CSR at retailers

2. Chapter 5
Corporate Social
Responsibility at Retailing
James B.A Mary A.O

3. Learning objectives
 This chapter describes Current CSR reporting
 CSR link to strategy.
 Private companies and social issues
 It then describes a framework for focusing CSR on
issues of strategic importance to the retailer and its
supply chain trading partners.
 Finally, a case, that of Boots, Ltd. in the United
Kingdom, will describe one approach to setting
priorities and reporting progress using the GRI G3
guidelines.

4. CSR at Retailers
 The trend toward increased CSR reporting is perhaps
most apparent in the space dedicated to the topic in
the annual reports of publicly traded retailers.

7. Example of CSR
 Wal-Mart 2006 Annual Report
 “In October 2005, Wal-Mart CEO, Lee Scott …..leadership role
in improving operations, our operations, and products for our
customer that will benefit the environment.”
 “Did you know that in the U.S. retail channel, we are the first
to make available RoHS (Retail on Hazardous Substance)
compliant products?”
 Gap, Inc. 2005 Annual Report
 “Gap, Inc. employees volunteered nearly 155,000 hours last
year to benefit charitable causes.”

8.  These represents the scope of CSR initiative reporting
retailers might embrace. The range of “good works” by
both companies is wide, covering charity contributions
by employees, work with suppliers, enforcement of
labor standards, and environmental hazard
mitigation*.

9. CSR Link to Strategy
 Academics and consultants recommend making
societal concerns integral to company plans for its
processes and its products. The growing CSR
movement requires substantive, formal processes for
managing what will likely be multiple, simultaneous
efforts at different levels of the organization. This
section describes two frameworks for linking CSR with
strategy provided by prominent management thought
leaders.

10. Indicator Category
 Economic (EC):
 Includes capital flows among stakeholders and
economic impacts of the organization throughout
society; financial reports
 9 performance indicators—7 core and 2 additional.
 Environmental (EN):
 Impact of the organization on ecosystems*, land, air,
and water
 30 performance indicators—17 core and 13 additional

11. Social Categories
 Labor practices and decent work (LA)
 Human rights (HR)
 Product Responsibility (PR)
 Society (SO)

12. Private Companies and Social
Issues
 There are three types of CSR responsibilities in this
environment: formal, informal, and frontier
expectations.

13. Formal
 The formal contract includes regulation, taxes,
contract structures, and product liability.
Informal:
 The informal contract lies in expectations, not laws or
regulations. An example is the responsibility to
maintain labor standards in global supply chains.

14. Frontier expectations
 Frontier expectations have less direct threads to the
enterprise.
 An example is the responsibility of food
manufacturers for obesity. If people eat too much or
the food is “over-caloric,” where does the responsibility
lie—with the restaurant or the consumer?

15. Boots ltd.—CSR/Financial Report
Convergence
 In early 2006, Boots, a company in the United
Kingdom that dates back to the 19th century, reported
in some detail about its CSR efforts. This was not
Boots’ first report, but it was a one that clearly
explained its efforts in terms of GRI G3 guidelines.
 By way of background, a merger in 2006 resulted in a
company with 3,000 retail outlets in 17 countries.
Boots also supports 125,000 retail customers with its
wholesale and distribution business. Many of these are
independent pharmacists. Products include bath and
body, skincare, cosmetics, and haircare categories.

16. GRI G3 - GUIDLINES
 Global Reporting Initiative
 The G3 Guidelines are made up of two parts. Part 1 -
Reporting Principles and Guidance features
guidance on how to report. Part 2 - Standard
Disclosures features guidance on what should be
reported, in the form of Disclosures on Management
Approach and Performance Indicators.

17.  Thank You 