Investigating CSR's Impact on Tesco's Financial Performance

This research proposal investigates the significance of Corporate Social Responsibility (CSR) on a firm's financial performance, with a specific focus on Tesco. The introduction defines CSR and its potential impact on a company's financial success, including improved brand image and customer l...Read More

RESEARCH PROPOSAL

Table of Contents
INTRODUCTION...........................................................................................................................3
Scope of study.............................................................................................................................3
Rational of study.........................................................................................................................4
Statement of problem..................................................................................................................4
Key literature review...................................................................................................................4
Research methodologies .............................................................................................................5
Activities & Time scale...............................................................................................................6
REFERENCES ...............................................................................................................................7

Title- To investigate the significance of CSR on firm's financial performance. With reference to
case study of Tesco.
INTRODUCTION
Corporate social responsibility termed out as regulating business model that assist the
firm to be socially responsible with public, stakeholders and to itself. The main aim of CSR is to
carry out the business activities in ethical mode. With help of performing CSR activities the
entity can able to make good icon within customers mind, public and government that will raise
financial performance of company (Muiru, 2019). The most of the entities execute CSR activities
for the interest of society and plays crucial role as part of responsibility.
The present report covered on topic as to identify the effect of CSR on firms financial
performance. Furthermore, report has covered the topic as to outline aims and objective on
chosen topic. Thus, methodologies will be selected to carry out the research activities
systematically. Lastly, literature review will be conducted to conduct depth investigation on
research topic.
Aim
To identify significance of corporate social responsibility towards the firm financial
performance. A study on Tesco.
Objectives
 To articulate the idea of Corporate social responsibility.
 To determine the relation between CSR and firm performance.
 To analyse the effect of CSR on financial performance of company.
 To recommend suggestive measure to implement CSR in financial companies to enhance
transparency and effectiveness in Tesco.
Research hypothesis
 H1- CSR has important effect on financial performance of the organization.
 H2- CSR has no significant effect on financial performance of the enterprise.
Scope of study
In this study, relation between CSR and financial performance of the entity can be
ascertained to identify the impact on sales, gross profit, net profit of the enterprise. Henceforth,
the study will be reliable for the researchers, scholars, authors and other interested parties.

Therefore, relationship between the CSR and financial performance is need to be determined to
analyse the positive aspect of study (Overton, Murray, and Wrighton, 2018). Henceforth, CSR
activities can be considered as foreseeable part of the organisation now a days.
Rational of study
The present report is based on CSR to conduct the business in ethical manner and to
improve the entity financial performance. Thus, research study will help to understand the
influence of customer perception on product and services and it affect on CSR performance
chain.
However, this study will aid to outline the positive and negative impact on the working of
the enterprise. However, this study will helps to demonstrate about the creation of shared value
for the owner of the business, its employees, stakeholder and shareholders.
Statement of problem
The present research is based on to find out the effect of CSR on financial performance of
the enterprise. The main issue is as the corporate financial institution exists without much affect
on the society on the ground and it does not have positive effect on the financial performance of
the enterprise (Haris, Yao and Javaid, 2019.). Henceforth, this research will aid to determine the
positive effect of CSR on financial performance of the enterprise.
Key literature review
The main purpose of CSR is to analyse the impact that has gained the huge profitability
in modern times and effect on financial performance. The firm that provide healthy surroundings
to their employees will be successful in attract new employees and heighten their loyalty towards
the current employees that leads to generate higher performance. As per the view of IPlatonova,
Asutay and Mohammad, (2018) stated that financial performance can be measure out firm
policies and operations within the monetary terms. In contrary to Bereskin, Byun and Oh, (2018)
stated that corporate social responsibility manages the reputation with help of creating effective
brand image in the mind of the customers.
Hence, it can be concluded that CSR has positive effect on the firm financial
performance. The profitability of the enterprise can be decreased to due to higher cost fall out on
performing the social activities within the enterprise. In contrary to Khan, and Mihret, (2018)
stated that to accomplish the high regulation of corporate body, internal pressure such as peers

and market conditions needs to be more effectual than the enforcement by the regulating
agencies. As per the view of ThMuttakin, Khan, and Mihret, (2018) stated that the CSR mainly
aims to ensure about the companies that conducts the business in way this is ethical and aids to
enhance the brand image of the enterprise. Therefore, crucial aspect of CSR are as enhancement
in sales and customer loyalty, operational cost saving, better financial performance and to attract
and retain workers for the longer period.
According to the view of Kim, Kim and Qian, (2018) this can be stated that the disclosure of
corporate social responsibilities results into bringing improvement in the financial performance,
customer loyalty and use of new resources to gain competitive advancement. In contrary to
stated that CSR may be defined as treating the stakeholders of the enterprise in ethical and
responsible manner. Additionally, CSR defined as firm loyalty to run in an economically, ,
socially, sustainable manner to balance the interest of divers stakeholders. According to the view
of Harjoto and Laksmana, (2018) stated that traditional impact of CSR is to create goodwill,
positive image and brand related benefits to exist the companies that can perform their activities
as per the effective CSR programmes.
Research methodologies
This is defined as systematic way of collecting the information about the topic with use
of different methods. Therefore, research methodologies classified as-
Research type- It is defined as careful consideration that aids to undertake the study effectively.
Therefore, there are two kind of research type as qualitative and quantitative (Maqbool and
Zameer, 2018). To undertake present study the researcher will use qualitative study.
Research approach- This is defined as plan and procedure that inclusive of broad assumption to
detailed method of data collection. Thus, research approach classified into the categories as
Inductive and deductive (Muiru, 2019). Henceforth, researcher will use the inductive approach to
carry out the study effectively.
Research strategy- It is called as step by step plan of action that provide effective way to
thoughts and efforts. Thus, research plan of action classified into the categorises as experiments,
survey, descriptive and action research etc. However, the researcher will use Descriptive
research strategy to undertake the study.
Data collection- This is called as gathering the data and measure out the info on the basis of
targeted variables in established manner. Thus, data can be collected with use of methods as

primary and secondary (Overton, Murray, and Wrighton, 2018). To undertake the present study,
researcher will use primary technique to have first hand information.
Sampling- It is process that is termed out as statistical analysis in which planned number of
observations can be taken from larger population (Haris, Yao and Javaid, 2019). Thus, sampling
is classified into the categories as stratified, cluster, sample, multi-stage and systematic random
sampling etc. Therefore, researcher will use sample random techniques to undertake the proper
investigation to the study.
Data analysis- It is defined as process that helps to evaluating data with use of analytical and
statistical tool to investigate information. Thus, data can be analysed with use of thematic
analysis.
Activities & Time scale
Activity 1 month 2 month 3 month 4 month 5 month 6 month
Beginning phase
Project constraints and
baseline for project
Training to staff
Drafting of project
Methodologies
Identification of risk
Purchasing equipment
that aids to create online
platform
Monitoring and
controlling

Submission
REFERENCES
Book & Journal
Muiru, O.W., 2019. The B Movement in East Africa: A shift in the culture of business. African
Evaluation Journal, 7(1), pp.1-12.
Overton, J., Murray, W.E., and Wrighton, N., 2018. Aid, Ownership and Development: The
Inverse Sovereignty Effect in the Pacific Islands. Routledge.
Haris, M., Yao, H., and Javaid, H.M., 2019. Intellectual Capital Performance and Profitability of
Banks: Evidence from Pakistan. Journal of Risk and Financial Management. 12(2). p.56.
Platonova, E., Asutay, M., and Mohammad, S., 2018. The impact of corporate social
responsibility disclosure on financial performance: Evidence from the GCC Islamic
banking sector. Journal of Business Ethics. 151(2). pp.451-471.
Bereskin, F., Byun, S.K., and Oh, J.M., 2018. The effect of cultural similarity on mergers and
acquisitions: Evidence from corporate social responsibility. Journal of Financial and
Quantitative Analysis. 53(5). pp.1995-2039.
Muttakin, M.B., Khan, A. and Mihret, D.G., 2018. The effect of board capital and CEO power
on corporate social responsibility disclosures. Journal of Business Ethics. 150(1). pp.41-
56.
Kim, K.H., Kim, M. and Qian, C., 2018. Effects of corporate social responsibility on corporate
financial performance: A competitive-action perspective. Journal of Management. 44(3).
pp.1097-1118.
Harjoto, M. and Laksmana, I., 2018. The impact of corporate social responsibility on risk taking
and firm value. Journal of Business Ethics. 151(2). pp.353-373.
Maqbool, S. and Zameer, M.N., 2018. Corporate social responsibility and financial performance:
An empirical analysis of Indian banks. Future Business Journal. 4(1). pp.84-93.