Contents

Introduction
1.0

Consumerism and Globalisation

2.0

Relationshil between media and business.

3.0

Imortant of Corporate Social Responsibility (CSR) toward Tesco

4.0

Did Corporate Social Responsibily (CSR) bring positive influence

to Tesco ?
5.0

The ways of quantify tangible benefits and intangible benefits.

6.0

Realationship between Key Performance Indicator (KPI) and

business

Conclusion

Introduction
The main strategy for Tescos Corporate Social Responsibility (CSR) to gain the trust of their
consumer by acting independently in the groups where they work, by amplifying the
advantages Tesco bring in their attempt to minimize any negative confrontation from their
stakeholders.By gaining trust of the consumers Tesco can also improve their revenue. There
are several Corporate Social Responsibility (CSR) that Tesco has currently put in place. The
first objective that Tesco focus is to reduce food waste . According to the research, there are
222 million tones of food wasted in every year. Besides, Tesco also focus on improving
heath and help to tackle obesity problem. Obesity is a growing societal health problem in our

society today. Obesity will cause a lot of disease, example like heart attack, diabetes,
cancer and lot more disease. Due to this problem, Tesco has to force on this issue to help to
solve it. Next, Tesco is trying to create new opportunities for young people. We always can
hear that there are a lot of young people could not find a job after graduated, and the started
to rob, started to earn money with unethical ways.
1.0 Consumerism and Globalisation
Globalization is a procedure of collaboration and extension of trade to international level at
various countries to penetradeande develop new markets for businesses. This procedure
has consequences for nature, on society, on political frameworks, on monetary advancement
due to implosion of more consumers.
As consumerism increases,there is a need to look at its impact. As the demand is pilling up
the production, higher consumerism will lead to depletion of natural resources. As the rate of
usage is becoming critical it is important to look into corporations role in corporate social
responsibility or even the need for recycling. Example like IKEA, the world largest homefurnishing company. This company came out a project called second life of furniture ,
consumer can bring the used wooden furniture to resell or recycle. For those consumer who
resell their used wooden furniture they wil receive a IKEA voucher and the voucher can
purchase any thing in IKEA. Beside then wooden furniture, IKEA also accept plastic
furniture, even the furniture was not purchased in IKEA. This will not only bring benefit to the
environment but also will bring benefit to the consumer and IKEA company. With this project,
profit of IKEA will increase due to some environmental lover will only consume those
products that can be recycle.
Beside, as consumer increase, which means that the production must be and this
sometimes may offer better employment opportunities that will increase the quality of life in
particular country. Example like Starbuck company developed it own coffee farm at China,
Yunnan. Starbuck company hired trainer to train those coffee growers in Yunnan. Because of
this project, citizen of Yunnan had improved their quality of life and get their income slight
higher then previously. With higher income, they can purchase some goods that better
quality, instead of purchase goods that low quality.
One of the impact of globalization is the availability of foreign goods , which will result
combination of knowledges and exchanging more goods and services, domestic economies
expand and technology improvement. Due to the availability of foreign goods, it brings
convinience to consumers in term of their purchasing choice and power. Example like Toyota
company, it is a foreign company, because of the globalization, Malaysian can purchase

Toyota vehical in Malaysia. Consumer need not travel to Japan to purchase Toyota vehicles
that they desire to purchase.
Unfortunately, there are also has bad impact of not addressing the issues of consumers
properly. Example Nike company, in year 80s, one of the supplier of Nike company hire child
labour, resulting in confrontation with their stakeholders and subsequently lead to thestarted
to boycott of Nike company, and caused the profit of Nike decline, this shown the power
ofconsumers
2.0 Relationshil between media and business.
In this morden era, news is spreading like wild fire across the globe, through various media
and social media. I strongly agree that the proliferation of media is helping the emergence of
a global consumer, because most of the youngster cannot live without social media, like
Facebook, Instargram, Twitter,online news, and others. Through those social media they can
collect the latest information or news from it, even those information that is not announced
by the company.
With those media, company use the advantage of technology and have the opportunities to
create a platform that consumer can share the feedback to the particular company. Some of
the company created a wed site for consumer to share their feedback, and allow consumer
to ask questions. For sure the questions that asked by the consumer will get a reply from the
company. Example like McDonalds company, they created a wed site that can collect the
feedback from consumer in order to improve their service quality. By doing so it will also help
company to achive the global marketability and awareness of its Corporate Social
Responnsibility (CSR).
In contrast, If the company does not fully utilize the advantages of media, the particular
company might lose the sale and the loyalty from consumer. Without utilizing the advantages
of media, they cannot approach a large targeted audiences. Besides, the particular company
also will not get the updated feedback from the consumer and this will cause the company
leave behind the trend and does not achieve the demand of consumer. The company will
also lose their market share and beat by their competitor. There have a very good example,
Maxis company. This case was just happened this year. Consumer of Maxis company
complained that Maxis company was charging different price of the 4G package between
East Malaysia and West Malaysia. Maxis company does not takes consumers feedback
seriously, and a lots of the consumers posted this bad news through social media ,this cause
a lots of consumer boycott Maxis and shift to other competitors. On that time Maxis company

just realized power of media, and now Maxis company started to create a e-marketing and
they are using this to keep the relationship with consumer.
By the time, before a consumer wants to purchase something, they will definitely make an
online research and compares the price and quality of the goods. This presents a significant
opportunity for marketers to improve the value of their creativeness and marketing assets by
impacting consumer demand prior to purchase. Marketers can implement social media to
promote their offerings by video ads and some consumers feedback videos. In social media,
marketer also have to create an attractive title to grab peoples attention. In this situation
consumer will pay more attention on the product and will influence their purchasing power.
Therefore media, play an important role in affecting the company-customer relationship.
3.0 Imortant of Corporate Social Responsibility (CSR) toward Tesco
Tesco was the largest retailer in United Kindom in year 2005s. Tesco considered Corporate
Social Responsibility (CSR) to be an integral part of its corporate framework and its
Corporate Social Responsibility (CSR) was spread across to all the activities that carried out
including internal and external. Corporate Social Responsibility (CSR)activities that Tesco is
focusing in this recent year are reduce food waste globally, healthy living, and to create new
opportunities to youngster. This three issues are also the issues that people concerning in
this current year. Seen Tesco is the largest retailer, therefore, they need to concern about the
Corporate Social Responsibility (CSR), in stead of only concern on their profit. These can
helps Tesco gain confidence from their consumer. Due the the operation size of Tesco, they
know that they have the ability to influence their consumer and employee to become a part
of social responsible.
According to the research, every year there are around 222 millions tones of foods wasted in
all around the world, this also the reason why Tesco established this project. In year 2014s
was the first year that Tesco established the reduce food waste project. They do not just
want to reduce the food waste in their company, Tesco wants to ruduce the food waste
around the world. In this objective, Tesco had made an analysis and targeted the food waste
problems and Tesco selected few foods that most of the consumer wasted. Example like
cheese, Tesco changed the cheese packing to resealable packaging so that consumers can
keep the cheese when they could not finish it, rather then throw it away. It is a good business
sense to carry out this project because at the same time, stale vegetables and fruits in Tesco
willnot be thrown away but sold to fertilizer factory , and Tesco can earn some income from
it.

Next, Tesco also focuses into improving health. This is the largest challenge that face by the
world currently. According to research, there are around 36 million of people killed by noncommunicable disease. Therefore, Tesco published the improving heath ambitions helps to
reduce this scary figure, and Tecso hope that this ambition will also help to reduce the
obesity problem too. The first way of improving heath is to change the market habits of
Tesco. Tesco has already reduced around 3 million of calories in their soft drink and snack
department. These action willpromote Tesco as a healthy grocer, and it is a good business
sense because health is the main consideration for most people especially when it concerns
their diet.
Creating opportunities to youngster is also one of the ambition that Tesco set. In this recent
year, we can heard or see from the news there are lots petty crimes which were committed
by youngster. Why these cases will happened recently, this is because those youngster
could not find a job and. Consequently, Tesco came out this ambitions to help those
youngster around the world and create opportunites to them. To achive this ambitions, the
first action that Tesco should carry out is to know what challenges are the youngster are
facing. This is because why Tesco published the Young Peoples Panels to listen and
understand what the problems that the youngster facing. Besides, Tesco also launched a
vocation traningprogramm in Asia to give youngster on the job-training. This ambition is a
good business sense because it have benefited Tesco. In meeting their staff development
needs.
4.0 Did Corporate Social Responsibily (CSR) bring positive influence to Tesco ?
Tesco has tackle several social and

environmental initiatives, these initiative brings

advantages to Tesco. One of the main Corporate Social Responsibility (CSR) objective that
Tesco face is to reduce the food waste. Tesco is confident that they have the ability to
influence from the farm to fork to reduce this issue. This objective not only can helps Tescos
customer to reduce food waste, and save money, but this objective can also helps feed
people in need. The project has the potential to create competitive advantage because it
helps Tesco to lower its operational costs. Lower costs helps to build up profits in Tesco in
long term.
According to the analysis, Tesco found that biggest area of operational waste is in bakery.
Almost half of all bakery goods and 40% of apples are throwed without reaching a mouth,
and the retailer generated 28,000 tonnes of wasted food in the first six months of the year. In
this issue, Tesco try to minimise surplus, example like bake the bread, cake and cookies
according to the festival. Tecso also send all the bakery waste to the farm and convert it to
animal feed .This may save the cost of baking cakes and profit of Tesco will increase.

Besides, for the foods that cannot be sold, Tesco will sell it with promotion price if possible,
otherwise, Tesco will donate those unsold food to charities. Positive public image from this
kind gesture will attract more people to spend their purchases in Tesco.
The second Corporate Social Responsibilty (CSR) ambition that set by Tesco is to improve
ing heath. Tesco removed sweet, chocolate, and fizzy sugary drinks from their tills. Due to
removed those unhealthy foods, therefore Tescos warehouse have more space to store
others goods. These will save the cost of renting more warehouse to store their goods
5.0 The ways of quantify tangible benefits and intangible benefits.
In recent year, Corporate Social Responsibilty become one of the businesss strategy in
most of the companies, including Tesco company. However, Tesco concerns more on the
return of benefits, while overlooks the Corporate Social Responsibility (CSR) in serious
manner.

Likewise,

Corporate Social Responsibility benefits can classified

into two

category, which is tangible benefits and intangible benefits. Tangible benefits is those
benefits that easy to quantifiable not only in financial and also in physical term, example like,
cost saving , attract better employee ,and reduction of employee turnover. We can easy to
quantifiable all these according to reports that prepared by the employee.
Conversely, intangible benefits, it is more difficult to quantify compare to tangible benefits,
example of intangible are employees knowledge, reputation and capabilities. We cannot
quantifiable these according to the reports, and intangible benefits cannot easily translated
directly to dollar. The intangible benefits often have multiple sources and influences; thus,
while a project may help improve employee engagement, a variety of other factors may have
the same effect, making it difficult to pinpoint the impact of the project. Although intangible
benefits are difficult to quantify but there are also have a few way to quantify it.
The first way to quantify intangible benefits is convert intangible to closely related tangible.
This method is use by many of companies and they succesfully to quantify those intangible
benefits. Example, Tesco could not quantify the satifaction of the consumer, therefore, they
convert it to dissatisfied of consumer, and Tesco place a suggestion box in every branch,
and let consumer to comment or suggestion toward Tesco, at the same time, some
consumers will write down what they really statified toward Tesco. Through this method,
Tesco can quantify the satifaction and dissatisfied of consumer toward Tesco.
Secondly, scenario analysis also one of the method to quantify intangible benefits , which
analyzes the potential results of a particular strategy. Manager define the probability of
implementing every intangible benefit, then allocate an expected worth based on the total

intangible benefit. For example, Tesco found that the investing in employee traning has only
a few percent of increasing in employee knowledge and employee skills. Therefore, Tesco
will determine this option as less appealing, and Tesco will reduce the investing of this
objective and started to invest in other objective that can helps Tescos employee in
improving their knowledge and skills.
Beside, Comparative analysis also one of the method to quantify the intangible benefits. This
method is useful, because this method quantify the intangible benefit to by comparing them
to similar tangible or intangible benefits. This method is particularly useful for setting a value
on a business' assets while deciding total assets. Assets, for example, brand names,
consumer good will, and licenses are all immaterial aftereffects of past business choices. In
the event that another organization offers comparable intangible assets for a willing
purchaser, the fair market price can serve as a benchmark for putting a worth on the
comparable, unsold intangible assets.
Company can also use the process of elimination to allocate quantitative values of intangible
benefits. This is finished by measuring gains and subtracting the gain that originate from
tangible benefits, with the distinction speaking to the estimation of the intangible benefits.
For instance, if an organization's rebuilding results in a $1 million help in benefits however
just $500,000 in budget savings , the rest of the $500,000 can be credited to intangible of
the rebuilding, for example, expanded worker efficiency and inspiration.
Organizations also use cost benefits analysis to evaluate the effect of intangible benefits and
expenses for decision making . Directors must distinguish a scope of tangible and intangible
expenses and benefits identified with a specific venture or choice and appoint a number
within a range to each item as an indicator of its importance. To select future investment
project in an organization, Cost Benefit Analysis is the most common used financial tools. In
term on constant prices, this technique is constructed by comparing the costs and benefits.
With this method , the cost and benefits is easily to be estimate and easily translate to
money, this will helps company identified the relationship with the investment.

6.0 Realationship between Key Performance Indicator (KPI) and business

KPI known as key performance indicator, this is a measurment to helps company to
measure how adequately an organization is implementing key business goals. There are
1000s type of KPIs , therefore managers have to choose the right Key performance indicator
(KPI) for their department. Choosing the right Key performance indicator (KPI) will rely on

upon the industry and each department of in the same industry will use different Key
performance Indicator (KPI) to measure.
Key performance indicator (KPI) is important to every industry including manufacturing
industry and service industry. With Key performance indica company can immediate receive
important information from it. Key performance indicator (KPI) helps company executives to
know the overall performance of their company. Those companies which are in the highly
competitive market, like retails industry, need the information from Key performance
Indicator (KPI) to fight with their competitors.The information that key performance indicator
(KPI) provided can helps company make some systematic change. Therefore, company will
not make wrong decision. Some of the companies use Key performance indicator (KPI) to
measure the weather they are achieving certain standards, which are not directly influence
their companies profit. For example like hotel industry, they are using Key performance
indicator (KPI) to measure how much star that their hotel worth. This will helps their
company to get good reputation. Besides, some companies use Key performance indicator
(KPI) to measure the goals that set by the upper level. With this information, upper level of
the company can know how was the performance last month or last year and makes some
improvement if there are bad performance.
Tesco's business planning strategy is carried out using Tesco's 'steering wheel.' The wheel
has four quadrants - people, finance, operations and Customer quadrants. Each quadrant is
divided into segments. Each segment using different Key performance indicator to measure
their corporate responsibility. The corporate responsibilty key performance indicator (KPIs)
reflect the customer priorities including recyling, local sourcing,organics and healthy eating,
staff concerns such as traning and charitable giving, government requirement such as
energy efficiency and packaging reduction, and business concerns including labour
standards and ethical trading
One of the Corporate Social Responsibility (CSR) that Tesco successful initiated is Tesco
giving out fruits for kids, who are shopping with their parent in the Tesco store, as a part of
healthy eating push. There are around 800 Tescos store in United Kindom launched this
initiative. Most of the children are carnivore they do not like to eat fruits and vegetables.
Therefore, Tesco published his initiative to help children to create a healty eating habit.
Every store wil have few selection of fruits to those kids, example like apple, and banana.
According to the feedback of this project, Tesco found that many parents like this project and
Tesco decided to trial the initiative in Scotland to see how it might work on a bigger scale.
With this project, society not only benefited by having free fruits to their kids, this project also

help children started to eat fruits rather then eat candies or snacks druing the shopping
time with their parent.
According to research, every 7 seconds there will be a child die because of hunger. This is a
very serious issues that happening now. Therefore, Tesco are concering this issues too. This
recent year, Tesco had donated around 18 millions meal to help those who need help, and
Tesco currently also rolled out permanent collection points in six hundred of their stores to
allow consumer to donate food. This project will not only reduce food waste, but also will
helps those people in need.
Besides, Tesco also published buy one ,donate one with F&F since 2009. This is a project
when customer buy one item from the school uniform, there will be donate one of the
uniform item by F&F to some poor countries area, example like Sri Lanka, Bangladesh and
Kenya. In the other hand, F&F also donated some learing resources and training teacher to
develop after school life Children of these counties they have no ability to buy uniform and
learning resources to go school, with this project, children from these counties are able to go
school with their uniform and gain their knowledge.
Conclusion
In the conclusion, although Tesco already did their best to benefit the society but Tesco
should do their Corporate Social Responsibility (CSR) project continuously and not keep
changing their objective. This will helps those people who need help can get their the help
continuously. Example like the buy one donate one Corporate Social Responsibility (CSR)
project, Tesco did a good job on this project.Beside, Teso should do more Corparate Social
Responsibility (CSR) project to the their employee. According to Tesco Corparate Social
Responsibility (CSR) report, we can see that Tesco did a lots of project toward the
environment and commity but do less to their employee. Lastly, Tesco should not have the
concept of cost is more important than then what we can bebnefit to the society , because
of theis concept Tesco concern the cost they spend on Corporate Social Responsibilitu
(CSR) more than concern what Corporate Social Responsibility (CSR) that can bring
benefits to society.