Case Study Of Target's Corporate Social Responsibility

The evolving practices around corporate social responsibility (CSR) provide dynamic, and complex opportunities for business. Overall, businesses are modifying their core purpose from creating shareholder profit toward creating shared value across their stakeholders, with shareholders being only one of the many stakeholders. This paper analyzes the 74th ranked 2014 Fortune Global 500 Company Kroger. Kroger started in 1883 as a local Cincinnati, Ohio grocery store, and has expended to be the second largest retail grocery store in the United States, and fifth largest in the world, owning retail food and drug stores, jewelry stores, and convenience stores in the United States (Kroger, 2015). Kroger remains headquartered in Ohio. An overview of Kroger, and specifically Kroger’s corporate social responsibility (CSR) strategy and implementation will be discussed, followed by a strengths, weaknesses, opportunities, and threats (SWOT) CSR analysis informing a concluding plan to enhance Kroger’s CSR maturity.

Businesses, specifically larger corporations, play a major role in what occurs in society therefore, they are responsible to their stakeholders not only to pursue economic goals but the greater social good as well. Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. (Lawrence, 2010). Social responsibility is becoming the norm so much so that some businesses have incorporated it into their business model. There are three components of the bottom line of social

Since 1998, Bank of America has become one of the most successful financial institutions in the industry. With the mission to “make financial lives better, through the power of every connection”, Bank of America has operated its business align with its purpose. While assisting its clients understand their money, the company also put on a lot of effort on helping the communities by executing Corporate Social Responsibility (CSR). It is undeniable that the company has successfully addressed many critical problems in the environmental, social and economics arenas, as it continually receive awards and recognitions for its CSR efforts.

CSR is defined as a corporation’s internal policy that directs how it will regulate itself and “fulfill [its] legal, ethical, and social obligations” (Mayer, Warner, Seidel, & Lieberman, 2012, p 1003). Accordingly, Target’s policy and practices related to ethics, social responsibility, and environmental sustainability provides an opportunity to get an indication of how it determines and fulfills such obligations. Subsequently, Target’s voluntary self-reporting and corporate communications include a substantial amount of material that can be evaluated.

CSR is all about businesses understanding the effects that they have on the community/wider world. Businesses will use this impact in a positive way to

Target has a corporate social responsibility plan to show the legacy of giving and service. Rothaermel (2014) explains that Target embraces social programs, such as, promoting minorities and minority women into the supply chain. Target is fostering equality in society; this begins by creating a diverse workforce. Target is engaging the community to strengthen relationships and teach ethical treatment to others (Target, 2016). Rothaermel (2014) discusses corporate citizenship, where an organization philanthropic responsibilities are evident thorough ethical practices and giving back to society. Target encourages their employees to volunteer in local community programs. Target is interested in the community stakeholders and is committed to supporting communities by giving five percent of its profits, which has added up to more than $4 million each week (Target, 2016).

The Target Corporation is focused on ways to build their legacy of the corporate social responsibility. Working together with team members, guest, suppliers and the community builds a superior outcome by which matters most by the Target leaders. Their purpose is to believe in great shopping, anytime and anywhere. The company culture builds a team of people with different backgrounds and unique points of view. As Target promotes an active citizen and good neighbor in our communities by which they give valuable time, talent and business strengths to growing our communities to a healthy and safer

By Target donating money to schools, it is allowing many people to be able to go to school and because it provides this, schools and parents will buy school supplies from its many locations. Sustainability is a part of the way Target is run because “the way [it] builds [its] stores to the products on [its] shelves, sustainability is integrated throughout [its] business.” (Sustainability, 2016). By Target using sustainable methods, it shows that consumers are important because it tries to help the Earth and improve their well-being all at the same time. People are more willing to buy food that is grown organically and products that are made with minimal waste if they also cost the price that they should and Target makes sure this is a reality. Health and well-being at Target, “aims to help [its] guests, team members and their families reach their well-being goals by providing convenient, healthy choices at affordable prices.” (Health and Well-being, 2016). Target makes it so good health is something that its customers can accomplish by making affordable. It is hard enough to eat healthy, take one’s medication, and exercise but this is made easier by reasonable prices. Responsible sourcing is done by “Target Sourcing Services team sourcing Target-brand merchandise from all over the world, anticipating issues and potential risks while making the best decisions for [its] business” (Responsible Sourcing, 2016). Target does all that it can to ensure that all of its name brand products meet the standards of its consumers. This is done by being more one on one with the producer it buys its products so it knows how they are produced and a strong relationship is built. Safety and preparedness are accomplished “through the work of our public and private partnerships, innovative store designs and disaster preparedness and response plans, we help bring

Target CSR practice is based on four key areas: inspiring wellness; fostering sustainability; championing inclusion; and investing in communities (Target Corporate). In a nutshell, this paper will focus more on how Target has fostered sustainability. Target has been working to improve environmental and social impact through its product design and development, operations and manufacturing for decades. It is notable that 76 percent of Target locations are certified as Energy Star. In 2015, the company minimized its water consumption by 17.1 percent per square foot. However, Target was not able to accomplish minimize greenhouse gas emission by 49 percent per million dollars of retail transactions. It managed to minimize only 47.6 percent. At

Kroger’s CSR efforts regarding environmental efforts are more robust than employee stakeholder support. Even with this, Kroger is considered a laggard with environmental CSR standards when compared to Walmart and Target (van der Ven, 2014). A main reason for this could be due to Kroger’s relatively light involvement with CSR focused organizations. Their leadership may simply not be exposed to CSR ideas as much as their peers (van der Ven, 2014). Expanding CSR knowledge, and leadership widening their network on CSR possibilities will give Kroger’s leaders access to industry leaders best practice knowledge.

can be taught by Target leaders, who are expected to volunteer their time and efforts. This is a natural match of want and need between Target and of MPS.

Companies today are heavily influenced by the demands of customers and stakeholders. Corporate social responsibility (CSR) refers to the social and environmental responsibility policies and practices developed by an organization to increase its positive influence and reduce its negative activity towards society (Parks, 2008). The business approach and corporate philosophy of an organization is easily altered due to economic pressures, technological improvement and stakeholder needs and demands. "Going green" or being eco-friendly is one such demand. Environmental and sustainability concerns originate most often from governments, consumer activists, and the general public (Schlosser, 2008). Thus, organizations must implement sustainability into daily practices. In addition, sustainability alters the nature of competition and drives companies to think differently about products, processes, and technologies (Parks, 2008).

For years, Target works to create not only sustainable products, but to ensure that the development, manufacturing and operations of their products follow the same protocol. In Target’s 2015 Corporate Social Responsibility Report, the company gives details to their efforts to ensure that their eggs, dairy, and meat products reflect their belief in proper animal treatment. By 2025, Target plans to be a 100 percent cage-free shell egg assortment believing that animals should be raised in clean, safe environments and away from cruelty and neglect. Their dedication to the humane treatment of animals is certainly not the first amongst their competitors to commit to cage-free, however they are one of the first (Kowitt). As some competitors, such

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

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