Case study, Corporate Social responsibility case study, Tesco's Corporate Social Responsibility Initiatives

 

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UK Retailing and CSR Cont...

Tesco started its CSR initiatives since the late 1980s. But, from 1994, Tesco emphasized more on CSR initiatives and focused on community projects contributions. The transformation underway in Tesco was profound, while its growth was one of the most consistent amongst its peers. CSR has been an important aspect for Tesco over the years.

Tesco's CSR Initiatives and the Operations of a Virtual Cycle Overview of Tesco and its CSR Initiatives:- On its CSR efforts, Tesco says, "As a responsible Company, Tesco works hard to bring real benefits to the communities we serve, the environment and the economy. This is recognized through our inclusion in the FTSE4 Good and Dow Jones Sustainability indices."10 Tesco had profits of £2.8 billion from £47.29 billion revenues for the year 2007-2008. Tesco exists in 13 countries: France, Hungary, Poland, Czech Republic, Slovakia, Ireland, Thailand, South Korea, Taiwan, Malaysia, Japan, Turkey and China. Tesco was founded by Jack Cohen (Cohen) in 1919 by using his WW I army service bonus. Its first store was opened in 1929 in Edgware, London, the first supermarket11 in 1956 in Maldon, Essex, and the first superstore12 in 1968 in Crawley, West Sussex. By 1979, it has become £1 billion turnover company. Over the years, Tesco's financial performance improved significantly . Tesco has become the UK's largest grocery retailer. Its market share too increased significantly . Gradually, Tesco expanded internationally and added several products to its portfolio - non-food items, clothes, telecom, home shopping venture Tesco.com and finance.

In the late 1980s, Tesco started its CSR initiatives. In 1988, the initiative titled 'Charity of the Year' began. Through this, Tesco extended its support to a select social cause each year. Tesco's staff and customers were also encouraged to contribute. The company focused on conserving energy and water across its stores and introduced biodegradable shopping bags, recycling mobile phones, inkjet cartridges and Christmas greeting cards. Tesco, considering CSR an integral part of its corporate framework, chalked out several internal and external activities. Thus, the company operates through a virtuous cycle.

Tesco's CSR efforts are reflected in its daily activities, with a focus on recycling, using organic products, saving energy and water, and charity and community initiatives. Tesco's CSR strategy was to earn its customers' trust by acting responsibly and working towards minimizing negative impacts. Commenting on Tesco's CSR approach, CEO Leahy said, "Corporate Social Responsibility makes sound business sense. The key to our approach is our integrated business system, where environmental and social performance is managed alongside financial performance. This means we have a year-on-year programme of focused action to drive improvement."¹³

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10]"Tesco Plc.¦Surveys", http://81.19.58.74/surveys.htm
11]A supermarket is a store that sells a wide variety of food related products along with variety of other household products such as household cleaning products, medicine, clothes, and some sell a much wider range of non-food products.
12]A superstore is a large departmental store, which sells a wide range of products, from toys and electronics to clothing and groceries and even furniture, sporting goods and automotive supplies
13]"Corporate Social Responsibility Review 2001/02", http://www.investis.com/tesco/ar/pdfs/TescocsrReview02.pdf

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