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Tesco-a Case Study by Article 13

Added: (Fri Jun 20 2003)

Pressbox (Press Release) - As part of their ongoing programme Article13, the leading corporate social responsibility experts, have released a Case Study of Tesco. Below is a synopsis of the Case Study, which can be accessed in full at www.article13.com.

Who are they?
Tesco is a leading retailer, operating 2,291 stores around the world and employing 296,000 people. It has grown from a purely UK operation, developing international markets in Ireland, Central Europe and Asia. There are four strands to Tesco’s strategy: core UK business, non-food, retailing services (personal finance and online grocery sales) and international.

Involvement Insights
The company strategy is for long term growth and focuses on the four strands outlined above. It has a “Core Purpose” of “creating value for customers, to earn their lifetime loyalty”. Tesco is built on two strong values “which drive the way we do business”:

No one tries harder for customers
Treat people how we like to be treated

The company website states that “Tesco is committed to conducting business in an ethically and socially responsible manner”. Tesco has a commitment to be a good citizen “acting responsibly wherever we operate” and this translates into a Code of Conduct for Suppliers, a Code of Ethics for staff, a commitment to protecting environment, using commercial strength to put principles into practice and a commitment to playing a positive role in community.

Where they started
In developing its regeneration strategy, Tesco looked at the social inclusion agenda and its own property programme and identified what it believed would be a win/win for communities, customers and their business.

The strategy
The Seacroft store was Tesco’s first regeneration partnership. In 1998 the Seacroft area, while being only 4-5 miles away from the vibrant regenerated heart of Leeds, was ranked the 388th most deprived ward out of the 8414 English wards. 17% of its adult population claimed Income Support compared to an average of 8% across the UK. Tesco’s aims for the project were to:

Develop a profitable business model in communities characterised by social and economic deprivation.

To solve local skill shortages by developing a unique jobs and training guarantee particularly applicable to the long-term unemployed.

To engage with community partners so as to foster a sense of community and shared ownership for regeneration.

When the store opened in November 2000 over 240 previously unemployed people – many who had been out of work for more than two years – formed a “key part” of Tesco’s trained staff.

Business benefits
Tesco is confident that its success shows that businesses can benefit by reaching out to communities and developing new customers. The key benefits for Tesco of its regeneration partnerships are:

Commercial sustainability

Developing effective staff teams
Developing a safe and attractive environment for customers to earn their loyalty

Contributing to a clear sense of community

The ‘experts’
“Tesco shows an average sustainability performance in its industry group. Tesco’s management capabilities in the economic dimension are average in comparison to its industry. In the environmental dimension, Tesco scored more or less equal to the industry average. Moreover in the social dimension, Tesco performance was in the range of the industry average.” (Dow Jones Sustainability Index)

For more on this topic, and other issues relating to corporate social responsibility, visit www.article13.com

Article 13 work in the area of corporate responsibility and corporate governance for global businesses right across industry, UK and EU Government and the voluntary sector to deliver a new way of doing business. Areas of expertise include scenarios, business planning, supply chain management, culture change, performance measurement and management, web consultancy services, dialogue and communication. Article 13 approaches business responsibility from the mainstream business angle and works through dialogue to unlock the opportunities of business responsibility to deliver innovation and competitive edge.

Article 13's co-directors, Neela Bettridge and Jane Fiona Cumming, have extensive experience in a number of critical fields: commerce and communications, social and environmental arenas, legal and business strategy. Article 13 also draws on the wisdom of distinguished advisors: Dr Paul Toyne, Professor Chris Baines, Chris Hoare, Professor Colin Gilligan, Susan Clayton, Neill Irwin, Professor Dave Owen and Andrew Acland. This panel, in turn, is complemented by a network of specialists drawn from the social, environmental, economic, ethical and business worlds.

For further information please contact Lucy Shea
Article 13
Bradley House
26 St Albans Lane
London NW11 7QE
Tel: 0208 731 7700
Fax: 020 8731 8800

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