BTEC Business Level 3: Assignment 1 - Unit 20: Investigating Corporate Social Responsibility. (Distinction*)
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Qualification: Pearson BTEC Level 3 National Extended Diploma in Business
Unit number and title: Unit 20: Investigating Corporate Social Responsibility
Learning Aim, A: Examine the CSR issues facing large private sector businesses
Assignment Title: Current CSR issues for large business
Introduction
Within the report, I will be talking about 2 contrasting businesses and the businesses which I
have chosen is Starbucks Coffee and Tesco PLC. This assignment is a report is for the
business magazine. On the other hand, I will also be analysing the CSR issues for both of
these contrasting business faces and will be comparing them between each other and finally
evaluating the social and the environmental issues that both of these companies have been
facing.
P1: Explain how CSR issues impact on the stakeholders of businesses
Tesco PLC
CSR stands for Corporate Social Responsibility. CSR issues does lead to major impacts to the
stakeholders as it leads to relationships being affected. This is done by the business’s
relationship with the customers being affected and customers are a very important
stronghold of the business. Tesco contains price checker which they use to try maintaining
their costs for items as low as possible compared to other retailers which overall leads to
more satisfied stakeholders. This can be for example employees and customers getting very
good value for their money. CSR issues will impact Tesco’s stakeholders as if the firm does
not have value, then the investors will have no reason for to be investing within the firm as
there will be negative attributes arriving from the company. However, Tesco PLC donated
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1% of the pretax to its charities which displays a positive attribute for the company and also
leads to attraction of more stakeholders for them to be investing within the firm and leading
the company to growth.
CSR issues also lead to impact of the supplier’s position when It comes to relationship with
Tesco PLC as the firm itself really depends within the trusted partnership with its suppliers.
This meaning bad relationships with the suppliers will lead to whole of the firm being
affecting as the supply chain and the quality for the food being bad would not at all lead to
stakeholders being satisfied. This means the business will go downhill. However, Tesco PLC
does have a strong good relationship with the suppliers. The firm have been strongly
dedicated as the whole of the supplier’s engagement team known as the Tesco Supplier
Network have created an online community where the people are able to share their own
unique creative ideas. This allows the firm supply chain to be able to attract even more
satisfied customers.
Starbucks Coffee
Employers being internal stakeholders do demand for getting better pay while also being
able to work in better working conditions. However, Starbucks Coffee is a very successful
firm as it is able to make their employees be their no.1 priority and has been taking good
care of them by offering great salaries which are paid much higher than the minimum wage.
This leads to a boost in performance from stakeholders for the company. The stakeholders
are also able to give feedback on what areas can be improved in order to show more
efficiency. However, Starbucks are able to improve their Corporate Social Responsibility if
they are able to give constructive feedback back to their employees in order to make them
grow within the business.
CSR programs have been created by Starbucks for their environment. The firms CAFÉ
program has led to a larger biodiversity and also led to improvement of the shade quality
within the coffee farms and within this movement, 90% of the firms are supplying from
CAFÉ certified farms. This has shown that Starbucks can be very effective and efficient
within addressing CSR to their stakeholders. However, there are always ways of
improvement for Starbucks to grow and create a better environment for the firm itself
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which can lead to attraction and influencing more stakeholders to be investing within the
firm as they are paying for great quality.
P2: Explain how CSR issues can impact on businesses taking them beyond their statutory
and regulatory requirements.
Tesco PLC
As we know, Tesco is a very respectable firm which contains a very strong base of loyalty
from customers. This is why the corporate social responsibility would be very efficient to be
targeting the ethical firms such as the charity organisations and also the public sectors
which do not many profits.
Corporate Social Responsibility of this type and also posting it online leads to an awareness
and groups which pressure the firm which are against it. They keep thriving on and giving
the whole firm negativity and hate. Tesco’s own pressure group is called Tescopoly which
has been named after rephrasing the sentence “every little help” to “every little hurts”.
Tescopoly are against the firm and keep spreading awareness negatively towards Tesco
which leads to a loss in customers for the company. The customers start to believe in the
Tescopoly’s words. Customers might believe that Tesco is not the firm that they thought
they are and are just a company that lies and this leads to destruction in the company’s
reputation because of Tescoploy alliance that are against supermarkets like Tesco’s who
want to just give it a bad name.
The positive attribute of Tesco PLC is the ability to apply corporate business in treating their
employees well within the firm and also had made a promise to make the staff members
feel very appreciated and valued within their roles. This has led to less employees quitting
their jobs because of the value they feel. Therefore, Tesco having long lasting staff members
will lead to less pressure and worries on recruiting new ones and this leads not only saving
money on recruiting but also saving on time. On the other hand, this will also make the
current employees be more productive which can lead to maximum profits.
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