Evaluation of Kingfisher's Corporate Social Responsbility

1521 words (6 pages) Report

5th Jun 2020 Report Reference this

Tags: Business ReportsBusinessCSR

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Introduction

Recently, the increasing involvement in addressing social issues is becoming significantly awareness of big companies and also small companies. In a year, a number of green awards are given to companies for the ethical practices with different measurements. However, Johnson(2005) defines these action as CSR in term of doing beyond what stakeholder expect. Therefore, Kingfisher is chosen to evaluate its corporate social responsibility whether it could go along with its main goals or be tension to its main goals and these will be divided in four parts.

Background

Kingfisher (2019a) is an international retailer company providing multi-branding house improvement goods and services and operating in 10 countries with 77,300 employees. In 2015, it saw the opportunity in global market to develop and strengthen its strategy for the changes of society and customers’ need, called “One Kingfisher” transformation plan. Using technology to invent efficient products and being a good example of sustainability. The company also is one of the FTSE4Good socially responsible investment index.

Corporate Goals

Kingfisher has a strong ambition “to become the leading home improvement company and to make home improvement accessible for everyone”(2019b, p1) and mainly focuses on customers by saying that “putting customers at the heart of everything we do, from the products on our shelves to the way we run our business”(ibid). According to its goals, in 2017, Kingfisher did research to understand deeply the customer’s behavior and customer’s need by interviewing and visiting its customers’ home. Research shows that its customers prefer durable, economical and environmental friendly products and do not like complicated products. Therefore, “One Kingfisher” is created to be the core goal of the company. Environmental deterioration issue is becoming one of the most important problems in every country and Kingfisher realizes its production and goods may have negative effects on environment and society. Modifying and developing of the company strategy are occurred to reduce the risk and damage in order to operate the company efficiently. Almost all the CSR activities of the company are included about environmental improvement. This action may be similar to Johnson’s theory (2008) of analyzing the business environment, namely PESTEL framework, to identify which is the major influencer that can cause success or failure of the company.

Kingfisher’s CSR Activity

Sustainable Growth Plan is a Kingfisher’s CSR activity which has four responsible actions including saving energy, getting more from less, healthier home and connecting to community. These actions will be followed by evaluation part to criticize its actions.

1. Save money by saving energy and water

By researching the customers’ behavior and need, Kingfisher realizes that reasonable prices and sustainable goods are what customers need. Therefore, the company offers various energy and water-saving products from water tap to LED light bulbs to save customers’ money through using its products; hence, customers will be able to buy the products. In 2016 and 2017 the energy which is saved can power 1.8 million homes. In addition, the company also has cut its carbon footprint by 10 percent since 2010. Likewise, kingfisher also sets this activity as a long-term target. For example, decrease 50 percent of customer energy use by using its products by 2025. (will have more than this)

Evaluation

From what Kingfisher has done to help its customers to pay less in bills, the company relatively achieves its purposes well. Now, Kingfisher’s energy-saving products, for instant, can reduce around 30 percent of customers’ energy use in their house and the products are sold since 2011 can decrease customers’ energy bills approximately 840 million pound (2018). ……. (will criticize more)

2. Live smarter by getting more from less, reusing or using longer

One-third of Kingfisher’s products is made of wood and the customers prefer to use them rather than other materials. Thus, more than 95 percent of Kingfisher’s wood and paper goods now come from responsible sources and well-management forests in order to ensure that the natural resources are protected and its production will impact as less as possible to the environment and society. The company also be a part of protecting and restoring Harapan forest which is vital habitats of many endangered species in Indonesia. In the first year of supporting the forest, the incidence of forest fires can decrease around 75 percent, cleared land has been reduced by planting 135 hectares. Moreover, the company also educates people in the area to produce sustainable rubber and forest honey processing methods. Furthermore, the company also has long-term goal for this action which is reaching the zero waste to landfill by 2020.

Evaluation

This action shows that the company has taken environmental issues, a significant worldwide concern, into its consideration which can lead to acquire a good image. Besides, this CSR activity relatively supports its goal in term of wanting to be a leading of home improvement company because ….

3. Create a healthier home and connect with nature

Kingfisher not only cares about economical products and deforestation but also focus on healthy air of customers’ home. The company claims that using paint products high containing of volatile organic compounds (VOC) may contribute to health conditions such as asthma and allergies and air in home can impact people health more than the outside. As a result, it has reduced VOC in its painting and decorating products; for instant, reducing the use of VOC just over 30 percent per litre in paint. Furthermore, the company invented water-based painting products to create fresh, clean and healthy air for both habitants and painters.

Evaluation

From its CSR activity to create a healthy home, it appears to be subjective and difficult to measure the progress and outcome. According to Sustainable Growth Plan, it claims that this activity will be measured by its own method, namely “Sustainable Home Product Guideline” which is not a standard measurement. Consequently, this CSR activity may not Moreover, water-based painting products and other products that claim to be healthy for users are just account for merely 5 percent of its overall sale in 2016 and 2017. As a result, with this a tiny fraction might not be able to make any change. In other words, it can be said that this action is not able to achieve its goal.

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