Tesco Case Study

Tesco-a Case Study by Article 13

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 Tescos 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":

1. No one tries harder for customers

2. 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 Tescos 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. Tescos 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.

OutcomeÐ'...

When the store opened in November 2000 over 240 previously unemployed people Ð'- many who had been out of work for more than two years Ð'- formed a key part" of Tescos 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