Critical Evaluate the Effects of Corporate Social Responsibility Activities on Financial Performance in Uk Retailing Industry?

2378 Words Oct 19th, 2012 10 Pages
Critical evaluate the effects of corporate social responsibility activities on financial performance in UK retailing industry?

Contents:
Introduction 3
Corporate social responsibility & UK supermarkets 5
CSR behavior of UK supermarkets 5
- Environment 5
- Community 6
- Marketplace 6
- Workplace 7
The effect of CSR investment on financial performance of major supermarkets in UK 7
-Explanations of figure 1-3 8
Case study: The effect of corporate social responsibility on financial performance of Tesco supermarket 10
- Corporate steering wheel of Tesco 10
- Positive correlation between CSR contribution and financial performance 11
Bibliography: 13
Appendix :
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- Environment
Environment issue is the most frequently discussed topic in CSR activities and it includes energy consumption, greenhouse gas discharge, water consuming and so on. Tesco engages in UK Emissions Trading Scheme and plans to decrease 74,000-ton greenhouse gases emission in five years with 188 retailing stores. Marks & Spencer concentrates on controlling residue of pesticides in their products. Since 2002, Marks & Spencer has replaced 99% of PVC plastic bags, which will produce harmful chemical material during disposal process. Moreover, they also reported that 72% of foods in Marks & Spencer are residue free products.

- Community
Community issue includes charity and urban reconstruction. Charitable donation is the most frequently mentioned information in these companies’ CSR reports. In 2003, Wm.Morrison Company donated 550,000 pounds to Marie Curie Cancer Care. Morrison has selected Diabetes UK as its charity since 2004 as well.
In 1999, Tesco Company launched a regeneration scheme, the activities of which include renovating deprived communities in UK. The company focused on working with public services and community reconstruction. Tesco PLC has reported nearly 3,200 regeneration jobs in these communities.
- Marketplace
Marketplace issues mainly include large retailers’ fair trade commitment to suppliers and food safety. For example, Sainsbury’s, which engaged in the establishment of Ethical Trading