Corporate social responsibility among grocery chains

Corporate social responsibility has been regarded from both a broad and specific perspective, and this research integrates the two through a study of CSR among grocery chains and an assessment of employee knowledge levels of employee involvement in social justice issues. The study examines previous research on CSR and compares the findings to this research to determine if the inferences are in the same line of thought or different. The goal of this study is to examine employee attitudes about CSR and the engagement of grocery chains in the practice. The study narrows its scope to determining whether the involvement in the practice can improve profitability levels and the paper explores a fresh perspective to determine if employees possess any awareness of social justice involvement. This study embraced a qualitative approach and used questionnaires to acquire insights from the employees for the study questions. It was found out that employees are partially aware of the need for indulgence in social justice however they are highly committed to be involved in matters that progress the society. The study concludes by making recommendations for further research on the rate at which matters of social justice are being absorbed by companies and the efforts of the government towards this practice.

Table of Contents

Abstract 2

Chapter 1: Introduction 7

1.1 Introduction 7

1.2 Background of Study 7

1.3 Problem Statement 8

1.4 Objectives 9

1.5 Research Questions 9

1.6 Significance of the Study 9

1.7 Scope of the Study 10

1.8 Hypothesis 10

1.9 Assumptions 11

1.10 Nature of Study 11

1.11 Chapter Summary 12

1.12 Overview of the Entire Dissertation Chapters 12

Chapter 2: Literature Review

2.1 Introduction 14

2.2 CSR, Business operations and Impact on Business Performance 14

2.3 Models in CSR 15

2.4 Effectiveness of CSR 18

2.5 Literature on Benefits and Shortfalls of CSR 19

2.6 Literature on CSR and Supply Chain 20

2.7 Other Issues in CSR 21

2.7.1 Corporate Citizenship 21

2.7.2 Ethics 22

2.7.3 Size of Company 22

2.8 Chapter Conclusion 22

Chapter 3: Methodology

3.1 Introduction 24

3.2 Philosophy of the Research 25

3.3 Approach to the Research 25

3.4 Strategies to the Research 26

3.5 Case Selection 26

3.5.1 Research Choices 27

3.6 Instruments for Collecting Data 28

3.6.1 Questionnaires Administered Online 28

3.6.2 Pre-Existing Literature 28

3.7 Sampling 29

3.8 Ethical Considerations 29

Chapter 4: Findings

4.1 Introduction 30

4.2 Literature Review Findings 28

Chapter 5: Conclusion and Recommendations

5.1 Conclusion 36

5.2 Recommendations 36

References

38

APPENDIX 45

Questionnaire 45

List of Figures

Chapter 1: Introduction

1.1 Introduction

The conventions of some nations have strived to encompass Corporate Social Responsibility with various justifications, however, conglomerates; especially supermarkets have taken up CSR for their own benefits. While these benefits may not seem highly obvious to consumers and analysts, they are suggested to exist and can have significant influences on some of the operations of customers. Before any studies, it is salient for any individual to comprehend the meaning of CSR on a general scale before they can relate it to any institution. On a thoughtful approach, CSR references the strategic approach embraced by businesses with the core intent of increasing environmental, social, and economic stability for the shareholders as well as the consumers.

1.2 Background of Study

Supermarket chains have become stringent on the involvement of their members and consumers in CSR all over the globe, and this practice cannot be ignored based on the extent to which it has spread. Based on the popularity, it is fair to assume that the gains of CSR outweigh the drawbacks as well as the costs involved and hence it is a positive contributor to the progress of the society. However, the existence of CSR can be dated back to early times when the involvement of business in the community was high

CSR has been argued to bring in high expectations for business owners in particular for conglomerates that have the intent of advertising through this method and seeking the eye of the civil authority. Mohr and Webb, 2005, p. 121-147) et al. (2009) note that the civil authority is deliberate on depressing the tax costs for corporations that are stringent on matters pertaining to CSR and hence this is usually the goal for most companies. Inoue and Lee (2011) suggested that most companies do not have optimistic intents when they launch the CSR programs and hence considered it a selfish attempt for big conglomerates to outshine other smaller competing businesses (p.790-804).

Revenue stands out as one of the core intents of operation of any business, and this is often used as a measure of the gains introduced by CSR, notwithstanding the many arguments by scholars on the deficiency of measures to establish if the revenue is directly linked to the approach. Peters and Mullen (2009) takes a critical approach to the CSR benefits and highlights that no individual or company has established a measure to how much revenue is generated through participation in CSR. While revenue can be regarded as the economic benefit brought about by a business after dealing with the expenses involved, the ability to determine whether revenue is spent or generated by supermarket chains through CSR can only be ascertained through a study (p1).

1.3 Problem Statement

CSR is commonly being propagated among different businesses but does this directly infer that it is beneficial to the conglomerate or is it an act of popularity? The issues that will be addressed in this paper will be provided a backdrop by this posed question. However, the study itself will seek to address matters pertaining to revenue generated by a conglomerate and will base its specifications on supermarket chains. This study will assess whether critics are justified to suggest that CSR and revenue increment is valid among supermarket chains or whether the arguments that CSR is able to generate revenue are true. The Economist (2009) made the suggestion that people, the environment and the monetary gains of a business are one way to evaluate CSR and hence prompting this study.

1.4 Objectives

This study seeks to assess the involvement of supermarket chains in CSR and their attitude towards the benefits or drawbacks of this approach.

This paper seeks to perform a cross-section of previous studies to highlight what other scholars have inferred about the impact of CSR on the revenue generation of a company while checking on their justifications for these inferences.

Thirdly, this study is geared at comprehending the link between CSR and revenue and how CSR impacts the fluctuation of income when it is present and when absent, specifically to supermarket chains.

This paper seeks to highlight the link between CSR and social justice and how Sainsbury has managed to make contributions to this aspect, analyzing whether it has culminated in profitability or losses for the chain.

1.5 Research Questions

What is the rate of which successful supermarket chains are involved in the participation of CSR?

What are the attitudes of participants towards their involvement and the impact of CSR?

What is the direct influence of CSR on the revenue profitability or depression of supermarket chains?

What are the awareness levels of business in reference to the benefits of participation in CSR on matters of social justice?

1.6 Significance of the Study

This study will seek to provide awareness on the existence of CSR among supermarket chains as well as full knowledge of the stringency of policies by the civil authority and the business themselves. This study will also be geared at making contributions to either agree or counter the arguments by Dean (2003) who suggests that each business should be involved in CSR as part of their business ethics adoption (p.91-102). The study has the intent of testing the thoughts of Cochran and Wood (1984) that revenue can be escalated through participation in actions that motivate people like CSR (p.42-56). Hence, this study will contribute to existing literature on CSR as well as expand on the sentiments and inferences of some of the prior scholars.

1.7 Scope of the Study

The supermarket chains based on their rates of growth as well as their extensive market share will be a legitimate field of study and will form a good baseline for arguments. The study will focus on the United States alone to counter the challenge that can be introduced by parallel demographic policies on CSR globally. For instance, Sen and Bhattacharya (2001) notes that scholars are infuriated by the prompt of a tax holiday by the Ugandan citizens who are geared at increasing the reliefs on taxes (p.225-243). Forte (2013) inspires the scope for the study through his elaborate attempt to infer that in the U.S. it has become a remarkable aspect for business to indulge in CSR besides generation of profits. This justifies the choice for demographic location in addition to the issue on different nations embracing different conventions and differing attitudes on CSR in the various countries as well (p.7).

1.8 Hypothesis

Yoon Gürhan-Canli and Schwarz (2006) in his study on the impact of CSR on revenue of financial institutions suggested that many extensive corporations have felt the need to invest in CSR while smaller or dying institutions see this approach as the unnecessary dispensation of funds. Additionally, adequate investing in CSR has the ability to influence the acquisition of new product consumers culminating in new capital as well as favors from civil institutions ending up in increased revenue. These insights introduce the hypothesis that extensive institutions have better attitudes towards indulgence in CSR and their policies are steady as well. Additionally, the hypothesis that participation in CSR is a direct influencer of consumer acquisition and tax reliefs hence increased revenue is noted. This paper will test these two hypotheses restraining the study to the referenced scope of supermarket chains in America (p.377-390).

1.9 Assumptions

One of the core assumptions that will be held throughout this study is the idea that referenced literature is authentic and that the literature will be adequate for supporting the basis for the launch of this study.

The second assumption to be regarded in the analysis of findings and making of inferences is that the supermarket chains in the United States are an adequate representation of the case in other chains outside the U.S. particularly when policies are homogenous.

In finality, this study will assume that the prior studies considered were conducted under homogenous conventions to the current ones towards matters of CSR participation and tax relief. In reference, Ismail (2009) made the observation and claimed that business in America faced a lowered quota of restraints compared to those in other progressed nations and CSR is often a choice for business (p.199).

1.10 Nature of Study

This study will employ a qualitative approach through the use of literature from prior studies that will aid in the making of sturdy inferences. The qualitative nature of the study will allow for condensation of the vast amount of data to establish the extremity of the impact as well as elevate the reliability.

1.11 Chapter Summary

This chapter explores the background that has raised interest in the area of CSR as well as the research problem, which will be the main area of study for the entire research. The chapter explores the scope of the study, which is specific to the supermarket chain, and in this case, Sainsbury chain of supermarkets. While this chapter only serves to introduce the issue under scrutiny, it transparently highlights the objectives of the study that range from the sentiments of individuals on CSR to the main issue that is on the revenue strains or benefits of CSR. This chapter takes into recognition some of the inferences made in prior studies and hypothesizes that revenue is positively impacted by the presence of CSR in a conglomerate.

1.12 Overview of the Entire Dissertation Chapters

The first chapter is the introduction, and it is written with the intent of introducing the problem to the reader as well as providing a constant background to the choice of the problem. The issues that have shaped the scope of the study are mentioned and prior inferences are used in this chapter to hypothesize the study. Additionally, this chapter covers matters such as the objectives and research questions and briefly touches on the nature of the study.

The second chapter focuses on the literature available on the subject matter as well as any relevant literature to the CSR topic. This relevancy will be based on previous definitions of CSR by different authors and their implications on the study, studies that have assessed the relationship between CSR and revenue and finally, studies that have addressed issues on policies put in place by corporations to promote or ban CSR. The literature will be deliberate on uncovering arguments as well as counter arguments on the effects of CSR on revenue and will allow for making of conclusions in the final chapter.

The third chapter will focus on the methodology that will be employed in the study, which in this case will be a qualitative analysis of available literature as well as interviews with Sainsbury’s employees and managers. The fourth chapter will address the analysis of data and a discussion of findings that will be uncovered in the interview process as well as in the literature review and will provide a discussion and analysis of these findings. The final chapter, which stands to be the fifth one will lay focus on the conclusion, recommendations as well as uncover the limitations of the study.

Chapter 2: Literature Review

2.1 Introduction

This section seeks to unravel salient aspects of CSR that have been studied in the past and links these aspects to the issue of profitability based on the angle of assessment taken by the scholar. In any business, the affiliations made between employees or the brand in general with the suppliers, distributors, consumers as well as the community in whole are influenced by the existence of CSR. While CSR may seem to be simple, the issues and conflicting arguments that exist under the service are quite heavy and hence necessitate scrutiny. One of the trends that have been identified by McPherson (2016) that holds significant gaps when it comes to CSR is the trend of social justice that has emerged strongly among current businesses.

2.2 CSR, Business Operations, and Impact on Business Performance

Ismail (2009) references CSR as a tactic that most conglomerates embrace and use as a means of streamlining their business to ensure ethical approaches are observed, to ensure the business is well taken in by the society and to dispense an opportunity for a company to aid in community progress (p.199). While this may be deemed the ultimate definition of the practice, it is transparent that the scholars take the approach also deters the definition to be specific to the case study. Fontaine (2013) suggest that CSR is mainly affiliated with the way businesses structure their actions and narrow it down to the issue on whether conglomerates are indebted to shareholders with regard to community progression (p.37).

Olajide (2014) in his research suggested that CSR core focus lies in the ethical and moral aspects which are able to deter the decisions of the conglomerate through a response and a great social indulgence on matters that impact the society (p.13-31). The perspective embraced by Olajide (2014) is basically on how globalization has managed to propagate the embrace of CSR as a global factor. Olajide (2014) argues that the drawbacks and gains that have sprung from the interaction of social, political and economic aspects of business with the environmental arena have introduced new risks that CSR is the only means of addressing them (p. 13-31).

2.3Models in CSR

Visser (2011) advocates the existence of a model that is able to capture all the elements of CSR that allow for cross-referencing of the benefits that exist as well as the challenges that stimulate the use of CSR by a conglomerate (p.7-22). Viser (2011) introduces the Carroll model for CSR which seeks to make the implication that CSR encompasses a means by which businesses can carry out their actions but still maintain profitability, be restraint by the law as well as show ethical behavior and social support. The contributions of the conglomerate in this model are not restraint to monetary dispensations but also involve the use of talent as well as time involvement of the employees of that corporation (p.7-22).

Nalband and Kelabi (2014) note that the Carroll model stands out as the most famous notwithstanding the existence of other models and is founded on four core aspects. The initial 1991 pyramid noted the existence of economic responsibility which is the backdrop of the corporation and is usually the intent of most businesses. This is followed by the legal aspects that regard the extent to which a conglomerate is faithful to the conventions of the state as well as conventions formulated by relevant bodies. The third base concept is the ethical angle that references the obligations of the firm in reference to the society which ensures no harm to the society. In finality, the last point on the model regards the existence of duties that are discretionary which are geared at dispensing resources to the society with the intent of elevating life quality (p. 236)

Figure 1: Carroll’s Model of CSR

Moir (2001) however takes note of the fact that the model by Carroll is challenged by the existence of escalated amount of expectations by society towards business, but the firm is not able to deliver. The balance between performance (economic) and addressing issues that afflict the society is often a complicated subject for most conglomerates and hence the idea of Carroll’s model having economic responsibilities as the baseline. Individuals in the community have escalated their demand for corporation involvement in addressing societal issues. However, the core focus of these organizations lies in the economic aspect based on the scope to which the conglomerate lies (p.16-22).

The alternate framework is founded on the sentiments of Freeman- 1984 whose argument is founded on the existence of extensive issues that conglomerates do not suffice to address based on their financial objectives. The framework suggests that there are salient and real changes that exist in the society about establishment and control of businesses and these changes ought to be handled steadily. The framework according to Klein and Dawar (2004) encompasses a series of prior models and is constituted by for most important aspects. The environment as a factor of context, events, and shareholders and in finality, dialogue practices: The second aspect suggests that each factor can be approached from numerous perspectives and finally, credibility acts as motivation for the firm involved (p.203-217).

Figure 2: Stakeholder dialogue on CSR

In reference to the models, there are a number of aspects that are able to sway the actualization of CSR, and according to Fontaine (2013), these issues range from:

Globalization- In this case, the trade among conglomerates from parallel demographic locations necessitates that existence of human resource involvement and management practices on supply chain and environment as well as health. Fontaine (2013) adds that the civil authority and bodies operating under this authority have collaborated to dispense conventions and doctrines which elaborate on acceptable social actions (p.37). Technology impacts CSR in that conglomerates are capable of putting together socially responsible acts as well as dispense insights on the benefits of these actions to the entire consumer base. Stakeholders and Consumers often make a demand for insights as well as actions that impact the society with relevance to the risks and prospects that arise in relation to the social and environmental arena. Ethics and Awareness stand as factors that influence CSR based on the quota of trust that exists in the society relative to activities of a firm, and the awareness seeks to control the incentives that are shown by the firms to ensure adequate address of issues affiliate to CSR (p.110).

Progressing the Carroll model, several issues have been raised in the counter of the propagation of CSR and this spring from parallel perspectives starting with the economic aspects. Scholars have suggested that conglomerates are keen on ensuring financial success for stakeholders and conglomerate heads and other social issues should be taken care of by other sections of the free market that are not business manipulated. On the other end, these counters of CSR are suggested to be part of the rules of the civil authority in the event they are not covered by the free market. In addition to this, arguments to suggest that the conglomerate heads are not in a position to handle social activities but only managerial and finance based activities is brought forth by Carroll and Shabana (2010, p.88).

2.4 Effectiveness of CSR

Wang et al. (2016) shed light on how the effectiveness of CSR cannot be easily gauged especially when it is being implemented in a short-term investment, and hence its profitability is highly questionable. Gaps in management like transparency counter the ability of a conglomerate to gauge, monitor, as well as tune up the sustainability of the CSR project. The scholars add that there are extended risks that can be introduced due to deficiency of insights on the boundaries that mark CSR (p. 535). Other conglomerates are countered from participation in CSR by the existence of low amounts of resources, and in some cases, the fluctuation in resource availability discourage participation and even make the implication that CSR takes up a lot of the monetary assets (Wang et al. 2016, p.535).

2.5 Literature on Benefits and Shortfalls of CSR

The benefits of CSR have been overlooked by many conglomerates who pose the argument on focus on gaining monetary assets and improving their revenue. One of the core benefits of participation in CSR is the idea depicted by Galbreath (2010, p.420) that businesses do not benefit only in substantial ways that can be highlighted on but it extends beyond that to encompass other benefits that are not easy to measure. Galbreath (2010) notes that the equality that is ignited by the existence of CSR improves on the turnover of employees and also motivates them to be part of business with positive social values. In addition to this, consumers are lured by the elevation of their satisfaction to exhibit an increased amount of loyalty towards the company. The reputation of the firm which is not measurable on a set scale is also elevated through the positive aspects inferred by a conglomerate participating in CSR as viewed by future investors as well as shareholders (p.421).

CSR has been highlighted to have a positive impact on the revenue of a business notwithstanding the extensive focus on firms on aspects that are not affiliated to the performance but are more inclined to sustainability and success of the business actions (Valenti, Carden and Boyd 2009, p. 1-14). Saeed and Arshad (2012) shed light on the fact that the social identity framework dispenses a steady support to the idea that CSR can be an activity that can generate a heightened amount of resources through the formulation of positive networks and the escalation of affiliations between the suppliers, distributors and the business. Also, the perceptions of consumers are easily altered by the presence of a business that is responsive to the management of their environment (p. 228).

A parallel perspective argues that a firm can attain maximum profitability when it has gained highly valuable attributes that enable it to formulate tactics that can ascertain effectiveness and efficiency through exemplification of all opportunities and counter all risks. The deficiency of uniqueness to most resources in a business elevates the risk, but some cases prove to host unique resources that can allow market differentiation. Demographic positioning can be this unique resource and can encompass complex aspects that are controlled by the community to build on the reputation of the firm or to develop a positive culture in the internal environment. For a business to prosper, it must be able to manipulate these complex environmental aspects, and this can be accomplished through indulgence in CSR as well as portraying the idea that CSR is salient to the firm as it is to the community (Jones and Bertlett 2009, p.3)

2.6 Literature on CSR and Supply Chain

Visser (2011) suggests that the digital era necessitates a heightened amount of creativity topped with scalability responsiveness which can be tasking and costly to the conglomerate. To ascertain that a business can elevate performance through indulgence in CSR, the input on these aspects must be measured against the progress in revenue collection and operations (p.7-22).Conglomerates lay their focus environmental issues that are capable of allowing them to counter costs that are involved in the production, for instance, the fight against transport costs that can exist in moving packaging materials from one area to another (Sprinkle and Maines 2010, p.447).

Scagnelli and Cisi (2014) introduce the benefit of shared value that is strung by the embrace of CSR and it references conventions and actions that escalate the level at which a conglomerate competes at the same time improving social and economic aspects. Issues that affect the business are developed through this shared value experience through the shift of perceptions on entities, making shifts in the supply chain that improve the value of the business and in finality boosting progress in local cluster (p.1). The supply chain is a core entity in affecting performance as it alters the performance of a series of business processes. Supply chain sustainability is boosted by the existence of core business activities that are capable of sustaining the environment under which businesses gain the raw materials, and hence indulgence in CSR comes off as a means of profit to any business (Mashanyuri 2013, p.54).

The supply chain as suggested influences the operations of the business and in turn impact the performance hence the strong affiliation between supply chain and the CSR indulgence implies that CSR indirectly impacts performance. Suppliers are eager to interact with a business that is keen on observing homogenous values to what they believe in and hence the scrutiny process is enhanced through this aspect. On the other end, suppliers are keen on seeking interaction with a business that is positive on the environmental impact based on the improved reputation, and this culminates in the acquisition of quality materials for the business (Rosi, Cvahte and Jereb 2010).

2.7 Other Issues in CSR

2.7.1 Corporate Citizenship

Valenti, Carden, and Boyd (2014) shed light on how corporate citizenship which is an affiliate aspect to the involvement of the community lays focus on conglomerates that indulge in community activities through providing a backdrop for these conglomerates that have the intention of unraveling social problems. Many individuals in a community hold the notion that a conglomerate that indulges in CSR has an escalated quota of wealth and hence holds the ability to make influence to the society (p.1-14). The aspects of CSR highlighted by these individuals’ conflict with those of Galbreath (2010) such that they lay focus on how CSR encompasses actual visible results and also encompasses a solid plan to follow.

2.7.2 Ethics

Hartmann (2011) notes that ethical issues should be highly regarded in the retail food industry for a conglomerate to be competitive, however, one fact that is insisted upon is the idea that doing good does not always culminate in better performance (p.302). These sentiments concur with Martinuzzi et al. (2011) who suggest that maturity, capacity, concentration and prices are aspects to consider for a business to enhance loyalty. Sustaining already available consumers is dispensed as a means of cost reduction, and the use of alternatives like online shopping have come off as means of improving the environment through cost reduction of acquisition. As a means of CSR, conglomerates can check on the location where the business operates to lower transit costs of production entities as well as be located in demographics where they can influence the laborers involved in formulation or mining of the raw materials (P.1).

2.7.3 Size of Company

Moore (2001) takes note of the fact that positive correlation between CSR indulgence and performance may exist, however, the age for which the conglomerate has existed and the period to which the conglomerate has embraced socially responsible actions fused with the size of the conglomerate can influence performance both positively and pessimistically (p.312). When performance is regarded as an entire factor of sales, it is transparent that empirical and prior literature studies have unraveled an active affiliation between CSR indulgence and the escalation of revenue of the firm (Rajput, Batra and Pathak 2012, p.46).

2.8 Chapter Conclusion

The operations of a business are highly impacted by the activities to which the business undertakes, and while it is transparent that CSR is costly, the gains for indulgence in CSR can be argued out to outweigh the costs. However, the literature takes note of the fluctuations that exist based on the nature of business as well as based on the positioning of the conglomerate about the acquisition of raw materials and access to entities by clients. Retail based supermarket chains are reliant on the sturdiness of their affiliation with consumers and suppliers, and hence indulgence in CSR comes off as a means of maintaining consumers who share homogenous values as well as attract suppliers who dispense quality items based on their view of the business. These retailers consider conglomerates that invest in CSR capable of sustaining their demand for the raw materials and are also considerate of the idea that the conglomerate aids in maintaining the environmental existence of the raw materials and hence consider discounting aspects. The civil authority is also a great influencer of the performance of a conglomerate based on their participation in CSR as it takes off a percentage of tax for the business about the frequency and investment the business makes on impacting the community. The literature on the linkage between social justice practices and CSR participation to improve profitability is quite low. However, this study will make contributions to the little claims already argued by former scholars.

Chapter 3: Methodology

3.1 Introduction

This chapter focuses on the elaboration of how the study was carried out by diving into issues that deal with the design, strategy, data acquisition and collection to highlight on CSR participation in the Sainsbury chain of supermarket. On the other end, this chapter is deliberate on unraveling the justifications for the choice of philosophy employed in the study and also the strategies that were laid out for consideration during the study. Ethical issues and limitations are also covered by this chapter to enhance efficiency, authenticity, and accuracy of the inferences that will be derived from the findings. The adoption and regard of the research onion as proposed by Saunders, Lewis, and Thornhill (2009) has been deemed to enhance the suggested aspects of accuracy and scope management and hence will be observed in the methodology choice (p. 12-132).

Figure 3: Research Onion- Source: Saunders, Lewis, and Thornhill (2009, p.138)

3.2 Philosophy of the Research

There exist four philosophies that can be used in any research process, and these are: positivism, realism, pragmatism, and interpretivism and referencing the content and study questions of this study, authenticity comes off as a steady philosophy for use. Saunders, Lewis