Project Dissertation: Analyzing Consumer Benefits of CSR in Tesco

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This project dissertation analyzes the consumer benefits of Corporate Social Responsibility (CSR) in Tesco, a leading UK supermarket. The research explores the meaning and concept of CSR, its benefits for consumers within Tesco, and strategies to enhance these benefits. The study examines Tesco's initiatives to increase market share, customer loyalty, and improve its public image through CSR practices. The dissertation includes a literature review, methodology, findings, discussions, conclusions, and recommendations, providing a comprehensive overview of Tesco's approach to CSR and its impact on consumers. The research highlights the significance of CSR in the retail industry and offers insights for businesses aiming to improve their social responsibility efforts and consumer relations. The findings emphasize the importance of ethical practices and sustainable initiatives for long-term success.
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Running head: PROJECT DISSERTATION
Project Dissertation
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PROJECT DISSERTATION 2
Abstract
The main aim of this research is to analyze the Consumer Benefits of Corporate Social
Responsibility in Business Organization in Tesco. This research report presents a preliminary
assessment of corporate social responsibilities and programs, which is used by leading retailer of
UK. This research report starts with the short description of the meaning and concept of CSR and
the theories of CSR in a business organization. It is followed by an analysis of consumer benefits
of CSR in a business organization. This research report uses empirical material about strategies
to improve the consumer benefits of CSR in a business organization. The findings show the three
set of CSR theme to presents the consumer benefits of CSR in a business organization. This
finding depicts that the Tesco is engaged in using corporate social responsibility to increase their
market share, customer loyalty, and public image. This research report concludes the findings
about the problem associated with different themes.
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PROJECT DISSERTATION 3
Table of Contents
Chapter 1: Introduction................................................................................................................................5
Research background...............................................................................................................................5
Company background..............................................................................................................................5
Research aim and objectives....................................................................................................................6
Research question....................................................................................................................................7
Research rationale...................................................................................................................................7
Dissertation structure...............................................................................................................................7
Introduction.........................................................................................................................................8
Literature Review................................................................................................................................8
Research Methodology........................................................................................................................8
Data Analysis and Findings:................................................................................................................9
Conclusion and Recommendation:......................................................................................................9
Chapter 2: Literature review......................................................................................................................10
Meaning and concept of corporate social responsibility in business organization.................................10
Consumer benefits of CSR in business organization: In context of Tesco Supermarket, UK................11
Strategy to increase the consumer benefits of CSR in business organization........................................13
Chapter 3: Methodology............................................................................................................................16
3.1 Introduction.....................................................................................................................................16
3.2 Research philosophy........................................................................................................................16
3.3 Research Approach..........................................................................................................................17
3.4 Research Strategy............................................................................................................................18
3.5 Research Design..............................................................................................................................20
3.6 Research Purpose.............................................................................................................................21
3.7 Data Collection Method...................................................................................................................21
3.8 Sampling Procedure.........................................................................................................................22
3.9 Data Analysis Methodology............................................................................................................23
3.10 Ethical Consideration.....................................................................................................................23
3.11 Summary.......................................................................................................................................24
Chapter 4: Findings and Discussion..........................................................................................................24
Theme 1: Meaning and concept of corporate social responsibility in business organization.................24
Theme 2: Consumer benefits of CSR in business organization: In context of Tesco Supermarket, UK 28
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PROJECT DISSERTATION 4
Theme 3: Strategies to increase the consumer benefits of CSR in business organization: In context of
Tesco Supermarket, UK........................................................................................................................30
Chapter 5: Conclusions..............................................................................................................................33
Meaning and concept of corporate social responsibility in business organization.................................33
Consumer benefits of CSR in business organization: In context of Tesco Supermarket, UK................34
Strategies to increase the consumer benefits of CSR in business organization: In context of Tesco
Supermarket, UK...................................................................................................................................34
Chapter 6: Recommendations....................................................................................................................35
Reflection..................................................................................................................................................35
References.................................................................................................................................................38
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PROJECT DISSERTATION 5
Chapter 1: Introduction
Research topic
The Consumer Benefits of Corporate Social Responsibility in Business Organization, Case
Study: - Tesco Supermarket, United Kingdom.
Research background
In the retail industry, food production has an impact on the selection of stakeholders. It is a big
concern that has not identified in previous research. The UK supermarket sector has never been
strengthening and leading supermarket which causes such issue that there has been competition.
It is also stated that the UK supermarket sector highly focuses on retail power anywhere on the
globe. There is lack of research on an aspect of ethics and CSR which could be applied to
retailing business practices. There is a significant limitation in research about the topic of
corporate social responsibility and ethics within the retail industry in the UK. This research
identifies the gap by focusing on consumer benefits of CSR in business organization (Tai and
Chuang, 2014). It is required 80 percent of the retail companies in the UK grocery market.
Company background
Tesco Plc is a global retailer operating approximately 5700 stores in more than 14 countries and
Tesco PLC is an international retailer operating around 5,600 stores in 13 countries and engaging
approx. 501,000 people at the global level. Moreover, headquarter and the major part of the
organization is located in the UK because it was founded over 90 years ago. In recent time,
Tesco is the largest organization in private sector because of it employer with more than 295,000
employees. Tesco gives their best effort at the time of climate change, which makes a positive
relationship with consumers for long-term (Tesco, 2017). As a result, it developed the climate
change strategy to control the effects of carbon emissions. As per the European Energy Agency,
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PROJECT DISSERTATION 6
Tesco is one of the leading retailers as it is responsible for about 5.4 million tonnes of carbon
dioxide (CO2) emissions in 2016-17. It has used the average energy of approximately1 million
EU households. It has also implemented a climate change approach to decline the carbon
emission from their organization. The key aim of Tesco is to become a zero-carbon organization
by 2050 (IBS CDC, 2017).
In 2011, Tesco was recognized as top retailer internationally in the carbon disclosure project. It
has entailed the carbon reporting and reduction measures which were effective to consider the
company in FTSE 350. Tesco got the guardian sustainable business award in 2011. Tesco is a
member of FTSE4 and Dow Jones sustainability indices. Since 2007, it shows the platinum
status of the business in the community corporate responsibility index (Deepa and Chitramani,
2018). Tesco engaged in sustainable consumption institute at the University of Manchester. This
case study illustrates the strategy which is implemented by Tesco to increase the consumer
benefits of CSR in a business organization. It is making efforts to manage the carbon emission
by repeated assimilation of climate modification into its business operations. The analysis is
restricted to Tesco business practices to decline its carbon emissions. There are certain business
practices which are implemented across all operation of Tesco (Tesco, 2017).
Research aim and objectives
The main aim of this dissertation is to analyze the consumer benefits of corporate social
responsibility in business organization in the context of Tesco Supermarket, UK. In this way, the
following objectives are used to meet the key aim of this research:
To explore the meaning and concept of corporate social responsibility in business
organization
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PROJECT DISSERTATION 7
To addressee the consumer benefits of CSR in the business organization: In the context of
Tesco Supermarket, UK.
To recommend the strategy to increase the consumer benefits of CSR in the business
organization: In the context of Tesco Supermarket, UK.
Research question
The following research questions are responded through using different chapters to complete the
main aim and objectives of research:
What is meaning and concept of corporate social responsibility in a business
organization?
What are the consumer benefits of CSR in the business organization: In the context of
Tesco Supermarket, UK?
What are the strategies to increase the consumer benefits of CSR in the business
organization: In the context of Tesco Supermarket, UK?
Research rationale
This research is beneficial for readers to understand the meaning and concept of CSR in a
business organization. It is also effective for retailers to comprehend the different consumer
benefits of CSR in a business organization. In addition, it is significant for employees of Tesco
companies to gain understanding about different strategy to increase the consumer benefits of
CSR in a business organization.
Dissertation structure
For completing the research, the researcher is implied the research structure as it will also
support to get a favorable result. For this dissertation, the research structure is discussed as
below:
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PROJECT DISSERTATION 8
Introduction
The first section of research demonstrates the introduction of research matter wherein it
considers many factors like research background, company background, aim and objectives,
research question and research justification. These factors are effective to make healthy
atmosphere towards the research matter. This section helps to create deep understanding towards
the research limitation, which is faced by the research scholar during the research. Hence, it is
imperative for the researcher to obtain reliable outcome (Park, et. al., 2014).
Literature Review
In the research study, the literature review section shows many factors like research models,
concepts, and theories. This section helps the research scholar to examine the past research on
the same topic. Moreover, this section could be competent to examine the available information
in the context of the research matter and also examine the research issue and also help to
determine the actual situation of the research study. For completing this section, there are many
sources that are used by research scholar to collect the data in the context of the research matter
such as books, journals, and articles (Benn, et. al., 2014). This section will also help research
scholar to examine the gap of research and execute the strategy to fill the gap in a systematic
manner.
Research Methodology
This is the third part of the research where research scholar will be capable to gain their
understanding towards the research techniques. The best understanding of the research method
could help the research scholar to select appropriate data collection method to collect the data in
the context of research concern. This section helps to gain understanding in the context of many
methods like research philosophies, design, sampling, data collection method, approaches, and
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PROJECT DISSERTATION 9
research justification as it will support to obtain the valid and reliable result (Carroll and
Buchholtz, 2014).
Data Analysis and Findings:
This section is the fourth part of the research wherein the researcher examines the data in the
context of the research concern. This research section helps to deeply evaluate research matter. It
helps the research scholar to control and evaluates the figures and facts logically through
implementing the appropriate data analysis tools. Hence, the researcher could be able to show the
information in a systematic way together with producing the reliable result (Saeidi, et. al., 2015).
Conclusion and Recommendation:
In the research study, it is the last section of research because it assists the researcher to
summarize the whole research study as per the collected research findings. It develops the
association between the research objectives and research findings to reach at an applicable
conclusion. It also offers the recommendation in the context of the impact of corporate social
responsibility on the business performance. Hence, this section could be imperative to identify
the realistic implication for lead future research in the context upcoming research (Crane and
Matten, 2016).
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PROJECT DISSERTATION 10
Chapter 2: Literature review
Meaning and concept of corporate social responsibility in business organization
According to Farooq et al. (2014), corporate social responsibility is imperative for the
organization due to make a distinguish image in the marketplace. It shows the effects of
organization on environmental social wellbeing. This supports the organization to use the rules
and regulation of environmental protection groups. In addition, it is also analyzed that corporate
social responsibility can also be referred to as “corporate citizenship" that can consider incurring
a short-term cost, which cannot provide the instant financial profit to the organization. Moreover,
it supports to improve the social and environmental condition.
In support of this, Vitell (2015) stated that the corporate social responsibility is a business model
that is deeply rooted in the liability ethics. Through this strategy, an organization will be capable
to make a positive image among customers mind as it could be imperative for enhancing the
growth of the firm. Through CSR, the company concentrates on employee and social benefit that
could direct impact on the image of the company. CSR could be defined as the ethical, legal, and
discretionary expectations as it will be imperative for improving the social situation of the firm.
The main aim of corporate social responsibility is to demonstrate the philanthropic
responsibilities, moral, and ethics of the organization. At the same time, it also supports the
organization to obtain fair return and make a unique image in the marketplace. In addition, the
CSR requires the company to select a border view of their liabilities which consider many
constituencies like stockholders, employees, suppliers, local community, customers, state, local,
federal governments, and other interest community.
In opposition to this, Carroll (2015) examined that the activity of organization can direct impact
on the stakeholders that play an imperative role in improving the performance of the firm. The
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PROJECT DISSERTATION 11
stakeholder is a key factor for enhancing the growth of the business. There are different kinds of
factors that can create a problem for the organization in CSR practices like environmental
management, stakeholder engagement, labor standards, and gender balance. Other factors are
eco-efficiency, employee and community relations, anti-corruption measures, good governance,
social equity, human rights, responsible sourcing, and working conditions.
According to Yakovleva (2017), a large number of organizations seeks that CSR activity can be
imperative in accomplishing the business target in less time. Moreover, it is also analyzed that
organization can perform the activity in the context of social well-being that will support the
organization to make a unique image in customer’s mind. It is addressed that the consumers are
loyal and willing to spend more on the retailers if organization think about society. Customers
believe that retailers sell their products and services in the local region for gaining the consumer
loyalty. It is also evaluated that the local products will support organization to enhance the
consumer trust. The environmental factors can negatively influence the services of consumers. It
is also addressed that all CSR acts are attractive to the consumers. It suggested that retailers
concentrate on one activity. It is also found that CSR can support the organization to attract a
large number of consumers in the specified time.
Consumer benefits of CSR in business organization: In context of Tesco Supermarket, UK
According to Galaskiewicz (2016), corporate social responsibility is used to provide consumer
benefits to a business organization. It is beneficial to enhance the public image. Companies
engage the customers in their business practices like entails the needs and wants of customers in
product and service development. It delivers the added value to customers and improves the
image of the company in the customer’s mind. The public image of the company is depending on
the social responsibility programs as a company should be aware of it. It is stated that consumer
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PROJECT DISSERTATION 12
believes to shop the products from those retailers which help the community for development. It
could improve the public image in the world.
In support of this, Weiss (2014) evaluated that company provides the quality products and
services to consumers and also engages in performing good corporate social responsibilities. It
also provided consumer benefits by supporting the non-profits and involving in volunteerism,
monetary donations, strong partnerships, and in-kind donations of products and services. The
company also publicizes their efforts and increases the awareness regarding their charity to
create an optimistic image in the customer’s eyes. It is stated that favorable social responsibility
can enhance the public image of company build relationship with the consumers.
According to Tantalo and Priem (2016), the company increases the media coverage by entailing
in corporate social responsibility. There is no need for the company to show the amount of
saving the environment as it knows about each person. But, there is need to ensure that company
engaged in forming an association with the local media outlets because they could cover the
stories, which will provide by an organization. It is stated that Tesco Company provided the
benefits to local communities to increase the customer satisfaction level. Furthermore, when
company involves in production and activities that could adversely impact on the community,
then the media could focus on it. As a result, bad news could be spread as compared to good
news and it will have a negative impact on the business image. It is stated that media visibility is
effective to generate positive sheds about the organization. Hence, strong CSR program gain the
opportunity for the company to get strong news coverage.
On the other hand, Chernev and Blair (2015) discuss that consumers like to buy quality products
at affordable price. Hence, the company uses corporate social responsibility to build customer
loyalty. In this way, it uses quality ingredients in product development. Further, the company can
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