CSR IN TESCO POLAND
with a particular emphasis on employee volunteer program
Report made by:
Katie Armstrong
Aleksandra Bobrow
Karolina Falkowicz
Christel McCombie
Jacek Zatoński
Table of contents
22
Introduction 3
CHAPTER I - Background Information 4
1. Fact about Tesco 4
2. “The Steering Wheel” 5
3. Tesco Polska CSR Strategy 6
CHAPTER II - Employee Volunteer System – Theoretical Approach 7
1. Definition and Principles of Volunteering 7
2. Benefits of Employee Volunteering Program 8
3. Models of Volunteering 9
4. Establishing and Implementing Employee Volunteering Program 11
Chapter III - Implementing the Employee Volunteering System at Tesco Poland 15
1. General assumptions and ground rules 15
Spatial and time boundaries 15
Participatory rules 15
Budget and resources 16
Program Management 16
Guidelines 16
2. Communicating 16
3. Encouraging Employee Voluntarism 17
4. Measurement tools and Program Evaluation 19
5. SWOT Analysis of Employee Volunteer Program at Tesco Poland 20
6. Recommendation and Other Remarks 21
Summary 23
Introduction
Corporate Social Responsibility (CSR) has become a critical element for any organizational structure and their future plans, especially in relation to expansion and globalization processes and the growing relevance of sustainability since 1990s. The predominately western phenomenon has now become adopted throughout middle and Eastern Europe, including Poland, often modelling themselves on the advanced frameworks of existing corporations such as Tesco. Despite the well founded theories of these conglomerates, there are still flaws and potential improvements which can made in relation to CSR strategies and their implementation.
The main aim of the report is to propose an efficient voluntary scheme which will improve the participation of employees in relation to voluntary work and ultimately increase awareness surrounding their role in the community, wider society and how their contribution to voluntary actions can improve not only their personal wellbeing but also the local community as a whole.
In following chapters we introduce Tesco PLC and Tesco Poland, and the company’s current CSR strategy. However the main focus of this report will be our proposal of an employee volunteer scheme, with the aim of fostering a new mentality amongst employee’s of Tesco Poland to be more willing to be involved in the company’s CSR schemes.
CHAPTER I
Background Information
1. Fact about Tesco
Tesco is a leading UK retailer, which is present in 14 markets around the world. There are over 440, 000 employees in more than 4,000 stores.
Entering Poland’s consumer retail market 15 years ago, Tesco now operates around 327 stores throughout the country and employees around 30,000 people. With over 1500 suppliers and an estimated 4 to 6 million customers weekly, the store is growing to rival some of the most dominant Polish hypermarkets such as the leading store Biedronka.
Tesco’s retail products consist of the following ranges:
· Tesco Value – a cost-effective brand with over 1,500 products for the ‘price conscious’ consumer.
· Tesco ‘own brand’- over 7000 products delivering high quality for reasonable prices, up to 30% lower than other leading brands.
· Tesco Finest – Premium quality for the more affluent consumer.
The headquarters are situated in Krakow, and Tesco looks to continue to expand with an ambitious scheme to build and develop its presence of smaller ‘compact’ stores, to coincide with its hypermarket format. As such Tesco aids local businesses and provides support and jobs for local communities. Its recruitment scheme has seen employee promotions to section managers increase by 90%, which is a testament to its values and its claim of being “... a great place for career development.”
“Treat people how we like to be treated,” is the fundamental employee ethos, which is employed throughout the organization and is the basis for many of the company’s external and internal operations. Furthermore Tesco prides itself in good customer relations and thus “No one tries harder for customers.”
“By supporting our customers and our staff, and by remaining focused on tackling the key issues that matter to our communities and society at large, we have sought to use Tesco’s size as a force for good.” Terry Leahy, Chief executive
2. “The Steering Wheel”
Tesco presents its strategy in an internationally adopted model named ‘The Steering Wheel.”
There are 5 sections of the wheel which are; Community, Operations, People, Customer and Finance. This report will concentrate on the fundamental section of Community, which represents the company’s CSR strategy and many related activities in this area.
Figure: The Steering Weel
3. Tesco Polska CSR Strategy
CSR is a vital component of the company’s strategy, with specific actions such as fair salaries and working closely with charities.
The main component of Tesco’s CSR strategy is the community plan, related to social, ecological and charitable projects all circulated around the mantra of responsible actions on behalf of the organisation. The community plan is based on customer research, including information that has been gathered from suppliers and trade unions, which competition often neglects to include, and as such Tesco provides a comprehensive outlook of the main needs of local communities.
Supporting local communities is at the heart of Tesco’s Community Plan, as well as their flagship programme Tesco for Schools. Tesco takes their sourcing of products extremely seriously, developing and supporting Polish suppliers and products. The exporting of these products has helped raise international awareness of Poland’s position within the Tesco framework. For example, Tesco UK houses dedicated isles to Polish produce. These actions collectively contribute to fair trade amongst local suppliers and overall economic growth.
Leading the way in environmental issues, Tesco Poland has established 3 eco stores, the only company in Poland to have such an initiative. Staff customers and youth are all major components in their ecological plan. Communicating to customers and employees is the essence of the community plan, and as a result 97% of Tesco Polska staff support social engagements. However only 50% actively participate, this is a major point of concern and thus this essay centres on the notion of increasing participation in these social actions.
There are also energy-saving TESCO stores in the following cities of Poland:
in Garwolin, Zdzieszowice and Lubartów.
CHAPTER II
Employee Volunteer System – Theoretical Approach
The aim of following chapter is to provide a theoretical background for this report. It includes basic definition, principals and models of volunteering and establish some models of evaluation and implementation of employee volunteering program. The list of potential benefits of incorporating employee volunteering program into CSR strategy is an important part of this section as well.
Following chapter was written on the basis of “A guide to Employee Volunteering” publicised by Government of Western Australia’s Office for Seniors Interest and Volunteering and “Corporation Volunteerism” by Boston College Center For Corporate Community Relations.
1. Definition and Principles of Volunteering
Volunteerism has been part of human existing in society from long time, but in business world it is only a few decades old. Volunteering is defined as:
“Those mechanisms used by companies that support and facilitate employee volunteer activities in community based non-profit organizations and groups, charitable groups and groups identified in need of services and assistance.”[1]
Business participation in the local community as a volunteers could bring lots of benefits. We have to keep balance between corporate and community needs, but focusing mainly on achieving highest gaining. Participation in the community over the long term can bring significant investment returns, when efforts are aligned with strategically goals.
2. Benefits of Employee Volunteering Program
The value of volunteerism in company is very high, but benefits are difficult to measure. We can distinguish three type of benefits: for company, for employee and for local community. A corporation through volunteers acting can improves “human” face. Moreover it’s also can be part of promotion company in local level. Employees who participate in voluntary have chance to demonstrate leadership, learn new skills. They can also contribute to the local community. Table presents the main advantages out of voluntary work.
3. Models of Volunteering
Volunteering can be implemented in many ways. There are different ways to support local communities. We will present 11 kinds of employee voluntary programs. Each sort of program is based on needs of local community and company capability. Each program model involves different levels of employee initiative, employer support, resource and time commitment. Programs are also different in time term eg activities can be undertaken as short-term projects, one-off events, on an ongoing basis or secondments. However every plan of action should be tailored to suit the needs of the organization and the employees also embedded into existing policies and strategies. There are main ways of implementation volunteering in company:
Table: Models of Volunteering
Programs / Explanation1 / Flexible Working Conditions / An agency can support employee participation in
volunteering in the individual’s personal time through
providing flexible working conditions. The balance of
contributing to the community and managing individual
workloads can be negotiated with line managers to
enable employee participation in volunteering
2 / Fundraising / This can take the form of employee donation
schemes, fundraising or money allocated towards
specific causes, programs or projects. Employees
can volunteer to coordinate the fundraising effort
and may be involved in the fundraising activity.
3 / Release Time / In this model of employee volunteering organizational
policy allows for a specific amount of paid work time
for volunteering. The time allowance can be taken
as a one-off block of time or spread out over a set
period.
4 / Matched Giving / Model sees the organization contribute funding
to match employee fundraising for an agreed charity
or organization. Similarly, some organizations have
a policy of paid leave for volunteering matched to
individual volunteering time contributed out of work
hours.
5 / One-off Events / Employees are allocated a set amount of time on a
one-off basis during work hours to volunteer with a
community organization. While by definition, this
activity usually only occurs once, it can be undertaken
as a regular ‘one-off’ event on an annual basis.
The most common form of this program model is
a whole day team project whereby a group of
employees volunteer for a specific task or project.
7 / Mentoring / In this model, organizations and their employees
identify a specific social issue to which they wish to
contribute. The employee volunteering program then
focuses on contributing staff skills, time and expertise
to this issue. This type of program may involve a
partnership with one or a number of community
organizations working to address the identified issue.
The community organizations will identify how the
employee volunteers can best support their work.
8 / Board Membership / Employees can contribute their skills and expertise
to not-for-profit community organizations by
becoming a member of their board or committee.
This arrangement contributes a valuable set of
skills, knowledge and experience to the strategic
management of not-for-profit groups.
9 / Pro Bono Services / Employers can volunteer the professional skills,
knowledge and experience of their staff freely
or at a significantly discounted cost to meet an
identified need in a community organization. The
pro bono model provides benefits to the employees
in fostering leadership, breadth of experience
and management capacity. It may also benefit
the organization in strategically fostering and
supporting the community organizations.
Employees with management expertise can assist
with strategic planning, legal advice, business
planning, financial management, human resources,
marketing and communications, and information
technology. Common pro bono services include
provision of free legal, tax and accounting advice.
10 / Project Secondments / Linked to pro bono programs but involving a
medium to long term time commitment, project
secondments involve staff placement in a community
organization to undertake specific projects or work
for the benefit of the community. This model provides
the organization with resourcing for a key project,
enables knowledge and skill sharing, and provides
a new experience and challenge to the employee.
For example, an accountant may be seconded to a
community organization during tax time to undertake
an accounting audit and streamline finances. Other
projects include marketing plans, business strategies,
and feasibility studies.
11 / Fellowships / Fellowship programs are similar to secondments but
relate more to research type volunteering placements.
Employees participate in research projects contributing
their expertise, energy and knowledge and also
drawing on the experience to increase their own
understanding and skills.
Source: A Guide to Explore Volunteering, Office for Seniors Interest and Volunteering.
4. Establishing and Implementing Employee Volunteering Program
A successful Employee Volunteering Program (EVP) should be established in a strategic and logical way. Government of Western Australia’s Office for Seniors Interest and Volunteering publishes some key steps to a successful EVP:
1. Harness high level management support and commitment for an EVP. Integrate this commitment into business objectives and strategic policies.
2. Establish a working group involving employees, managers and the community to coordinate the development, implementation and evaluation of the program.
3. Explore existing volunteering involvement of employees through information and data collection, e.g. staff surveys, consultative committees.
4. Identify a model of employee volunteering suited to the organization’s commitment, employee interests, EVP purpose and aligned with business objectives.
5. Develop an internal policy and guidelines on employee volunteering.
6. Determine budget and resource commitment to the program.
7. Set clear objectives and identify the outcomes to be achieved.
8. Identify and develop relationships with potential community partners.
9. Identify ‘champions’ to promote the program and encourage involvement.
10. Promote the EVP internally to recruit employee participants.