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Rawan Hachem – 290780Unit20 : Investigating Corporate Social responsibility – Assignment 1
Within this report i will discussing 2 contrasting business, Tesco plc and Starbucks.
This assignment is a report is for the business magazine. Moreover, I will also
examine the CSR issues facing both of these contrasting businesses, compare them
along with each other, and finally evaluate both of them with respect to their social
and environmental responsibilities.
P1: Explain how CSR issues impact on the stakeholders of businesses
Tesco Plc
CSR stands for Corporate Social Responsibility. Having to deal with CSR issues has
significant impacts on stakeholders because it affects their relationships. It is done so
because the business's relationship with its customers is affected, and customers are
one of the business's strongest assets. As well as maintaining low prices for items,
Tesco uses price checkers in order to maintain low costs for items compared to other
retailers, which leads to more satisfied stakeholders. Employees and customers can
benefit from this when they receive good value for their money, for example. As a
result of the CSR issues, Tesco's stakeholders will be adversely affected, because if
the firm does not have value, then investors will not find value in investing within the
firm as there will be negative characteristics emanating from it. Although Tesco PLC
donated 1% of its pre-tax profit to its charities, this shows a positive trait for the
company and also attracts more stakeholders for them to invest in the company,
resulting in more growth for Tesco.
When it comes to relationships with Tesco PLC, CSR issues also impact the supplier's
position because the firm itself really relies upon its partnerships with its
suppliers. The poor quality of the food supply chain and the poor quality of the food
will negatively impact the whole firm, because poor relationships with the suppliers
will negatively affect stakeholders. As a result, the business is likely to go downhill. It
should be noted, however, that Tesco PLC does have a strong good relationship with
its suppliers. It has been a priority for the Tesco Supplier Network team to create an
online community where people can share their own creative ideas, as well as the
whole supplier's engagement team. Providing a satisfying customer experience
allows the firm's supply chain to attract even more customers.
Starbucks Coffee
The employers, as internal stakeholders, are entitled to better compensation in
addition to better As Starbucks Coffee puts its employees first, it has been taking
good care of them by offering higher salaries than the minimum wage, which has
succeeded in making Starbucks Coffee a very successful company. As a result, the
company experiences an increase in performance from its stakeholders. It is also
possible for stakeholders to provide feedback on what can be improved in order to
show more efficiency. It would be better for Starbucks to improve its Corporate
Social Responsibility if they were able to provide constructive feedback back to
their employees in order to help them grow.
, A number of CSR programs have been created by Starbucks for the benefit of the
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 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 all know, Tesco is a very respectable firm that has a very loyal following of
customers. As a result, it would be highly efficient to target ethical companies like
charities and the public sectors which do not generate many profits with corporate
social responsibility.
By applying this type of CSR, in offering good treatment to employees and making a promise
to them that they will be valued, the business will benefit from a lower turnover of staff,
which means staff will stay longer and Tesco will not have to hire new employees. It will
thus be possible to avoid requiring new employees to undergo new training. Therefore,
there won't be disruptions caused by recruitment and training, nor will there be tribunal
fees. As a result, Tesco's workers will be more motivated and more productive, therefore
increasing the company's labour productivity, enhancing its products and making it possible
to maximize profits.
This type of corporate social responsibility, as well as posting it online, can create an
awareness among communities that oppose the firm. This group thrives on negativity
and hatred throughout the organization. Tesco’s own pressure group is called
Tescopoly which has been named after rephrasing the sentence “every little help” to
“every little hurt”. It is Tescopoly who is against the firm and spreads negative
awareness about it, which ultimately results in the loss of customers for Tesco.
Eventually, the Tescopoly's words become true to the customers. Because of
Tescoploy alliances that are against supermarkets
like Tesco's, customers might believe that Tesco is not who they thought they were
and are just lying companies who want to ruin Tesco's reputation.
“We believe that small steps can have a positive impact on the lives of our
colleagues, customers and local communities”. Their community strategy is based on
three important pillars through which it contributes to the development of local
communities. CSR has the advantage of being publicised to customers, suppliers and
local communities so that they know what the company is doing and can compare it
with the cost to Tesco and other stakeholders. Good news stories will naturally arise
from CSR. And Tesco had been able to achieve this through their website
(http://www.tesco.ie/corporate-responsibility/overview.htm#focus) and other
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