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Tesco CSR

Submitted to:

Shaheen Ahmed (SHD)

Barrister at Law & Faculty @ NSU

Department of History and Philosophy

Business Ethics (PHI-401)

Section -04

Group: A

Submitted by:

Name Id

Md.Rashel Howladar 1221057030

Syed Sadi Mahmudul Haque 1210635030

Nafeesa Musarrat Malia 1231075030

Iftakharul Rahman 1210307030

Tanvir Ahmed 1220602030

Yasir Arafat 0920050030

School of Business, BBA Program

North South University

Dhaka

Date: 23rd

June, 2016

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Table of Contents Introduction ............................................................................................................................................ 3

Corporate social responsibility ............................................................................................................... 4

Tesco’s Economic Responsibilities .......................................................................................................... 5

Corporate Governance and Risk Management................................................................................... 5

Regeneration ....................................................................................................................................... 5

Tesco’s Legal Responsibilities ................................................................................................................. 6

Animal Welfare Policy ......................................................................................................................... 6

Animal testing ..................................................................................................................................... 6

Genetic Modification .......................................................................................................................... 6

Environmental Responsibility ................................................................................................................. 7

ENERGY, WATER AND FUEL ................................................................................................................ 7

Philanthropic Responsiblity .................................................................................................................... 8

Conclusion ............................................................................................................................................... 9

References: ........................................................................................................................................... 10

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Introduction

TESCO was founded in 1919 by Jack Cohen from a market stall in London‟s East End. It is

now one of the largest retailers in the world. Tesco is a global retailer Headquartered in the

UK; they employ 492,714 staff and work with suppliers in over 70 countries. TESCO is

operating in 12 markets across Asia and Europe and run 5,380 stores worldwide. In store and

online they enable over 85 million shopping trips each week.

The report outlined Tesco's approach to CSR in the coming year and the achievements in the

past year. Commenting on Tesco's CSR approach, Leahy said, "Corporate Social

Responsibility makes sound business sense. The key to our approach is our integrated

business system, where environmental and social performance is managed alongside financial

performance. This means we have a year-on-year program of focused action to drive

improvement.

Every year Tesco publishes its „Corporate Social Responsibility Review‟ outlining its

approach, implementation and policies in the coming year and the accomplishments in the

past year.

Tesco‟s CSR strategy is basically “to earn the trust of our customers by acting responsibly in

the communities where we operate, by maximizing the benefits we bring and working to

minimize any negative impacts.” Tesco‟s board members discuss the CSR strategy with

performance reviews every quarter. The board and the executives receive quarterly updates

on CSR performance, using which future risks and opportunities are evaluated.

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Corporate social responsibility

Corporate responsibility at Tesco is about creating a sustainable core value for a successful

business growth. It‟s about doing business in a socially responsible and sustainable way.

Corporate responsibility helps shape all they do at Tesco. At the heart of the overall business

strategy is their core purpose: „to create value for customers to earn their lifetime loyalty‟.

Their role in society is an extension of their core purpose: “we make what matters better,

together.” Their three big ambitions are: to lead in reducing food waste globally, to improve

health and through this

help to tackle the global

obesity crisis, to create

new opportunities for

millions of young people

around the world. TESCO

is also contributing in

number of factors: they

trade responsibly by

putting their customers

first and building strong

partnerships to provide

high quality products,

they are reducing impact

on the environment by

aiming to be a zero-

carbon business by 2050 and using scarce resources responsibly, including in supply chain,

they are a great employer –creating opportunities that make colleagues happy and proud of

what they do, TESCO support local communities by being a good neighbor and running their

business to the highest standards.

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Tesco’s Economic Responsibilities

Tesco made strong efforts to contribute to overall economic growth and development in all its

locations across the globe. The company played an active role in providing employment,

supplying goods at affordable prices and giving the community opportunities to expand and

grow.

Corporate Governance and Risk Management

Tesco has established a cross functional Corporate Social Responsibility group under the

Chairmanship of the Group corporate affairs director to discuss key and emerging issues,

monitor and track progress against targets and implement plans. The objective is to protect

and promote the brand and

consideration of risk is an integral part of

the CSR group‟s function. The

Chairman reports annually to the

Executive Board on strategy, and

quarterly with the rest of the business

on progress towards achieving the CSR

key performance indicators (KPIs).

All the environmental,

social and ethical issues are

incorporated into risk analysis at each

level.

Regeneration

Their regeneration schemes aim to bring together public services, employers and community

groups to yield social, economic and environmental change in deprived urban areas.

They are based around the development of a new store to serve the local community. By

investing in these areas, they hope to attract other companies to invest there too, thus bringing

improvements in economic prosperity. In the last two and a half years, Tesco has forged 13

regeneration partnerships to deliver practical support creating better places to live and work

and real prospects for a secure economic future.

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Tesco’s Legal Responsibilities

Animal Welfare Policy

Tesco aims to be associated by customers with high standards of animal welfare and best

industry practice in its supply base. They will do this by using up to date knowledge of

animal welfare, ethics, scientific knowledge and legislation.

They are committed to devising and implementing Codes of Practice which ensure that the

requirements of the Tesco Animal Welfare Policy are met in all animal husbandry systems.

Tesco has a program of independent animal welfare auditing to ensure the effective

application of those Codes.

Animal testing

Tesco do not support testing on animals for cosmetic or household products, and do not carry

out or commission such tests on their own-brand products or the ingredients they contain. As

a five-star donor, Tesco contributes £10,000 a year to the Fund for the Replacement of

Animals in Medical Experimentation (FRAME), which seeks to end animal testing. Tesco

Naturally and Natural ranges do not use any ingredient that has been tested or retested on

animals for cosmetic purposes since 31 December 1990. All other Tesco products operate a

fixed cut-off date, for ingredients, of 31 December 2007.

Genetic Modification

Tesco has removed GM ingredients from all own brand products and has increased non-GM

options for their customers by launching the largest organic range.

To address customer concerns about GM food, Tesco is committed to providing proper

information and clear labeling so customers can make an informed choice when shopping.

Tesco is seeking reliable sources of non-GM ingredients for their products, and of non-GM

animal feed for their meat products.

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Environmental Responsibility

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. Environmental conservation was of particular concern to Tesco as it was not

always aligned with economic goals. However, the company committed itself to maintaining

a healthy environment and made all employees take an active role in its environmental

initiatives.

Three Main Approaches towards Climate Change:

1. Zero Carbon Business By 2050,

2. 30% emission reduction by 2020 working with suppliers together,

3. Come up with new ideas by 2020 to make much more green products, its availability

etc. to the people all around the world.

ENERGY, WATER AND FUEL

Tesco launched its energy awareness campaign in 1996. The company's staff was expected to

take active part in it. Managers in all Tesco stores, depots and offices monitored energy use

and worked towards reducing waste. Tesco reduced the energy consumption per square foot

by 35% between 1997 and 2005, and planned to reduce it further by 5% by 2006 (Refer Table

III for the details of energy consumption at Tesco between 2000 and 2005). They would like

to have zero carbon business by 2050.

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Philanthropic Responsiblity

Due to its size and scale of operations, Tesco is able to influence society at large in many

ways, by encouraging its employees and customers to become socially responsible. The

company adopted several initiatives to fulfill its responsibility to society.

Charity and fund raising for a cause

Promotion of education.

Promotion of health related foods making it available to everywhere.

Tesco‟s National Charity Partner in the UK is Diabetes UK.

Made a long-term commitment to improve the next generation‟s relationship with food

across operating markets through the Tesco‟s Eat Happy Project.

Determine to create opportunities for young people regarding unemployment issue and

develop future skills

Helped people during natural disasters in February 2014, December 2013 and so on.

These efforts were not limited to the UK but extended to other countries in which Tesco

operated.

Communities: Tesco gave at least 1% of its pretax profit to charity, in the form of donations,

employee time and gifts. In the fiscal 2004-05, Tesco's total charity contributions stood at

£21,762,931. Tesco Charity Trust provided grants of £878,556 to local and national charities

in the UK.

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Conclusion

In overall it could be said that Tesco has ensured that CSR is an integral element of its core

business. The underlying argument here is that Tesco believes that long-term economic

viability is in the interests of all stakeholders and that by integrating CSR into its businesses,

it will be better placed

to provide long-term

growth and financial

security for those

stakeholders and also to

maintain and enhance its

market position. Few

experts opine that CSR has

benefited Tesco

significantly. At the

operational level also,

business imperatives

seem to be the drivers of

CSR. Thus, while many of

the environmental

initiatives addressed in

the CSR reports are

designed to reduce energy

use and waste generation. It

also reduced costs. In a

similar vein, social issues

focusing upon good working

environment conditions, health and safety at work and training and management development

promoted stability, security and efficiency in the workforce.

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References:

1. Tesco charity partnership. Retrieved From: http://tescocharitypartnership.org.uk/

2. Tesco. (May 30, 2016). Concerns over long-term physical health of under-pressure workers.

Retrieved from: http://tescocharitypartnership.org.uk/about/news/article/concerns-over-

long-term-physical-health-of-under-pressure-workers

3. Overall brief details of Tesco. Retrieved from: http://www.tesco.com/

4. Owens, J. (November 15, 2013). News analysis: Tesco's transparency on food waste is a

CSR wake-up call for the City. Retrieved from

http://www.prweek.com/article/1220637/news-analysis-tescos-transparency-food-

waste-csr-wake-up-call-city

5. IBS Case Development Center. (2009). Tesco‟s corporate social responsibility

initiatives. CSR0056.UK. Retrieved from

http://ibscdc.org/Free%20Cases/Tesco's%20Corporate%20Social%20Responsibility%

20Initiatives%20p1.htm