Effects of Social Responsibility Policy of ASDA on Business Practice - Dissertation Example

Companies are individual legal entities and hence can be considered to be corporate citizens with legal rights and duties (Marsden and Andriof, 1998). Citizenship entails active commitment and responsibility. It means to make a difference in society, in the community, or the world in which one lives. Good corporate citizenship, therefore, requires understanding and managing the organization’s influences on and relationship with the rest of the society to minimize the negative impacts and maximize the positive impacts.  Organizations hence need to have self-motivating reasons for making environmental and social contributions.
Mounting pressure from people, individuals, and groups has urged businesses to be economically, environmentally, and socially sustainable, to be transparent in their dealings, and to be ethical and more equitable (Batten and Brich, 2005). Corporate citizenship has developed since the 1940s and these are some of the key issues that organizations attempt to address. Social and environmental concerns have to be an integral part of an organization’s strategy. This entails a change in the organizational practices, change in managerial attitude, and readiness to respond to the changing business environment. This has become imperative as organizations demonstrate a lack of ‘integrity and mindfulness’ in business (Prinsloo, Beukes and de Jongh, 2006). Many corporations are responding to the changes and voluntary adoption of CSR policies is on the rise (Fliess, Lee, Dubreuil, and Agatielo, 2006).
Earlier firms engaged in philanthropic activities when they had surplus funds. Over time CSR was adopted more as a fashion and a PR strategy but the competitive business environment has compelled the companies to examine and accept responsibility (Perrini, 2007). Today companies look for benefits derived through their CSR strategy. The importance of CSR as a strategy has grown amidst degradation of the environment, health mishaps, labor exploitation, and use of sub-standard material (Yeoh, 2007). The benefits from CSR range from enhanced profitability to competitive advantage and enhancement of reputation. It can also lead to long-term sustainability for companies and their employees, cost reduction, the capacity to innovate, and good interpersonal relations with the members of the trade and the government organizations (Jones, Comfort, and Hillier, 2008). These have been the drivers of CSR adoption by organizations.
As companies recognized the benefits of CSR, they started adopting CSR as a strategy. However, despite the focus on CSR, companies would like to engage only in profitable ventures – the CSR strategy should result in enhanced profits. To retain loyal customers, to respond to the mounting pressures from the customers, and to gain a competitive advantage, it became a strategic imperative for retailers to engage in CSR.
Food retailing which, in the UK is a major activity and also a major contributor to the GDP of the country. In fact, the food retailers in the UK account for half of all retail sales (Jones, Comfort, and Hillier, 2007). Food retailers are responsible for impacting the planet because of the waste it generates in terms of packaging and plastic waste. It thus becomes important for food retailers to have a CSR policy.
Asda is among the top four food retailers in the United Kingdom. Headquartered in West Yorkshire, Asda Stores Limited is a British retail firm.