Research Title CORPORATE SOCIAL RESPONSIBILITY THEORY AND PRACTICE IN UK- a case study of Tesco

Executive Summary This study is to analyze how and why organizations engage in CSR. In the recent years the corporate social responsibility has been an admired topic for discuss, as well as although different insights exist on the position of organizations in the society, businesses, large or little, cannot overlook the idea any longer. Organizations which are close to social responsibility issues became concern about the principled ground of achieving social obligation. But there are people who said that an institute should give priority to the ethical issues rather than the structured law. They also believed that responsibility towards society can depritiate the values of economic growth which is a big critics in fact. There were four objective of this study such as to analyze why companies engage in CSR; to evaluate how companies apply CSR; to analyze the relation between the use of CSR and financial performance; to examine the feelings of the consumers toward CSR. An empirical study has been conducted by the researcher himself to collect the primary data among the selected samples (110) to achieve above objectives. The survey among the respondents was conducted following the semi structured interview on the basis of predetermined questionnaire. From the findings it can be said that the reseaons behind the engagement in CSR is to improve organizations reputation and image. In the study it is found that the company (Tesco) participates in CSR in the area of environmental protection, charity work, sponsorship and work environment. From this study it could be said that CSR investments of the company will affect the performance of the company since customers value CSR activities. From the hypotheses testing it is found that consumers have positive feelings towards CSR, so, they will be loyal to the company that is being engaged in CSR and thereby increase the sales.

Table of Contents Contents Chapter one (Introduction) 1.1 Background of the study 1.2 Problem discussion 1.3 Purpose of the research 1.4 Research Aim and objectives 1.5 Research questions 1.6 Research Hypotheses 1.7 Rationale for choosing the proposed research 1.8 Background of Tesco (Case Company) Chapter Two (Literature review) 2.1 Introduction 2.2 Corporate Social Responsibility 2.3 Reasons for companies to engage in CSR 2.4 The application of CSR 2.5 Aspects of CSR 2.6The correlation between CSR usage and financial performance 2.7 Summary Chapter 3 (Research methodology) 3.1 OVERVIEW 3.2 Research approach 3.3 Research method 3.4 Research strategy 3.5 Case selection 3.6 Data collection method 3.7 Sampling technique 3.8 Proposed questionnaire 3.9 Data analysis & presentation method 3.10 Research design 3.11Validity 3.12 Reliability 3.13 Ethical Consideration Chapter four (Findings & Analysis) 4.1 Overview 4.2 Findings regarding the reasons why an organization (Tesco) involves in CSR 4.3 Findings regarding the application of CSR at Tesco 4.4 Findings regarding the connection between financial operation and CSR at Tesco 4.5 Findings regarding the Importance of Social Responsibility for the UK Consumer Page No. 04 04 04 04 05 05 06 06 06 06

09

4.6 Summary Chapter five (Conclusion & Recommendation) 5.1 Research Overview 5.2 Conclusion 5.3 Recommendation for future research Reference Appendix

11 12-13

CHAPTER ONE INTRODUCTION 1.1 Background of the study In the recent years the corporate social responsibility has been an admired topic for discuss. Corporate social responsibility, certainly, comprises more aspect than just concerning about the environmental effects of organizations. It came in peoples mind at the later 1880, period of primary industrial development that organizations should care about the idea of social responsibility. Organizations which are close to social responsibility issues became concern about the principled ground of achieving social obligation. But there are people who said that an institute should give priority to the ethical issues rather than the structured law. They also believed that responsibility towards society can depritiate the values of economic growth which is a big critics in fact. Latter 1880 manifestation of the accountability for society has got stablity but after that period the organization began to involve in humanitarian force strongly (Adamsson and Johansson 2008).This study aims to analyze the corporate social responsibility andas well as how and why organizationits engage in corporate social responsibility.

Many people say that the idea of Corporate Social Responsibility (CSR) is relatively a new idea to grow more attention and focus from the businessperson, companies, customers and academician etc. It contracts with the accountability of the of institutions in business exercises and aftermath of the involvement like the attention of the consumers, buyers, businessperson, environmentalist and other related people as in total. A lot of international firms giving importance to the social and business entity which can give a company a humanitarian face and ultimately it will bring reputation and instant commercial benefit as people become loyal to this. Thats why companies are taking CSR issue as a must do things for getting an extra benefit on present very competitive world and thus gladly keeping their consumer community safe from other competition. Many international organizations have already integrated social responsibility issue in their future strategy, aim, vision and supporting social customs and values on their manual to increase its goodwill by incorporating the buyers, officials, business plans and among the whole process.

A data shows that in January 2008 the Bain & Company accessing firm exposed almost 50% of the top 50 sellers and 70% of them frequently publish sustainability reports In January 2008 the Bain & Company consulting firm revealed that approximately 50% of the top 50 retailers and 70% of the top 50 consumer products companies distribute their sustainability papers (Rigby, 2008). In recent years the call for expanding more in CSR has been strongly emerged from the consumer, staff, higher officials and community leaders. As the consciousness for global warming has gradually upgraded it automatically lead to the further demand of CSR (Diana, 2006). Many firms have respected it by doubling their CSR cost (McWilliams & Siegel, 2000). There are huge corporations relentlessly working with this issue now days. Corporations become concern about the effect of climate change and environmental degradation. Anyway, there are many who actually doing this to benefit more from other side (McWilliams & Siegel, 2000).

1.2 Problem discussion There are huge pressures that company takes the social obligation from all its shareholders and consumers today are starting to make comments in decision making of the corporations. They are concerned about the working place, condition, human rights protection, environmental stability, child labor and many things when to buy a particular product (Rahmani & Nilsson, 2007; Jenkins, 2005).

There are mainly five key players in guiding focus on the CSR issue and these areShareholders concern about human rights, ethics and values with the direct investor compression and its an ongoing tendency towards social accountability (Comfort, Hiller and Jones 2006). Besides, companies taking CSR as the image of a company to increase popularity (Comfort et al. (2006). There are also row that CSR has many benefits like to improve its public face, popularity, marketing, reducing further marketing cost and many a lot. It also improves the capability of the employer and creates a comfortable environment in office. Moreover, it develops good relation with government; civil society organizations create more well-wishers and importantly increase its capacity in idea generating. It creates a close link with the customer for the company.

1.3 Purpose of the research Corporate social responsibility has different advantages for the organizations to improve the economical conditions as well as the outcome, to reduce the cost of the operations etc. The purpose of this study is to achieve a deeper understanding about CSR.

1.4 Research Aim and objectives The aim of this research is to analyze corporate social responsibility and its application in the business. Following objectives will be fulfilled through this research. i. ii. iii. iv. To analyze why companies engage in CSR; To evaluate how companies apply CSR; To analyze the relation between the use of CSR and financial performance To examine the feelings of the consumers toward CSR.

1.5 Research questions The purpose of the research will be done by answering the following research questions: i. Why do companies engage in CSR? ii. How do companies apply CSR? iii. What is the correlation between the use of CSR and financial performance?

1.6 Research Hypotheses H 1: Consumers have positive feelings toward CSR H 2: There are no differences between men and women behaving in a socially responsible manner

1.7 Rationale for choosing the proposed research An institution takes the responsibility of CSR cost from all of its shareholders which create a pressure. When a customer goes to buy he or she is highly concerned about the working conditions, humanitarian involvement, environmental issues, individual protection and these are sometime get attraction more than a good product(Rahmani and Nilsson (2007), Jenkins (2005). Basically five categorical factors are involved in increasing the changing focus of a customer at present day. Virtuous average, Respect to individuals, behavior of the officials, attachment with the community and some humanitarian factors are getting priority. Moreover, almost all organizations are taking CSR issue as a brand which should promote in a very decent manner and they are taking this as to increase their respect to individuals needs (Comfort (2006). There are also many types of benefit a corporation can get by strongly implementing its corporate social responsibility and fact is sometimes it can give an economic benefit too. When people see the attachment of a company towards their interest, they will never hesitate to consume more from that particular institution (Drum write2007). The best practice of CSR can not only bring the face value rather it can manipulate the sense of peoples choice sometimes which is really a big factor in economic competition. Therefore, it is essential to study about corporate social responsibility.

1.8 Background of Tesco (Case Company)

Tesco was founded by Jack Cohen. It was established to sell the groceries that were surplus from the stall in the ending point of London. The founder of Tesco Cohen consolidated this small scale stall by joining the forces with T.E. Stockwel then the name of Tesco was started its activities. In 1929 the first stall of Tesco was established.

Chapter Two Literature review 2.1 Introduction This study is to analyze how and why organizations engage in CSR. In the recent years the corporate social responsibility has been an admired topic for discuss, as

well as although different insights exist on the position of organizations in the society, businesses, large or little, cannot overlook the idea any longer. Big organizations are continually being targeted as well as judged in society for the careless actions, such as, a recent movement from Greenpeace alongside Nestle to use palm oil in the goods that gives to the obliteration of rainforest. The social accountability of organizations encompasses the financial, lawful, moral as well as optional prospect that society has organization at a known point in time. 2.2 Corporate Social Responsibility According to Crane, Matten and Spence (2008), Corporate social responsibility can be identified by various ways and it is the most popular idea that is conquered the debate of it are the ethics of business, sustainability as well as the citizenship of the corporations. Archie Carroll said that the idea by the pyramid of corporate social responsibility that is said to be greatly accepted the definition of corporate social responsibility for the breadth. This pyramid is consists of the foundations made by the economic responsibility of the firm. The ethical as well as the philanthropic responsibility is the contents of the first two stages that represent the activities voluntarily. 2.3 Reasons for companies to engage in CSR For the participation in the corporate social responsibility Miles as well as Munilla (2005) identified the motives by utilizing the corporate social responsibility framework of Marrewijk (2003) and pyramid of corporate social responsibility of Carroll (1991) that is said in the following table. From this table the ways of the relationship of the motives as well as the outcomes can be identified. This system said that corporate social responsibility philosophy of the company may be, drive the compliance, and drive the profitability, etc.

In the first phase the organization engage in the corporate social responsibility and it is the duty as well as the responsibility to obey the laws in addition to regulations. In the phase of the economy the organizations utilize the corporate social responsibility for creating a competitive benefits as well as gaining the developed economic performance. Different writers said that the organizations may attain a great advantage through the corporate social responsibility (Idowu and Papasolomou, 2007). On the other hand a great number of the dissimilar views of the means of the engagement of the organizations in corporate social responsibility. According to Kotler and Lee ((2005), the organization participate in the corporate social responsibility for looking better, feeling better, as well as living long time. They also said that the organizations will look good by the participation in the corporate social responsibility to the potential consumers, colleagues, investors as well as the media. On the other hand all the stakeholders for example, employees, consumers, customers, shareholders as well as members of the board will feel happy. Many authors said that corporate social responsibility improve the brand of the organizations as well as it increases the reputations. The two theory of the engagement in corporate social responsibility can be given in the table below:

The above table describes that the company engage in the CRS due to the Moral obligation: as the companies believe that they should be a good citizen to the right thing at the right time so they engage in the CSR. It is also a part of their moral obligation.

Sustainability: the environment and the community are emphasized by the company as the company believes that such kind of CSR is the most effective for the company itself. The world council describes the sustainability as the fulfillment the need of the currents demands by not compromising the eligibility of future generation in meeting their needs. License to operate: however some companies conduct the CSR as they are required or forced to follow some rules and regulations and allowances from the communities, stakeholders and government. Conducting the CSR is considered as the partial requirement for being able to attain the license. Reputation: to improve the image and reputation many companies are mainly engaging themselves into the CSR operation. The CSR is also conducted by some companies to enrich the brand name with a view to demonstrating the moral as it may facilitate to inflate the stock value of the company. According to Kotler et at (2005) the companies are contemplating to attain some objectives and hence the companies are engaged themselves in some CSR. Several of the objectives of the companies behind the operation of the CSR are as follow: To increase the market share and sales: Strong evidence has been found that the customers contemplating to buy the products or services of companies are mainly concerned with the companies conducting or not conducting the CSR.

To improve brand positioning: the customers of the companies possess the brand image of the companies and the customers are seemed to have a positive attitude toward the company which is conducting the CSR as a partial commitment of its overall operation. To improve clout and image: the companies in different business magazines and reports can publish different publications related to the CSR activities. To enrich the ability to motivate, attract and retain the employees: the employees working in the companies having the operation of CSR feel proud about their companies and it ensures the satisfaction of the companies.

To reduce cost of operation: The CSR activities of the companies are mainly engaged with the reduction of cost and increment of the revenue of the companies. The companies conducting the CSR activities is seemed to have a free publicity as a result of the CSR agreement. Hence the company can reduce the cost of the marketing campaigns. To attract the financial analysts and investors: it is argued by some analysts that the CSR activities can facilitate to increase the stock price of the companies and it is also easy for the company to participate in the CSR to ensure a huge access in the sources of fund. Many authors said that the organizations gain a lot of benefits from the corporate social responsibility but it is very difficult to identify the benefits what an organization gain from it (Kramer 2006). On the other hand these writers said that corporate social responsibility become very important for the competitive gain in the near future period. Furthermore a number of the writers said that corporate social responsibility do not influence the corporation in any way as others said that corporate social responsibility yet can influence the corporation unenthusiastically (Mc Guire 1988). The major opponent for corporate social responsibility is that it confronts the conventional business objective for profit maximization. According to Smith (2007) organizations rated very high in the participation of corporate social responsibility have the great performance that the organization scoring the low at this nature. In addition he said that through appealing in corporate social responsibility may gain competitive benefits and improve the reputations for the organizations. According to Idowu (2007), the stock market as well as the economical institutions has begun to register the organizations that are attaining in corporate social responsibility and data about the activities. It has increased the pressure to the organizations for participating in the corporate social responsibility. Kramer (2006) said that, form the stakeholders, governments, media as well as the activists the pressure can come for participating in the corporate social responsibility. On the other hand Kramer also said that individuals are beginning for holding organizations to account for the consequences of the society of the business actions. The similar view is shared by Golob as well as Podnar (2007) and they said the main theme of corporate social responsibility as the issue that no organization can afford for acting opposed to otherwise with any concern for the society.

2.4 The application of CSR The application of the CSR by the companies is mainly concerned with this part of the paper. The CSR is concerned with the set of the highly diverse and behavioral aspects in companies (Graafland, Stoffele and Eijffinger, 2004). The previous research conducted by the Graaflandetal (2004) differentiated more than 60 concrete of the CSR aspects. To provide a specific explanation of CSR the high diversity of the CSR becomes difficult in term of the CSR. According Grafland et al (2004) the significance of the CSR to the companies is important because it facilitates the companies to choose the type of CSR that best matches with the internal and external formation of the companies. The following three examples are provided by the Social and World Business Council to ensure the sustainable development to describe this (ibid). Example 1: The business organization having the played the role to the society that surpassing the area of traditional business operation that is required by the law and such operation will lead the more added value to the business firm. Such kind of definition is constructed with a view to advising the firms about the effectiveness of the CSR. According to Graafland et al (2004) that such kind of definition is considered as very much narrow due to the two reasons. At first the CSR is considered to be concerned with the core business of the firm. As for example the mining a oil companies engage in investment having the less vulnerability to the environment and having attitude to do welfare to the society. Then according to the criticism the CSR is not only concerned with the aspects that is beyond the law rather it is within the law. As for example the companies while guranteering the safety and preventing the fraud the question generally arise that whether the companys activities are consistent with the intention of the law and apply a minimum explanation (ibid). Example 2: CSR involves the following two things The focus by the enterprise on the contribution to the improvement of the public in the long run. The proper maintenance of the stake holders and society relationship.

In term of the criticism of the former definition criteria the definition was constructed. That a company can be observed as a entity of value creation the first paragraph describes this. The only value creation is not only concerned to the company in this case. However the value creation is concerned with the value creation in term of three dimensions that is called the Triple P bottom line. The Triple P bottom line is decomposed into the Planet, Profit and People: The profit is considered as the economic dimensions. The economic dimensions mean the production of goods and services and the creation of income and employment which ensures the value creation. The people are considered as the social dimension. Different aspects like the safety, good labor relations, outside and inside information are considered in this case. The ecological dimensions are considered as the planet. It is concerned with the natural environment of the ecology. According to Graafland et al (2004) the most crucial fact of the second example infers that the companys relationship with the society and the stakeholders should be taken into consideration. It also infers that an open way of doing business and the good stakeholder relationship are also important in this case. However the difference between the primary and the secondary stockholder are identified by this. The stockholders and the employees are regarded as the initial stockholders as they possess the constructive discussion with the companys managers. The other individual having the activities with the companys stock holders are considered as the stakeholders. The government, competitors, suppliers and consumers are included this (ibid). Example: 3: when it is determined that the quality of the workforce life to be improved, their quality of their family to improved then the CSR is designed as a continuous commitment by the business to act for ensuring the ethics and the economic development. The 3rd example is considered as the most important and somewhat distinct than the others. At first the ethical means have been described in the 3rd example which was not described in the other examples previously. The three Ps are described in the example two which is regarded as the quality of life comparing with the other examples. However the relationships with the stakeholders are not described by the example three.

2.5 Aspects of CSR Although the Graafland et al (2004) stressed that there exist more than 60 anti aspects of the CSR activities and the more explanations that illustrated above, they are categorized into some major category by the Lyall, Phillips and Balabanis (1998). Such kinds of aspects were regarded to in 1970 to possess the following characteristics: Information disclosure to the stockholder Information disclosure to the board of directors The behavior of monopoly i.e. the predatory pricing The equal treatment for the minorities group. Sharing of profit Protection of the environment Advertisement of ethics The impact of technology on the society. According to Balabanis et al (1998) some of the facts are controlled by the law now. The focus of the CSR operations become changed due to this the main focus of the companies has been found by them to focus on the following areas: The protection of environment i.e. recycling the waste of materials for the reductions of emissions. Benevolence i.e. donation to the charity. Engagement to the social causes i.e. involvement from human rights related educations like the awareness of AIDS.

Ensuring urban investment i.e. work with the regional government ensure the inner city environment and to launch the small business. Ensuring schemes of employees i.e. flexible time, job- sharing, proper standard of staff treatment, higher standards of professional health and safety.

2.6 The correlation between CSR usage and financial performance In the third part whether there exist a correlation between the financial performance and the CSR are determined. According to Mc Guire et al (1988) there are some inconformity with determining the relationship between the financial performance and the engagement of the firm with the CSR. According to Mc Guire et al (1988) there are three major view points of determining the relationship between the CSR usage and the financial performance of the firm. The first view point stresses that the CSR investment causes the company to face an economic disadvantaged situation than the company not performing the CSR. Second viewpoint stresses that the company performing the CSR activities are benefited in term of the productivity and employee morale. In term of the third view point the cost aroused from the operation of the CSR activities can be offset by the benefits come from this area. The benefit in this case may be the increased positioning of the products and services to the customers mind by offering different social and natural favorable project by the company. Such kinds of CSR are seemed to increase the consciousness among the customer which will be

seemed to affect the customer loyalty and ensure the profitability of the firm. However the CSR is considered to have a correlation with the performance of the firm and it is argued by some individuals that the company having high engagement of the CSR possess a highly motivated workforce and satisfied customers that they may prefer the products or services of the CSR conducting firm to the other firm not in operation of the CSR. It is also noticed that the CSR is not only effective to establish relationship with the customer but also it is helpful to construct the relation with the other stakeholders like the shareholders, bankers and governmental officials and other specialized persons. Such kinds of relationship facilitate the business and ensure the profitability. According to the Mc Guire et al (1988) the increment in the cost of the company due to the operation of the CSR may down fall the profitability of the business in comparison with the competitors not performing the CSR. The incremental cost of the operations result from the maintenance of plants in the areas economically depressed and establishing the environmental protection, promotion of the development of community plan, charitable contributions to the societys disadvantaged units etc. On the other hand the strategic limits of the alternatives are limited by the CSR policies of the company. As for example customers are not interested to the companies that are not interested in maintaining the proper working conditions and the CSR activities as this is not supposed to be consistent with the ethical

CSR guide line policy. This may indulge the firm to generate the reduced financial performance that may also choose the alternatives which is less cost effective. According to the Sarbutts (2003) the timing of the question is most important when the CSR activities are important. As the values of the society and the policies are being changed are very much important there and this is due to the fact of such change. The earlier results about the correlation between the financial performance and the CSR of the company generated mixed results. The methods of investigations and the typical outcome of the investigation and the shortcomings of them have been presented in the following table: Table - Ways of measuring financial performance

Establishing a question about how and why the companies are engaged in the CSR the economic result of a company into the CSR engagement can be determined. The major objective of the CSR engagement of the companies is to improve the financial performance of the company. However not all the companies are engaged in the CSR with such a objectives to improve their financial performance it rather depends on the attitude of the management of the company and the degree to which the company regard itself to be responsible to the society.

2.7 Summary In this chapter the researcher have explained various literatures related to the CSR. Corporate social responsibility can be identified by various ways and it is the most popular idea that is conquered the debate of it are the ethics of business, sustainability as well as the citizenship of the corporations.

Chapter Three Research Methodology

In this chapter the research methodologies which have been followed to conduct this study have been explained. The research approach, method, strategy, sources of data, research design, reliability, validity and ethical consideration of this research have been justified as follows.

In regular research we are generally acquainted with three types of researching approaches like- Investigative, expressive and finally descriptive technique (Saunder et al 2007). Investigative or exploratory method is very essential when there is an occurrence of fundamental facts because it is a growing theory. So the investigative or exploratory research method will be applicable in this particular study.

Dubois and Gadde (2002) said that there are three types of research approaches such as, abcuctive, deductive and inductive. From them generally people who researches choose as per their necessity. According to Proctor (2000) in respect of establishment quantitative technique of psychoanalysis is ahead of qualitative technique of psychoanalysis. That may have influence both on the public the quantity of significant data for well matched thesis. In respect of deep quarry into the place and manner of the populace is also feasible in regards to the ground of qualitative research approach. Saunder et al (2007) argued that if there is any importance or requirement of a theory on an ongoing basis with a view to rising shock or blow of the hypothesis the inductive or qualitative research is helpful. As expressed by Burns and Grove (1997) in respect of study the qualitative thesis approach is helpful and it is basically rely on the connotation, which is subjective, of the respondents.

Abreast it the quantitative study along with qualitative study has some refunds as well as it has some confines too. Quantitative hypothesis have some benefits. Because, it focuses a certain picture from a huge data field, according to the requirement and this is why quantitative hypothesis overcomes the sagacity of qualitative hypothesis. Abreast it, quantitative hypothesis is more effective than the qualitative hypothesis because it may persuade the people who are to read enormous stage and numeric information. This is why the qualitative research method has been chosen for this study.

Hypothesis strategies are of four types. Such as1. 2. 3. 4. historical analysis archival surveys and experiments and the case hypothesis The case hypothesis is considered as highest used technique. The case hypothesis of the research strategy is perfect at the time when the respective hypothesis is concerned with the questions like How and Why as explained by Yin, 2003. So the among the all strategy the case study strategy is being chosen for this study. 3.5 CASE SELECTION For this study I have selected Tesco superstore as the case company.

Mainly there will be two prime sources of my data collection. Like primary data and secondary data.

According to Zikmun (2000) those data can be referred as secondary data which already have been collected or processed for any specific purpose. Secondary needs respectively low time, and costs than primary data. There are some mentionable sources of secondary data. Such as editorial features, magazines, thesis, internet, web searching etc. all they are very significant in accumulation of secondary data.

Generally the data which are accumulated at the time of study, investigation, quarry, experiment and others direct sources. For this particular study I have collected primary data by means of survey approach. The primary data for this study have been collected from the premises of Tesco superstore, Becton City.

In this study to recognize the sample I have followed the simple random sampling. This respective sampling approach is such a method where all the items in a certain population possess equal probability to be selected. The predetermined size of the sample for this particular study is 110. These samples include five top level employees of Tesco and remaining respondents are the general people who usually prefer Tesco to shopping.

At the time of gathering primary data I have followed a prearranged questionnaire. The particulars of the respective questionnaire have been focused in the appendix of the hypothesis

To recognize the nuance of the information, the dimension of the information is important and in regards to have apparent surveillance, information which has been gathered at first needs a detailed scrutiny. In the analyzing stage of data, the hypothesizer has to go through three stages. Such as-data decrease, data show and Sketch termination plus creation authentication.

Figure: Components of data analysis (Source: Amaratunga et al 2002) According to Creswell (2007) the hypothesis concludes the sequential stages of functions which have to be followed up in data analyzing process. Data organizing: This stage of data organizing process the data which have been gathered has to arrange in a perfect way. Reading: I this stage all the data are gone though. Description: this stage is basically related with the explanation of the relevant case and it history. Classification: here data are categorized to found a perfect or suitable archetype. Understanding: it is tough stage where straight understanding is made and it means making the respective topic simple. Demonstration: it is related with the detailed presentation the concerned data be

means of charts, tables, pictures etc. In this study I have followed all the respective processes those have been stated above. Abreast it I have used the demonstration process where I have used table, portrait to enrich my presentation.

Research method Research approach Research strategy Data collection method Sample technique Sample size

qualitative research method Exploratory research approach case study Survey through interview Simple random sampling 110 Descriptive statistics (mean, standard deviation), Frequency distribution and inferential statistics.

Data analysis techniques

As expressed by Saunder et al (2003) validity is the situation or fact of nervousness regarding the replies that are they applicable. Yin has suggested accumulating the particular data or substantiation on series basis because it enhances the validity of hypothesis.

Yin (2003) stated that the main fact of reliability is that if any one executes similar types of hypothesis he will have the identical outcome and answers and equal conclusions will be found also. Yin also recommended keeping the documents properly because it enhances the reliability.

As expressed by Saunder et al (2007) moral or ethic of the hypothesis includes the hypothesis realization, assumption of thoughts on the obligation of respondents that are directly effected by the outcomes of the respective thesis. So the researching people should have a sound knowledge on the code of conduct of the researches. So I will learn about the code of conduct of the researches before doing this job to complete it satisfactorily. This is why I will keep any records regarding the respondents. So there will no possibility of disclosure of the information about the respondents who has delivered me the required information and helped me in this particular ground. Thus I will be able to follow the code of conduct of the researches.

Chapter Four Findings and Analysis 4.1 Overview An empirical study has been conducted by the researcher himself to collect the primary data among the selected samples. The survey among the respondents was conducted following the semi structured interview on the basis of predetermined questionnaire. The findings of this study have been shown and analyzed as follows. 4.2 Findings regarding the reasons why an organization (Tesco) involves in CSR There is an illustration about why Tesco involved in CSR, because they think that being a good citizen is valuable and to inform the people that everything they are doing is to be a good citizen. They think that living and learning are of same importance. And it needs acquire the name and fame. They also think that being the first among others entity in involvement of CSR is significant to them because at present they are focusing CSR as red hot. The intention of Tesco that they are willing to focus themselves as a pioneering concern with an approach of advanced mentality. According to Verksamheten (2006-2007) Tesco disclosed in their AR that to enrich their top market position they are participating in CSR. Tesco firmly believed that policies that were harmful to the environment would not project the right image of the company, and would cause damage to the company, its customers and society at large. Tesco launched its energy awareness campaign in 1996. The company's staff was expected to take active part in it. Tesco reduced the energy consumption per square foot by 35% between 1997 and 2005. Tesco considers the involvement in CSR as media of communication for them. It is also considered as a pattern of publicity because; by means of CSR they are easily being noticeable in many segments. They describe that by means of CSR they can take them to the new customers along the huge number of present customers. They explain their participation if CSR in a title sentence and that is it is all about being visible in the society. Tesco has a further thinking that as they are a participant in CSE the employee and working people of their concern get inspiration and feel conceited to be a part of Tesco or work in such a company. According Tesco CSR is going to be more significant in upcoming future. They think that in near future stakeholders of the companies will create pressure to the company that the entity will have to look after them. They argue that to disclose a continuous report, companies will face constraining influence. According to Tesco there will a transformation of annual report from traditional to a modern one because the traditional reports does not have concept of continuous reporting. Tesco has also states that in upcoming days there may be some legal requirements

to disclose report on continuous basis at corporate level. 4.3 Findings regarding the application of CSR at Tesco Tesco was the pioneer in their relative types of business in establishing policy guideline on ethics which are being called as code of conduct. These codes were framed up on values of companys excellence, teamwork and leadership. Excellence can be explained as the intention to provide or meet up the expectation and keeping up of assurance. Here the teamwork refers the mutual cooperation and coordination among the employees and outsiders to deliver the best service. And leadership is related with struggle in regards to improvement and competency of control the market. This code of conduct includes CSR. This policy guideline of CSR was introduced in 2001. According to Verksamheten (2006-2007) it is in accordance of Global Compacts ten principles. These principles were with an intention by the UN to encourage the international companies in regards to their environmental and social responsibility. The ten principles were on labor standards, human rights, anti corruption and environment. Here is table presentation of the principles.

Table: Global Compacts ten principles

Source: Adapted from the ten principles, n. d. It is the claim of Tesco that they have involved in CSR by implementing a policy guideline for cars which is environmentally friendly. They have introduced an incentive to promote their employees to have vehicles which are environmentally friendly. They are also drafting a guideline for travels; those are with a great anxiety in regards to environments. They are running analytical movements in their company with an intention of analyzing the approaches which will make them more environmentally friendly. They also argue that they have provided a decent working environment to the employees and even to develop the working environment better they have employed experts. In several social, cultural and sporting events they get involved in sponsorship. Tesco has chosen the Association for the Help of Mentally Handicapped People as the partner for its largest charity project Tesco Charity of the Year 2005. Tesco is launching a new PR drive to promote its Computers for Schools 2008 voucher collection scheme. There are proofs of CSE activities by Tesco which is not so material but significant yet: Ensuring a continuous support in regards to human rights and to take steps to be far from such acts which harms human rights. Perform in manner of responsibility being in the regulations, traditions and customs of the respective place where they are running their business and promote improvements of the peoples of there. They are running their business operation with an intention of reducing the impacts or harms to the environment They are promoting some activities like education, cultural and charity They are very strong against the crimes and corruption whether it is committing internationally and locally. Tesco expects that they are in a preliminary stage in the involvement in CSR. They have more plans that will be in upcoming days. 4.4 Findings regarding the connection between financial operation and CSR at Tesco Tesco argues that there is growing attention in their services. But it is very tough to indentify that it is the outcome of CSR involvement or not. Their involvement in CSR is in a very primary stage. So only a few stakeholders are aware of what is being done by the entity. The annual report and the webpage is the only means of communication of companys CSR activities. After the wider introducing of CSR activities they have a plan to communicate it on a wider extent. However they are considering it as a traditional investment.

4.5 Findings regarding the Importance of Social Responsibility for the UK Consumer The hypothesis I tested using the Chi Square test that there exist no significant discrepancy among the women and men in term of the manner of behavior. However both the women and men are considered as equally available in the examination of the population. The probability of observing such discrepancy is shown by the 1 degree of freedom of the chi square test. In this case if the number of men and women are equal in this population then the chi square show a value of .09 that is somewhat higher than the traditional statistical measure of significance i.e. .001 to .05. Thus the null hypothesis, that the sample of men in included in this statistical measure behave in the in the same manner as the women do, cannot be rejected (Chi Square Test1). Chi Square Test1: Respondents that say they are socially responsible Sex Observed N Male Female Total 40 69 109 Expected N 54.5 54.5 Residual -14.5 14.5

Test Statistics Sex Chi Square Df Asymp. Sig. 2.951 1 0.86

Then the importance of some socially responsible reasons to UK is examined by the questionnaire. A grading of 1 to 5 is constructed here (the 1 means, it is not significant to me, the 5 means; it is very much significant to me). According to the results it is shown that the caring for the environment having a mean (4.63) is mostly valued by the UK customers than the better working condition having a mean (4.51) and the other variables like the spending time with friends and family and helping other and contributing to the community possess the mean of (4.50) and (4.34) respectively. However it is interested that the average worldwide consumer found by Edelman regard the two variables like the helping other and contributing to the community and spending time family and friends as the major sources of the customer satisfaction, even though the mentioned four causes of SR are highly important to the UK customer (having value of means = 4.33). However I tried to analyze the degree to which the UK customer cares personally about the actions socially responsible in term of the degree to which the world customer care (in this case the measure of scale is same as from 1 to 5). Generally the protection of the environment is mostly cared by most of the UK customers (representing value of 95.70% and the mean of 4.71). It is seemed to be consistent with the foreign situation but it is also somewhat larger the global average customer (see table 4.1). Then the variables the customers mostly care are the equal opportunity to education (having 91.48% and mean=4.62), reducing poverty (having 90.36% and mean= 4.62), fighting HIV AIDS (having 89% and mean =4.54), building understanding respect for other culture (having 85.12% and mean= 4.42), having better opportunity to yourself (having 86.29% and mean=4.41). The customer care least about variables self esteem (having 67.61% and mean = 3.91) and supporting the creative arts (having 70.43% and mean= 3.96). In term of the average global consumer (see Table 4.1) the UK customers care slightly more than the other worldwide customers apart from the last social cause. The importance order is identical to the abroad. Considering some of the above issues the companies should implement some CSR in their operations which will represent their responsibilities to the public of UK. Table 4.1: How much the consumers personally care about CSR Type of socially responsible issue Protecting the environment Enabling everyone to live a healthy life Reducing poverty Equal opportunity to education Fighting HIV/AIDS Building understanding/respect for other cultures Helping to raise people's self esteem Supporting the creative arts Global UK consumers consumers* (%) (%) 92 96 90 89 89 83 82 77 69 95 90 91 90 85 68 70

*Source: Edelman Goodpurpose Community, 2007 In examining the purchasing behavior of the customers concerned with the CSR it is found that about 90.99% of the customers are interested to change their product brand to the brand regarded as most friendly. As mentioned by results among the 90.99% the women are 95.26% and men are 86.11%. The hypothesis we tested using the Chi Square test that there exist no significant discrepancy among the women and men in term of the willingness of switching from one brand to other brand considered as friendly. It was found that such type of probability is nearly 0.04 which is regarded less than the traditional criteria for the significance of

statistics. Thus the null hypothesis can be rejected and it can be claimed that the friendlier the brands are the more the women will be interested in switching to the brand. (Chi Square Test 2) Chi-Square Test 2: Respondents willing to switch from their favorite brand to one that is more environmentally friendly

Sex Observed N Male Female Total 35 70 105 Expected N 52.5 52.5 Residual -17.5 17.5

Test Statistics Sex Chi Square Df Asymp. Sig. 4.391 1 0.36

Chi-Square Test 3: Respondents willing to switch from their favorite brand to one that is more environmentally friendly even if the price would be higher Observed N Male Female Total 38 63 105 Expected N 50.5 50.5 Residual -12.5 12.5

Test Statistics Sex Chi Square Df Asymp. Sig. 4.391 1 0.36

However we cannot reject the null hypothesis when it tested that the customers will be more willing to the more environment friendly brand although the price is higher. If there are equal number of men and women then the value is nearly 0.09 which is larger than the statistical significance criteria (Chi Square Test 3). However the UK customers are being more and more interested to the consumptions of the brand acting friendly to the environment. It represents that the companies should consider the importance of genial environment as their CSR. It is found that 67.87% of the customers are interested in switching to the brand friendly to the environment. This means that the CSR of the companies is not just a necessity or trend it is considered as the greater means of generating indirect profit. The company generally targets all segments of the market. But the companies are more interested to the women than the men as the women are seemed to come to the brand environment friendly than men. It is found that between the ages 18 to 24 94.30% are interested to switch and between 40 to 49 year ages about 93.76% are willing to change. However the other groups having no intention to change brand should not be ignored. But the major segments targeted by the company to conduct the CSR involve the 18-24 and 40-49 year age. To conclude it can be said that the social responsibility is important to the company. According to Edelman Goodpurpose Community (2007) the social responsibility is vital to the general UK customers and the customers are more concerned with the social responsibility. So it can be said that the exits a great need for the social initiative for the companies contemplating to launch the social responsibility especially to the present UK customers by implementing both the corporate policies and regulations with a view to attaining the profitability of the firm ensuring the customer satisfaction.

4.6 Summary From the findings it can be said that the reseaons behind the engagement in CSR is to improve organizations reputation and image. In the study it is found that the company (Tesco) participates in CSR in the area of environmental protection, charity work, sponsorship and work environment. From this study it could be said that CSR investments of the company will affect the performance of the company since customers value CSR activities. From the hypotheses testing it is found that consumers have positive feelings towards CSR, so, they will be loyal to the company that is being engaged in CSR and thereby increase the sales.

Chapter Five Conclusion and Recommendation 5.1 Research Overview This study aims to analyze the corporate social responsibility andas well as how and why organizationits engage in corporate social responsibility. In the recent years the corporate social responsibility has been an admired topic for discuss. Corporate social responsibility, certainly, comprises more aspect than just concerning about the environmental effects of organizations. It came in peoples mind at the later 1880, period of primary industrial development that organizations should care about the idea of social responsibility. Organizations which are close to social responsibility issues became concern about the principled ground of achieving social obligation. There were four objective of this study such as to analyze why companies engage in CSR; to evaluate how companies apply CSR; to analyze the relation between the use of CSR and financial performance; to examine the feelings of the consumers toward CSR.

An empirical study has been conducted by the researcher himself to collect the primary data among the selected samples to achieve above objectives. The survey among the respondents was conducted following the semi structured interview on the basis of predetermined questionnaire.

5.2 Conclusion The first objective was to analyze why companies engage in CSR. From the findings it can be said that the reseaons behind the engagement in CSR is to improve organizations reputation and image. In addition, organization by participating in CSR could be able to maintain its parket position since CSR provide the company competitive advantage. So in nut shell a company engages in CSR to enhance financial performance, to achieve competitive advantage, and to broaden its reputation & image. The secon objective was to evaluate how companies apply CSR. In the study it is found that the company (Tesco) participates in CSR in the area of environmental protection, charity work, sponsorship and work environment. Tesco launched its energy awareness campaign in 1996. Tesco reduced the energy consumption per square foot by 35% between 1997 and 2005. In several social, cultural and sporting events they get involved in sponsorship. Tesco has chosen the Association for the Help of Mentally Handicapped People as the partner for its largest charity project Tesco Charity of the Year 2005. Tesco is launching a new PR drive to promote its Computers for Schools 2008 voucher collection scheme. The third objective was to analyze the relation between the use of CSR and financial performance. There are numerous regarding the connection between the CSR activities and their impacts on organizations financial performance. From this study it could be said that CSR investments of the company will affect the performance of the company since customers value CSR activities. From the hypotheses testing it is found that consumers have positive feelings towards CSR, so, they will be loyal to the company that is being engaged in CSR and thereby increase the sales. The last but not least objective was to prove hypothetically that consumers have positive feelings towards CSR and there are no differences between men and women behaving in a socially responsible manner. From the findings it is seen that both of the hypotheses are supported that means consumers have positive feelings towards CSR and there are no differences between men and women behaving in a socially responsible manner.

5.3 Recommendation for future research This study has provided a deeper knowledge within the field of CSR. However, there are still many interesting areas to study. Therefore, I have made a list with our recommendations for future research: The interest and customer demand for CSR is high right now. However, it is hard to say what the future holds. Therefore, it would be interesting to conduct this type of study to analyze if there have been any changes in CSR engagement (e.g. customer demand for CSR or how companies apply CSR) and if so, why? The aim was to investigate the correlation between CSR engagement and financial performance. Since Tesco had not released any annual report after they implemented CSR. It was not possible to investigate if the company's CSR engagement had affected the company's performance. Therefore, we recommend this for future research. We recommend a broader study of CSR where the researcher investigates more than one company in order to distinguish similarities and differences between these companies and thereby be able to stipulate a more general answer.

Reference 1. Adamsson, S., Johansson, J. (2008).Vilka r hllbarhetsredovisningens viktigaste intressente?Retrieved May 24, 2008 from http://www.divaportal.org/diva/getDocument? urn_nbn_se_sh_diva-1457-1__fulltext.pdf 2. Berger, I.E., Cunningham, P., & Drumwright, M.E. (2007, Summer).Mainstreaming CorporteSocial Responsibility: DEVELOPING MARKETS FOR VIRTUE. California management review, 49(4), 132-157. 3. Comfort, D., Hiller, D., & Jones, P. (2007). What's in store? Retail marketing and corporate social responsibility. Marketing Intelligence & Planning, 25(1), 17-30.

4. Golob, U., & Podnar, K. (2007). CSR expectations: the focus of corporate marketing. Corporate Communications: An International Journal, 12(4), 326-340. 5. Idowu, S.O, & Papasolomou, I.I. (2007). Are the corporate social responsibility matters basedon good intentions or false pretences? An empirical study of the motivations behind the issuing of CSR reports by UK companies, 7(2), 136-147. 6. Jenkins, R. (2005). Globalization, Corporate Social Responsibility and poverty. Retrieved April 5, 2012, from http://www.blackwellsynergy.com/doi/pdf/10.1111/j.1468-2346.2005.00467.x?cookieSet=1 7. Kotler, P., & Lee, N. (2005). Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause. Hoboken, New Jersey. John Wiley & Sons, Inc. 8. Kramer, M.R., & Porter, M.E. (2006, December). Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review,84(12), 7892. 9. Matten, D., & Moon, J. (2008, April). Implicit and explicit CSR: a conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33(2), 404-424. Retrieved April 1, 2008, from EBSCOhost database. 10. McGuire, J., Sundgren, A., and Schneeweis, T. (1988), Corporate social responsibility and firm financial performance, Academy of Management Journal, 31(4), 854-72. 11. Miles, M.P., & Munilla, L.S. (2005). The Corporate Social Responsibility Continuum as a Component of Stakeholder Theory. Business and society review, 110(4), 371387. 12. Nilsson, C., & Rahmani, S. (2007). Cause Related Marketing From a Swedish Retail Perspective. Bachelor thesis. Lule University of Technology. Retrieved April 5, 2012 from Lule University of Technology Digital Theses. 13. Saunders, M, Lewis, P and Thornhill, a (2007), research methods for business students (4th edition), new jersey: financial times/prentice hall. 14. Yin, R.K. (2003), Case Study Research, Sage, Beverly Hills, CA.

Appendix Questionnaire for interview Hello. My name is.from.. I am conducting a research study among the general public of Becton city, UK on the topic of corporate social responsibility from the viewpoint of the UK consumer. Let me first explain the concept of corporate social responsibility. Companies that act in a socially responsible manner are those that, for example, implement more rigorous measures to protect the environment than is required by law; they reduce the use of health hazardous chemicals in their products to lower values than are required by law; they issue public reports for consumers on the composition and processing of food; they enable better working conditions than are required by law for employees and stimulate their personal growth; they financially support humanitarian issues and social activity in culture, sports etc. In short: socially responsible companies do not pollute the environment, are employee and customer friendly, and contribute noticeably to good causes. Questions for the employees of Tesco 1. When did the company implement a CSR policy and why? 2. Do you believe that your customers consider it important that a company actively work with CSR? 3. Do your customers know about the companys CSR engagement? 4. Do you believe that your employees are affected by the companys CSR participation? 5. How does the company work with CSR? 6. Which CSR activities have been implemented recently? 7. What CSR activities does the company plan to implement in the near future? 8. In what way has CSR activities affected your daily work? 9. Do the company have CSR activities within the areas of: Environment Philanthropy Social issues Urban investment Working environment

10. Does the company communicate the CSR activities to the public, customers and employees? 11. Which methods are used to communicate the CSR activities? 12. To what extent does the company communicate the CSR activities? 13. Why does the company communicate the CSR activities? 14. Do you believe that the companys CSR activities can affect the companys reputation? 15. In what way CSR activities can affect the companys reputation? 16. Approximately how much money have the company invested in CSR activities? 17. Do you believe that a CSR investment can be compared to a traditional investment? 18. Do you believe that companies working with CSR thereby can increase their sales? Questions for consumers 1. Please grade how important each one is for you. Grade on the scale from 1 to 5, where 1 means it is not at all important and 5 means it is very important: a) Helping others and society 1 2 3 4 5

b) Spending time with family and friends 1 2 3 4 5

c) Protecting the environment 1 2 3 4 5

d) Better working conditions for employees 1 2 3 4 5

2. Do you feel it is your duty to contribute to a better society and environment? Yes No I dont know 3. Do you believe that you personally can evoke changes in your environment? Yes No I dont know 4. What about in the society as a whole? Yes No I dont know 5. Would you be willing to switch from a product of your favorite brand to a product of a brand that is more environmentally friendly? Yes No I dont know IF 3.1=YES; 6. What if that meant that the price of the product would be higher? Yes No I dont know 7. Could you say that you are socially responsible in your behavior? Yes No I dont know 8. If YES: In what way? 9. Please grade how important the following categories are for you personally. a) Protecting the environment 1 2 3 4 5

b) Enabling everyone to live a healthy life 1 2 3 4 5

c) Reducing poverty 1 2 3 4 5

d) Enabling everyone to have equal opportunity to education 1 2 3 4 5

e) Fighting HIV/AIDS 1 2 3 4 5

f) Building understanding/respect for other cultures 1 2 3 4 5

g) Helping others 1 2 3 4 5

h) Helping to raise own self esteem 1 2 3 4 5

h) Helping to raise people's self esteem 1 2 3 4 5

i) Supporting the creative arts 1 2 3 4 5

Thank you for participating in this survey