Corporate Social Responsibility (CSR), started initially as a voluntary initiative in some companies, later caught on with the corporate world over the last few decades. CSR has become a standard best practice as per few countries' corporate governance codes. Many other countries are contemplating inclusion of CSR initiatives as a standard corporate governance practice. It has become a competitive necessity rather than a nicety, as once it used to be. The companies saw the benefit and the stakeholders appreciated the initiatives. The intriguing question here is – why should a retailer support CSR initiatives blowing up millions of pounds? Companies have to work harder to maintain their reputation and the growth environment in which they do business. This case study broadly addresses this issue taking Tesco, UK's top retailer as an illustration.

Corporate Social Responsibility (CSR), which started voluntarily in some companies, caught on with the corporate world over the last few decades. CSR became a norm as per few countries' corporate governance codes. Many other countries are also contemplating inclusion of CSR initiatives as a standard corporate governance practice. It has become a competitive necessity rather than a nicety, which it used to be. Companies saw the benefit. Shareholders supported the initiatives. Stakeholders appreciated the initiatives. However, as Adam Smith observed, "It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own self-interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages." The intriguing question however is, why should a retailer support CSR blowing up millions of pounds. After all, it is not manufacturing anything to justify the shareholders' money allocated for CSR initiatives. This case study illustrates the issue with Tesco, UK's top retailer.

Corporate scandals at Enron, WorldCom and others made people distrust big businesses and this increased government regulations. This apart, Non-Governmental Organizations (NGOs) started criticizing and battling with multinational companies. The trend of rankings and ratings also pressurized companies to report their non-financial performance along with financial results. And, of late, media is observing companies closely. Embarrassing news anywhere in the world—say, a child sewing a cloth with a company's brand on it—can be broadcasted across the world instantly. Relatively, customers are increasingly concerned about the companies' impact on society including that on the physical environment, impact of products on the consumers, etc., as customers have become more aware of these issues through mass media.

Global CEO Magazine, Corporate Social Responsibility, CSR, Corporate Governance, Non-Governmental Organizations , NGOs, Mass Media, Economic Goals, Consumer Electronic Retail Stores, Retail Industry, Globalization Efforts, Global Retail Industry, Environmental Strategy, Social Responsibility, Technological Developments, Retail Consortium Reports, Global Capitalism, Tesco CSR Strategy.