This document provides an overview of Tesco's corporate social responsibility (CSR) activities, with a focus on their CSR strategy and key pillars. The document outlines Tesco's CSR strategy has five key pillars: 1) buying and selling products responsibly through responsible trading; 2) caring for the environment through initiatives to address climate change; 3) actively supporting local communities through partnerships with charities and community initiatives; 4) creating opportunities for young people; and 5) improving health. The document also discusses Tesco's stakeholders and how it engages with customers, colleagues, investors, suppliers and local communities on CSR issues.

1. Project On-
“CSR activities of TESCO"
Business Ethics
COURSE INSTRUCTOR –Barrister Shaheen Ahmed
(Shd)
BUS 401 SECTION-8
Submission Date: 20th November, 2014
Group Members:
Rafey Zaman- 111 0825 030
Mostofa Ferdous- 111 0970030
Ashik Ahmed Razu- 111 0845030
Taslima-Tuz-Zohora- 111 0031 030
Rifat Ahmed Bin Zakir- 111 0819530
Monjur Hossain Mollah- 111 0871 030
Sabrina Humayan Upoma- 111 0574030

2. Acknowledgement
This report would not be possible without the support of many people.We would like to thank
our Lecturer, Barrister Shaheen Ahmed who was abundantly helpful and offered invaluable
assistance. Our deepest gratitude to all the people for spending their valuable time and helping us
to accomplish this report . Also special thanks to my parents and my friends for their endless
support.

3. Letter of transmittal
November 20th, 2014
To,
Barrister Shaheen Ahmed
Lecturer, School Of Business
North South University
Bashundhara, Dhaka.
Subject: Submission of the Report of BUS 401
Dear Sir,
We are truly delighted to complete our BUS-401report. We have generated what we believe to
be the most appropriate. We tried our best to complete the assignment in this very short span of
time and with the quality of your expectation. We wish the assignment would be meeting your
expectations and standards.
We truly appreciate this task as it helped us to learn the corporate social responsibilty (CSR) of
TESCO.How it conducts it operations. We sincerely hope that you will appreciate our efforts.
We have enjoyed working on this assignment and have learnt a lot.
Sincerely yours,
Ashik Ahmed Razu Mostofa Ferdous
Monjur Hossain Mollah SabrinaHumayunUpoma
Rifat Ahmed Bin Zakir Taslima-Tuz-Zohora
Md. Ferdous Khan Samuel Rafey Zaman

4. Executive Summary
The purpose of this report is to analyze the Tesco, which is a global grocery and general
merchandise retailer situated in Cheshunt, UK. The organization is that largest organization of its
kind in the UK and has a market share of 30%.The company was founded by Jack Cohen, when
Cohen used to sell Surplus groceries from a stall in the Wall Street market. The name first
appeared in the 1924 with the name of tea merged with the initial two letters of Jack Cohen‟s last
name. The key findings of this report is the Corporate social responsibilty (CSR) of TESCO.

5. Table of Content
 What do we understand by corporate social responsibilty (CSR)................1
 Introduction………………………………………………………….........2
 Strategies…………………………………………………………………2
 Stakeholders…………………………………………………....................3-5
 Supporting Local
Communities………………………………………………………………5-7
 Five pillars of their corporate responsibility strategy……………............7-12
 Conclusion.....................................................................................................12
 Reference........................................................................................................13

6. What do we understand by corporate social responsibility (CSR)?
Though there is no universal definition of corporate social responsibility, it generally refers to
transparent business practices that are based on ethical values, compliance with legal
requirements, and respect for people, communities, and the environment. Thus, beyond
making profits, companies are responsible for the totality of their impact on people and the
planet. “People” constitute the company‟s stakeholders: its employees, customers, business
partners, investors, suppliers and vendors, the government, and the community. Increasingly,
stakeholders expect that companies should be more environmentally and socially responsible
in conducting their business. In the business community, CSR is alternatively referred to as
“corporate citizenship,” which essentially means that a company should be a “good neighbor”
within its host community
However, CSR can be described as the economic, legal, ethical, and discretionary
expectations that asocietyhasofanorganisation.
Introduction

7. 1
Tesco is a global retailer operating in 12 markets across Asia and Europe. We employ over
500,000 colleagues and work with suppliers in over 70 countries. In store and online we
enable over 85 million shopping trips each week.
In May 2013 we set out our new corporate responsibility strategy. We committed to using our
scale and capabilities as a global, multichannel retailer to create greater value for society.
This report sets out how we have started to tackle three urgent issues facing society – food
waste, health and youth unemployment. It also shows how we are strengthening our work in
the four essential areas
– trading responsibly, reducing our impact on the environment, being a great employer and
supporting local communities – which are fundamental to the way we do business.This year
has been about examining the issues in depth in order to develop clear and focused plans of
action.
Strategies
Our scale for good strategy

8. 2
We introduced our third value – we use our scale for good – in recognition of the fact that we
can make a wider contribution to society by drawing on our operational skills and our scale.
This new value stands alongside two other corporate values: no one tries harder for customers
and we treat everyone how we like to be treated.
Carbon and food waste data assurance
Group carbon footprint: Our greenhouse gas (GHG) emissions in 2013/14 totaled 6.37
million tonnes of CO2e. This year the area of our stores and distribution centers increased by
1.74%, while our net carbon intensity decreased by 1%. We have continued to reduce the
carbon intensity of our stores and distribution centers, and the emissions per case of goods
delivered in our distribution network – surpassing our 2013/14 target. For more information
about how we calculate our carbon footprint, including reporting standards, a more detailed
definition of Scope 1, 2 and 3 emissions, and the current emission factors visit
Creating opportunities for young people
It remains a critical challenge. Youth unemployment is at crisis levels across Europe.
Developing future skills is a global concern. That‟s why we are determined to be part of the
solution and to create opportunities for millions of young people around the world.
Improving health is one of the world’s biggest challenges –
Improving health and growing – challenges. The World Health Organization estimates that
non-communicable diseases (NCDs) kill more than 36 million people each year. We want to
develop strategies which improve health for the long term.

9. 3
Stakeholders
Customers
Our success as a business is built on working hard for our customers and making what
matters better, together.
We have a range of channels through which we engage with our customers. @Tesco was
ranked as the number one customer service Twitter account in 2013 for its responsiveness
and speed of response. Each year we run thousands of focus groups (called Customer
Question Time) and we have ongoing customer research trackers.
Colleagues
Our dedicated colleague viewpoint survey is an important tool that we use to listen and
respond to our colleagues‟ views, concerns and ideas and to make sure that Tesco is a great
place to work.
We have a dedicated Yammer network which helps our colleagues to stay connected. We
also have a scale for good website where colleagues can submit ideas on how we can become
a better business.
Our scales for good ambitions are shared across the business. To achieve our goals it is
essential that our colleagues are engaged. Many are already making a difference and are
leading on important initiatives. You can see a selection by watching our video
Investors
Our dedicated investor relations team meets with investors regularly. In February we ran an
investor and analyst day to share our business vision with the investment community. We
also have a colleague who is dedicated to working with the responsible investment
community.
Industry

10. 4
We have sought specific feedback from experts and campaigners who lead the way on
reducing food waste, helping young people into work and tackling obesity.
On issues where industry collaboration is required, such as deforestation, we seek to engage
with partners and other retailers to bring about long-term positive change. We also continue
to work with wider industry bodies such as the British Retail Consortium.
Local communities
We have over 300 Community Champions working in our stores. They identify initiatives
and causes in the local community that we can support, for example charity events and career
fairs.We have also launched regional Twitter accounts in the UK so that people can stay up to
date with news in their area.
Suppliers
We have a global team of commercial, technical and ethical managers with local expertise
who work directly with suppliers to make sure we provide our customers with high quality
products that are responsibly produced. Our online communities, The Knowledge Hub and
Producer Network, now have over 1,000 and 2,000 members respectively. Suppliers can also
give us feedback through an anonymous partner viewpoint questionnaire.
Experts
This year we established an external advisory panel who are working directly with our Chief
Executive, Philip Clarke. The panel is a small international group of experts who can provide
an honest assessment of our performance and challenge us to do more.
At the inaugural meeting in February 2014 the panel discussed a range of issues including:
external trends that Tesco should be mindful of and can play a part in; how to engage
customers and how to embed scale for good in the culture of the business. Over the coming
months and years the panel will focus on different areas and issues and will be invaluable in
helping us to shape our strategy.

11. 5
Other groups
We regularly respond to Government consultations on a wide range of topics and we have
given expert evidence to public working groups and inquiries. We also seek the expertise of
academics from many of the world‟s leading universities.
Supporting local communities
Charities
A key part of this is about supporting charities and good causes. Each year, we set a target for
donating at least 1% of pre-tax profit to charity. We meet this in a range of ways – from
direct donations to cause-related marketing. This year we contributed over £50 million,
equivalent to 2.3% of our pre-tax profits. Our colleagues and customers have risen over £10
million for Diabetes UK – our National Charity Partner. This includes our donations from the
sale of certain products, for example flower bouquets.
The money is funding the charity‟s biggest ever research program into a vaccine for Type 1
Diabetes as well as education and awareness campaigns. In total, customers and colleagues
across all our markets have raised over £22 million through Tesco facilitated events and
activities this year.
We also support communities through our products. For example, every year F&F offers a
range of Back to School uniforms as part of the „Buy One, Give One‟ program. When a
Tesco customer buys one product from the range, F&F donates an entire school uniform to a
child in the area in which the clothing is made. With the help of our customers, F&F has
donated more than 200,000 school uniforms to children in Kenya, Sri Lanka and Bangladesh
since 2009.
Partnerships
We bring together different partners to help tackle problems in communities. In Turkey we
have joined forces with the Turkish Education Volunteers Foundation and launched a three-

12. 6
year program to provide over 100,000 children with personal development, healthy nutrition,
physical activity and sports training. In Scotland Tesco Bank has an established partnership
with The Reading Agency and each year runs a summer reading challenge to get thousands of
children across Scotland reading through their summer holidays. On the following page, we
show how our work with food poverty charities across Europe is helping to feed people in
need and how we responded to the devastating flooding in the UK and Malaysia by working
in partnership with colleagues, customers, suppliers and the emergency services.
Colleagues
In the UK we have over 300 centrally funded Community Champions. They work with their
local communities to coordinate our support for local initiatives and events.
Processes
It is essential that all our efforts to act as a good corporate citizen, locally and globally, are
underpinned by a strong framework of corporate governance. We work hard to meet every
relevant regulation at local and national levels and we apply the highest standards of
corporate governance to everything that we do. This is a vital part of our license to operate in
society.
Since we introduced our new value „we use our scale for good‟ our colleagues across the
business have been working to embed this value in everything that we do. From suppliers to
stores, from head office to customer service centers, we have committed to using our reach
and capabilities for the benefit of our customers, colleagues and wider society. This is far
more than a corporate responsibility strategy. It is fundamental for the long-term success of
our business.
Through our scale for good strategy we are working to tackle big challenges facing society.
We are well placed to make a positive difference, but we can‟t do it alone. We need to listen
to experts, build strong partnerships and consider the views of all groups who are influenced
by or are interested in our business.

13. 7
Important pillars of their CSR
Tesco’s values are reflected in important pillars of their corporate responsibility strategy,
which is also called Community Promises and they are:
 Buying and selling our products responsibly
 Caring for the environment
 Actively supporting local communities
1)Buying and Selling our Products Responsibly:
Buying and selling their products responsibly helps TESCO build trust among all their
stakeholders. Trust in the Tesco brand enables them to grow their existing business, as well
as diversify into new business areas such as personal finance and telecoms.
Strong relationships with their suppliers allow them to innovate to meet changing customer
needs and to attract new suppliers to work with them. As supply chains increasingly come
under strain from environmental change and population growth, they are working to make
them more sustainable.
a) Responsible Trading
Responsible trading in Tesco means ensuring everyone in their supply chain is treated
honestly and fairly, and that care is taken to minimize the impact their products have on
the environment. That includes how they:
 Treat their suppliers and how their suppliers‟ employees are treated;
 Work with communities where they source their products;
 Establish and monitor animal welfare; and
 Work to ensure that products come from sustainable sources wherever possible.
b) Relationships with Suppliers

14. 8
To make Trading Fairly in reality, they invest substantially in supporting suppliers to
deliver it. Their ethical trade managers in Bangladesh, China and South Africa help
suppliers and stakeholders address local and national challenges
Tesco believes in trading fairly, which is done by a new approach based on four key
principles:
 Values – ensuring that they work with suppliers who share their values;
 Monitoring – getting to the truth about conditions for workers in their supply chains;
 Improvement – supporting their suppliers to improve; and
 Transparency – being open and honest, working with others.
2) Caring for the Environment:
As one of the world‟s leading retailers, Tesco have a clear responsibility and a significant
opportunity to protect the environment. Their aim is to create more sustainable ways of doing
business. Theyare reducing their impact on the environment, including energy useand waste.
They are working with their suppliers to manage resourcesmore carefully in their supply
chains by reducing waterusage or tackling deforestation. They are empowering their
customerswho, together, can have a positive impact on the environment thatfar outweighs
their own, to create a mass movement in greenconsumption.
a) Climate Change
Climate change is one of the greatest threats mankind faces. It transcends national
boundaries, and threatens to affect us all in many different ways. Tesco considers that
retail businesses can play a powerful role in tackling climate change. They are determined
not only to play their part, but to play a leading role.
For Tesco, leadership on climate change means:
 Setting a clear example through their challenging long-term targets, and making
genuine progress against them;
 Working with other businesses to transform the consumer goods industry by tackling
carbon „hotspots‟ in the global supply chain;

15. 9
 Using their position as a trusted global brand to inspire their staff, customers and
neighbors to take action to protect the environment. With 492,714 employees and
millions of customers worldwide, they can have a positive influence on millions of
people every single day; and
 Working with governments across the world to build an understanding of climate
change and the actions needed to tackle it.
Zero
b) Buildings
Low-carbon stores
Since 2005, they have been cutting the carbon footprint of Tesco stores across the
world. They have an ambitious program of carbon reduction in their new and existing
stores, designing in features such as increased natural daylight to their standard new
stores. In their existing estate, they are working to replace old equipment with new
technology to help their staff cut carbon.
Zero-carbon stores
Tesco opened the world‟s first zero-carbon supermarket in Ramsey, Cambridgeshire,
in the year 2009. This year, they opened their first overseas zero-carbon store in
Jaromer, Czech Republic, and completed two more zero-carbon stores in the UK, in
Welshpool and Bourne. These stores allowed them to test new technologies that they
can roll out to future new stores.
Renewable energy
Even the most energy-efficient buildings and distribution systems need to use some
energy. Generating Tesco‟s own renewable energy is therefore a key part of their
climate change strategy, and they are trialing several technologies, including
photovoltaic roof panels and cladding, solar hot water generation, CHP and ground
source heat pumps.
c) Transport
Saving fuel
Despite significant business growth, Tesco have not increased the size of their UK
distribution fleet for four years. They train their drivers to make driving more
efficient, by accelerating smoothly, using the highest possible gear, and maintaining a
constant speed. Tesco is now reducing the maximum speed of their UK vehicles to 50
mph. This is projected to reduce their fuel consumption by up to 3%.

16. 10
d) Supply Chain
Sharing knowledge
To share knowledge and expertise more widely across their supply chain, Tesco have
set up a Knowledge Hub, an electronic space to share best practice with their
suppliers on a daily basis to help them gain the confidence they need to invest in
carbon reduction. Tesco currently have over 150 members in their Knowledge Hub.
e) Waste and Recycling
Waste
Reducing waste is a priority for Tesco. Balancing the need to ensure staple products
are always available to customers against the need to minimize waste is a normal part
of store management. Each of their businesses has its own targets to reduce waste and
improve recycling, working within the limits of local infrastructure. Every Tesco store
in the UK has waste targets that are reported on a weekly basis.
Recycling
In China Tesco achieved their target for cardboard recycling, and their performance
for vegetable oil and fresh waste improved. Tesco also have plans to operate a
Recycling Service Unit in the Czech Republic and centralized waste recycling
through distribution centers in Slovakia. In Ireland they held Waste Electrical and
Electronic Equipment Collection Days at 28 stores, allowing customers to bring back
their old electrical appliances for recycling. Tesco recycled a total of 286 tons of
electrical waste, the equivalent of 19,000 televisions or 150,000 hairdryers. In 2010
they rolled out battery recycling points to all their UK stores. These have proved
popularity and their customers have recycled 228 tons of batteries that year. They also
installed innovative new information screens on their UK automated recycling
machines, which communicate how much CO2 is being saved by recycling.
3) Providing Customers with Healthy Choices:

17. 11
Tesco want to help their staffs and customers to lead healthy lives. As a global business, they
know that „healthy lives‟ means different things in their different markets. Tesco aims to
work with their industry partners, academic and technical experts, and governments to
understand and help tackle key public health issues for example, food safety, obesity and
alcohol misuse.
Tesco believes if they have a reputation for selling safe food in a market where food safety is
an issue; it will help them build trust, giving them a significant competitive advantage and the
opportunity to work with governments to improve standards.
To them helping customers eat more healthily allows them to open up new business
opportunities, especially in markets where obesity is a major issue. Their „get active‟
programs around the world help their customers get fit, as well as increasing their loyalty.
Tesco follows this strategy through the following ways:
a) Healthy Options
Food safety
Basic food safety remains a primary concern for customers in some of their markets.
Tesco plays an important role in spreading best practice and improving standards.
Healthy eating brands
Their healthy eating brands contain nutritionally balanced products with controlled
amounts of fats, sugar and salt. Tesco offers them in seven markets. For example,
their Eat Well range in the US features reduced calories, fat, saturated fat and salt.
Changing the Formula
Tesco have been cutting levels of salt, sugar and saturated fat across their ranges since
2005, and since then they have reformulated over 3,600 UK products to improve their
nutritional content.
b) Better Information
Nutrition Labeling

18. 12
All of Tesco‟s eligible own-brand food lines across the globe have nutrition labelling.
The only exceptions are food cooked in-store and products where it would be
impractical to add a label, such as herbs and spices. Their nutrition labelling uses
Guideline Daily Amounts (GDA) and tells customers how many calories and how
much sugar, fat, saturates and salt they will eat in one serving, along with the
percentage GDA for a typical adult.
c) Active Lifestyle
Tesco encourages people to lead more active lives by helping them manage not just
the energy they take in, but also the energy they expend. Last year they got more than
7 million staff and customers active, exceeding their targets in all their markets.

19. 13
Conclusion:
The socially responsible actions of such firms may be conducted due to personal business
interests and not necessarily driven by philanthropic motives; however, as long as they can
deliver a positive impact on society, they should be pursued. Hence, in this respect, we may
be said to be motivated by Consequentialist Business Ethics theory of Egoism which
essentially classifies any action to be ethical if the outcome is desirable. In reality, we believe
that it solely falls within the personal responsibility of a business entity to engage in activities
that promote social welfare alongside earning economic profit. Only then, we can hope to
have a vibrant community where the society is benefitted not only due to the business
efficiency of the firms but also due to the ethical business culture that they pursue in the form
of CSR. In that regard, firms such as Tesco are the epitome of business entities striking a
balance between their focus on economic purpose of existence and their responsibility to
contribute positively to the community.

20. 14
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<www.tesco.com> [Accessed Jan 2, 2011]
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The Secured Lender. 60 (6), pp.10-14.
Joost W. (2005) “Supply Chain Integration in the Food Industry”, Executive Outlook.pp.20-
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Tesco Plc (2014) TESCO: Resources, Online available athttp://www.tescoplc.com/ [Accessed
Nov 18th, 2014]
Mintel Report (2004) “Food Retailing –UK”. Retail Intelligence.
Corporate Responsibily 14/15 half update (n.d.). Retrieved November 18th2014
fromhttp://www.tescoplc.com/index.asp?pageid=81#ref_society
Palmer M. (2004) “International retail restructuring and divestment: the experience of
Tesco”, Journal of Marketing Management. 20 (9/10), pp.1075-1101.