Designing a CSR Plan for TeaLand S.A.: A Comprehensive Analysis

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This project focuses on developing a Corporate Social Responsibility (CSR) plan for TeaLand S.A., a London-based tea company. The assignment begins with an introduction to CSR and its importance, followed by an analysis of TeaLand's current situation, identifying issues such as low employee satisfaction and a lack of ecological tea options. The main body of the project utilizes management concepts and theories to design a CSR plan, including an examination of the company's CSR policies, implementation, and reporting. A conceptual framework is presented to analyze the connection between CSR policies and their impact. A SWOT matrix is used to assess TeaLand's strengths, weaknesses, opportunities, and threats, particularly in relation to the growing demand for ecological teas. The project proposes realistic goals, a stakeholder map, and a strategic CSR plan addressing employee wellbeing, customer satisfaction, and environmental sustainability. A CSR measurement tool is also suggested to evaluate the plan's effectiveness, concluding with final thoughts on the importance of CSR in the tea industry.
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Running head: FINAL PROJECT (CSR)
Final Project (CSR)
[Case Study: TeaLand S.A. is a London]
Name of the student:
Name of the university:
Author note:
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1FINAL PROJECT (CSR)
Table of Contents
Introduction........................................................................................................................2
Main Body:.........................................................................................................................3
1. The Starting Situation................................................................................................3
Analysis of the connection between issues and the company’s CSR policy.............4
2. The Realistic Goals to Achieve with the CSR Plan.................................................11
3. A Stakeholder Map...................................................................................................16
4. A Strategic CSR Plan...............................................................................................18
5. Proposing a CSR Measurement Tool......................................................................25
6. Final Thoughts.........................................................................................................26
References.......................................................................................................................28
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2FINAL PROJECT (CSR)
Introduction
CSR (Corporate Social Responsibility) can be considered the set of obligations of
a corporation to its stakeholders. The stakeholders can be the people or a group of
people having an interest in a company’s products and success. Generally, the
stakeholders of a business can be comprised of the employees, customers, investors,
suppliers and the communities influenced by the business. The nature of the interest of
all these stakeholders will be different. Customers, for example, may be interested or
concerned with service quality and prices. Employees may look for the best
employment deals. Their interest in the business will grow with their experience in the
company. With passing days, they may develop interests in some other areas of the
business also like work-life balance, rewards and recognition, career management
programs, etc. Investors may have concerns related to profits as well as the bottom line.
The community can expect some community-based wellbeing activities from the
business as well as expect the business to limit its pollution impact (Crane, Matten &
Spence, 2019).
CSR in this assignment will be discussed about “TeaLand S.A.”, a medium-sized
London-based tea company. The main activity of the company is currently to
commercialize the tea to several countries in Europe. The company receives its tea
supplies from various parts of the world like India, Turkey, Kenya, China and Indonesia.
They sell tea in various forms such as in bulk, in bags and the form of cold tea as a
soda. Their clients are the supermarkets and the companies in the hospitality and
catering industries. It has been 20 years since TeaLand has been into the tea business.
TeaLand has achieved exponential growth due to the quality of tea and the excellent
marketing of tea products. The approach of TeaLand to marketing has put them at the
heart of the clients. However, the company lags in offering good care to its workers. The
result of a job satisfaction survey held recently revealed mainly the negative results
for TeaLand. The results affected sales greatly. Some of the problem areas surfaced in
the survey were the endless workdays, low career opportunities, ineffective work-life
balance policy, lack of training, etc. In recent surveys on customer satisfaction, the
results obtained were satisfactory. TeaLand sells good quality of aromatic teas;
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3FINAL PROJECT (CSR)
however, it lags in an ecological tea option. In recent times, few European, Asian and
American brands have made their ground into the industry. Their deals are more
competitive compared to TeaLand. These new tea companies also offer a huge variety
of ecological tea. The competitors of TeaLand also perform well in terms of CSR.
Therefore, the report aims to design a CSR plan for TeaLand to enable the
company to effectively meet the diverse interests and needs of its stakeholders.
Main Body:
This section will take the help of various management concepts and theories on
CSR to effectively design a CSR plan for ‘TeaLand’.
1. The Starting Situation
The case study on TeaLand suggests that it faces few CSR issues. These are as
listed below:
1. Low job satisfaction in employees: The workers of TeaLand have low job
satisfaction because of many reasons. Some of these are endless workdays,
scarce training, etc.
2. Customer satisfaction can further be enhanced: Customers are satisfied with the
quality of tea offered by TeaLand; however, they have to rely on other tea brands
for ecological varieties of tea.
3. The return value for investors can be improved: TeaLand does not offer
ecological varieties of tea as offered by the rivals. This is an emerging area
where TeaLand is yet to prove its worth. By being able to offer the best quality of
ecological varieties of tea, TeaLand should ensure a good return to its investors.
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Analysis of the connection between issues and the company’s CSR policy
Fig 1: A Conceptual Framework
In the above conceptual framework, four hypotheses are being assumed. These
are:
H1: It says that the quality of CSR (corporate social responsibility) policies affect the
quality of the implementation of CSR.
H2: The quality of CSR implementation will affect the CSR impact on the stakeholders
of a company.
H3: It says that the quality of CSR reporting affects the quality of CSR implementation.
H4: It mentions that CSR responsibility at the board level will affect the quality of the
implementation of CSR.
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5FINAL PROJECT (CSR)
In light of the above conceptual framework, it can be said that ‘TeaLand’
faces many problems related to its CSR management. These are (Radzi et al.,
2018):
Quality of CSR policies
The outcomes of surveys conducted on employee job satisfaction and customer
satisfaction indicate that perhaps the company lacks good CSR policies. The numerous
issues faced by its workers had needed a prompt response from the company’s leaders
to ensure that these are not highlighted in the media. However, the case study on
TeaLand does not supply any evidence on such management actions. It shows that
there are some quality issues in the CSR policies of the company.
Quality of CSR implementation
It can also be said that the case study company lacks the effective implementation of
CSR policies. The conceptual framework shown above indicates that the quality of CSR
implementation affects the CSR impact on the stakeholders. As per the case study, the
workers of the company have many complaints about their employer. These complaints
can be considered the major concerns for TeaLand as it shows that the sense of low job
satisfaction is taking its root in its workers. Also, customers despite being satisfied with
the service are willing to go to other tea brands in search of the varieties of ecological
teas. This switch over to other tea brands can be an alarming threat for TeaLand
because the demand for ecological teas is growing (Li, 2016).
Quality of CSR reporting
The quality of CSR reporting has an impact on the quality of CSR implementation as
shown in the conceptual framework above. It suggests that to identify and fulfill the
needs of a company's stakeholders, the investors, suppliers and customers, it is
important to focus on CSR reporting. CSR reporting does not just help with
accumulating necessary information related to the stakeholders but also helps to
compare and contrast the relevant signs of progress made so far over the years.
Elaborately, it means getting access to a handful amount of data to make strategic
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6FINAL PROJECT (CSR)
decisions and support numerous wellbeing activities for the different stakeholders of a
company.
CSR responsibility at board level
The framework shown above identifies the CSR responsibility of the board level
members. TeaLand, as shown in the case study, has struggled with employee
satisfaction. The satisfaction level is low in employees due to many workplace issues
such as work pressure, no career growth, etc. Customers are happier with the variety of
aromatic teas offered by TeaLand; however, their reliance on other tea brands is
growing for ecological teas. These issues went unresolved for a significant amount of
time. An established company as such of TeaLand should have taken necessary
remedial measures to address these areas; however, they did not. The framework
shown above indicates the possibility of problems at the board level of the
company or else these issues could have been resolved so far (Engert & Baumgartner,
2016).
The framework shows a link between the CSR activity of a company and its
board members. This linkage can be made stronger by utilizing the board members in
CSR activity in numerous ways. Hence;
Without their approval on a CSR activity, it would not go live;
The board members also approve the budgets, corporate policies and plans for
CSR;
Assessment of the CSR performance of a company against its business plans;
They review the operating information to figure out the potentiality of the
business for any investment;
The board members play a significant role in ensuring that the company has
appropriate and adequate governance structure to support the CSR programs;
A strategic analysis of the conceptual framework to TeaLand shows that the
company lacks in a few areas of a CSR program. These are as mentioned below: Quality of CSR reporting
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Since low employee satisfaction has continued in the company for more than a year as
mentioned in the case study, the company can be assumed to lack quality features of a
CSR reporting. A CSR reporting should be annually published, and contain the future
goals of the CSR. It should also show a company’s current progress to its CSR goals.
Moreover, it should list a few objectives as well as have a robust CSR action plan to
lead the project effectively. CSR responsibility at board level
The issues faced by employees such as scarce training, no career growth within the
company, etc. and the concerns raised by customers for ecological teas are yet to be
addressed by TeaLand. The research of Al Falasi et al., (2019) says that employees are
the most valuable asset for a company. A skilled and motivated workforce is quite many
times more productive compared to the unskilled and low motivated workforce. It shows
why the company’s leaders should invest in nurturing the skills of their people and help
them retain their motivation level. Contrary to the popular belief of the performance
management of employees, TeaLand, as shown in the case study, has shown least
regard to these aspects of operations management.
Customers as according to Puķīte & Geipele (2017) are the foundation for the
success of any business. By considering the needs and wants of customers throughout
the stages of the marketing process, a company can ensure that its customers are
happier. Satisfied customers increase repeat business for a company. The case study
on TeaLand shows no signs of good take care of its workers. Also, the needs and wants
of customers are not taken care of properly or else ecological varieties of teas could
have been offered to them. Quality of CSR policies
It is important to have a set of quality CSR policies to govern the different related
activities of a CSR program. The list of policies will be aimed at employee wellbeing,
customer wellbeing and so forth. TeaLand, as found in the case study has always tried
to offer quality aromatic teas. However, with passing times they remained mostly the
same as long as product differentiation is concerned. The CSR policy of TeaLand
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should have addressed the evident changes in customer behavior. Instead, it kept on
offering the ecological varieties of teas showing the least variation in tea offerings.
A SWOT Matrix
Helpful Harmful
Internal origin Strengths
Quality aromatic teas
Market reputation
Weaknesses
CSR policies
CSR reporting
Contribution of board
members to CSR
External origin
Opportunities
Ecological varieties of teas
Employee wellbeing
Effective CSR governance,
support and practice
Collaboration with NGOs
Sustainability projects
Threats
The rising number of brands
with expertise in pricing and
commitment to the community
and environment
Table 1: SWOT Matrix
The above is a SWOT matrix designed for TeaLand. This matrix will help to
assess the areas that might trouble the future business of TeaLand considering that
there will be a huge demand for ecological teas.
Strengths: The SWOT matrix suggests that TeaLand has been in the market for
many years. The company is widely popular for aromatic teas of good quality. The
company enjoys a healthy market share and a large customer base for its aromatic
teas. They enjoy a very good market reputation because of being consistent with the
quality. However, that reputation seems like being affected slightly for its internal issues.
TeaLand has not been good with people management as revealed in an employee
satisfaction survey. According to employees, they have to work hard for longer hours
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9FINAL PROJECT (CSR)
(Yeh & Huan, 2017). The return benefits to this hard work are also not very good. This
is an area where TeaLand needs to take some actions to keep its employees satisfied
as well as prevent its market image from any potential damage.
Weaknesses: TeaLand has not been very progressive with the changing market
trends. The weakness section of the SWOT matrix for TeaLand indicates that the
company lacks good CSR policies. This was not a major concern for the company a few
times back; however, it is now becoming a concern due to many reasons. One of these
reasons is the growing competition for attaining the dominant market position. Tea
companies from Europe, Asia and America have shown great potential to offer
innovative products such as ecological types of teas. In addition to this innovative
product, these companies have also been good with their CSR practices. They are
showing commendable commitment to the environment and also collaborating with
NGOs to execute many sustainable projects. Their offers are more competitive for
cheaper pricing strategies and the quality of the product (Kienzler & Kowalkowski,
2017). Customers will find value in products that are competitively priced and are of
high quality. The research of Hinterhuber & Liozu (2019) says that customers give
importance to good offers and good offers to them are those which are competitively
priced and of good quality.
The case study on TeaLand does not give any evidence on the CSR reporting
practices of the company. Indeed, CSR reporting is gaining in popularity with passing
times. Publishing a large size annual report is not just sufficient nowadays. Companies
must also submit well-organized and attractively designed documents of its
sustainability acts to show their concerns on corporate social sustainability (CSR) (Luo,
Wang & Zhang, 2017). The basis on these facts, it can be said that TeaLand must also
publish its CSR practices in the form of a well-organized report.
TeaLand, as shown in the case study, lacks competitiveness in terms of its CSR
acts. There is also no evidence on the contribution of the board members to CSR. A full-
fledged CSR activity requires support at the top level of a company. The needs for
funds, required resources, skills needs and lot more will be approved and supplied only
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through top-level people in a company. A contributing nature of the board members is
necessary to support sustainable practices at scale.
Opportunities: There are many things, which can be performed to leverage the
opportunities in going by the market trend. One of these is offering a variety of
ecological teas. The competitors of TeaLand have been exceptionally good in offering
the ecological teas. Competitive pricing and tea quality have been the essence of their
offers. The rivals are gaining ground by targeting new sets of customer groups, which
have not been tapped yet by TeaLand.
As mentioned in the case study, TeaLand is not very good at managing its
people. To ensure that the quality of the product is always good and that the supply-
demand is effectively fulfilled, TeaLand has somehow put its staff on excessive work
pressure. However, it is perhaps because the company lacks good employee
management policies as well as employee wellbeing practices. It indicates a good
amount of future activity for the company’s HR personnel, the senior managers and the
company’s higher authority. They all will have to utilize their work experience and give
their input to the development of good of effective management policies as well as
employee wellbeing activities (Sinclair et al., 2019).
New opportunities for the business can be created by being more focused on
CSR works. The CSR works can be led effectively if there are good action plans for it
and that there are good backups available in forms of both tangible and intangible
resources. So, by having good action plans to lead the different kinds of CSR activities,
TeaLand can gain the trust of customers. Those who are serious thinkers and do good
measures of a thing to make effective decisions can be made to think about consuming
the offerings of the company. Today, consumers do mindful activities such as the
comparison between different brands for a product to assess the level of value offered
by different brands (Maniatis, 2016). It suggests the usefulness of being the most
competitive in terms of quality, price and the variety for the target market.
Threats: The SWOT matrix such as shown above suggests that TeaLand is
facing competition from American, European and Asian brands. These brands have a
more diversified product portfolio compared to TeaLand. Contrary to the business
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strategy of TeaLand, these brands have shown great resilience to in-demand ecological
teas. These brands have addressed the growing corporate role of business by actively
taking part in CSR projects. By not being responsive to these areas of the business, the
future growth of TeaLand might be troubled. TeaLand might even lose a few of their
existing customers to tea brands offering ecological teas. Today, customers have
access to various such platforms where they could know more about the products used
by them. The variety of platforms such as TV news channels, daily newspapers, social
media sites and so forth have made it easier for the audience to know the market trends
in a few seconds. Studies suggest that a piece of news quickly becomes a headline
today across social media channels and TV news channels.
Today, people have access to so many things at just their fingertip (Forbes,
2020). People now have access to the latest news on anything they have an interest in.
The growing public awareness of the benefits and harms of varieties of teas available in
the market will affect their consumption habit. The research of Sun et al., (2018) shows
that green and black tea can be increasingly beneficial in the prevention of coronary
heart disease, cardiovascular diseases and atherosclerosis. It is due to the presence of
polyphenolic compounds in green and black tea, which makes it beneficial in mentioned
disease kinds. The research works on the health benefits of green and black tea will be
easily accessible to common people in the form of website articles and so. The findings
and concluding remarks of research studies on tea will make people increasingly aware
of its health benefits for them. Hence, their purchase decisions for teas should be
greatly affected in times to come. As per a report, the UK green tea market is expected
to grow at a CAGR close to 6% until the year 2025 (OpenPR.com, 2020).
To summarise, it can be said that any latest news is easily accessible to people
nowadays. They get to know about many things quickly times. The numerous research
works on the health benefits of teas and ecological teas are made publically available
on the internet. The growing awareness made this way should affect the tea purchase
decision of the common people. Therefore, it is better to move by the market trend and
give people the reasons to think honestly of a company that addresses the health
concerns of its customers.
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