Assessing CSR Impact on Tesco's Brand Image in the UK Retail Sector

This research project examines the impact of Corporate Social Responsibility (CSR) practices on Tesco's brand image within the UK retail sector. The study investigates various CSR initiatives undertaken by Tesco and analyzes their effects on the company's brand perception. It explores the trends of CSR in the retail sector, focusing on Tesco's specific activities such as charity donations and community support. The research employs a quantitative analysis approach, including a hypothesis to determine the relationship between CSR and brand image, with data collected from Tesco managers. The findings highlight how CSR activities foster strong connections with the public, contributing to a positive brand image. The report also provides a literature review of CSR trends in the retail sector and concludes with recommendations for enhancing Tesco's brand image through CSR.

Research Project

Abstract
This report has been described about what are the ways through which CSR practices are
impacting on company’s brand image operating in UK in retail sector. The main reason for doing
this research is to analyse whether there is positive or negative impact of CSR initiatives on retail
firms and its brand image. It has been also discussed about different CSR practices undertaken
by companies to resolve issue. Apart from it, an in depth analysis has been done about various
CSR trends and how CSR practices impact on different retail business that are operating in UK.
Moreover, the relationship between CSR and brand image is been explained as well. For this
study quantitative analysis research approach is taken. furthermore, hypothesis is been developed
to determine significant relation between brand image and CSR practices. Along with it, the
sample size taken is 30 managers of Tesco. The findings of study state that through the various
CSR activities such as charity, donation and support to victims of a sense of community allowing
it to build strong connection with public. This relation is useful in strong brand image of
organization.

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 (CSR) may be defined as a commitment which is done by
the company for behaving ethically. In other words, it implies for the initiatives which are
undertaken by the firm for providing workforce as well as their families with quality life and
welfare activities for local community & 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 CSR 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
The present study and its outcome are highly significant for several such as Tesco, retail
sector firms and other scholars. Findings of this study will provide assistance to UK sector firms
including Tesco in understanding the extent to which CSR has impact on company’s brand
image. Referring such study, business units can develop competent framework for the near future
pertaining to CSR. Along with this, other scholars who want to conduct study on similar topic
can use the findings of this study. By taking into account overall assessment other scholars can
identify gap and thereby develops hypothesis for further study. In this way, current study and its
output will assist to companies, other scholars as well as government to a great extent.
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 CSR has been adopted by every corporation in order
to function ethically and fulfilling the sustainable responsibility towards the society (Flammer,
2015). CSR 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

CSR influence the working and sustainability of the enterprise in the changing circumstances
(Saeidi, and et.al., 2015).
1.5 Structure of report
Step -1 introduction to study
1.1 Background, 1.2 significance 1.4 Aims and
objectives
Step 2- Literature review
2.0 Introduction 2.1 theme 1
Step 3 Research methodology
3.0 Introduction 3.1 research philosophy 3.2
research approach 3.3 Data collection 3.4 Sampling
Step 4 Data analysis
Step 5 Conclusion and recommendations

CHAPTER 2: LITERATURE REVIEW
Introduction - It is the second chapter that provide theoretical insight of overall research topic.
in this the researcher analyse secondary data taken from previous articles, journals, etc. and write
it in study. The data is evaluated that provide views and opinions of other authors on CSR.
Beside this, it also becomes easy for user to read and understand and gain knowledge about
research topic. This is the main chapter of study. It is written on basis of objectives developed
and according to themes. Here, each theme can be further divided into sub themes. From that it
become easier to go through entire chapter. This chapter presents the literature review to cover
all objectives and also representing the answer of each objectives in the form of LR theme. The
LR will provide data previous CSR initiatives taken and how it differs from now.
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 CSR. 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 these 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 nutrition sceptically 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 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
indulges 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 indulges 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
their ecological balance to provides a better environment to live and breathe in to the
communities and people. For controlling the carbon footprints, the organisation is 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 latest trend in 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 brand 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), now every firm emphasizes on presenting and
publishing CSR report at the end of accounting period. In this report, business unit presents
policies and practices undertaken by the firm for the welfare of stakeholders. In the recent times,
with the motive to develop distinct image in the mind of customers Tesco makes focus on doing
business operations and functions in an eco-friendly manner. For providing information to the

target market (both existing and potential customers), Tesco publishes CSR review report which
presents company’s initiative, practices and future outlook regarding sustainability. Tesco’s main
motive is to maximize both productivity and profitability by earning the trust of customers.
Further, business unit is focusing on adopting advanced technology which in turn results into
lower wastage and emission. Through this, company is contributing in sustainable environment
significantly.
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
champions 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. 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 business firm
According to Agus Harjoto and Salas (2017) CSR have huge impact on the image of
business firm. This because under corporate social responsibility activity firm performed varied
tasks for welfare of general public. Corporate social responsibility activity is not only performed
for public, it is also performed for service of nation. For example, TESCO perform CSR activity
in 1992 under which it focused on reducing electricity use at workplace. Within five years
electricity use decline by 35% on per square of foot. Thus, in this way TESCO serve the nation.
Series wise multiple projects were started by the mentioned firm for welfare of general public
and nation. Important point to note is that all these things create positive image of the firm
among customers. This is because when firm conduct CSR for the general public need of specific
type of people get satisfied which create positive image of the firm in the eyes of customers.
Thus, there is close connection between corporate social responsibility activity and brand image
of the business firm. More through corporate social responsibility firm will be do for nation and
public its image in the eyes of customers will improve.
Contrary to this Saeidi and et.al., (2015) state that it is not necessary that always firm
perform corporate social responsibility activity and its image get improved. Customers consider
multiple factors while purchase product from the firm and creating its specific image. For
example, varied legal cases are charged on TESCO across the nation. Any individual may
consider TESCO CSR activity to create specific image about it but on same time it will also take
in to account legal cases charged on TESCO. Thus, moral of story is that corporate social
responsibility alone cannot create image of the firm among customers. Company production
operations, its product, way in which it offers service to customers, quality of product delivered
and corporate social responsibility activity all cumulatively form unique image of the firm
among customers. Any single factor can not play an overall perception of the customers about