibility and event-
sponsor portfolio fit: Positive outcomes for events and brand sponsors. European Journal of
Marketing. 53(2). pp.138-163.
Deng, X. and Xu, Y., 2017. Consumers’ responses to corporate social responsibility initiatives:
The mediating role of consumer–company identification. Journal of Business Ethics.
142(3). pp.515-526.
Dumay, J. and Cai, L., 2015. Using content analysis as a research methodology for investigating
intellectual capital disclosure: a critique. Journal of Intellectual Capital. 16(1). pp.121-155.

Flammer, C., 2015. Does corporate social responsibility lead to superior financial performance?
A regression discontinuity approach. Management Science. 61(11). pp.2549-2568.
Fletcher, A. J., 2017. Applying critical realism in qualitative research: methodology meets
method. International Journal of Social Research Methodology. 20(2). pp.181-194.
He, H. and et.al., 2016. Moral identity centrality and cause-related marketing: The moderating
effects of brand social responsibility image and emotional brand attachment. European
Journal of Marketing. 50(1/2). pp.236-259.
Hoddy, E. T., 2019. Critical realism in empirical research: employing techniques from grounded
theory methodology. International Journal of Social Research Methodology. 22(1). pp.111-
124.
King, K. A. and Mackey, A., 2016. Research methodology in second language studies: Trends,
concerns, and new directions. The Modern Language Journal. 100(S1). pp.209-227.
Lins, K. V., Servaes, H. and Tamayo, A., 2017. Social capital, trust, and firm performance: The
value of corporate social responsibility during the financial crisis. The Journal of
Finance. 72(4). pp.1785-1824.
Lushey, C. J. and Munro, E. R., 2015. Participatory peer research methodology: An effective
method for obtaining young people’s perspectives on transitions from care to
adulthood?. Qualitative Social Work. 14(4). pp.522-537.
Mantovani, D., de Andrade, L. M. and Negrão, A., 2017. How motivations for CSR and
consumer-brand social distance influence consumers to adopt pro-social behavior. Journal
of Retailing and Consumer Services. 36. pp.156-163.
McCusker, K. and Gunaydin, S., 2015. Research using qualitative, quantitative or mixed
methods and choice based on the research. Perfusion. 30(7). pp.537-542.
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management,
pp.1-4.
Moon, B. J., Lee, L.W. and Oh, C. H., 2015. The impact of CSR on consumer-corporate
connection and brand loyalty: A cross cultural investigation. International Marketing
Review. 32(5). pp.518-539.