Corporate Social Responsibility Task 1
To find out about corporate social responsibility I researched 3 separate businesses the first being the join Lewis partnership which includes Waitrose (a food retailer) and John Lewis (a department store). They have 336 stores located in the UK which are co-owned by every member of staff. The partnership makes on average £9.5 billion a year. They state that corporate social responsibility has been a cornerstone of their business right from the Partnership's establishment. The shops target market is middle and upper-class shoppers although they do offer a value and an essential range. The partnership is employee owned (these employees are often called members or partners) and so they state that their purpose is “the happiness of all our members, through their worthwhile, satisfying employment in a successful business”
The next business I researched was McDonalds which is the largest global fast food restaurant in the world. It has over 34000 stores located around the world that serve around 68 million people a day (equivalent to the population of the UK). McDonalds has often been criticized for its effect on the environment and its customers due to its low quality products. Its main competition is KFC and Burger King although to combat this McDonalds offers a larger product range with KFC mainly focussing on chicken and Burger King mainly offering burgers. To help promote their food to children they use a clown mascot that they also use for their charities that support children e.g the Ronald McDonald House charity which offers temporary homes for families with close relatives who are in a distant hospital.
The Final business I researched was ASDA which is owned by Wal-Mart, the largest private employer in the world and the second largest public corporation in the world. ASDA got its name from the merger of Associated Dairies & Farm Stores Limited and Asquith (a small chain of supermarkets) with the AS coming from Asquith and the DA coming from Dairies. ASDA has had various problems with false advertising in the past usually due to showing items in adverts for sales that are not included in the sale. ASDA manufactures and sells its own range of clothes called George. ASDA employs 175,000 employees and 565 stores in the UK. Its mission statement is “to be Britain's best value retailer exceeding customer needs always.”
All of these organisations have been put under pressure in recent years to act responsibly and show good corporate social responsibility. The main pressure on these businesses comes from pressure groups which are groups such as Greenpeace who put pressure on businesses who damage the environment. These groups can have a substantial effect on a business as they can use various protest methods to reduce the profits of a business. These methods include calling for boycotts, deterring ethical consumers, picketing and even suing the business. All these methods cause negative publicity for the business which deters customers from going to the store as its actions may not follow their ethical beliefs. Negative publicity can also affect share prices as this publicity can be an indicator that the profits of the business will drop soon due to some of their customers being deterred.
The main organisation I have researched that has been effected by this is McDonalds who has been targeted by various environmental groups in the past and is now being targeted by PETA who has done investigations into McDonalds and has set up www.mccruelty.com which publicises how McDonalds mistreats animals. This is likely to deter customers from going to McDonalds and cause it to lose a small amount of its market. Although it is being targeted negatively by some pressure groups, other groups have recently started to support its new eco-friendly initiatives and employment strategies which has improved the company’s image a lot.
Another organisation that has been effected negatively is...
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