Corporate Social Responsibility and Sustainable Development Strategies in the International Business - Research Paper Example

RESEARCH METHODS FOR BUSINESS Table of Contents Table of Contents 2 Introduction 4 0. Introduction 4 2 Background of the company 4 3. Rationalefor the study 4 1.4. Research aim and objectives 5 1.5. Research Questions 6 2. Literature Review 6 2.1. Corporate Social Responsibility and Sustainable Development 7 2.1.1. Carroll’s pyramid of corporate social responsibility: 7 2.1.2. Triple bottom line theory: 8 2.1.3. Stakeholder’s theory: 9 Research Methodology 11 3.0. Introduction 11 3.1. Method outline 11 3.1.1. Functioning of the research onion: 11 3.2. Research Philosophy 12 3.2.1. Justification for selecting the Positivism philosophy: 13 3.4. Research Approach of the study 13 3.4.1 Justification for selection of the chosen Deductive approach: 13 3.5. Research Design: 13 3.5.1 Justification for selecting the descriptive design 14 3.6 Data collection Procedure: 14 3.6.1 Data collection sources Primary and Secondary 14 3.6.2. Data Technique 14 3.7. Population and Sample: 14 3.7.1. Sampling technique and size 14 3.8. Ethical issues: 15 3.9. Research limitations: 15 3.10. Time framing: 15 4. Conclusion 15 Reference list 17 Introduction 1.0. Introduction In the globalised market, firms are facing intense challenge in terms of growth and sustainability. Mainly, open market and free competition is promoted in the market so firms are facing issues from various external market factors. Firms are adopting various strategies to increase sustainability and expansion in the international market (Baumgartner, 2013). The global firms use ethical business policies and environmental sustainability rapidly. In the current study, global retailers Tesco is selected to conduct an in depth analysis on international business policies of the firm. Corporate Social Responsibility (CSR) and Sustainable Development (SD) strategies of Tesco will be contrasted to gain an insight on international retailing compatibility and growth (Adewuyi and Olowookere, 2010). 1.2 Background of the company Tesco is one of the leading retailers in the world dealing with the groceries and general merchandise products. The firm is a part of the ‘Big Four’ retailers in the UK area. Tesco is having more than 30% UK retail market share and facing the competition from Walmart, Costco, Carrefour, ASDA, Sainsbury, Morrisons, LIDL, ALDI and many other firms. The firm is offering quality products to the international customers and they have large stakeholders groups. Therefore, effective stakeholder orientation policies will increase rate of growth and sustainability. Corporate Social Responsibility (CSR) and Sustainable Development (SD) are implemented in the strategic directions so that Tesco can gain competitive advantage. They are having operational set up and more than 6800 stores in 14-15 different countries in Europe and Asia. Tesco have to meet the environmental and cultural norms over those countries (Tesco plc, 2015). 1.3. Rationale for the study Corporate Social Responsibility (CSR) and Sustainable Development (SD) strategies are the most innovative and emerging concepts in the international business. Multinational firms are using these concepts in terms of attracting their customers and stakeholders (Bhattacharyya, 2010). These two strategies are developing sustainable framework for the society, environment and the people. However, international firms are facing certain complexity in meeting the expectation and perception of diverse stakeholders. Management have to increase their understanding and provide importance to the issues outlined by the stakeholders. Thus, CSR and SD strategies are influencing the operational policies and decision-making processes in the international segment (Creswell and PlanoClark, 2007). Tesco is operating in global segment having the operational channel of more than 70 countries in Asia and Europe. They are facing some complexity in meeting global stakeholder’s demands in their international channel. The firm reinforced their corporate responsibility strategies during the year 2013 to meet the emerging challenges. The firm is using their image as responsible multichannel retailer in terms of increasing value for society and stakeholders (Tesco plc, 2015). According to the CSR report of the firm, Tesco CSR policies are aimed to tackle various emerging issues faced by the society. International CSR strategies cover food waste management, health hazardous materials and unemployment issues. Moreover, Tesco encompasses trading sensibly and ethically in the international market, the firms is maintaining the carbon footprint, carbon credit, green policies, gray imports and other environmental sustainability norms in terms of reducing their impacts on the environment (Tesco plc, 2015). Tesco is one of the largest international businesses and provides high rate of employment to the local communities. Such strategy helps in developing the community economically. In the current study, detailed evaluation of CSR policies of Tesco will be done in order to gain an insight on the international sustainable decision-making (Cohen, Manion and Morrison, 2003). 1.4. Research aim and objectives Current research will be aimed to outline the Corporate Social Responsibility (CSR) and Sustainable Development (SD) strategies and policies promoted by Tesco. The firm is having the huge stakeholders groups, thus, in this study will be providing detailed understanding and significance of various environmental and ethical issues. Moreover, this study will be providing the impacts of CSR and SD strategies in operational policies and decision-making processes of Tesco international business segments (Coleman and Briggs, 2002). Objectives will be helping the study to gain more quality and narrowing down the topic. The research will be more systematic and goals seek according to the topic. To investigate the existing Corporate Social Responsibility (CSR) and Sustainable Development (SD) strategies and policies adopted by international retail industry. To evaluate the CSR and SD polices adopted by Tesco. To critically investigate on CSR and SD strategies of Tesco and identify its gaps To provide Tesco with feasible recommendations of developing CSR and SD polices as to meet the expectation of stakeholders. 1.5. Research Questions Research questions will be helping the researcher in conducting the research as per the potential framework. Moreover, researcher will be able to gain more insights on the international business policies and strategies of Tesco. 1. What are the major Corporate Social Responsibility and Sustainable Development strategies available in the international business segment? 2. How Corporate Social Responsibility and Sustainable Development does influence the growth and sustainability of the business? 3. What are emerging CSR strategies adopted by Tesco to increase their business? 4. How CSR and SD policies are influencing the decision making and sustainability of Tesco? 2. Literature Review This segment of the study will be providing various theories and models regarding the current topic. Literature review segment is mainly secondary data analysis on the CSR and SD strategies adopted by the major retailers (Cragg, Schwartz and Weitzner, 2009). Such segment will help the researcher to investigate on more qualitative data. In terms of collecting various theories, models and conception of the empirical researchers, various secondary sources are explored. Topic related data and models are collected from various CRS and Ethical business related books, journals, online articles and empirical study on the similar topic. This segment will help the researcher to gain an insight on the theoretical and conceptual knowledge of the CSR and ethical strategies of the international firms (Connaway and Powell, 2010). 2.1. Corporate Social Responsibility and Sustainable Development 2.1.1. Carroll’s pyramid of corporate social responsibility: Carroll developed a CSR theory pyramid based on four different levels. The firms are responsible to maintain various ethical businesses. According to the pyramid, firms have to maintain different obligations like economic, legal obligations, ethical factors and philanthropic responsibilities (Crane, 2008). Economic responsibility: Mainly globalised firms have to maintain proper policies in terms of the managing the different economical traits (Gorard and Taylor, 2004). Global economies are facing the challenge of inflation, recession and lower purchasing parity among customers. However, many globalised firms are concern for earning profit only rather than providing ethical business polices. CSR policies are developing proper economic responsibility to meet the global clients (Dey and AliKhan, 2014). Legal responsibility: In the international segment, rules and regulations are getting distinct as per country segments. Bhattacharyya, (2010) opined that legal issues are mitigating the challenge of controversial elements. CSR policies of global firms are arguing with different political and legal responsibilities (Frederiksen, 2009). Legal responsibilities are promoting proactive obligation for the society and environment. Maintaining legal responsibility will increase the rate of compatibility among international firms (Gupta and Kaur, 2013). Ethical Responsibility in Carroll’s CSR Pyramid: Ethical responsibilities are major traits of the CSR policies. Ethical responsibility signifies that international firms are developing different strategies for the society they are operating in (Huang, 2012). Ethical responsibility also outlines economic and legal attribute maintenance in the strategic part. Ethical responsibility also develops certain strategies that are motivated on the social and communal beneficiaries (Hu and Scholtens, 2012). Philanthropic responsibility in Carroll’s CSR Pyramid: Cragg, Schwartz and Weitzner (2009) stated that firms are having different type of stakeholders. They have to maintain suitable beneficiary strategies to attract stakeholders to the ethical business concepts. Corporate social responsibility of the firms is developed on the basis of developing the standard of employee’s lifestyles. In addition, multinational firms are developing the local communities and society in which their operational set up situated by developing infrastructures, educational institutes and community development (Kim, Kim and Kim, 2012). 2.1.2. Triple bottom line theory: Triple Bottom line theory is empowering the social development concept with the help of profit, people and planet. John Elkington developed this theory in terms of creating ethical and social business. Economic or profitable sustainability: Firms in the global terms are providing the proper values for the pricing of the products. Rather than concentrating on the profitability only, firms are concentrating on providing the customers with ethical products and services. In the post recessional era, the customers are seeking for the highly valued products and service. Retailers are developing highly intense CSR strategies for attracting stakeholders (Kjaer, 2012). Social or peoples related sustainability: Firms are adopting globalised strategies and adopting CSR factors for the people or societal stakeholders. Mainly, leading global firms are promoting higher support for increasing lifestyle of social or community groups. It is observed that Fortune 500 policies are providing intense guidelines for creating more efficient ethical business policies (Marais, 2012). Environmental or planet related sustainability: Major global businesses are using natural resources for their operations. Thus, in the contemporary conditions organisations are selecting alternative renewable sources for their operational process, oil fuelling of the machineries. Organisations are selecting carbon credit, carbon footprints, green environment, ethical trading and gray imports for developing the image of ethical and green business (Hunnicutt, 2009). 2.1.3. Stakeholder’s theory: Stakeholder theory is mainly outlining the interest and using their power and influences in any firms. Corporate social responsibilities of the firms are mainly developing certain strategies to fulfil interest of the firms. Such responsibility will help the global organisations to meet their internal and external stakeholders. Therefore, firms can increase loyalty among the stakeholders resulting increased profitability or growth or sustainability (May, Cheney and Roper, 2007). Stakeholder Main Interests CSR policies of the firms Equity Shareholders or the investors Growth of revenue generation, gaining development in the international share price, and accurate payment of dividends Organisational dividend policy must be developed so that they can attract the equity investors and collect further capital firms. Stock listing policy must be developing feasibility to meet the ethical ground among the equity investors (Patton and Patton, 2002). Banks, other financial institutions who are mainly money Lenders Such stakeholders will be checking for the timely payment of interest and principal loan amount. In addition, such stakeholders will be requiring for credit rating policies for justifying the rate of creditability and financial power (Moran and Malott, 2004). Organisations are paying off their debts timely and valuating the credit stakeholders in terms of gaining more loyalty from such stakeholders Managers Mangers are seeking for effective salary negotiation, share pricing for the global segment, creating excellent workplace environment job satisfaction, providing higher support for employees (Spence, 2014) Effective CRS policies are increasing efficiency among the customers. Employees Employees will be seeking for proper salaries or remuneration according to the job role and time of service. Employees are also demanding security, and increased satisfaction which will increase the motivation among the employees (Weber, Diaz and Schwegler, 2012). Fims are developing employee management policies so that they are able to reduce employee turnover, increase industrial relation and develop the service quality of the employees. Suppliers Suppliers are looking for long-term oriented contracts, timely payment, and increasing the amount of procurement (Adewuyi and Olowookere, 2010). Firms are employing sound pricing strategies, quality check policies, and availability of the raw materials Customers Customers are expecting high quality, proper financial value provisions, availability of the products, and developing the post sales services to global customers CSR strategies are increasing loyalty provision, and increasing the potential word of mouth promotions (Wirl, 2013). Society Social stakeholders are demanding for environmental sustainability and ethical business operations. Firms must provide jobs for the local residents and environmental impacts of operational policies (Zu, 2009) Developing infrastructure, creating schools or other educational institutes and maintaining environmental sustainability norms in their operations Government Justifies the operations of the firms according to the scale of the legal, tax payments, and employment scopes. While developing CSR policies, firms are developing concerns on guidelines, subsidy policies, taxation rates and rules, and prepare planning for the uncertain policies (Spence, 2014). Research Methodology 3.0. Introduction Research methodology segment of the study explains various strategy and conception of researching. This segment will help the researcher in gaining an in-depth knowledge on the research topic by conducting good analysis. Application of the research methodology module guide the researcher to develop clear understanding on the corporate social responsibility strategies adopted by leading retail firm Tesco (Yin, 2003). 3.1. Method outline Researcher will be adopting different types of research strategies, which will aid in outlining factors of decision-making. 3.1.1. Functioning of the research onion: Figure 1: Research Onion (Source: Saunders, Lewis and Thornhill, 2003, pp.473) Research onion is a tool for conducting any sort of research. Saunders, Lewis and Thornhill are the major educational research theorists who had developed this model, which comprises of different layers for conducting any research. The researcher has to unfold each of the layers of this onion to gain detailed idea on the CSR and ethical strategies of Tesco (Cohen, Manion and Morrison, 2003). In the current research, the researcher will be selecting positivism philosophy. Then, in according to the next layer, the researcher will select deductive approach. This approach will be providing the contrast of CSR strategies of Tesco and decision making for achieving sustainability and growth in the UK and global retail market. Survey option will be adopted for collecting data for the research (Moran and Malott, 2004). 3.2. Research Philosophy Research philosophy can be defined as the conceptual framework, which provides detailed analysis of the research topic by using different idea and standpoints. The researcher will be having three different research philosophies to conduct the research. Major research philosophies are positivism, interpretive and realism (Connaway and Powell, 2010). Positivism approach helps the researcher with different facts and information which are implemented in the research. In addition, this philosophy helps the researcher in gaining increased quality and evidence on the concerned research topic. Interpretive study on the other hand aids the researcher to gain an insight on the complexities faced in the community lifestyle and provides the researcher with higher understanding on the research topic. Realism philosophy will be using the merged method of positivism and interpretive to gain higher insight on the various factors (Gorard and Taylor, 2004). 3.2.1. Justification for selecting the Positivism philosophy: In the current research, researcher will be using the positivism philosophy as they are trying to outline affects of corporate social responsibility and sustainable development strategies on the decisions-making factors of Tesco (Creswell and PlanoClark, 2007). 3.4. Research Approach of the study Research approach will be helping researcher in collecting efficient data according to the topic. The researcher will be having the option of the inductive approach and deductive approach to conduct the research. Mainly, the approach of the research provides particular framework to reach a particular goal (Creswell and Plano Clark, 2007). 3.4.1 Justification for selection of the chosen Deductive approach: Deductive approach will be selected by the researcher in terms of gaining significant theories and facts about the corporate social responsibility strategies and its impact on the business polices of the Tesco. Such approach will help the researcher in lining out dissimilarity in various social or cultural changes (Gorard and Taylor, 2004). 3.5. Research Design: Research design will be developing a framework of conducting the research. The researcher will be having option of research designs like exploratory, explanatory, and descriptive designs. Effective selection of design will lead to more framed research (Creswell and Plano Clark, 2007). 3.5.1 Justification for selecting the descriptive design In the current research, descriptive design will be selected in terms of gaining more insight on the CSR theories and actual policies of Tesco. This design will be helping the researcher with applicable facts and evidence on the basis of CSR policies and strategic development. However, other two designs will be unable to express the strategic decision making policies according to retail market ethics (Gorard and Taylor, 2004). 3.6 Data collection Procedure: 3.6.1 Data collection sources Primary and Secondary Data sources can be defined as the research materials which are used to cite results and information. Mainly, the researcher will be having the options of primary and secondary data. Primary data sources are collected from communicating with the respondents. Secondary data sources are the books, journals, web articles and several online blogs. In the current study, researcher will be using both the sources (Connaway and Powell, 2010). 3.6.2. Data Technique Data techniques are of two types, qualitative and quantitative. In the current research both the techniques will be used to make the study more effective. 3.7. Population and Sample: Population of this study will be the employees and customers of Tesco, who will help in gaining more relevant information on the CSR policies. 3.7.1. Sampling technique and size The sampling size will be 50 customers of Tesco for the quantitative study and 5 employees of Tesco for the qualitative survey. Customers will be surveyed through online close ended questionnaires and employees will be surveyed through telephonic close ended questionnaires. 3.8. Ethical issues: Data application related standards depicts that researchers will be participating in the educational research purpose. Collected data will not be used in any commercialised activities. Respondent’s participation policy will be voluntary in nature so that respondents can produce high quality data and response on the effects of CSR policies Tesco and its impacts on decision making (Cohen, Manion and Morrison, 2003). Respondents’ privacy preservation will be used in the time of collecting and implementing data in the research. This policy will be helping the firms in reducing future hampering of respondents (Moran and Malott, 2004). 3.9. Research limitations: Genuineness of the response is uncertain in terms of validity. In the current research, researcher will be facing certain complexity in terms of validity of the collected primary data. Budget restrictions will be limiting quality in the research, as several areas of expertise are remaining unreached. It will gradually reduce the level of quality (Coleman and Briggs, 2002). Time limitations reduces the scope of increasing higher insight on CSR polices of the Tesco. Restriction of time will reduce the quality in the research study (Yin, 2003). 3.10. Time framing: Time framing policy will guide the researcher to conduct research in a more systematic and timely manner. Researcher will be able to create and maintain separate checklist for different phases of the research. Period can be explained from the Gantt chart concept. However, the chart will be outlined in the appendix part to develop proper idea on the time framework of researcher (Saunders, Lewis and Thornhill, 2003). 4. Conclusion From the current study, in depth analysis of strategies and policies of Corporate Social Responsibility and Sustainable Development is done. It is observed that such strategies and policies are increasing the growth and sustainability factors of business. Moreover, stakeholder’s interest is crucial for developing strategic fits and making decisions. Thus, it can be said that CSR and SD impacts highly on the growth and sustainability of the firms. Current research helped in gaining insight on the CSR and SD policies of Tesco. The organisation is using highly developed strategies for meting international stakeholders. The firm is using mixed approach of triple bottom line, CSR and stakeholders orientation. Reference list Adewuyi, A. and Olowookere, A., 2010. CSR and sustainable community development in Nigeria: WAPCO, a case from the cement industry. Social Responsibility Journal, 6(4), pp.522-535. Baumgartner, R., 2013. Managing Corporate Sustainability and CSR: A Conceptual Framework Combining Values, Strategies and Instruments Contributing to Sustainable Development. Corporate Social Responsibility and Environmental Management, 21(5), pp.258-271. Bhattacharyya, S., 2010. A resource-centric perspective on strategic and sustainable Corporate Social Responsibility (CSR) initiatives. 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Small Business Social Responsibility: Expanding Core CSR Theory. Business & Society. Tesco plc, 2015. Tesco plc. [online] Available at: http://www.tescoplc.com/index.asp?pageid=81#ref_corporate-responsibility [Accessed 7 May 2015]. Weber, O., Diaz, M. and Schwegler, R., 2012. Corporate Social Responsibility of the Financial Sector - Strengths, Weaknesses and the Impact on Sustainable Development. Sust. Dev., 22(5), pp.321-335. Wirl, F., 2013. Dynamic corporate social responsibility (CSR) strategies in oligopoly. OR Spectrum, 36(1), pp.229-250. Yin, R., 2003. Case study research. Thousand Oaks, Calif.: Sage Publications. Zu, L., 2009. Corporate social responsibility, corporate restructuring and firms performance. Berlin: Springer. Appendix Main activities/ stages in weeks 1 2 3 4 5 6 7 Selection of research topic Data collection sources: primary and secondary sources Create a layout plan Literature review preparation Formatting the research Plan for the better research Select an Appropriate Research Techniques Collect the Primary and secondary data Analysis and Interpret Data collected from different sources Findings statement creation of the Data Drawing the Conclusion of the Study Formation of Rough Draft of the project Submitting the Final Work Read More