University of Huddersfield Repository Keogh, Christopher A study critically analysing the CSR activities of UK Supermarkets and how they compare when evaluated using a framework based on ISO 26000 Original Citation Keogh, Christopher (2016) A study critically analysing the CSR activities of UK Supermarkets and how they compare when evaluated using a framework based on ISO 26000. Masters thesis, University of Huddersfield. This version is available at http://eprints.hud.ac.uk/id/eprint/30233/ The University Repository is a digital collection of the research output of the University, available on Open Access. Copyright and Moral Rights for the items on this site are retained by the individual author and/or other copyright owners. 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For more information, including our policy and submission procedure, please contact the Repository Team at: [email protected]. http://eprints.hud.ac.uk/ A study critically analysing the CSR activities of UK Supermarkets and how they compare when evaluated using a framework based on ISO 26000 Christopher Keogh A thesis submitted to the University of Huddersfield in partial fulfilment of the requirements for the degree of MA by Research January 2016 Supervisor: Julia Meaton 1 The author of this thesis (including any appendices and/or schedules to this thesis) owns any copyright in it (the “Copyright”) and he has given The University of Huddersfield the right to use such Copyright for any administrative, promotional, educational and/or teaching purposes. Copies of this thesis, either in full or in extracts, may be made only in accordance with the regulations of the University Library. Details of these regulations may be obtained from the Librarian. This page must form part of any such copies made. The ownership of any patents, designs, trade marks and any and all other intellectual property rights except for the Copyright (the “Intellectual Property Rights”) and any reproductions of copyright works, for example graphs and tables (“Reproductions”), which may be described in this thesis, may not be owned by the author and may be owned by third parties. Such Intellectual Property Rights and Reproductions cannot and must not be made available for use without the prior written permission of the owner(s) of the relevant Intellectual Property Rights and/or Reproductions. 2 Abstract This thesis examines the corporate social responsibility (CSR) activities of UK supermarkets and measures how they compare amongst each other when evaluated using a framework based on ISO 26000, incorporating the seven core principles of ISO 26000. UK supermarkets first started to grow in popularity throughout British high streets circa the 1950s, since then the sector has experienced rapid growth levels over many years with UK supermarkets of recent times becoming powerful retail giants. This study addresses a gap in knowledge regarding the use of environmental standards within the UK supermarket sector; through providing a deeper understanding of the involvement of CSR within complex differentiation strategies, with relevant theories critiqued throughout. Secondary analysis is utilised through the examination of CSR reports published by UK supermarkets, providing a mixture of qualitative and quantitative data to be scrutinised. Each supermarket is then scored based on CSR activity levels, the results show the discount supermarket gaining the highest score with some of the UK supermarket ‘giants’ awarded the lowest scores based on the evidence provided, representing the overhaul that has occurred within the UK supermarket sector over recent years as discount stores are quickly gaining market share. These conclusions suggest that those supermarkets best implementing ISO 26000 are gaining a competitive advantage over competitors, however potential limitations of ISO 26000 become apparent during this study such that the applicability and usability of ISO 26000 for SMEs must come into question when implementing theory into practice, with issues such as a lack of power across the value chain and financial constraints coming into effect. Recommendations are made regarding ways in which supermarkets can improve CSR and sustainable development practices, the need for a standardised method of CSR reporting and potential future research on an international scale. Keywords: CSR, ISO 26000, Environmental standards, Framework, Social responsibility, Secondary analysis. 3 Table of Contents Abstract ................................................................................................................................................... 3 Chapter One Introduction ....................................................................................................................... 7 1.1 Introduction to the study .............................................................................................................. 7 1.2 Supermarkets Background Information ........................................................................................ 7 1.3 Introduction to corporate social responsibility .......................................................................... 11 1.4 Introduction to sustainable development .................................................................................. 14 1.5 Introduction to environmental management systems ............................................................... 16 1.6 Rationale ..................................................................................................................................... 17 1.7 Aim .............................................................................................................................................. 18 1.8 Objectives.................................................................................................................................... 18 Chapter Two Literature Review ............................................................................................................ 19 2.1 Introduction ................................................................................................................................ 19 2.2 Introduction to CSR ..................................................................................................................... 19 2.3 Introduction to ISO 26000........................................................................................................... 20 2.4 ISO 26000 & ISO 14001 ............................................................................................................... 21 2.5 Advantages of implementing ISO 26000 ..................................................................................... 21 2.6 Disadvantages of implementing ISO 26000 ................................................................................ 22 2.7 CSR and sustainable development relationship ......................................................................... 23 2.8 The Triple Bottom Line ................................................................................................................ 24 2.9 Theoretical models of CSR .................................................................................................... 25 2.9.1 Carroll’s CSR Pyramid ........................................................................................................... 25 2.9.2 Intersecting circles model of CSR ......................................................................................... 27 2.9.3 Concentric circles model of CSR ........................................................................................... 29 2.10 Stakeholder theory ................................................................................................................... 32 2.10.1 Advantages of stakeholder theory ..................................................................................... 34 2.10.2 Disadvantages of Stakeholder theory ................................................................................ 34 2.10.3 Critique of Stakeholder theory .......................................................................................... 36 2.11 Profit maximisation theory ....................................................................................................... 37 2.11.1 Limitations of profit maximisation theory ......................................................................... 39 2.12 The Business Case for CSR ........................................................................................................ 40 2.12.1 Cost and risk reduction: optimisation subject to constraints ............................................ 40 2.12.2 Competitive advantage: adapting and leveraging opportunities ...................................... 41 2.12.3 Reputation and legitimacy: building a responsible brand ................................................. 42 2.12.4 Synergistic value creation: seeking win-win-win outcomes .............................................. 44 2.12.4 Critique of the business case for CSR ................................................................................