In 1948 the toy and baby products retailer Toys“R”Us, Inc., headquartered in Wayne, New Jersey, was founded. It offers a wide range of products, including toys, learning aids and children’s apparel. Today the company employs 70,000 people in more than 1,700 stores in 37 countries. In Europe, Toys“R”Us, Inc., operates in Austria, France, Germany, Poland, Portugal, Spain, Switzerland and UK. In Germany, Toys“R”Us GmbH was established in 1986 and nowadays ranks with 66 stores, about 1,000 employees and a turnover of EUR 330 million among the biggest toy retailers. In 2014 Toys“R”Us, Inc., launched the strategy “TRU Transformation” to ensure growth and to better implement their mission, bringing joy into lives of their customers. The strategy includes three guiding principles (Easy, Expert and Fair): “We will be the EASIEST place in the world to find solutions at FAIR prices for kids and babies because we are EXPERTS and understand the joys and challenges of parenting" (Toys"R"Us, Inc., 2014a). The focus of this paper lies on Toys“R”Us Germany operating in the retail sector.
Table of Contents
1. General Information about Toys"R"Us
2. Retail Industry in Germany
2.1 General Information about the German Retail Industry
2.2 Most Dominant Stakeholders in the Retail Industry
2.3 Main CSR Issues and the CSR Performance of this Industry
3. Development of a CSR Strategy for Toys"R"Us Germany
3.1 Toys"R"Us Germany and Toys"R"Us Inc. in terms of CSR Performance
3.2 CSR Strategy for Toys"R"Us Germany
3.3 The Main Challenges and a Critical Assessment of the Implications of the Recommended CSR Strategy
4. Conclusion
Project Objective and Key Themes
This project aims to analyze the current CSR performance of Toys"R"Us Germany and develop a strategic framework to integrate sustainable practices into its business model, addressing the needs of key stakeholders and aligning with industry standards.
- Analysis of the German retail industry and its primary CSR challenges.
- Evaluation of stakeholder interests and their influence on corporate strategy.
- Benchmarking of CSR activities among major toy retailers in Germany.
- Development of a comprehensive CSR strategy for Toys"R"Us Germany focusing on internal and external value chain improvements.
- Critical assessment of the implementation challenges and potential strategic implications.
Excerpt from the Book
3.1 Toys"R"Us Germany and Toys"R"Us Inc. in terms of CSR Performance
Toys"R"Us Germany understands responsibility as meeting the needs of children and their parents by offering easy accessible markets with enough parking spots, generous and well-arranged shop space, friendly employees, a vast selection of offers and an outstanding price-performance ratio (Toys"R"Us Germany, 2014b). This fits with its TRU transformation strategy mentioned in chapter 1 and indicates that the focus is still on economic and legal responsibility rather than on ethical and philanthropic goals (Carroll, 1991). Furthermore Toys"R"Us Germany neither has a CSR report nor a link about “CSR” on their website. Yet the company mentions two CSR related topics without explicitly naming it CSR: First, by product safety they mean offering products that comply with European security rules, recalling them in case of safety concerns and giving advice about the safety of toys to their customers. Second, the company supports children’s charities, e.g. Ronald McDonald House Charities and SOS Children’s Village (Toys”R”Us, Inc., 2014b). Overall, that commitment is rather weak as Toys”R”Us GmbH mainly focuses on calls for donations. Concerning their employees, Toys“R“Us Germany claims to offer “optimal training”, but hardly any additional benefits (Toys”R”Us Germany, 2014c).
All in all, one can say that Toys"R"Us GmbH has neither developed a CSR strategy nor do they care a lot about society and environment. The two pillars of engagement, product safety and donations, are small and product safety is even required by law. One gets the impression that the company does not intend to integrate CSR in their daily business as even small initiatives, such as donations, are announced in short press releases instead of publishing them under the children’s charities topic on their website.
Chapter Summary
1. General Information about Toys"R"Us: Provides an overview of the company's global history, its expansion into Germany, and the "TRU Transformation" strategy.
2. Retail Industry in Germany: Analyzes the market structure, key economic indicators, and the significance of various stakeholder groups within the retail sector.
3. Development of a CSR Strategy for Toys"R"Us Germany: Evaluates the current state of CSR at Toys"R"Us, benchmarks it against competitors like Aldi Süd, and proposes a tailored strategy addressing identified gaps.
4. Conclusion: Summarizes the necessity for Toys"R"Us Germany to proactively adopt CSR to secure competitive advantages and long-term sustainability.
Keywords
Corporate Social Responsibility, CSR Strategy, Retail Industry, Toys"R"Us, Stakeholder Management, Product Safety, Supply Chain Management, Sustainable Consumption, Working Conditions, Value Chain, Competitive Advantage, Environmental Protection, Toy Market, Business Ethics, Strategic Management.
Frequently Asked Questions
What is the core focus of this project?
The project focuses on evaluating the existing corporate social responsibility (CSR) activities of Toys"R"Us Germany and formulating a strategic CSR roadmap to improve its social, ecological, and ethical business impact.
What are the primary thematic areas explored?
The study examines the German retail sector, stakeholder dynamics, industry-wide CSR issues such as product safety and working conditions, and the strategic alignment of business operations with social needs.
What is the main objective of the proposed strategy?
The objective is to move Toys"R"Us Germany beyond basic legal compliance toward a proactive CSR strategy that creates competitive advantage through improved supply chain transparency, employee engagement, and environmental responsibility.
Which scientific method is utilized?
The research relies on an analytical framework using industry expert opinions, stakeholder theory, and comparative benchmarking against competitors like Aldi Süd, alongside an analysis of the company's internal value chain.
What is covered in the main body of the work?
The main body details the current market environment, identifies critical CSR issues in retail, contrasts Toys"R"Us with its competitors, and presents a structured model (Figure 2) for implementing CSR across the company's value chain.
Which keywords define the scope of this paper?
Key terms include Corporate Social Responsibility, Stakeholder Management, Sustainable Supply Chain, Product Safety, and Competitive Advantage in the context of the toy retail industry.
Why does the author suggest Toys"R"Us should adopt the SA 8000 standard?
The author suggests SA 8000 to ensure standardized, ethical working conditions, such as compliance with fair working hours and non-discrimination, which helps improve the company's internal corporate culture.
What are the key challenges mentioned regarding the proposed CSR strategy?
The main challenges include potential conflicts between sustainable practices and price-performance targets, implementation costs, possible employee resistance to change, and the risk of the strategy being perceived as greenwashing.
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- Stefanie Brandl (Autor:in), 2014, Development of a CSR strategy for Toys R Us Germany, München, GRIN Verlag, https://www.grin.com/document/288550
