Impact of ICT on Corporate Responsibility: Tesco & Unilever

This report analyzes the impact of Information and Communication Technology (ICT) on corporate social responsibility (CSR), with a specific focus on two major companies: Tesco and Unilever. The report begins by examining how technological innovations affect Tesco's major functions, including marketing, operations, supply chain management, and research and development. It details how technologies like mobile devices, cloud computing, and social media marketing are transforming business practices, increasing efficiency, and improving customer relations. The second part of the report investigates the importance of CSR for Unilever, providing an overview of the company, its structure, and the significance of corporate governance. It then delves into Archie Carroll's model of CSR, applying its four responsibilities—economic, legal, ethical, and philanthropic—to Unilever's operations and strategies. The report concludes by highlighting the essential role of technological innovation in business success and emphasizes the benefits of CSR for long-term sustainability and market competitiveness.

ICT, Corporate
Responsibility

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
Innovation impact on major functions of TESCO plc..............................................................................3
TASK 2.......................................................................................................................................................5
Importance of CSR for Unilever..............................................................................................................5
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
ICT focusing on corporate social responsibility, it helps to run each and every function
and activity of business effectively (Spieth, Schneckenberg and Ricart, 2014). In order to run
business efficiently and highly effective organizations contribute in CSR and focus on it which is
beneficial for overall business. The current report is based on TESCO company and Unilever, it
explain the in task one impact of innovation on TESCO different types of functions and in task 2
importance of CSR for Unilever.
TASK 1
Innovation impact on major functions of TESCO plc
Technological innovations comprise actions that help to investigate, design and
development of new products, techniques or services or to improve current products and
generates new technologies knowledge. It impact on TESCO marketing, operations, supply chain
management and research and development.
New technology within Tesco is converting daily business activities in supply chain
management of the company. The requirement for accurate delivery and real time tracking
system makes supply chain management ripe for technological innovation. On the other hand
Information communication technology such as mobile and internet is leading the way in
transportation and logistics sector.
There are following ways in which technology is transforming supply chain management.
Greater transparency and efficiency – Shippers are under pressure for reducing supply chain
costs as part of big organization cost saving initiatives. Shippers need better transparency and
more services from their supply chain managers, ideally without driving costs (Hovhannisyan
and Keller, 2015). Since the beginning of the wireless era many third party logistics providers
(3pl) & supply chain managers have started using wireless technologies & cloud computing to
improve accuracy and automate systems.
Focus on individual employees – Smartphone technology provides abilities to the vendors and
shippers for pairing Tesco employees with the most appropriate devices for daily activities or

work. As mobile devices become more varied and diverse Tesco is striving to match job with the
right device.
Tighter communication and community – Smooth and more frequent communication makes
business operations in Tesco easier. Real time communication and mobile technologies helps in
creating a greater sense of development and unity among the employees on field and employees
in the headquarters.
Impact of innovation on design and research & development in Tesco –
New technologies have become an intrinsic element in each and every organization.
Technological innovation assists an organization such as Tesco to generate more information than people
can absorb. It helps in improving the research & development within the business for better decision
making the performing business operations effectively. Tesco uses innovation such as Social media
marketing, online support and CRM system for the attracting more customers as well as collecting
information related to market conditions and customer’s preferences or demand. Technological
innovation also played a major role in reducing human efforts in the business practices (Dentchev and
et.al., 2016). E-commerce has highly influenced people to use internet for shopping, it has reduced need
of human resources affecting organizational design and structure. Nowadays, Tesco focuses on improving
its online presence such as company’s website, social media accounts etc. ICT also plays a vital role in
changing organizational design; communication through technology helps in transition of information
easily and more quickly. It in turn increases efficiency in the business activities and processes. R&D in
Tesco also utilizes technologies to collect feedback from the customers and make improvements in the
products or services. Internet helps to manage customer relationship as well as assist in analyzing market
competitions or trends to increase business performance
Marketing-
Technologies help business prosper and grow, create relationships, allow people to learn
more about one another, strengthen effectiveness of companies and greatly influence way firm
communicate with its prospective clients. With the help of technological innovation within
organizational structure TESCO improve its marketing strategies or plans better than before (Cui
and Wu, 2016). Social media marketing is considered as one of the best technological innovation
which effect on TESCO marketing function. With the help of social media marketing technology
company can be able to build its good image in marketing and attract more consumers towards
them.

Operations-
Technological innovation also effect on operations of TESCO, as it help to increase
productivity and profitability of business. With the help of using latest technologies or machines
within business Structure Company will be able to supply products on time and improve quality
as well. Via implementing latest machines in manufacturing department organization deliver
great quality goods and provide better services to its consumers.
TASK 2
Importance of CSR for Unilever
Overview of company-
Unilever is one of the leading British Dutch transnational customers products firm
established their headquarter in London, UK, and Rotterdam, Netherlands. They provide food
and beverages, beauty products, cleaning agents and personal care products to its consumers. It is
seventh most valuable firms in Europe and one of the oldest international companies, their goods
is available in across 190 nations. They own over 400 brands which help to increase their profit
margin and make them able to contribute in CSR which is very essential for running business
effectively and efficiently. It is the dual listed firm consisting of Unilever Plc. Located in London
and Unilever N.V based in Rotterdam. These two organizations operate as the single business
along with common board of directors.
Corporate government defines as the system of practices, rules and procedures by
which the company is controlled and directed. It essentially includes balancing and managing
interests of organization’s like Unilever and its many stakeholders such as senior management
executives, shareholders, consumers, financiers, community, suppliers and government.
Corporate governance provides framework for attaining the firm’s objectives, it involves
practically every scope of management, from internal controls and action plans to corporate
disclosure and performance measurement. Governance refers specifically to set of controls,
resolutions, rules and policies put in place to dictate corporate behavior. Shareholders and proxy
advisors is the most essential stakeholders who indirectly influence governance, but these are not
included in examples of governance itself. Corporate governance is about promoting
transparency, corporate fairness and accountability. It intended to maximize accountability of

Unilever and to avoid huge disaster before it occur and effect overall business procedure. In
simple words, better corporate governance is simply good business, it assures adequate
disclosures and effective decision making procedure to achieve objectives of corporate. It is
taking by management of inalienable rights of shareholders as true owners of corporate and its
own role as trustees on behalf of company shareholders. Corporate governance deals with
conducting company affairs such that there is fairness to each and every stakeholders and that it
is activity benefits greatest number of stakeholders. Corporate governance Boards of directors
have huge responsibility and also have many duties, in each and every decision board members
makes, they should consider how it will influence its workers, suppliers, clients and
shareholders. The main role and responsibility of board of directors of corporate governance is
planning and oversight. Despite differences, they may delegate some powers to CFO or CEO
under certain circumstances. In CG boards of directors accountable to assure that management
succession planning is appropriate and adequate.
Importance of Corporate social responsibilities-
CSR is the self-regulating business model that supports any companies be socially
responsible, to its self, public as well as its stakeholders. Corporate social responsibilities aim is
to assure that Unilever conduct its business in the way that is appropriate and ethical. It means
taking account of its economic, social and consideration of human rights and environmental
impact. It includes the range of functions and activities like working in partnership with local
communities in order to economic development and progress. It has become one of the high
standards business practices in recent time, for Unilever overall aim and objectives is to achieve
the positive impact on community as entire while increasing creation of shared value for owners
of company, its workers, stakeholders and shareholders. If organization contributes in CSR they
can be able to increased its sales and consumer loyalty, better financial performance, save
operational costs and build great ability to attract talent people and retain skilled staff members.
Unilever invest in CSR and it contributes to strength of brands of client’s products business, they
considered workers as second priority in their corporate social accountability strategy.
Archie Carroll’s Model and their practical applications-

Carroll’s corporate social responsibilities pyramid it the simple framework that support
argue why and how company should meet its social responsibilities (Leveson and A. Joiner,
2014). This model is applied for Unilever Company which is beneficial for their overall business
and helps to grow it better than before. There are the key features of this model- CSR is built on
foundation of benefits- profits must come first, before the business considers their philanthropic
options, it needs to meet their ethical responsibilities and duties. The Archie Carroll’s model is
divided into four responsibilities which need to accomplish by Unilever and follow in its overall
business structure.
The first responsibility for company is economic; it is one of the most obvious
accountability for firm in which they need to contribute consistently. Business need to be
profitable and focus on economic development the most. They need to contribute in way to
benefits and survive society in longer term period. Economic accountability focuses on practices
that serve for long term progress of business, while meeting standards set for environmental,
ethical and philanthropic practices (Yakovleva, 2017). By balancing and managing economic
decisions associated with its overall influence on society, Unilever improve its operations while
engaging in sustainable practices. When organization modified their production procedure to
include recycled goods, which benefit firm by potentially lowering cost of materials and provide
benefits to society by consuming fewer assets.
According to the second responsibility of this model that is legal, firm must run its
business legally and have accountability to obey laws and regulations which is beneficial for
success and growth of corporation. Unilever offer great opportunities to its workers which is
beneficial for professional as well as personal career growth. Company provide fair wages to
people which help to retain the most talented and skilled labor with them for longer time.

Figure 1: Archie Carroll’s Model
(Source: Archie Carroll’s Model, 2019)
The third responsibility is ethical, Company must provide employment opportunities,
health and safety benefits and other facilities to its workers which help to grow business more
and more (Rodriguez-Fernandez, 2016). Unilever provide equal and fair labor practices to its
workers as well as their suppliers, fair business action for staff members include equal pay for
living wages compensation initiatives and equal work. Ethical employee’s practices for suppliers
involve use of goods that have been verified or certified as meeting fair trade level. For example,
Unilever must use fair trade certified ingredients like cocoa, sugar etc.
Last responsibility of this model is philanthropic; it is accountability to give back to society,
and discretionary, but still essential. According to this responsibility Unilever must donate money to
charitable trust in order to improve economic standards.

CONCLUSION
From above it has been summarized that, Technological innovation is essential within
business as it help to increase productivity and profitability. Innovation and economic
development relationships provide many benefits to both. With the help of innovation company
can earn money rather than before and it will contribute in economic development and growth.
Innovation impact upon company and support to increase profit margin and build reputation in
marketplace effectively. Furthermore, it has been concluded that corporate governance controlled
Unilever and other companies and it’s a bunch of system that ensure organization is directed by
good stakeholders. A corporate social responsibility is very essential and beneficial for Unilever
and its business, it helps to sustain for longer time period within market. With the help of Archie
Carroll’s model of CSR it is very easy to understand the importance of CSR and its benefits for
business growth.

REFERENCES
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