BUS020X619S: Retail CSR - A Comparison of Tesco's Approach

This report critically evaluates Tesco's responses to corporate social responsibility (CSR) issues in the retail market, comparing them with competitors like Sainsbury's, Morrison's and ASDA. It discusses Tesco's sustainable practices, health and wellbeing initiatives, carbon footprint reduction, employee value programs, and public events. The report also examines ethical standards in the UK, applying ethical theories such as utilitarianism, social contract theory, and natural law to Tesco's operations. Furthermore, it addresses potential issues faced by Tesco in the international market related to CSR, emphasizing the importance of stakeholder theory. The analysis includes benchmarking against other retailers to highlight areas for improvement in Tesco's CSR activities. Desklib offers a wealth of similar resources for students.

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Contents
INTRODUCTION...........................................................................................................................................3
MAINBODY..................................................................................................................................................3
Discussing the Retail issues.....................................................................................................................3
Discussing the ethical standards in the UK..............................................................................................5
Discussing issues faced overseas.............................................................................................................7
Discussing and evaluating benchmarking..............................................................................................10
CONCULSUION...........................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
The primary objective of Corporate social responsibility is to ensure that decision as well
as strategic approaches of an organization are development while keeping in mind its social
implications and impact. It allows the organization to evaluate the impact of its activities and
decisions on society and the environment through clear and ethical behavior that provided
assistance in sustainable development. There is no Corporate Governance Code of the UK that is
considered with CSR although there as some acknowledgments that the duties of an organization
can extends beyond their shareholders. For the following report TESCO has been taken into
consideration which is a British multinational groceries and general merchandise retailer
headquartered in Wewyn Garden City, UK. The issues of CSR is crucial for the chosen
organization to address as consumers are placing emphasis on retailers to conduct their operation
in a ethical and socially responsible manners including of sustainable technique and practices.
This particular issue has caused an increase in the crucial aspect of triple bottom line concept
consisting of people, plant and profit. The following report will discuss the issues of CSR along
with identifying and discussing the ethical standards within UK. In addition to this, the report
will highlight issue face in overseas relative to CSR along with discussing and evaluation based
on benchmarking. The report will utilize various examples of other retailers in the same industry
in order to provide a comparison on how the issue of CSR is resolved.
MAINBODY
Discussing the Retail issues
The concept of Corporate Social Responsibility allows an organization to integrate social
and environment concerns within their business operations and develop positive interactions with
their stakeholders. The CSR allows an organization to develop a balance between economic
environment and social imperative through the approach of Triple-Bottom-line approach (Nejati,
Salamzadeh and Loke., 2019). In context to TESCO, it is crucial for the organization to focus on
its CSR as the operations of customers trend and behaviors has shifted from purchasing normal
product to environmental products that are developed through sustainable practices and have a

positive impact on the environment. This makes it crucial for the management at TESCO to
develop CSR activities that will allow them to attract more customers in an effective manner and
utilize CSR as a tool to gain competitive advantage in the market. Given below are the responses
of TESCO relative to their issues of Corporate Social Responsibility:
Response of TESCO:
Developing sustainable practices:
The management at TESCO has focused upon utilizing sustainable techniques within
their business operation in order to solve the issues of CSR within the industry. The organization
pays emphasis on instilling sustainability within their supply chain operations in order to attain
products from respected and ethical suppliers which allows them to maintain sustainable balance
between their business operations and the environment. In addition to this this also allows the
organization to provide high quality products to their customers fulfilling their social
responsibly. This has allowed the organization to keep its operations sustainable and attract
customers in an effective manner (Miras-Rodríguez, Martínez-Martínez and Escobar-Pérez., 2019).
Health and wellbeing:
The organization focuses on providing a healthy and safe working environment to their
employees in order to ensure that they are working in a safe environment. This allows the
organization to build positive relations with their employs as well as the society. This element of
CSR has been instilled in various organizations such as TESCO for example Sainsbury’s has
developed various policies due to the situation of COVID – 19 pandemic in order to maintain
their CSR relative to their employees. In context to TESCO, this makes it essential for the
organization to maintain an effective health and safety stands at the workplace in order to attain
social environment competitiveness.
Carbon footprint and recycling:
The management at TESCO has focused on utilizing raw materials in their products
which are environmentally friendly and can be recycled. Although not all their products have
achieved the level of being environmentally friendly, it still allows the organization to partially
fulfill their CSR within the industry. For example Morrison’s have focused on providing carrier

bangs that are recyclable and help the environment rather than having a negative impact. The
management of TESCO can further focus on expanding their products that have low carbon
footprint in order to enhance their CSR and can also adopt a similar strategy to Morrison to
develop higher level of environmental responsibility.
Employee value:
The management at TESCO pay emphasis on developing a positive engagement with
their employees in order to ensure and attain a higher level of CSR. This allows the organization
to enhance their performance of their employee’s as well as their productivity through elements
such as team building activities along with bonuses and incentives. This helps the organization to
fulfill their social responsibility to provide their employees with a harmonious workplace
environment and ensure that they are safe from various elements that can be negative for both the
business and their employee’s (Laguir, Laguir and Tchemeni., 2019).
Public events:
The organization develops and campaigns various public events in order to demonstrate
their social as well as environmental responsibilities. This allows the organization to reach their
customers and inform them about their satiable and ethical practices in business operation.
Although the organization can pay higher emphasis on and their public event activities as for
example Morrison’s in a member of the UK Plastics PACT which is a collaborative committee
which joins up all stakeholders in the plastic system. The management at TESCO can focus on
being a member of such events in order to enhance their CSR.
Discussing the ethical standards in the UK
It is crucial for an organization to follow ethical standards relative to their industry. This
allows an organization to fulfill their CSR and enables the business to develop a positive brand
image. In context to TESCO, the organization has to focus on maintaining and establishing
effective ethical standards although the organization has various issues in maintaining the

standards of CRS due to situation in their supply chain of a process. Given below are ethical
standards in context to TESCO:
Ethical standard of TESCO:
TESCO is the largest retailer in UK, and has to source their product from various supplier
from over the global in order to meet their customer demand. This makes it vital for the
organization to ensure that all their supply chain activities are ethical in nature in order to fulfill
their CSR (Munro, Arli and Rundle-Thiele., 2018). This has been a constant issues within the
organization as their have been allegation on the organization on utilizing child labor in their
business operation while developing multiple products. In order to solve this issue the
organization has focused developing Ethical Trading Initiative in order to be effective in
fulfilling socially responsibility. This allowed the organizations to develop a base code that
eliminates the use of child and compulsory labor.
The Base code allows the organization to set effective standards in context to the living
and working conditions of all employees’ in the TESCO’s global supply chain. Given below are
various ethical theories that can further help TESCO in enhancing their ethical standards and
improve their CSR activities:
Theories of ethics:
Utilitarianism:
This theory focuses on developing ethical code that will produce the greatest good for the
greatest number. The theory utilizes a structure framework and focuses of developing most
ethical actions possible in order to benefit people. In context to TESCO, the organization should
focus on developing and enhance their organizational value such as employee’s welfare and
keeping their business operations sustainable in order to maintain ethical standards. For example
the Morrison’s have developed Ethical Trading Policy that help them to monitors, manage and
mitigate human rights risk in their supply chain and included key aspects such as rights of works
along with appropriate wages and safety. TESCO should also focus on developing such values in
order to ensure it is able to instill ethnics within its supply chain operations. In addition to this, it
will allow the organization to build a positive brand image as a retailer.

Social Contract theory:
This theory states that individuals that live together in society in accordance with and
agreement help in establishing moral and political rule of behaviors. In context to TESCO, this
theory can allows the management at TESCO to understand how to develop products and service
that will enhance their CSR and help them to develop products and services that will establish
moral and ethical values (Li., 2020). For example when compared to Sainsbury’s the organization
has been committed to ethical trading and development of sustainable products and service
instilling social integrity. The organization has to further developed plans that consist of
environmental commitments and sustainable strategies. The management at TESCO can
focusing on developing such sustainable strategies in order to fulfill their social responsibilities
and establish moral as well as ethical values in their organization.
Natural law:
This theory of ethics pays emphasis on humans possess intrinsic values that govern their
reasoning and behavior. The natural law consists of right and wrong intentions created by the
society. In context to TESCO, has to focus developing ethical values in their organization in
order to ensure that all their CSR activities are optimal in providing a positive brand image to the
organization. For example at ASDA, they have ethical values within their business operation that
allow them to build positive relations with heir employee’s suppliers along with contractors and
treat them with respect along with personal integrity. This can be adopted by the management at
TESOC in order to improve their overall corporate social responsibility.
Discussing issues faced overseas
The overall demand in the international market has increased extensively which has also
increased emphasis on the utilization and emphasis of CSR among organizations. It is crucial for
organization to focus on developing and fulfilling their CSR in order to ensure their organization
has a positive brand image in the international makers ( Gulenko., 2018). It also allows an
organization to keep the environment of the international market safe through sustainable

practices. In context to TESCO, the organization to ensure that all their CSR actives are aligned
with their business objectives and they are able to deliver high quality products in the market
through suitable practices. There can be various issues in the international market can impact the
overall function of the business. Given below re few issues that can hinder the CSR of TESCO in
the international market:
Lack of resource:
The management of the organization will have to ensure that all their resource is
allocated in a structured manner. This is crucial as effective resources will allow the organization
to negate common barriers to CSR.
Lack of strategic vision:
The ineffectiveness of strategic vision can force the organization to develop inappropriate
CSR activities which will not be able to achieve desired outcome by the organization leading to
failure in the international market (Farooq and et. al., 2020).
Lack of measurement system:
The lack of tool to ensure CSR is a primary hindrance for the organization that can lead
to failure in the international market. The organization can face difficulties in evaluating their
CSR activities which are necessary to develop suitable plans.
Stakeholder theory:
In order to avoid issues in international market relative to CSR the management at
TESCO should focus on utilizing Stakeholder theory as it will allow the business to establish an
build positive relations with their stakeholder which will provide assistance in the
implementation of CSR activities and create value within the organization. Given below is the
stakeholder theory in context to TESCO.
Employees:

The management at TESCO has to focus on keeping its employees safe in order to
maintain and enhance their overall CSR. This will allow the organization to maintaining positive
responsibility in the international market which will help in increasing their brand image.
Environment:
The management has to focus on utilizing environment as well as sustainable business
activities in the international market in order to ensure that it is able to fulfill its CSR and negate
the issues of retailing in the market (Hur and Kim., 2017).
Suppliers:
The organization has to focus on establishing positive relations with suppliers in the
international market in order to ensure that their CSR remains positive. It will allow the
organization to build positive relations and attain sustainable good to produce their products
(Shah and Khan., 2021).
Government:
The organization will have to focus upon fulfilling the law and regulations established by
the government of the international market. In addition to this, will allow the business to
maintain and negate any hindrance from government policies and gain assistance when
conducting CSR activities.
Community:
The management will have to ensure that it utilizing sustainable as well as
environmentally friendly activities in the international maker in order to build positive relations
with the community. This will allows the organization to build a positive brand image in the
international market and gain growth effectively (Stekelorum., 2020).
Costumers:
The organization will have to focus on developing products and services that are aligned
with their CSR as well as their overall values and ethics in order to meet the demands of
customers. This will allow the organization to ensure that all their activities will fulfill needs of
customers.

Investors:
The management will have to ensure that all their CSR activities are effective as well as
optimal in order to satisfy their investors. This will allows the organization to attract new
potential invest on in the international market which will further provide assistance in business
growth and success (Andersen and Høvring., 2020).
Discussing and evaluating benchmarking
The term of benchmarking refers to the recognition of optimal and effective practices
within the industry. The optimal ethical and social practices of an organization allow it to
evaluate its performance in an efficient manner and contains fundamental of management of
CSR that can provide assistance in improving the operations of an organization. In context to
TESCO, the organization can be benchmark itself with Morrison as it is the closest competition
in the market and has similar values to TESOC (Opoku‐Dakwa, Chen and Rupp., 2018). Given
below are benchmarks and comparison of both organizations:
Responsibility to Customers:
It is crucial for an organization to fulfill the responsibility to customers by providing
them with high quality products at fair prices. In addition to this the organization has to focus on
providing effective after sales service in order to gain feedback from customers and provide them
the ability to resolve grievances of customers as well. Moreover, being responsible to customers
allow to develop effective trade practices and eliminate aspects such as black market and
hoarding (Kamal., 2021). In context to TESCO it can be benchmarked with Morrison’s as it is able
to procide higher quality products and service to customers at least possible cost. This provides
the organization a competitive advantage in the market. The management at TESCO is able to
fulfill their benchmark effectively when compared to Morrison’s. The organization pays high
emphasis on delivering products developed with sustainable techniques this allows the
organization to effective implement its CSR activities in an optimal manner. This allows the
organization to be ahead relative to the benchmark when compared to Morrison’s.
Responsibility to the environment:

It is important form an organization to fulfill its responsibly towards the environment by
attain raw material form reliable and respected sources. This will allow the organization to
develop positive relations with their suppliers. In addition to this the responsibility consists and
enables the organization to understand the overall impact of its business on the surrounding
environment in an effective manner (Lu, Liu and Falkenberg., 2020). In context to TESCO, the
management is able to instill sustainable and ethical values within their organization only at a
higher level when compared to Morrison’s. The management at TESCO has paid high emphasis
on developing products that are environmentally friendly and have less impact on the
surroundings as well. Morrison on the other hand has not been able to push environmentally
products in an effective manner. Moreover, this allow the management at TESCO to ensure that
it is able to effective accomplish its CSR in an effective manner and allows the business to gain
competitive advantage relative to environmental aspect..
Responsibility to employees:
The one of the primary responsibility of the organization is towards their employees and
ensure that they are safe and secure relative to this work environment. It includes providing
employee with high level of job satisfaction and utilizes ethical practices in order to treat their
employees in a appropriate manner. In context to TESCO, the organization has established
various programs such as employee engagement in order to develop positive relations with their
employee. In addition to this, the organization is able to improve the performance of their
employees and enhance their overall productivity. When compared to Morrison’s both the
organization have suitable technique and programs which provide them assistance in developing
employees engagement (Ramasamy and et. al., 2020) The both organization provide various
factors such as bonuses and incentives to their employees along with benefits that are essential
for uncertain situations. This helps both the organization to ensure that they are able to fulfill
responsibility relative to their employees in an optimal manner. Furthermore, the organizations
are able to keep their CSR activities effective and efficient in their function which allows both in
stabling a positive relation within the market. Although TESCO has been able to implement their
responsibility towards their employees in better efficiency leading them to gain market
competitiveness against their rivals.

CONCULSUION
From the above report it has been concluded that, it is crucial for an organization to
understand its corporate social responsible in ore to have effective business strategy in the
market and ensure all their customers are satisficed through utilization of sustainable business
practices. The report was also able to highlight that there are various factors that can impact CSR
in the international market and require and organization to analyze their shareholders in order to
develop suitable strategies. In addition to this, the organization to establish bench marks that will
allows them to compare their CSR relative to other organizations within the same industry.
Furthermore, it was concluded that CSR allowed an organization to build a positive brand image
in the market which allows the organization to gain competitive advantage in bother domestic
and international market.

REFERENCES
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