ASDA
Asda is a British supermarket retailer founded in 1949 that has grown to become one of the largest supermarket chains in the United Kingdom, offering a wide range of products including groceries, clothing, electronics, and home goods, with a focus on providing value for money.
Overall Score
The score is calculated from the red flags only, as we believe that no amount of good behaviour can offset bad behaviour. Higher values are better, 60+ is good.
Top Red Flags
19 Flags • Avg Impact: 40Top Green Flags
15 Flags • Avg Impact: 40ASDA has established itself as a generally responsible corporate citizen, earning a "Good" rating with a score of 66 out of 100. The British supermarket chain demonstrates a commendable balance between commercial interests and social responsibility, though there remain areas for improvement.
The retailer has made significant strides in environmental sustainability, particularly through initiatives like plastic reduction and energy efficiency programs. Their commitment to community support is evident in programs such as the "Kids Eat for £1" initiative, which has provided crucial assistance to families during the cost-of-living crisis. ASDA's retail development proposals often aim to enhance town center vibrancy, with plans for diverse offerings that complement existing businesses (Application for Planning Permission at Asda – Crossharbour District Centre).
However, ASDA's record is not without blemishes. The company has faced criticism regarding labor practices, particularly during its ownership by Walmart, with allegations of forced labor and poor worker wages in its supply chains. Recent payroll errors affecting thousands of employees have further tarnished its employment record. Environmental concerns persist, especially regarding deforestation risks in its supply chain and emissions from petrol station operations.
In terms of community development, ASDA's retail proposals show promise for positive impact. Their plans include creating spaces like the 'Central Square' for pop-up markets and events to enhance town center vitality (Application for Planning Permission at Asda – Crossharbour District Centre). The inclusion of an Idea Store in development plans is expected to significantly contribute to footfall in retail areas (Application for Planning Permission at Asda – Crossharbour District Centre). Their proposals aim to improve connections within town centers, potentially increasing customer traffic to benefit the broader business community (Application for Planning Permission at Asda – Crossharbour District Centre).
ASDA's sustainability efforts include car-free developments promoting sustainable transportation and investments in local infrastructure. Their Bedford site achieved notable energy savings through efficiency installations, and the company has partnered on ecological initiatives such as building wildlife bridges in Costa Rica. Their soil health and water conservation initiatives demonstrate a growing commitment to environmental stewardship.
On the social responsibility front, ASDA provided essential aid during challenging periods like the COVID-19 pandemic and has established food waste reduction and donation programs. Their price reduction initiatives have helped consumers manage rising living costs.
Governance issues remain a concern, with the company facing economic risks, data security vulnerabilities, and questionable supplier payment practices. Financial challenges related to funding have created additional risk factors for the business.
The contrast between ASDA's positive initiatives and concerning practices reflects the complex reality of modern retail operations. While the company has demonstrated genuine commitment to improvement in several areas, particularly in environmental sustainability and community support, persistent issues with labor practices and supply chain management indicate room for growth.
ASDA's trajectory shows a company making genuine efforts toward responsible business practices while navigating the challenges of a competitive retail environment. Their "Good" rating suggests that while they have established a solid foundation of corporate responsibility, continued vigilance and improvement will be necessary to address remaining concerns and strengthen their positive impact.
Historical Red/Green Flags
Have you ideas for companies to profile?