CSR in the Community: Redefining the Social Role of the Supermarket Giants

Abstract

The ‘consumer society’ has become a ‘consumer oligopoly’ in Britain as the big four supermarkets, Tesco, Asda, Sainsbury, and Morrison have between them captured a 75% share of the grocery market. This has been achieved through globalisation, the attainment of large economies of scale, and major deployment of buying power. Total annual profits of the ‘big four’ UK supermarkets now stand at £3 billion, and several millions of this is spent on charitable causes and other CSR activities such as promoting sustainable development. However the spectacular growth of the supermarkets over the past fifty years has not been to the benefit of all. Some consumers have seen their access to healthy food curtailed as local shops have closed, and the quality of their diet has fallen; this is often referred to as the ‘food deserts’ phenomenon. The spatial scale of ‘food deserts’, the coping strategies employed by those affected by such ‘deserts’, and the solutions proposed to alleviate food access problems, are profoundly local in character, typically operating over distances of less than two kilometres. This paper suggests that a re‐focussing of the CSR activities of supermarkets towards the local scale can not only boost the social image of the supermarkets in fields where their impact is seen as negative, but can also be profitable for these corporations. Further benefits of a more local perspective include environmental advantages such as the maintenance of biodiversity and support for farmers whose incomes may be in decline. In tandem with a global commercial outlook, supermarkets have engaged with government at a national level to further their business interests. Simultaneously, governmental power within Britain has also moved from the local to the national level. In contrast, many organisations representing disadvantaged groups call for a localised, ‘bottom‐up’, approach. Britain's current centralised ‘top‐down’ approach to governance may be driven by financial pressures or ideological considerations, but this has nevertheless alienated some voters from government. This shift has prompted a certain disengagement with political processes for some individuals, and a shift towards ‘direct action’ tactics which may be damaging to commercial activities. It is argued here that a realignment of the supermarket's engagement with politics from the national to the local level is possible, financed by the resources the supermarkets currently devote to CSR activities. This re‐localisation of supermarket political activity would in fact pay dividends for the ‘big four’ retailers, because by helping to re‐build the legitimacy of national government it would create a more stable environment for business within the UK.

Citation

Shaw, H. (2006), "CSR in the Community: Redefining the Social Role of the Supermarket Giants", Social Responsibility Journal, Vol. 2 No. 2, pp. 216-222. https://doi.org/10.1108/eb059277