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Does The Co-Op Food'S Ethical Stance Affect Their Profitability? During this investigation I aim to answer the question does the Co-op Food's ethical stance affect
Does The Co-Op Food'S Ethical Stance Affect Their Profitability? During this investigation I aim to answer the question does the Co-op Food's ethical stance affect
Submitted by josephwilliams on March 18, 2008
Category: Business
Words: 2002 | Pages: 9
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During this investigation I aim to answer the question does the Co-op Food's ethical stance affect their profitability? I will do this by acquiring information on the Co-op's profit, comparing it against other supermarket chains within the UK. I also aim to produce some of my own primary research, trying to se if people do avoid or go to the Co-op because of their ethical views.
The Co-op food business is part of the Co-operative group that has business ventures in food retailing, banking, pharmaceuticals, insurance and fashion.
The Co-op's food operating profit for 2005 was £71.6M; with the groups operating profit £308.4M. The Co-operative group hope one day to become the best co-operative in the world. (See appendix 1). The Co-op food currently has 1713 outlets within the UK, employing just fewer than 44000 employees and they consider themselves to be leading supermarket that offers the best and wide ranging fair-trade products. (See appendix 2). They pride themselves in their work with the environment, community and also offering foods for everyone within their stores. (See appendix 3). I aim to investigate if this ethical and admirable way of trading affects their profit against similar stores that are not as ethically and socially aware in their trading.
One of the main factors that affect the Co-op's way of trading is the way in which they have introduced fair trade and ethical trading into their business. They believe that they have a social responsibility to adhere to and are involved in initiatives and schemes to promote and implement ethical and fair-trading, such schemes like the "Ethical trading initiative". The Co-op also sells fair trade products in every single store and is the only retailer to stock their own fair trade brand. The food stores numerous fair trade products, in which some cases they were the first in the UK to sell such products. They were also the only supermarket in the UK to sell the...
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