CSR in Retail

From fruit and vegetables to seafood, from textiles to automobiles, CSR concerns all companies in all sectors. How can we combine environmental, economic, ethical and social issues in a single strategy?

CSR: Economic, social and environmental, a commitment policy

This new approach was born in the 1980s, once the principles of Sustainable Development were well defined. It is only since 2001, with the law on “New Economic Regulations” adopted by the French parliament, obliging companies listed on the stock exchange to share information on the environmental and societal consequences of their activities, that the CSR policy started to grow.

Corporate Social Responsibility is defined by the European Commission as: "the voluntary integration by companies of social and environmental concerns into their business activities and their relations with stakeholders".

It is based on 7 pillars:

• Organizational governance, by integrating CSR principles in the decision-making processes within the company, in its internal strategy, etc.
• Human rights,by respecting fundamental labor rights, salary policy, etc.
• Workplace relations and conditions,
• The environment,by implementing actions to fight against pollution, promote the sustainable use of resources, fight against food waste, reduce its carbon footprint.
• Fair practices, by fighting corruption, respecting property rights, responsible political involvement and fair competition, and favoring local suppliers.
• Consumer issues, with product tracking, consumer feedback and expectations, etc.
• Communities and local deployment.

These 7 pillars make CSR an essential strategy, with a global and complete approach, reassuring consumers and motivating employees, allowing to convey a committed and responsible image.

However, despite the 70% of companies aware that they should adopt this policy, only 30% of organizations have implemented a true CSR strategy. (Source: Deloitte, HR Trends 2018).

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France ranks 3rd for CSR actions

Placed in 3rd position on the world podium of companies in the field of Social and Environmental Responsibility (SER), France is part of the top performers, just behind Sweden and Finland (Source: Bpi France).

The strengths of French companies?

The environment, social issues and respect for human rights. France still needs to improve in the areas of ethics (anti-competitive practices and data management) and logistics.

Did you know?  Supported by certification bodies in France (Afnor), Luxembourg (ndlr) and Switzerland (Ecoparc) the new label Responsibility Europe has been created to give a European dimension to CSR. This label will provide maximum credibility and recognition in Europe and internationally.

CSR, more than just a way to improve your brand image

A 2019 survey conducted by IPSOS revealed the main motivations for a company to implement a CSR policy:

• 55% adopted this approach to improve their image,
• 46% to be more ethical in their activities,
• the strengthened feeling of belonging for employees represented 35%, followed closely by the strengthening of customer loyalty and the confidence of its stakeholders.
• Le gain en performance est une motivation pour seulement 26% des salariés interrogés.

Retailers are becoming aware of CSR issues

Concerning the supermarket industry, in France, despite a better knowledge of CSR (75% of supermarkets know how to define CSR, compared to 61% in 2019 according to the Comerso barometer with Ipsos, January 2020), 38% of company managers surveyed are not totally convinced of their role to play within their company.

3.9 (out of 10) is the average score given* to companies for their involvement in the sustainable transition (Birdeo 2021).

When consumers push the retail industry to commit and take CSR initiatives

In order to meet the new needs and expectations of consumers, retail chains must adapt to new, more responsible and committed consumption patterns. Adopting a CSR strategy has enabled them to respond to this, by focusing on:

• sustainable and quality food via, in particular, organic and healthy products, reasoned and local agriculture (supply chain, local products, animal welfare, responsible sourcing),
• a reduction of the carbon footprint, greenhouse gases and energy consumption,
• the fight against waste, reduction of plastics,
• the promotion of human values (team development)
• and a desire for transparency towards the consumer.

Purchasing, logistics, accounting, sales outlet managers, CSR projects must be carried out collectively to succeed in this strategy.

"It is in this spirit that we have launched a packaging challenge. By 2025, our packaging will be 100% recyclable, reusable or compostable. We are already taking action to rethink, substitute and eco-design our packaging and educate consumers." Jean-Marc L'Huillier, President of Intermarché's Sustainable Development Department

This is how **:

• Responsible private labels (MDD) (organic, ecological, local, etc.) have been developed,
• Awareness and communication actions on sustainable development for consumers and employees have been implemented (for example, the fight against plastic by adopting new food packaging),
• the environmental impact of their equipment, stores and private labels has been improved;
• their supply chain (for example, delivery by barge in the Paris region for Franprix) optimized,
• social actions for internal targets (e.g., to respect gender parity for Auchan) or external targets (e.g., creation of partnerships with NGOs such as Système U and Action Contre la Faim).

Recently, Scan'Up, the application that evaluates food products, shared the ranking of the most eco-responsible supermarket chains (based on the ecoscore of products on the shelves):

The retailer Système U is at the top of this ranking with 27.2% of the products scanned with an A ecoscore. This rating is reflected in their CSR commitments and objectives:

• Offering safe, healthy and quality products accessible to all,
• Contribute to the sustainable transformation of the agricultural world,
• Promote and facilitate responsible consumption for all
• Contribute to the dynamics of the territories

You can find the full text of Système U's CSR policy here.

By implementing this type of action in their CSR strategy, supermarket chains want to be (re)known as responsible brands and attract new consumers.

One of the key actions this year? The fight against plastic with the reduction of food packaging, a major challenge through 2025.

In its last CSR report, Auchan RETAIL also specified its ambition to eliminate as much as possible plastic packaging for food products and fruits and vegetables and to have 100% reusable, recyclable or compostable packaging for private label products.

Focused more on social issues, or more on the environment, adopting a CSR strategy is now a real sense of reassurance and a criterion of choice that consumers are using to find the brand that suits them.

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_{* by the people interviewed, i.e. professionals with a job or missions related to sustainable development and/or CSR.}

_{**The CSR reports of the major retailers are publicly shared online, so don't hesitate to consult them.}