Royal Mail Plc: A Critical Evaluation of CSR and Sustainability

This report provides an in-depth analysis of Royal Mail Plc's approach to Corporate Social Responsibility (CSR) and sustainability. It examines the importance of CSR in the company's decision-making processes and policies, evaluating the effectiveness of their current strategies. The report highlights how CSR influences stakeholder relationships, employee engagement, and the company's overall reputation. It also identifies areas where Royal Mail can improve its CSR practices, emphasizing the significance of employee health and safety, environmental stewardship, and ethical conduct. The analysis covers Royal Mail's various CSR initiatives, including social action, health and safety measures, equality and fairness programs, and environmental efforts, while also addressing the challenges the company faces in maintaining these commitments and suggesting potential solutions. This document is available on Desklib, a platform offering a wide range of study resources for students.

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CSR AND SUSTAINABILITY OF ROYAL MAIL
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Executive Summary
The report aims at analyzing the importance of corporate social responsibility and sustainability
for Royal Mail Plc and further discusses how CSR influences decision making process and
policies within the company. The report will also evaluate critically the effectiveness of the
company’s response to CSR and sustainability. Lastly, the report will demonstrate areas that the
company should improve on the basis of the response to corporate social responsibility. It shows
that CSR is a very important component in the operation of any organization since it exhibits a
number of advantages such as retaining top talents, enhances good relationship among
stakeholders, and ensures a good reputation for an organization and also improves employee
engagement.
Overview of Royal Mail Plc
Established in 1516, Royal Mail operates as an international postal service provider in
the UK and other European nations. The company offers delivery services for letters and parcel
under Parcelforce Worldwide and Royal Mail brands. It also offers services for the collection,
arranging and delivery of letters and parcels; and designs and makes philatelic items and stamps
(Bloomberg, 2018). The company also offers marketing and media mail services. Besides, Royal
Mail Plc carries out ground-based parcel-transport networks in Europe involving the GLS
network that takes in 41 countries in Europe through fully-owned and associate companies. In
addition, it offers logistic, parcel, as well as express services. The company has employed about
200,000 employees across the group where one in every 185 employment in the United Kingdom
is provided by Royal Mail Plc (Royal Mail, 2017).

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Introduction
Corporate social responsibility is about the business involved in sustainability.
According to Thomas (2015), CSR is considered as part of organization policy where there are
several arguments and studies about nature and value that can be attained through implementing
CSR. Corporate social responsibility is, therefore, a developing business model that currently
does not have a commonly approved definition. Generally, CSR is about how organizations
integrate environmental, social and economic aspects into their business activities, decision
making process, values and strategies responsibly and in a blatant manner. When an organization
adopts a CSR policy, it aspires to develop a purpose of promoting ethical standards and also
respecting different stakeholders. The organization undertakes CSR to observe conventionality
with its positive CSR strategy.
Source: (LinkedIn Corporation, 2018)

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TASK 1: Importance of CSR to the Organization
Decision making seems to be an essential element in a business environment (Newton,
2013). As a result, every business decision made affect not only stakeholders but also the
environment and the community. Organization ethics basically relates to ethics which are
defined as the human performances and behaviours within the business. According to Schwartz
(2017), CSR is the business devoted to ethically perform while benefiting the stakeholders and
developing the economy as well as the community and society. CSR is, therefore, a crucial
element for a company such as Royal Mail to make an effective decision while it is optional to
other companies enduring income. Corporate social responsibility helps the company to the
employee and retains the desirable staffs and it also plays a big role in the company’s
performance (Horrigan, 2010).

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Source: http://www.ramnathjk.com/blogging/the-importance-of-corporate-social-responsibility-
creating-social-value
CSR policy can stimulate decisions, particularly where customers try to make a moral
understanding. Consecutively, the Royal Mail Plc uses CSR to make a good income for the
company. Evidently, form the organization’s website; the company has been successful for years
as a result of its effectiveness in implementing CSR in its operations having an annual turnover
of over £8 billion (Royal Mail, 2018). Alternatively, the company uses CSR policies and

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initiatives to build highly valued and consistent reputation of the firm. CSR gives employees a
sense of ultimate incomparable satisfaction. The CSR policies thus reinforce the union among
staffs for the Royal Mail. For this reason Chandler and Werther (2013) claim that individuals
grows a habit of collaborating with one group in order to assist others. Basically, the staffs start
enjoying teaming up and ultimately become remarkable co-workers.
According to Cube Groups (2018), corporate social responsibility can result in enhanced
loyalty and employee retention within the organization. This is the reason Royal Mail has been
successful in its operations since it was established. Feeling assertively concerning the firm’s
CSR policy has been seen to enhance the objectives of the employees to keep on working for
Royal Mail Group. Mullerat & Brennan (2011) asserts that an organization with a rising
employee’s loyalty, corporate social responsibility can make organizations appear more
attractive to interviewees and prospective workers. Royal Mail has engaged CSR and as a result
able to attract specialists over other competitors (Royal Mail, 2018).
Royal Mail adopts CSR policies for the benefit of the workforce. Employee benefit is a
developing policy for businesses to implement corporate social responsibility in utilizing
sustainability status and product enabling companies to develop protection strategy for
employees in the company (Thiele, 2013). The CSR and sustainability policies, engagements and
collaborations help Royal Mail to recognize the apprehensions and issues of the stakeholders. It
uses these policies to acquire proficient information on the company’s critical issues. Corporate
social responsibility benefits Royal Mail since it improves its public status. A business that
demonstrates their loyalty to different reasons is seen as more compassionate compared to
businesses whose CSR activities are missing (Ahmad & Crowther, 2013).

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Basically, a public status of a business is at the goodwill of its CSR policies and how
conscious consumers are on these policies. According to Royal Mail (2017), the company holds
legitimacy interests theory for its CSR policies. It, therefore, holds CSR policy in it businesses
such as human rights, health and safety, sustainability and corporate governance (Royal Mail,
2018). Besides, the company uses CSR in building a firm and lasting relationship with the
stakeholders (customers and the community) (Eweje & Perry, 2011). For this reason, Royal Mail
Plc builds a strong relationship and embraces corporate social responsibility policies through
partnering with a non-government institution in order to uphold product growth.
Source: (Legrand, 2018)
Task 2: Response of the Company to CSR and Sustainability
In the modern day, corporate social responsibility (CSR) has become one of the normal
business operations (Newground, 2018). For businesses dedicated to CSR, it implies its status

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and an improved general reputation of the organization. In general, this is a strong affirmation of
what the business bears in a repeatedly cynical business environment. According to Chandler and
Werther (2013), the development of a CSR approach is an important element of a business’s
competitiveness and something that has to be steered by the organization. This means having
policies and procedures arranged which integrate environmental, social, human rights or ethical
issues into business operations and fundamental approach is cooperation with stakeholders.
Cuvilceva (2012) states that corporate social responsibility is important to an organization as it
uncovers to both the customers and media that the business takes an interest in wider social
issues that have no immediate impact on profit margins.
Royal Mail Company has five different corporate social responsibility ambitions
including social action, health and safety, equality and fairness, environment and social action.
As noted earlier by Bloomberg (2018), Royal Mail Plc is one of the leading companies in the
UK, as it recruits over 159,000 people across the Group. Therefore, ensuring employee safety
and health is a key priority for the company. This section aims at demonstrating that
sustainability/CSR done responsibly is accomplished by identifying a company’s important
influences on stakeholders and the environment and through measuring, controlling and
changing. According to the Sustain Case (2018), the health, wellbeing, and safety of its
employees are an incessant priority for the company. Thus, Royal Mail responds positively to
ensure industrial health and safety to the employees.
The company takes necessary measures in preventing accidents within the organization
and also evaluate risks and learn from accidents that have previously occurred. In addition, Royal
Mail investigates fatal accidents and further support takes care of employees’ health and safety
(Royal Mail, 2017). It has transformed into a business into an industry that is more receptive,

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with employees across all Groups teaming up to enhance the workplace and moderate
environmental impacts. Recently, the company has been revealed as the leading edie’s
sustainability in the UK magnificent ceremony. The award recognized the postal service
company’s capacity to advance the CSR comprehension of its employees and engage them in
enhancing the workplace; with certain involvement activities at a local level supporting the
company’s overarching sustainability policy (Royal Mail, 2018).
Since 2016, the company has collected over 8000 recycling states through its operations,
trying to add to the amount of waste averted from landfill (Royal Mail, 2018). To reinforce the
initial program development, the company has developed a focussed environmental plan in order
to keep up common communication with in-house employees across all groups, with the frontier
employee involved in designing discarded posters. The recycling program concurs with the
design of a waste report on monthly, indicating the performance of individual sites monthly
waste. In addition, the company has also designed visual exhibitions and local briefings in order
to lead employees to uphold engagement (Royal Mail, 2017). As per the carbon program
manager at Royal Mail, the employee engagement at all levels is important for steering the
company’s sustainability programme across the organization.
Evidently, from the annual report, the results have been exceedingly positive as per the
current statistics (Royal Mail, 2017). In 2016, 47% of the company’s 835 sites in the UK had
averted 100% landfill waste. Furthermore, in the same year, Royal Mail diverted 84.4% from
landfill, amounting to 4.3% over the overall objective (Royal Mail, 2017). On the basis of
friendly environment, the company assigns leaders of environmental pillars with recognizing and
driving energy and other environmental effectiveness at the organization level, with ordinary
coverage on performance. Therefore, the company strictly reviews program implementation

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across the operation to help honour the accomplishment of all the individuals involved in the
company. For now, success and finest practices are shared through internal means of
communication such as a monthly broadsheet.
According to the 2016-2017 annual report, Royal Mail Plc is focussed on providing
improved effectiveness; flexibility and innovation as it deliver fewer emails and more parcels. As
are a result, the company is currently collaborating with its unions to concur and execute its
forthcoming visions (Royal Mail Plc, 2018). The company is committed to providing a first-class
service while, simultaneously, transforming the industry’s operations to reach development
opportunities in the parcels marketplace and meet fast revolutionizing expectations for the
employees. As earlier noted, the employees’ health and safety is a key priority for Royal Mail
and a fundamental part of the company’s fragmentary transformation. Between 2016 and 2017,
the company increased its focus on road security and safety by adding RTCFR to the corporate
balanced scorecard (Royal Mail, 2017).
Royal Mail Plc value working with integrity as it is important for protecting its reputation
and safeguarding the company’s esteemed status in the society. The Royal Place (2017) added
that the company trained about 98% of managers across the firm by means of customized anti-
corruption and bribery e-learning programs. The company also strictly work with authorities to
eradicate illegal activity that uses the postal system. As a result, Royal Mail has introduced a
series of measures to reinforce the company’s capacity to halt the issue of scam letter. Besides,
the company discusses its CSR activities and strategy with various stakeholders, including the
shareholders of the firm. Every two years, Royal Mail engages nearly 50 stakeholders from
groups standing in for suppliers, investors, employees and environmental agents (Royal Mail,
2017). Through this strategy, the company achieves a better understanding of the basic issues

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that is expected of the company to report on and acquire important insight to support decision
making for the firm.
Task 3: Response to Challenges
One of the major areas of opportunity, risk, and influence is the effectiveness of energy.
According to the 2016/2017 annual report, Royal Mail Plc operates a range of processing
industries for parcels and emails, and the company is delivering letters and parcels to over 30
million addresses every week (Royal Mail, 2017). For this reason, the company should have a
substantial shipping infrastructure and one of the leading task force operations in the United
Kingdom. The company should, therefore, focus on fuel and energy as a major precedence. The
vehicles used in transportation and delivery of parcels and mails should have in-cab
developments using innovative skills to ensure effective fuel and energy use. Since, in such a big
company, things take time to be achieved, it is important to understand that one cannot do
everything straight away (Thiele, 2013). It is therefore important for the company to crack down
on the things that make a difference in a range of work environments.
Royal Mail plc should thus choose to develop an issue by issue footing, focusing on the
needs as they identify them. This implies that the company must be comprehensible about both
sustainability and business connection so as to make the perfect choice of priorities and distribute
resources suitably. In response to challenges caused by sustainability and CSR within the
company, Royal Mail realizes the need for employee engagement. The industry is conscious that
without a wider internal corroboration, the opportunity for success is negligible (Royal Mail Plc,
2018). As a result, Royal Mail should protect the employees by ensuring their pleasure in

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employment can bring about productivity and income since they are the support of the
organization.
Delighted employees are likely to exhibit a positive approach and desire to collaborate
with colleagues and have greater interests in their performances (Fernando, 2010). The company
must also tackle security issues through supporting and coordinating the common
communications function as it is thoroughly figured out at the business level. Royal Mail must,
therefore, try to embark on these challenges by identifying the likely comprehensible criteria for
all activities and developing these challenges into the process of assessment operation. In
addition, the company must try to acquire the appropriate individuals so as to improve
stakeholder engagement as a key element of CSR and sustainability (Royal Mail, 2017).
There is an increasingly physical and mental demand for the staffs, resulting from both
the administrative centre and from demanding and multifaceted lifestyles (Royal Mail, 2017).
However, the company wants to offer outstanding work-related health support and uphold a
successful and healthy workforce. As a result, it is important for the company to recognize the
mental and physical issues arising in the organization and also show the employees that they are
appreciated by the company. Royal Mail can also provide employees with the support to deal
with the issues they encounter as it makes a good sense to the business. In addition, the company
must ensure a more quickly return to work after injury or illness. Labour-intensive handling is
one of the leading grounds of in injuries within Parcelforce (Thiele, 2013). So, there is a need for
the company to establish a committed safety team in order to help employees pick up and
transport things safely.

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The company is devoted to ensuring that the suppliers uphold high standards of ethical,
social and environmental conduct. The aim of the company has been on moderating the cost base
of the organization (CSRHUB, 2018). However, the challenge has been to do this and at the
same time carrying onto ensure that the suppliers act sustainably and in a responsible manner.
The company believes that it is crucial to adopt a Supplier Code of Conduct (SCC) to make sure
the suppliers are totally aware of the company’s expectations (Royal Mail Plc, 2017). On the
other hand, the issue on the environment as a key component of CSR is a major threat to the
society (Hopkins, 2016). Thus, Royal Mail aims to ensure that its business activities have a
positive influence on the future of the company and a negligible impact on the business
environment. Controlling and moderating its environmental impact responsibly will help the
company cut costs, compete in an effective way and also continue to deliver outstanding service
to the esteemed customers (O’riordan, Zmuda & Heinemann, 2015).
Conclusion
It is important for organizations to prioritize where their key issues will be based on
particularly when setting up a CSR policy. However, some organizations may aspire to follow
social, environmental and physical components but in a substantial manner. Other businesses
might primarily choose to follow one or two components of corporate social responsibility and
search for different programmes as the initiation develops. As per the report above, CSR is
important in an organization in terms of ensuring higher returns among employees, promotes
healthy relationship among stakeholders, good reputation in the marketplace and boosting the
profitability of the business in the country. Therefore, Royal Mail Group must operate a strong
CSR component and sustainability in order to improve and gain a competitive advantage and
enable the company to have a lasting success.

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List of References
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