Unit 20 - Investigating Corporate Social Responsibility
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2022 Distinction : Unit 20 - Investigating Corporate Social Responsibility Assignment 1
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Unit 20 - Investigating Corporate Social Responsibility
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learning aim a examine the csr issues facing large private sector businesses
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PEARSON (PEARSON)
Business 2016 NQF
Unit 20 - Investigating Corporate Social Responsibility
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Arif Mohammad
Unit 20 – Investigating Corporate Social Responsibility
Learning Aim, A: Examine the CSR issues facing large private sector businesses
UNIT 20 – INVESTIGATING
CORPORATE SOCIAL
RESPONSIBILITY
Unit 20 – Assignment 1
,Arif Mohammad
Unit 20 – Investigating Corporate Social Responsibility
Learning Aim, A: Examine the CSR issues facing large private sector businesses
Contents
Explain how CSR issues impact on the stakeholders of businesses ..................................................... 2
Introduction ........................................................................................................................................ 2
Nestle CSR Issue .................................................................................................................................. 2
Environmentalists ............................................................................................................................... 6
Employees ....................................................................................................................................... 7
Government .................................................................................................................................... 8
Shareholders ................................................................................................................................... 8
Consumers ...................................................................................................................................... 9
Which stakeholder will have the greatest impact on this issue?.................................................... 9
Tesco CSR Issue ................................................................................................................................. 10
Consumers ........................................................................................................................................ 11
Government .................................................................................................................................. 12
Shareholders ................................................................................................................................. 12
Employees ......................................................................................................................................... 13
Explain how CSR issues can impact on businesses taking them beyond their statutory and
regulatory requirements .................................................................................................................. 15
Tesco ................................................................................................................................................. 15
Nestle ................................................................................................................................................ 19
Compare and contrast the effect two CSR issues have had on two different businesses ................. 23
Positive Brand Image ........................................................................................................................ 23
Environmentalist issues and supply chain issues.............................................................................. 26
Evaluate how a selected business has responded to a recent environmental or social issue and
whether this response has strengthened their CSR image ................................................................. 30
Tesco Environmental Issue ........................................................................................................... 30
Bibliography .......................................................................................................................................... 36
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,Arif Mohammad
Unit 20 – Investigating Corporate Social Responsibility
Learning Aim, A: Examine the CSR issues facing large private sector businesses
Explain how CSR issues impact on the stakeholders of businesses
Introduction
In this report, I will be explaining the CSR Issues that impact on the stakeholders on the two
businesses that I’m choosing. My two businesses are Tesco PLC and Nestle. In addition to this, I will
also compare and contrast the effect 2 CSR issues have had on two different businesses.
CSR which stands for Corporate Social Responsibility is a term that describes where a business
should take into the consideration of the social, environmental and stakeholder concerns. Corporate
social Responsibility is important to a business because it can lead to good benefits towards a
business which includes it can lead to a good brand reputation, increase employee’s
motivation/retention to work in a specific business and lead the business to become successful in
the future. There are various aspects towards CSR which includes environmental issues, consumer
protection issues, supply chains and the local community.
Environmental issues are defined as issues that can affect the environment, we live in for example
waste reduction, carbon footprint and global warming. These can have a dire effect on the
environment we live in. Consumer protection is defined as making sure consumers who are buying
goods/services from a business are not getting fraud and are treating with respect which include fair
trading. For example, consumers are protected from misleading and inappropriate advertising, food
labelling and false description. A supply chain is defined as the final product that is delivered
through their distribution channel to the final buyer. A community is defined as a group of people
living in a specific area.
Stakeholders are group of people who may have an interest within a specific business. Stakeholders
can be affected by the presence of the business for example they may not agree with something.
Furthermore, there are internal and external stakeholders. Some examples of internal stakeholders
include managers, shareholders, employees, and suppliers. Some examples of external stakeholders
are the government, customers, community, and debtors. These shareholders can be influenced by
the activity of the business as well as their attitude towards it. The relationships between the
stakeholders can deteriorate and can affect the business for example customers can be affected
which is a bad sign for the business and cause a conflict.
Edward Freeman produced a theory called stakeholder management where it looked at making
sure that a business meeting the needs of all their stakeholders as by doing this, it will make your
business successful. Stakeholder theory is important because there are a lot of advantages which
includes employees are going to be satisfied which will result in a higher productivity, there will be
high retention of employees and the business will generate a better image which can increase their
reputation. For example, if a business is seen to help the environment, then it shows it will satisfy
their stakeholders which include environmentalists, customers, employees and more. This is because
environmentalists will see the business as quite positive as they are doing something good while
customers are going to become loyal to the business which will help increase their profits and image.
This will then satisfy the shareholders as they will see an increase of profits which will make them
happy for the business. Overall, the stakeholder theory is quite important in terms of CSR because if
Nestle for example is seen to promote equality in their organisation or they are seen to help the
local community then this will give them a positive CSR image.
Nestle CSR Issue
Nestle S.A is known to be a multinational confectionary/food company who is known to be one of
the dominant figures in the confectionary market. Nestle has a diversified it is product market where
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, Arif Mohammad
Unit 20 – Investigating Corporate Social Responsibility
Learning Aim, A: Examine the CSR issues facing large private sector businesses
they sell a wide portfolio of products which includes baby foods, medical foods, bottled water,
coffee, dairy products and a wide more. In addition, it is known to have a good brand reputation and
have sold over 1 .1 billion of their products. These include Nespresso, Kit Kat, Smarties and more.
Overall, nestle is known to be a hardworking and efficient company that is operating in the
Confectionary market where its main competitors are Cadbury and Mars Incorporated.
One of Nestle’s CSR issue is an environmental issue. Nestle is known to become a waste-free
business because they are making sure to tackle plastic pollution. This is important because it shows
how Nestle is caring about the environment which will help boost their CSR image and improve their
reputation. This is because plastic is waste is becoming a frequent problem which can affect the
environment surrounding us and affecting oceans, landfills, endangering animals and releasing toxic
chemicals which can be quite harmful. In addition, Nestle is seen to be collaborating with the local
community and their suppliers/producers to make sure that no plastic ends up in the ocean, lakes
and rivers which can be seen to have a dire effect on the human planet. Nestle is seen to use
recyclable packaging by 2025 and 88% of the packaging is already recyclable and reused as of 2020
which can have a positive effect on Nestle. As Nestle is working together on this project, it can
generate a positive brand reputation on the business as they are helping the environment which can
be massively affected by the plastic pollution.
Nestle also wants to commit to reduce the use of virgin plastics by 1/third on the same timeframe as
they have invested 2 billion to use food-grade recycled plastics and to accelerate the development of
new innovative packaging. Moreover, Nestle is making sure that they address their issue to everyone
surrounding us which include consumers, partners, and their suppliers as they have given over
270,000 employees packaging education and help change their behaviour on packaging. Nestle is
collaborating with scientists to develop various sustainable packaging that is innovative and helps
recycle plastics because they have created the Nestle Institute for Packaging Sciences. Overall, this
can give Nestle a better brand identity and brand recognition because they are seen to do something
good for the planet as well as the environment. Nestle will boost their value and enhance their
customer loyalty by generating new customer acquisition because they are tackling a fundamental
problem for the environment.
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