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Issues in Social and Environmental Accounting
Vol. 1, No. 2 December 2007
Pp. 243-257


                   Corporate Social Responsibility
                         and UK Retailers
                                             Peter Jones
                                            Martin Wynn
                                           Daphne Comfort
                                          The Business School
                                    University of Gloucestershire, UK

                                               David Hillier
                                       Centre for Police Science
                                   The University of Glamorgan, UK

Abstract

This paper offers a preliminary examination of the Corporate Social Responsibility (CSR) com-
mitments and agendas being addressed and reported by the UK’s leading retailers. The paper
begins with a short discussion of the characteristics and origins of CSR and of the current struc-
ture of retailing in the UK. This is followed by an illustrative examination of the CSR issues
publicly reported by the UK’s top ten country of origin retailers and the paper draws its empiri-
cal material from the CSR reports posted on the World Wide Web by these retailers. The find-
ings reveal that the UK’s top ten retailers are addressing and reporting on four sets of CSR
themes namely those relating to the environment; the marketplace; the workplace and the com-
munity. The paper concludes with a discussion of a number of general issues relating to these
themes.

Keywords: Corporate social responsibility, Retailers, environment, marketplace, workplace,
community

Introduction                                                  ing the management agenda from one of
                                                              managing for profitable growth to one of
In presenting its 2006 Global Powers of                       managing and mitigating risk.’ The re-
Retailing report Deloitte (2006) suggests                     port argues that ‘the uncertainties of the
that ‘heightened concern about the                            global economy, the complexities of a
growing risks facing retailers is chang-                      global supply chain, stakeholder de-

Peter Jones is currently Professor of Strategic Management in the Business School at the University of Gloucestershire,
UK, email: pjones@glos.ac.uk. Martin Wynn is Reader in Business Information Systems at the University of Glouces-
tershire Business School, email: mwynn@glos.ac.uk. Daphne Comfort is the Research Administrator in the Business
School at the University of Gloucestershire, UK. David Hillier, is an Emeritus Professor in the Centre for Police Sci-
ence at the University of Glamorgan, UK.
244            P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257


mands for greater corporate social and                   associations reflect the organisation’s
environmental responsibility, techno-                    status and activities with respect to its
logical innovation, the growth of pro-                   perceived societal obligations.’      Al-
prietary brands, the increasing difficul-                though CSR has gained increasing mo-
ties in finding and retaining talent, and                mentum and prominence across the busi-
the threat of terrorism have all com-                    ness community during the past decade
bined to significantly change the land-                  the underlying concept has a long his-
scape of risk management’. In identify-                  tory. Hopkins and Crowe (2003), for
ing ‘non-financial risks’ as one of seven                example, suggest that there has always
‘key risks’ the report argues that ‘being a              been a tension between business goals
good corporate citizen is becoming in-                   and social goals and they cite the power
creasingly important to the risk manage-                 of the craft guilds in the Middle Ages,
ment agenda’ and that the goal is to                     the slave trade and the struggles to im-
‘bring together economic viability, envi-                prove living and working conditions in
ronmental sustainability and social re-                  Britain’s rapidly growing towns and cit-
sponsibility, integrating these concepts                 ies during the nineteenth century, as
into the company’s strategy, operations                  graphic evidence of such tensions.
and culture.’ Retailers are very much at                 Sadler (2004) has argued that ‘the defini-
the leading edge of the service economy                  tion of the functions of the corporation
within the UK and this paper offers a                    with relation to wider social and moral
preliminary examination of the extent to                 obligations began to take place in the
which the UK leading retailers are re-                   centres of capitalist development in the
porting Corporate Social Responsibility                  19th century.’ More generally Mbare
(CSR) commitments and agendas on                         (2006) has suggested that ‘the concept of
their company websites as part of ‘their                 CSR is not new, as some would want us
corporate efforts to build trust with                    to believe’ and that ‘the debate about
shareholders, consumers and other                        business as a moral institution goes back
stakeholders.’                                           to the days of philosophers like Plato,
                                                         Aristotle, Kant, Marx.’

Corporate Social Responsibility                          Various factors are cited as being impor-
                                                         tant in building the current momentum
CSR is concerned with the integration of                 behind CSR, which is evidenced by the
environmental, social, economic and                      fact that the number of companies pub-
ethical considerations into business                     lishing CSR reports has increased almost
strategies and practices. While Werner                   tenfold in the period 1996–2006
and Chandler (2005) have argued that                     (Saunders 1997). (Figure 1). Ernst and
‘consistent, definitions, labels and vo-                 Young (2002) suggest that five key driv-
cabulary have yet to be solidly estab-                   ers have influenced the increasing busi-
lished in the field of CSR’ numerous                     ness focus on CSR namely greater stake-
definitions have been framed. Wood                       holder awareness of corporate ethical,
(1991), for example suggests that ‘the                   social and environmental behaviour;
basic idea of CSR is that business and                   direct stakeholder pressures; investor
society are interwoven rather than dis-                  pressure; peer pressure and an increased
tinct entities’ while for Brown and Dacin                sense of social responsibility. Porter and
(1997) ‘Corporate social responsibility                  Kramer (2006) argue that there are ‘four
P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257   245


prevailing justifications for CSR’                          age and reputation, which have become
namely ‘moral obligation, sustainability,                   increasingly important elements in cor-
license to operate and reputation.’ Na-                     porate success; and the need for compa-
tional and supranational governments                        nies to recruit and retain highly skilled
have been active in promoting CSR. The                      personnel. Girod and Michael (2003)
European Union, for example, promoted                       adopt a strategic marketing perspective
CSR in all member states and the Com-                       arguing that CSR is ‘a key tool to create,
mission for the European Communities                        develop and sustain differentiated brand
(2002) argues that CSR has gained in-                       names’.
creasing recognition amongst companies
as an important element in new and                          The three dominant theories that have
emerging forms of governance because                        been used to analyse and explain CSR
it helps them to respond to fundamental                     have been succinctly summarised by
changes in the overall business environ-                    Moir (2001). Stakeholder theory sug-
ment. These changes include globalisa-                      gests that it makes sound business sense
tion and the responsibilities companies                     for companies to understand the needs
find the need to address as they increas-                   and aspirations of all their stakeholders
ingly source products and services from                     be they investors, governments, employ-
developing countries; the issues of im-                     ees, communities, customers or suppliers

Figure 1. Number of companies in the World publishing CSR reports 1996-2006

    Number of companies in the
    World publishing CSR reports
                                                                        2235

                                                                 2153


                                                          1936
                                                   1833




                                            1482



                                     1179



                               823



                        639



                 463
         365

   267




   96    97      98     99     00     01     02     03     04     05     06

{Source: Saunders (2007)}
246           P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257


and that these needs and aspirations                     ‘there is one and only one social respon-
should be reflected in corporate strategy.               sibility of business-to use its resources
Social Contracts theory asserts that com-                and engage in activities designed to in-
panies may pursue CSR not because it is                  crease its profits so long as it stays
in their commercial interests but because                within the rules of the game, which is to
it is how society expects companies to                   say engages in open and free competi-
operate. Legitimacy theory stresses that                 tion without deception or fraud.’ Hen-
society grants power to businesses and it                derson (2001) has argued that seemingly
expects them to use that power in a re-                  growing business commitment to CSR is
sponsible manner.                                        ‘deeply flawed’ in that ‘it rests on a mis-
                                                         taken view of issues and events and its
The business case for CSR is seen to                     general adoption by business would re-
focus on a wide range of potential bene-                 duce welfare and undermine the market
fits (Bevan et. al 2004). These include                  economy.’ Corporate Watch (2006)
improved financial performance and                       takes a more overtly political position
profitability; reduced operating costs;                  arguing that ‘CSR enables businesses to
long-term sustainability for companies                   promote ineffective voluntary, market
and their employees; increased staff                     based solutions to social and environ-
commitment and involvement; enhanced                     mental crises under the guise of being
capacity to innovate; good relations with                responsible.’ More generally Kitchin
government and communities; better risk                  (2003) argues that CSR is ‘too narrow to
and crisis management; enhanced repu-                    engage management attention, too
tation and brand value; and the develop-                 broad and unquantifiable to be taken
ment of closer links with customers and                  seriously by the financial community
greater awareness of their needs. How-                   and just woolly enough to be exploited
ever Porter and Kramer (2006) have ar-                   by charlatans and opportunists.’
gued that ‘the prevailing approaches to
CSR are so fragmented and so discon-
nected from business and strategy as to                  UK Retailing
obscure many of the greatest opportuni-
ties for companies to benefit society.’                  Retailing is a large, diverse and dynamic
They propose a new framework to ex-                      sector of the UK economy offering an
plore the interdependence between busi-                  ever-increasing range of goods and ser-
ness and society and argue that ‘when                    vices to consumers. In 2004 there were
looked at strategically corporate social                 some 305,000 retail outlets within the
responsibility can become a source of                    UK generating a total turnover of £250
tremendous social progress, as the busi-                 billion (ABI 2005). The DTI’s (2004)
ness applies its considerable resources,                 Retail Strategy Group Report “Driving
expertise, and insights to activities that               Change” looked to capture what it de-
benefit society.’                                        scribed as “The Value of Retail” as fol-
                                                         lows. “It is a strong user of technology
At the same time there are those who                     and an innovator of new products. By
would champion the case against com-                     matching consumer expectations and
panies integrating CSR into their core                   demands with technological develop-
business. Such arguments might follow                    ments the sector provides ever-
Friedmann (1982) in affirming that                       increasing choice at a range of prices,
P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257       247


which suits the needs of the community.                    (Dawson 2004) and it also brought large
Retail continues to invest in people and                   retailers into direct contact with a large
places. It creates new markets, provides                   number, and often a wide cross section,
a focus for the implementation of social                   of customers. The large retailers are
policies and plays an important role in                    widely recognised to have the greatest
the well being of towns, cities and rural                  impacts on the environment, on the
areas.”                                                    economy and on society. While some
                                                           authors depict retailers as the passive
Retail provision within the UK has be-                     intermediaries between primary produc-
come increasingly concentrated and the                     ers and manufacturers on the one hand
number of small independent retailers                      and customers on the other, the majority
has continued to decline as the retail                     view is that they have an active role in
marketplace has become increasingly                        driving production and in stimulating
dominated by a relatively small number                     and shaping customer demand. Thus,
of large players. Dawson (2004) reports                    while Gilbert (1999), for example, de-
that the market share of the UK’s ten                      scribes retailers as ‘occupying a middle
largest retail firms increased from 13.0                   position, receiving and passing on prod-
% in 1971 to 38.1 % in 2000 and he                         ucts … to customers’, Wrigley and Lowe
notes that “by the late 1990’s all the                     (2002) argue that ‘the geographies of
major retail sectors had a small number                    production are being actively shaped by
of firms that in effect dominated their                    multi-national retail capital.’
respective sectors”. In 2006 the top four
food retailers viz. Tesco, J.Sainsbury,                    Frame of Reference and Method of En-
ASDA and the Wm. Morrison Group,                           quiry
for example, had a market share of 72%
                                                           In order to obtain a preliminary picture
(Office of Fair Trading 2006). This con-
                                                           of the CSR agendas and achievements
centration has increased the power of the
                                                           being reported by the UK’s leading re-
large retailers in channel relationships

                         Table 1: The UK’s Top Ten Retailers 2005
Name                                         Retail Sales 2005                  Number of Countries of
                                              (US$ Millions)                         Operation
Tesco                                             68,868                                 13
J Sainsbury                                         28,100                                        1
Wm. Morrison                                        21,840                                        1
Kingfisher                                          14,503                                    11
Marks and Spencer                                   13,929                                    29
DSG International                                   11,721                                    14
John Lewis                                           9,323                                        1
Boots                                                8,553                                        3
Somerfield                                           8,355                                        1
Kesa Electricals                                     7,423                                        8

{Source: Deloitte (2007) ‘2007 Global Powers of Retailing’}
248           P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257


tailers within the public realm, the top                  tively, DSG posted a relatively extensive
ten UK based retailers, trading in Octo-                  interactive report along with a 12 page
ber 2007, (Table 1), ranked by 2005                       Corporate Responsibility ‘Highlights
sales, from the Deloitte report ‘2007                     Leaflet’, Kesa Electricals posted a lim-
Global Powers of Retailing’, were se-                     ited interactive report and Somerfield
lected for study. The majority of the se-                 produced a brief 6 page report.
lected retailers have a number of trading
formats and /or trade under a number of                   CSR Overview
banners while others have a single for-
mat. Thus while Tesco’s trading formats                   The majority of the top ten retailers
include community and town centre con-                    claim to be integrating CSR into their
venience stores, superstores, hypermar-                   business. Marks and Spencer (2007) for
kets and online services and while its                    example, claims a strong tradition of
principal operations are in the UK, it is                 CSR which it sees as being central to the
also listed as having retail operations in                way the company is managed. More spe-
12 countries including China, Japan,                      cifically the company reports its launch
Malaysia, Poland and Turkey. By way of                    of ‘Plan A’, a long term strategy for
contrast Wm. Morrison concentrates on                     CSR, centred on climate change, waste,
its superstore format solely within the                   sustainable raw materials, health and
UK. While DSG International is a spe-                     being a fair trading partner, which the
cialist consumer electronics retailer it                  company claims will only succeed if it is
trades as Currys, Dixons and PC World                     ‘fully integrated into the way we do
and is represented in 14 countries.                       business.’ In a similar vein Wm. Morri-
                                                          son (2007) claims that it views
Bowen (2003) has suggested that the                       ‘sustainable development as integral to
majority of large companies have real-                    the way we do business and as such, it is
ised the potential of the World Wide                      our licence to operate’ and Boots (2006)
Web as a mechanism for reporting CSR                      emphasises its understanding that its
activities and has argued that its interac-               ‘commercial success and our CSR per-
tivity, updatability and its ability to han-              formance are mutually dependent has
dle complexity adds value to the report-                  begun to permeate every level of our
ing process. With this in mind the au-                    business.”
thors undertook an Internet search using
the key phrase Corporate Social Respon-                   Firstly while some of the top ten retail-
sibility and each of the top ten retailers’               ers look to measure and benchmark their
names in October 2007 employing                           CSR achievements this is not universal
Google as the search engine. This search                  practice. Tesco and Kingfisher, for ex-
revealed some variation in the extent and                 ample, report using Key Performance
the detail of CSR reporting on the World                  Indicators and independent verification
Wide Web. Thus while the majority of                      and assurance to help to measure their
the selected retailers published relatively               CSR performance; and J.Sainsbury re-
extensive CSR reports a minority under-                   port participating in the Business in the
took much more limited CSR reporting.                     Community Corporate Responsibility
Thus while J. Sainsbury, Kingfisher and                   Index. Some of the top ten retailers re-
Marks and Spencer, for example, pro-                      port on CSR in a more limited and selec-
duced 60, 46 and 40 page reports respec-                  tive manner and on a number of occa-
P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257   249


sions case studies were used as a means                  tion in green consumption’ to be putting
of illustrating broader CSR commit-                      “the fight against climate change at the
ments. Such an approach might be seen                    very heart,”of this revolution and to be
to be user friendly and to offer some                    setting “an example by reducing CO2
simple examples to illustrate what might                 emissions in our businesses throughout
be perceived to be dry statements of                     the world.’” To this end the company
commitments and achievements, but it                     reports its commitment to “changing
does not provide a comprehensive re-                     our business model so that the reduction
view or any systematic measurement of                    of our carbon footprint becomes an im-
these achievements.                                      portant business driver.” The company
                                                         claims to be committed to reducing car-
The selected retailers report on CSR is-                 bon dioxide emissions from all its stores
sues under a variety of headings.                        and distribution centres by at least 50%
J.Sainsbury (2007), for example, employ                  by 2020 and here the emphasis will be
the following five headings ‘The best for                on investing in energy efficient tech-
food and health’, ‘Sourcing with integ-                  nologies including low energy fans, cold
rity’, ‘Respect for our environment’,                    air retrieval systems and timers on
‘Making a positive difference to our                     lights.
community’, and ‘A great place to
work.’ Wm. Morrison (2007) use                           Packaging, waste management and recy-
‘Environment’, ‘Society ‘ and ‘Business’                 cling are important issues for all the top
while Kesa Electricals (2007) list                       ten retailers. John Lewis (2007), for ex-
‘Supply Chain’, ‘Environment’, ‘People’                  ample, argues that packaging is essential
and ‘Communities’. This paper follows                    for the integrity and safety of many of its
Whooley (2004) in using four principal                   products but recognises that over-
headings namely Environment; Market-                     packaging has environmental and finan-
place; Workplace; and Community in an                    cial costs. In 2006/2007 the company
attempt to capture and provide some                      reports saving some 23,000 tonnes of
illustrative examples of CSR agendas as                  waste going to landfill and where space
reported by the UK’s top ten retailers.                  permits it provides recycling points in
                                                         store car parks for clothing, glass, paper
Environment                                              and plastics. The company also reports
                                                         its commitment to recycling 75% of its
Environmental issues were the earliest                   food business waste by 2012 and 50% of
and are now the most commonly re-                        its non-food waste by 2010. Wm. Morri-
ported set of issues amongst the top ten                 son seeks to prevent waste through a
retailers, and a review of these compa-                  sustainable waste management strategy
nies’ websites indicates that all highlight              that focuses upon optimisation, reduc-
the environment as a key driver of their                 tion, re-use and recycling and reports
CSR agendas (Table 2). These environ-                    recovering some 72% of all the waste
mental issues include climate change,                    generated in its stores for recycling.
energy consumption and emissions, raw
material usage, water consumption,                       Transport is a vital component of all
waste, the volume of packaging and re-                   large retail operations and the majority
cycling. Tesco (2007), for example,                      of the top ten retailers report their com-
claims to be helping to ‘deliver a revolu-               mitment to and/or their achievements in
250           P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257


reducing vehicle emissions. J.Sainsbury,                  by its own and its supplier transport
for example, transports all its products in               fleets by 2010 and here the focus is to be
cases and the company has set itself the                  on trying to ensure that vehicles never
target of reducing carbon emissions per                   travel empty on return journeys. In
case transported by 5% (against a                         March 2007 the company also an-
2005/2006 baseline) by 2009. At the                       nounced plans to convert 20% of its
same time the company also claims to be                   online delivery fleet to green electric
seeking to reduce the distance travelled                  vehicles.

                   Table 2: Indicators of Commitment in CSR Agendas

Name                      Environment            Marketplace            Workplace             Community
Tesco                             √                      √                     √                  √
J Sainsbury                       √                      √                                        √
Wm. Morrison/                                            √                                        √
Somerfield
Kingfisher                        √                                                               √
Marks and Spencer                 √                      √                     √                  √
DSG International                 √                                            √
John Lewis                        √                      √
Boots                             √                      √                     √                  √
Kesa Electricals                  √
{Source: Author analysis of company websites and related publications}

The Marketplace                                           reports working with the Scottish fishing
                                                          industry, for example, to promote sus-
The term marketplace is seen to embrace                   tainability and extending its use of For-
both the sourcing of goods and services                   est Stewardship Council certified materi-
and their sale to the customer and as                     als into food packaging, leaflets, and
such embraces a wide range of issues.                     store décor.
Sourcing has become an increasingly                       Sourcing foodstuffs within the global
topical and increasingly controversial                    marketplace now offers considerable
issue for large retailers, and the majority               variety and competitive supply prices
of retailers highlight this as part of their              but it has also led to growing pressure
CSR strategy (Table 2). Four sets of is-                  group and public concerns about work-
sues receive widespread, but not univer-                  ing conditions, rates of remuneration,
sal, attention namely ethical trading, sus-               child labour and health and safety issues.
tainable sourcing, sourcing local and                     At the same time the majority of the
regional foodstuffs and animal welfare.                   leading food retailers recognise that the
Marks and Spencer emphasises its com-                     issue of ethical trading is made complex
mitment to ensuring that raw materials                    by both the distances involved and by
are sourced in a way that allows them to                  the existence of different political and
be naturally replenished. The company                     regulatory regimes. More specifically a
P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257   251


number of the top ten retailers report                   personal products and its support for the
their commitment to ‘Fair Trade’ initia-                 Convention on International Trade in
tives. J.Sainsbury, for example, claims                  Endangered Species.
that its share of the entire Fair Trade
market is larger than that of any other                  A strong commitment to customers is
major supermarket in the UK.                             widely reported by the top ten retailers
                                                         and this commitment generally includes
While global sourcing continues to                       listening to customers; services for dis-
grow, some of the leading food retailers                 abled customers and promoting healthy
have also been keen to affirm their com-                 living. J.Sainsbury (2007), for example,
mitment to working with local and re-                    reports “We work hard to make sure that
gional suppliers and to working in part-                 we are meeting customer expectations
nership with suppliers. J.Sainsbury                      and continually ask our customers what
(2007), for example reports its commit-                  they think.” In looking to meet these
ment to supporting British farmers and                   expectations the company specifically
more specifically to ensuring that                       emphasises that it offers its customers
“customers have access to fresh, tasty                   “quality, healthy and affordable prod-
and healthy food that is sourced in their                ucts and an informed choice so that they
local region.” The company also reports                  are able to eat as healthily as possible.”
the establishment of its Supply Chain                    In a similar vein Tesco operates a series
Finance scheme which is designed to                      of Customer Question Time meetings in
help suppliers manage their financial                    an attempt to identify and respond to
flows more efficiently and which en-                     changing customer needs. In 2006-2007,
ables them to leverage J.Sainsbury’s                     for example, the company held over 250
borrowing power if they opt for early                    events involving some 6,000 customers.
payment.                                                 The issues raised inform an annual cus-
                                                         tomer plan which targets improving per-
A minority of the top ten retailers report               formance in areas identified by custom-
on their commitment to animal welfare.                   ers and enhancing customer loyalty.
Somerfield, part of Wm Morrison, for
example, reports that it “continues to                   Access and services for disabled cus-
promote animal welfare by supporting                     tomers is reported by a number of the
farm assurance schemes” and to “offer                    top ten retailers. Boots, for example re-
free range and organic meat products in                  ports working to ensure that all its stores
those stores where there is sufficient                   comply with the 2004 Disability Dis-
demand.” (Somerfield, 2007)At the                        crimination Act thus offering disabled
same time the company continues to ban                   customers easy access and an enjoyable
the testing of own label lines on animals                shopping experience. In addition all the
and to operate a fixed cut off from Janu-                company’s store employees have under-
ary 1st 2000 for the animal testing of                   taken disability awareness training de-
ingredients used in these products. John                 signed to help them to learn how to
Lewis argues that quality, traceability                  modify their normal behaviour where
and animal welfare are intimately inter-                 necessary when dealing with disabled
linked and it reports a strict no fur pol-               customers. The company also reports
icy, a total ban on animal testing for own               working with the Royal National Insti-
label cosmetics, toiletries, baby care and               tute for the Blind to find ways of making
252           P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257


its stores more welcoming and accessi-                    throughout the UK. These flagship
ble to visually impaired customers.                       stores are to serve as a beacon for other
                                                          stores in their region and the focus will
Workplace                                                 be on providing training for employees
                                                          in all aspects of modern retailing. At the
The majority of the top ten retailers re-                 same time the company also reports
port their commitment to their employ-                    working in partnership with the Union of
ees, arguing that caring for their staff is               Shop, Distributive and Allied Workers
essential to their success, and they evi-                 trade union in running two lifelong
dence this commitment in a variety of                     learning centres one in the company’s
ways. Such evidence covers a range of                     Headquarters in Nottingham and the
themes including remuneration and                         other in its warehouse in Heywood, Lan-
benefits; training and development;                       cashire, to help employees who need to
equality and diversity; health and safety;                develop their numeracy, language and
recruitment; retirement; and work-life                    literacy skills.
balance. All the large food retailers indi-
cate a commitment to attracting and re-                   Overall, however, the workplace is per-
taining a culturally and socially diverse                 haps less evident in corporate websites
workforce and here the emphasis is on                     and literature than the other factors con-
recruiting and retaining the best people                  sidered in this account (Table 2).
and meeting the needs of the communi-
ties in which they trade. These commit-                   Community
ments are usually strengthened by the
provision of a mix of flexible working                    The top ten retailers all have a range of
arrangements and by respecting the bal-                   impacts on the communities within
ance between life and work. Tesco, for                    which they operate and, in at least some
example, argues that the ability to attract               measure, they all report on these issues
and retain staff is the biggest challenge                 within their CSR reports, with a few
for any business and in order to achieve                  companies positioning this higher on
this goal they look to provide a variety                  their CSR agendas (Table 2). Kingfisher
of career paths and patterns of working,                  (2007), for example, argues that its aim
a good work life balance and compre-                      is to make each one of its stores “a good
hensive employee benefits. In a similar                   neighbour in the community it serves.”
vein DSG International (2007) empha-                      In 2006-2007 the company reports mak-
sises that ‘the satisfaction and engage-                  ing £476,000 in cash donations,
ment of our people is critical to the suc-                £651,000 worth of gifts in kind and
cess of our business’ and it claims to’                   £168,000 of employee time as part of its
apply a cradle to grave approach to cor-                  community investment. Wm. Morrison
porate responsibility best practice from                  reports that the development planning
recruitment to post retirement.’                          for many of its stores has included facili-
                                                          ties for the benefit of the local commu-
Training and development is also a ma-                    nity and that the company also often
jor theme. Boots, for example, admits                     commissions public works of art that
under-investing in training and develop-                  reflect local heritage.
ment in the past but reports the establish-
ment of 30 new ‘Academy Stores’                           A minority of the top ten retailers report
P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257   253


on their role in urban regeneration.                      is causing the river to peter out in its
Tesco, for example, reports that in the                   lower reaches thereby dramatically re-
period 1999-2007 it co-operated on 17                     ducing water supplies to subsistence
Regeneration Partnerships. These part-                    farmers and threatening the livelihoods
nerships are based around the develop-                    and lives of nomadic pastoralists.
ment of new stores designed to serve
local communities and the focus is on                     Secondly there is a sense in which a
working with public services, local em-                   number of the commitments and agen-
ployers and community groups to yield                     das contained in the retailers’ CSR re-
social, economic and environmental                        ports are aspirational and it is not always
benefits in deprived urban areas and on                   easy to achieve all aspirations in the
recruiting a significant number of people                 fiercely competitive UK retail business
who have been away from work for a                        environment. While all retailers are pur-
long period of time. Boots reports sup-                   suing environmental goals and many
porting schemes designed to improve                       emphasise their commitment to the local
and regenerate town centres by address-                   communities in which their stores are
ing issues such as crime and environ-                     located, this is rarely at the expense of
mental decline. In 2005-2006 the com-                     commercial priorities. In a similar vein
pany invested £370,000, for example, in                   when individual store managers are fac-
town centre management programmes.                        ing problems in staff scheduling, for ex-
                                                          ample, they may pressure employees
                                                          into working outside the hours that suit
Discussion                                                their work-life balance or refuse to re-
                                                          lease employees for training and man-
While the majority of the UK’s top ten                    agement development. This emphasis is
retailers have been keen to recognise,                    reflected in the indicators identified in a
and report on, some of the impacts that                   trawl of company websites and related
their businesses have on the environ-                     publications (Table 2).
ment, the economy and society and are
pursuing a range of CSR agendas, and                      A third set of issues revolves around the
three sets of issues merit discussion.                    extent to which retailers are harnessing
Firstly retailers are aware that it is not                CSR to retain and enhance reputation, to
always easy to reconcile their often                      differentiate and sustain their retail
wide-ranging CSR goals. In looking to                     brands and to pursue competitive advan-
assess whether the environmental costs                    tage within the retail marketplace. On
of importing fresh flowers from Kenya                     the one hand a number of the top ten
are outweighed by the social benefits of                  retailers are increasingly seeking to in-
trading with less developed economies,                    corporate their CSR commitments and
for example, retailers may have to make                   the values that lie behind these values
difficult trade offs between competing                    into their retail brands. The past two
and often conflicting goals. That said                    years have seen the development and
they report little awareness of the prob-                 adoption of new concepts and a more
lems emerging, for example, along the                     central role for CSR within corporate
River Ngiro where the large scale ex-                     culture. Reeves (2007) notes that ‘CSR
traction of water all year round by the                   is being mainstreamed in some busi-
companies producing flowers for export                    nesses; rather than being a bolt-on, it is
254          P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257


now being embedded in the business                       ment all help to promote stability, secu-
model of some firms’. In the UK, Marks                   rity, loyalty and efficiency within the
and Spencers, have been one of the lead-                 workforce.
ers on this, implementing a 100 point
‘Plan A’ to make the company ‘carbon                     At the same time growing concerns have
neutral’, move towards ‘fairly traded’                   been expressed in the UK about the in-
products, reduce waste going to landfill                 creasing concentration of retail power in
to zero, and use organic cotton in its                   the hands of a relatively small number of
clothing products. The focus on carbon                   retailers and about the impact this con-
neutrality reflects a renewed emphasis                   centration is said to be having on a wide
on environmental issues within the CSR                   range of businesses and on communities
corporate agenda, often led by the com-                  and the large retailers’ claimed commit-
panies themselves, as much as by con-                    ments to CSR are increasingly contested.
sumers (Table 2). Tesco, for example,                    As investors, trade unions and labour
are investing £600m in ‘carbon label-                    organisations, pressure groups, govern-
ling’ its products and making its opera-                 ments and non-governmental organisa-
tions more sustainable (Reeves, 2007),                   tions become increasingly informed and
and other retailers will undoubtedly un-                 demanding, so retailers may need to be
dertake similar initiatives.                             able to demonstrate, and evidence, their
                                                         CSR commitments and achievements to
Tesco’s commitment to a revolution in                    enhance and retain reputation. A number
green consumption and to the fight                       of pressure groups, for example, have
against climate change and the launch of                 been critical of large retailers arguing
Plan A by Marks and Spencer are high                     that their activities are having damaging
profile examples of such a strategy. That                effects on the environment, on commu-
said retailers may face challenges in try-               nities and on the economy and disputing
ing to ensure that consumers include                     their credentials as good corporate citi-
CSR considerations when evaluating the                   zens. Friends of the Earth, (2005) for
brand and they may increasingly be                       example, have argued that one of the
looking to test the strength of CSR brand                UK’s largest retailers is abusing its
associations at the point of sale within                 power by forcing small traders out of
live retail contexts. On the other hand it               business, destroying the vitality of the
is important to recognise that some of                   high street, bullying suppliers and dam-
the CSR commitments reported by top                      aging the environment. In a similar vein
ten retailers can clearly be interpreted as              the Tescopoly website, launched early in
being driven by business imperatives.                    2006, is supported by a range of organi-
Thus while many of the environmental                     sations concerned about what they per-
initiatives addressed in the CSR reports                 ceive to be the market distorting powers
are designed to reduce energy and water                  of the major supermarkets and about the
consumption and waste emissions, for                     consequences that their trading practices
example, they also reduce costs. In a                    are having for suppliers, farmers, over-
similar vein the retailers’ CSR work-                    seas workers, local retailers and the en-
place commitments focusing, for exam-                    vironment. The large retailers vigorously
ple, upon good working conditions and                    refute the vast majority of the accusa-
remuneration, health and safety at work                  tions made against them and they consis-
and training and management develop-                     tently argue that their continuing growth
P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257              255


reflects their success in responding ef-                  CSR will provide fertile, though proba-
fectively and efficiently to customer                     bly contested, ground for future enquiry
needs. More specifically many of the top                  and research.
ten retailers are looking to frame their
CSR reporting to communicate their en-
vironmental, social and economic poli-                    References
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11.pp.0243www.iiste.org call for paper-257

  • 1. Issues in Social and Environmental Accounting Vol. 1, No. 2 December 2007 Pp. 243-257 Corporate Social Responsibility and UK Retailers Peter Jones Martin Wynn Daphne Comfort The Business School University of Gloucestershire, UK David Hillier Centre for Police Science The University of Glamorgan, UK Abstract This paper offers a preliminary examination of the Corporate Social Responsibility (CSR) com- mitments and agendas being addressed and reported by the UK’s leading retailers. The paper begins with a short discussion of the characteristics and origins of CSR and of the current struc- ture of retailing in the UK. This is followed by an illustrative examination of the CSR issues publicly reported by the UK’s top ten country of origin retailers and the paper draws its empiri- cal material from the CSR reports posted on the World Wide Web by these retailers. The find- ings reveal that the UK’s top ten retailers are addressing and reporting on four sets of CSR themes namely those relating to the environment; the marketplace; the workplace and the com- munity. The paper concludes with a discussion of a number of general issues relating to these themes. Keywords: Corporate social responsibility, Retailers, environment, marketplace, workplace, community Introduction ing the management agenda from one of managing for profitable growth to one of In presenting its 2006 Global Powers of managing and mitigating risk.’ The re- Retailing report Deloitte (2006) suggests port argues that ‘the uncertainties of the that ‘heightened concern about the global economy, the complexities of a growing risks facing retailers is chang- global supply chain, stakeholder de- Peter Jones is currently Professor of Strategic Management in the Business School at the University of Gloucestershire, UK, email: pjones@glos.ac.uk. Martin Wynn is Reader in Business Information Systems at the University of Glouces- tershire Business School, email: mwynn@glos.ac.uk. Daphne Comfort is the Research Administrator in the Business School at the University of Gloucestershire, UK. David Hillier, is an Emeritus Professor in the Centre for Police Sci- ence at the University of Glamorgan, UK.
  • 2. 244 P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 mands for greater corporate social and associations reflect the organisation’s environmental responsibility, techno- status and activities with respect to its logical innovation, the growth of pro- perceived societal obligations.’ Al- prietary brands, the increasing difficul- though CSR has gained increasing mo- ties in finding and retaining talent, and mentum and prominence across the busi- the threat of terrorism have all com- ness community during the past decade bined to significantly change the land- the underlying concept has a long his- scape of risk management’. In identify- tory. Hopkins and Crowe (2003), for ing ‘non-financial risks’ as one of seven example, suggest that there has always ‘key risks’ the report argues that ‘being a been a tension between business goals good corporate citizen is becoming in- and social goals and they cite the power creasingly important to the risk manage- of the craft guilds in the Middle Ages, ment agenda’ and that the goal is to the slave trade and the struggles to im- ‘bring together economic viability, envi- prove living and working conditions in ronmental sustainability and social re- Britain’s rapidly growing towns and cit- sponsibility, integrating these concepts ies during the nineteenth century, as into the company’s strategy, operations graphic evidence of such tensions. and culture.’ Retailers are very much at Sadler (2004) has argued that ‘the defini- the leading edge of the service economy tion of the functions of the corporation within the UK and this paper offers a with relation to wider social and moral preliminary examination of the extent to obligations began to take place in the which the UK leading retailers are re- centres of capitalist development in the porting Corporate Social Responsibility 19th century.’ More generally Mbare (CSR) commitments and agendas on (2006) has suggested that ‘the concept of their company websites as part of ‘their CSR is not new, as some would want us corporate efforts to build trust with to believe’ and that ‘the debate about shareholders, consumers and other business as a moral institution goes back stakeholders.’ to the days of philosophers like Plato, Aristotle, Kant, Marx.’ Corporate Social Responsibility Various factors are cited as being impor- tant in building the current momentum CSR is concerned with the integration of behind CSR, which is evidenced by the environmental, social, economic and fact that the number of companies pub- ethical considerations into business lishing CSR reports has increased almost strategies and practices. While Werner tenfold in the period 1996–2006 and Chandler (2005) have argued that (Saunders 1997). (Figure 1). Ernst and ‘consistent, definitions, labels and vo- Young (2002) suggest that five key driv- cabulary have yet to be solidly estab- ers have influenced the increasing busi- lished in the field of CSR’ numerous ness focus on CSR namely greater stake- definitions have been framed. Wood holder awareness of corporate ethical, (1991), for example suggests that ‘the social and environmental behaviour; basic idea of CSR is that business and direct stakeholder pressures; investor society are interwoven rather than dis- pressure; peer pressure and an increased tinct entities’ while for Brown and Dacin sense of social responsibility. Porter and (1997) ‘Corporate social responsibility Kramer (2006) argue that there are ‘four
  • 3. P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 245 prevailing justifications for CSR’ age and reputation, which have become namely ‘moral obligation, sustainability, increasingly important elements in cor- license to operate and reputation.’ Na- porate success; and the need for compa- tional and supranational governments nies to recruit and retain highly skilled have been active in promoting CSR. The personnel. Girod and Michael (2003) European Union, for example, promoted adopt a strategic marketing perspective CSR in all member states and the Com- arguing that CSR is ‘a key tool to create, mission for the European Communities develop and sustain differentiated brand (2002) argues that CSR has gained in- names’. creasing recognition amongst companies as an important element in new and The three dominant theories that have emerging forms of governance because been used to analyse and explain CSR it helps them to respond to fundamental have been succinctly summarised by changes in the overall business environ- Moir (2001). Stakeholder theory sug- ment. These changes include globalisa- gests that it makes sound business sense tion and the responsibilities companies for companies to understand the needs find the need to address as they increas- and aspirations of all their stakeholders ingly source products and services from be they investors, governments, employ- developing countries; the issues of im- ees, communities, customers or suppliers Figure 1. Number of companies in the World publishing CSR reports 1996-2006 Number of companies in the World publishing CSR reports 2235 2153 1936 1833 1482 1179 823 639 463 365 267 96 97 98 99 00 01 02 03 04 05 06 {Source: Saunders (2007)}
  • 4. 246 P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 and that these needs and aspirations ‘there is one and only one social respon- should be reflected in corporate strategy. sibility of business-to use its resources Social Contracts theory asserts that com- and engage in activities designed to in- panies may pursue CSR not because it is crease its profits so long as it stays in their commercial interests but because within the rules of the game, which is to it is how society expects companies to say engages in open and free competi- operate. Legitimacy theory stresses that tion without deception or fraud.’ Hen- society grants power to businesses and it derson (2001) has argued that seemingly expects them to use that power in a re- growing business commitment to CSR is sponsible manner. ‘deeply flawed’ in that ‘it rests on a mis- taken view of issues and events and its The business case for CSR is seen to general adoption by business would re- focus on a wide range of potential bene- duce welfare and undermine the market fits (Bevan et. al 2004). These include economy.’ Corporate Watch (2006) improved financial performance and takes a more overtly political position profitability; reduced operating costs; arguing that ‘CSR enables businesses to long-term sustainability for companies promote ineffective voluntary, market and their employees; increased staff based solutions to social and environ- commitment and involvement; enhanced mental crises under the guise of being capacity to innovate; good relations with responsible.’ More generally Kitchin government and communities; better risk (2003) argues that CSR is ‘too narrow to and crisis management; enhanced repu- engage management attention, too tation and brand value; and the develop- broad and unquantifiable to be taken ment of closer links with customers and seriously by the financial community greater awareness of their needs. How- and just woolly enough to be exploited ever Porter and Kramer (2006) have ar- by charlatans and opportunists.’ gued that ‘the prevailing approaches to CSR are so fragmented and so discon- nected from business and strategy as to UK Retailing obscure many of the greatest opportuni- ties for companies to benefit society.’ Retailing is a large, diverse and dynamic They propose a new framework to ex- sector of the UK economy offering an plore the interdependence between busi- ever-increasing range of goods and ser- ness and society and argue that ‘when vices to consumers. In 2004 there were looked at strategically corporate social some 305,000 retail outlets within the responsibility can become a source of UK generating a total turnover of £250 tremendous social progress, as the busi- billion (ABI 2005). The DTI’s (2004) ness applies its considerable resources, Retail Strategy Group Report “Driving expertise, and insights to activities that Change” looked to capture what it de- benefit society.’ scribed as “The Value of Retail” as fol- lows. “It is a strong user of technology At the same time there are those who and an innovator of new products. By would champion the case against com- matching consumer expectations and panies integrating CSR into their core demands with technological develop- business. Such arguments might follow ments the sector provides ever- Friedmann (1982) in affirming that increasing choice at a range of prices,
  • 5. P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 247 which suits the needs of the community. (Dawson 2004) and it also brought large Retail continues to invest in people and retailers into direct contact with a large places. It creates new markets, provides number, and often a wide cross section, a focus for the implementation of social of customers. The large retailers are policies and plays an important role in widely recognised to have the greatest the well being of towns, cities and rural impacts on the environment, on the areas.” economy and on society. While some authors depict retailers as the passive Retail provision within the UK has be- intermediaries between primary produc- come increasingly concentrated and the ers and manufacturers on the one hand number of small independent retailers and customers on the other, the majority has continued to decline as the retail view is that they have an active role in marketplace has become increasingly driving production and in stimulating dominated by a relatively small number and shaping customer demand. Thus, of large players. Dawson (2004) reports while Gilbert (1999), for example, de- that the market share of the UK’s ten scribes retailers as ‘occupying a middle largest retail firms increased from 13.0 position, receiving and passing on prod- % in 1971 to 38.1 % in 2000 and he ucts … to customers’, Wrigley and Lowe notes that “by the late 1990’s all the (2002) argue that ‘the geographies of major retail sectors had a small number production are being actively shaped by of firms that in effect dominated their multi-national retail capital.’ respective sectors”. In 2006 the top four food retailers viz. Tesco, J.Sainsbury, Frame of Reference and Method of En- ASDA and the Wm. Morrison Group, quiry for example, had a market share of 72% In order to obtain a preliminary picture (Office of Fair Trading 2006). This con- of the CSR agendas and achievements centration has increased the power of the being reported by the UK’s leading re- large retailers in channel relationships Table 1: The UK’s Top Ten Retailers 2005 Name Retail Sales 2005 Number of Countries of (US$ Millions) Operation Tesco 68,868 13 J Sainsbury 28,100 1 Wm. Morrison 21,840 1 Kingfisher 14,503 11 Marks and Spencer 13,929 29 DSG International 11,721 14 John Lewis 9,323 1 Boots 8,553 3 Somerfield 8,355 1 Kesa Electricals 7,423 8 {Source: Deloitte (2007) ‘2007 Global Powers of Retailing’}
  • 6. 248 P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 tailers within the public realm, the top tively, DSG posted a relatively extensive ten UK based retailers, trading in Octo- interactive report along with a 12 page ber 2007, (Table 1), ranked by 2005 Corporate Responsibility ‘Highlights sales, from the Deloitte report ‘2007 Leaflet’, Kesa Electricals posted a lim- Global Powers of Retailing’, were se- ited interactive report and Somerfield lected for study. The majority of the se- produced a brief 6 page report. lected retailers have a number of trading formats and /or trade under a number of CSR Overview banners while others have a single for- mat. Thus while Tesco’s trading formats The majority of the top ten retailers include community and town centre con- claim to be integrating CSR into their venience stores, superstores, hypermar- business. Marks and Spencer (2007) for kets and online services and while its example, claims a strong tradition of principal operations are in the UK, it is CSR which it sees as being central to the also listed as having retail operations in way the company is managed. More spe- 12 countries including China, Japan, cifically the company reports its launch Malaysia, Poland and Turkey. By way of of ‘Plan A’, a long term strategy for contrast Wm. Morrison concentrates on CSR, centred on climate change, waste, its superstore format solely within the sustainable raw materials, health and UK. While DSG International is a spe- being a fair trading partner, which the cialist consumer electronics retailer it company claims will only succeed if it is trades as Currys, Dixons and PC World ‘fully integrated into the way we do and is represented in 14 countries. business.’ In a similar vein Wm. Morri- son (2007) claims that it views Bowen (2003) has suggested that the ‘sustainable development as integral to majority of large companies have real- the way we do business and as such, it is ised the potential of the World Wide our licence to operate’ and Boots (2006) Web as a mechanism for reporting CSR emphasises its understanding that its activities and has argued that its interac- ‘commercial success and our CSR per- tivity, updatability and its ability to han- formance are mutually dependent has dle complexity adds value to the report- begun to permeate every level of our ing process. With this in mind the au- business.” thors undertook an Internet search using the key phrase Corporate Social Respon- Firstly while some of the top ten retail- sibility and each of the top ten retailers’ ers look to measure and benchmark their names in October 2007 employing CSR achievements this is not universal Google as the search engine. This search practice. Tesco and Kingfisher, for ex- revealed some variation in the extent and ample, report using Key Performance the detail of CSR reporting on the World Indicators and independent verification Wide Web. Thus while the majority of and assurance to help to measure their the selected retailers published relatively CSR performance; and J.Sainsbury re- extensive CSR reports a minority under- port participating in the Business in the took much more limited CSR reporting. Community Corporate Responsibility Thus while J. Sainsbury, Kingfisher and Index. Some of the top ten retailers re- Marks and Spencer, for example, pro- port on CSR in a more limited and selec- duced 60, 46 and 40 page reports respec- tive manner and on a number of occa-
  • 7. P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 249 sions case studies were used as a means tion in green consumption’ to be putting of illustrating broader CSR commit- “the fight against climate change at the ments. Such an approach might be seen very heart,”of this revolution and to be to be user friendly and to offer some setting “an example by reducing CO2 simple examples to illustrate what might emissions in our businesses throughout be perceived to be dry statements of the world.’” To this end the company commitments and achievements, but it reports its commitment to “changing does not provide a comprehensive re- our business model so that the reduction view or any systematic measurement of of our carbon footprint becomes an im- these achievements. portant business driver.” The company claims to be committed to reducing car- The selected retailers report on CSR is- bon dioxide emissions from all its stores sues under a variety of headings. and distribution centres by at least 50% J.Sainsbury (2007), for example, employ by 2020 and here the emphasis will be the following five headings ‘The best for on investing in energy efficient tech- food and health’, ‘Sourcing with integ- nologies including low energy fans, cold rity’, ‘Respect for our environment’, air retrieval systems and timers on ‘Making a positive difference to our lights. community’, and ‘A great place to work.’ Wm. Morrison (2007) use Packaging, waste management and recy- ‘Environment’, ‘Society ‘ and ‘Business’ cling are important issues for all the top while Kesa Electricals (2007) list ten retailers. John Lewis (2007), for ex- ‘Supply Chain’, ‘Environment’, ‘People’ ample, argues that packaging is essential and ‘Communities’. This paper follows for the integrity and safety of many of its Whooley (2004) in using four principal products but recognises that over- headings namely Environment; Market- packaging has environmental and finan- place; Workplace; and Community in an cial costs. In 2006/2007 the company attempt to capture and provide some reports saving some 23,000 tonnes of illustrative examples of CSR agendas as waste going to landfill and where space reported by the UK’s top ten retailers. permits it provides recycling points in store car parks for clothing, glass, paper Environment and plastics. The company also reports its commitment to recycling 75% of its Environmental issues were the earliest food business waste by 2012 and 50% of and are now the most commonly re- its non-food waste by 2010. Wm. Morri- ported set of issues amongst the top ten son seeks to prevent waste through a retailers, and a review of these compa- sustainable waste management strategy nies’ websites indicates that all highlight that focuses upon optimisation, reduc- the environment as a key driver of their tion, re-use and recycling and reports CSR agendas (Table 2). These environ- recovering some 72% of all the waste mental issues include climate change, generated in its stores for recycling. energy consumption and emissions, raw material usage, water consumption, Transport is a vital component of all waste, the volume of packaging and re- large retail operations and the majority cycling. Tesco (2007), for example, of the top ten retailers report their com- claims to be helping to ‘deliver a revolu- mitment to and/or their achievements in
  • 8. 250 P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 reducing vehicle emissions. J.Sainsbury, by its own and its supplier transport for example, transports all its products in fleets by 2010 and here the focus is to be cases and the company has set itself the on trying to ensure that vehicles never target of reducing carbon emissions per travel empty on return journeys. In case transported by 5% (against a March 2007 the company also an- 2005/2006 baseline) by 2009. At the nounced plans to convert 20% of its same time the company also claims to be online delivery fleet to green electric seeking to reduce the distance travelled vehicles. Table 2: Indicators of Commitment in CSR Agendas Name Environment Marketplace Workplace Community Tesco √ √ √ √ J Sainsbury √ √ √ Wm. Morrison/ √ √ Somerfield Kingfisher √ √ Marks and Spencer √ √ √ √ DSG International √ √ John Lewis √ √ Boots √ √ √ √ Kesa Electricals √ {Source: Author analysis of company websites and related publications} The Marketplace reports working with the Scottish fishing industry, for example, to promote sus- The term marketplace is seen to embrace tainability and extending its use of For- both the sourcing of goods and services est Stewardship Council certified materi- and their sale to the customer and as als into food packaging, leaflets, and such embraces a wide range of issues. store décor. Sourcing has become an increasingly Sourcing foodstuffs within the global topical and increasingly controversial marketplace now offers considerable issue for large retailers, and the majority variety and competitive supply prices of retailers highlight this as part of their but it has also led to growing pressure CSR strategy (Table 2). Four sets of is- group and public concerns about work- sues receive widespread, but not univer- ing conditions, rates of remuneration, sal, attention namely ethical trading, sus- child labour and health and safety issues. tainable sourcing, sourcing local and At the same time the majority of the regional foodstuffs and animal welfare. leading food retailers recognise that the Marks and Spencer emphasises its com- issue of ethical trading is made complex mitment to ensuring that raw materials by both the distances involved and by are sourced in a way that allows them to the existence of different political and be naturally replenished. The company regulatory regimes. More specifically a
  • 9. P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 251 number of the top ten retailers report personal products and its support for the their commitment to ‘Fair Trade’ initia- Convention on International Trade in tives. J.Sainsbury, for example, claims Endangered Species. that its share of the entire Fair Trade market is larger than that of any other A strong commitment to customers is major supermarket in the UK. widely reported by the top ten retailers and this commitment generally includes While global sourcing continues to listening to customers; services for dis- grow, some of the leading food retailers abled customers and promoting healthy have also been keen to affirm their com- living. J.Sainsbury (2007), for example, mitment to working with local and re- reports “We work hard to make sure that gional suppliers and to working in part- we are meeting customer expectations nership with suppliers. J.Sainsbury and continually ask our customers what (2007), for example reports its commit- they think.” In looking to meet these ment to supporting British farmers and expectations the company specifically more specifically to ensuring that emphasises that it offers its customers “customers have access to fresh, tasty “quality, healthy and affordable prod- and healthy food that is sourced in their ucts and an informed choice so that they local region.” The company also reports are able to eat as healthily as possible.” the establishment of its Supply Chain In a similar vein Tesco operates a series Finance scheme which is designed to of Customer Question Time meetings in help suppliers manage their financial an attempt to identify and respond to flows more efficiently and which en- changing customer needs. In 2006-2007, ables them to leverage J.Sainsbury’s for example, the company held over 250 borrowing power if they opt for early events involving some 6,000 customers. payment. The issues raised inform an annual cus- tomer plan which targets improving per- A minority of the top ten retailers report formance in areas identified by custom- on their commitment to animal welfare. ers and enhancing customer loyalty. Somerfield, part of Wm Morrison, for example, reports that it “continues to Access and services for disabled cus- promote animal welfare by supporting tomers is reported by a number of the farm assurance schemes” and to “offer top ten retailers. Boots, for example re- free range and organic meat products in ports working to ensure that all its stores those stores where there is sufficient comply with the 2004 Disability Dis- demand.” (Somerfield, 2007)At the crimination Act thus offering disabled same time the company continues to ban customers easy access and an enjoyable the testing of own label lines on animals shopping experience. In addition all the and to operate a fixed cut off from Janu- company’s store employees have under- ary 1st 2000 for the animal testing of taken disability awareness training de- ingredients used in these products. John signed to help them to learn how to Lewis argues that quality, traceability modify their normal behaviour where and animal welfare are intimately inter- necessary when dealing with disabled linked and it reports a strict no fur pol- customers. The company also reports icy, a total ban on animal testing for own working with the Royal National Insti- label cosmetics, toiletries, baby care and tute for the Blind to find ways of making
  • 10. 252 P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 its stores more welcoming and accessi- throughout the UK. These flagship ble to visually impaired customers. stores are to serve as a beacon for other stores in their region and the focus will Workplace be on providing training for employees in all aspects of modern retailing. At the The majority of the top ten retailers re- same time the company also reports port their commitment to their employ- working in partnership with the Union of ees, arguing that caring for their staff is Shop, Distributive and Allied Workers essential to their success, and they evi- trade union in running two lifelong dence this commitment in a variety of learning centres one in the company’s ways. Such evidence covers a range of Headquarters in Nottingham and the themes including remuneration and other in its warehouse in Heywood, Lan- benefits; training and development; cashire, to help employees who need to equality and diversity; health and safety; develop their numeracy, language and recruitment; retirement; and work-life literacy skills. balance. All the large food retailers indi- cate a commitment to attracting and re- Overall, however, the workplace is per- taining a culturally and socially diverse haps less evident in corporate websites workforce and here the emphasis is on and literature than the other factors con- recruiting and retaining the best people sidered in this account (Table 2). and meeting the needs of the communi- ties in which they trade. These commit- Community ments are usually strengthened by the provision of a mix of flexible working The top ten retailers all have a range of arrangements and by respecting the bal- impacts on the communities within ance between life and work. Tesco, for which they operate and, in at least some example, argues that the ability to attract measure, they all report on these issues and retain staff is the biggest challenge within their CSR reports, with a few for any business and in order to achieve companies positioning this higher on this goal they look to provide a variety their CSR agendas (Table 2). Kingfisher of career paths and patterns of working, (2007), for example, argues that its aim a good work life balance and compre- is to make each one of its stores “a good hensive employee benefits. In a similar neighbour in the community it serves.” vein DSG International (2007) empha- In 2006-2007 the company reports mak- sises that ‘the satisfaction and engage- ing £476,000 in cash donations, ment of our people is critical to the suc- £651,000 worth of gifts in kind and cess of our business’ and it claims to’ £168,000 of employee time as part of its apply a cradle to grave approach to cor- community investment. Wm. Morrison porate responsibility best practice from reports that the development planning recruitment to post retirement.’ for many of its stores has included facili- ties for the benefit of the local commu- Training and development is also a ma- nity and that the company also often jor theme. Boots, for example, admits commissions public works of art that under-investing in training and develop- reflect local heritage. ment in the past but reports the establish- ment of 30 new ‘Academy Stores’ A minority of the top ten retailers report
  • 11. P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 253 on their role in urban regeneration. is causing the river to peter out in its Tesco, for example, reports that in the lower reaches thereby dramatically re- period 1999-2007 it co-operated on 17 ducing water supplies to subsistence Regeneration Partnerships. These part- farmers and threatening the livelihoods nerships are based around the develop- and lives of nomadic pastoralists. ment of new stores designed to serve local communities and the focus is on Secondly there is a sense in which a working with public services, local em- number of the commitments and agen- ployers and community groups to yield das contained in the retailers’ CSR re- social, economic and environmental ports are aspirational and it is not always benefits in deprived urban areas and on easy to achieve all aspirations in the recruiting a significant number of people fiercely competitive UK retail business who have been away from work for a environment. While all retailers are pur- long period of time. Boots reports sup- suing environmental goals and many porting schemes designed to improve emphasise their commitment to the local and regenerate town centres by address- communities in which their stores are ing issues such as crime and environ- located, this is rarely at the expense of mental decline. In 2005-2006 the com- commercial priorities. In a similar vein pany invested £370,000, for example, in when individual store managers are fac- town centre management programmes. ing problems in staff scheduling, for ex- ample, they may pressure employees into working outside the hours that suit Discussion their work-life balance or refuse to re- lease employees for training and man- While the majority of the UK’s top ten agement development. This emphasis is retailers have been keen to recognise, reflected in the indicators identified in a and report on, some of the impacts that trawl of company websites and related their businesses have on the environ- publications (Table 2). ment, the economy and society and are pursuing a range of CSR agendas, and A third set of issues revolves around the three sets of issues merit discussion. extent to which retailers are harnessing Firstly retailers are aware that it is not CSR to retain and enhance reputation, to always easy to reconcile their often differentiate and sustain their retail wide-ranging CSR goals. In looking to brands and to pursue competitive advan- assess whether the environmental costs tage within the retail marketplace. On of importing fresh flowers from Kenya the one hand a number of the top ten are outweighed by the social benefits of retailers are increasingly seeking to in- trading with less developed economies, corporate their CSR commitments and for example, retailers may have to make the values that lie behind these values difficult trade offs between competing into their retail brands. The past two and often conflicting goals. That said years have seen the development and they report little awareness of the prob- adoption of new concepts and a more lems emerging, for example, along the central role for CSR within corporate River Ngiro where the large scale ex- culture. Reeves (2007) notes that ‘CSR traction of water all year round by the is being mainstreamed in some busi- companies producing flowers for export nesses; rather than being a bolt-on, it is
  • 12. 254 P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 now being embedded in the business ment all help to promote stability, secu- model of some firms’. In the UK, Marks rity, loyalty and efficiency within the and Spencers, have been one of the lead- workforce. ers on this, implementing a 100 point ‘Plan A’ to make the company ‘carbon At the same time growing concerns have neutral’, move towards ‘fairly traded’ been expressed in the UK about the in- products, reduce waste going to landfill creasing concentration of retail power in to zero, and use organic cotton in its the hands of a relatively small number of clothing products. The focus on carbon retailers and about the impact this con- neutrality reflects a renewed emphasis centration is said to be having on a wide on environmental issues within the CSR range of businesses and on communities corporate agenda, often led by the com- and the large retailers’ claimed commit- panies themselves, as much as by con- ments to CSR are increasingly contested. sumers (Table 2). Tesco, for example, As investors, trade unions and labour are investing £600m in ‘carbon label- organisations, pressure groups, govern- ling’ its products and making its opera- ments and non-governmental organisa- tions more sustainable (Reeves, 2007), tions become increasingly informed and and other retailers will undoubtedly un- demanding, so retailers may need to be dertake similar initiatives. able to demonstrate, and evidence, their CSR commitments and achievements to Tesco’s commitment to a revolution in enhance and retain reputation. A number green consumption and to the fight of pressure groups, for example, have against climate change and the launch of been critical of large retailers arguing Plan A by Marks and Spencer are high that their activities are having damaging profile examples of such a strategy. That effects on the environment, on commu- said retailers may face challenges in try- nities and on the economy and disputing ing to ensure that consumers include their credentials as good corporate citi- CSR considerations when evaluating the zens. Friends of the Earth, (2005) for brand and they may increasingly be example, have argued that one of the looking to test the strength of CSR brand UK’s largest retailers is abusing its associations at the point of sale within power by forcing small traders out of live retail contexts. On the other hand it business, destroying the vitality of the is important to recognise that some of high street, bullying suppliers and dam- the CSR commitments reported by top aging the environment. In a similar vein ten retailers can clearly be interpreted as the Tescopoly website, launched early in being driven by business imperatives. 2006, is supported by a range of organi- Thus while many of the environmental sations concerned about what they per- initiatives addressed in the CSR reports ceive to be the market distorting powers are designed to reduce energy and water of the major supermarkets and about the consumption and waste emissions, for consequences that their trading practices example, they also reduce costs. In a are having for suppliers, farmers, over- similar vein the retailers’ CSR work- seas workers, local retailers and the en- place commitments focusing, for exam- vironment. The large retailers vigorously ple, upon good working conditions and refute the vast majority of the accusa- remuneration, health and safety at work tions made against them and they consis- and training and management develop- tently argue that their continuing growth
  • 13. P. Jones et. al. / Issues in Social and Environmental Accounting 2 (2007) 243-257 255 reflects their success in responding ef- CSR will provide fertile, though proba- fectively and efficiently to customer bly contested, ground for future enquiry needs. More specifically many of the top and research. ten retailers are looking to frame their CSR reporting to communicate their en- vironmental, social and economic poli- References cies, achievements and contributions and to emphasise the transparency and ac- ABI (2005) Retail Trade, countability of their activities. w w w . s t a t i s t i cs . go v. u k / a bi / Division_52.asp Bevan, S, Isles, N., Emery, P. & Conclusion Hoskins, T (2004) “Achieving high performance: CSR at the All of the UK’s top ten retailers publicly heart of business”, report on their commitment to CSR on www.theworkfoundation.com/pd the Internet though there are marked f/184373017.pdf variations in the character, the content Boots (2006) “Corporate Social Respon- and the extent of that reporting. Impacts sibility Report”, on the environment are again at the fore http://www.boots- of the CSR agenda, followed by market- csrreport2006.com/ place and community issues, with con- Bowen, D. (2003) “Corporate Social cerns about the workplace being men- Responsibility (CSR) Reporting tioned by all, but lacking equal priority and the WWW: Increasingly En- and focus. While some of these retailers t w i n e d ” , provide relatively limited CSR informa- http://www.cesjournal.com/page tion others offer comprehensive reports s/alerts/ref/100304009s.pdf and make a case for locating CSR as an Brown, T. J. & Dacin, P. A. (1997), integral element of their core business. “The Company and Product: At a strategic level these retailers essen- Corporate Associations and Con- tially argue that by integrating CSR into sumer Product Responses”, their businesses they will not only be Journal of Marketing, Vol. 61, better placed to provide long term No. 1, pp. 68-84. growth and financial security for all Commission for the European Commu- stakeholders but also to maintain or en- n i t i e s ( 2 0 0 2 ) hance their market position and reputa- “COMMUNICATION FROM tion, and Curran (2003), for example, THE COMMISSION concerning has explored the link between corporate Corporate Social Responsibility: social responsibility and financial per- A business contribution to Sus- formance and competitiveness. Finally it tainable Development” http:// should be stressed that in some ways europa.eu.int/comm? CSR reports and information emphasise employment_social/soc-dial/csr/ the retailers’ aspirations which may not csr2002_en.pdf always be fully reflected in everyday Corporate Watch (2006) “What’s wrong operations within a fiercely competitive with corporate social responsibil- business environment. The tensions be- i t y ” , h t t p : / / tween the aspirations and the realities of w w w . c o r p o r a t e w at ch .o r g/ ?
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