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Transcription of this question: 6.Tesco goes greenIn a recent report to shareholders, the chief executive Of Tesco, the biggest supermarket chain in theUK reported it had increased sales by 13.2% and pre-tax profit by 16.7% in the last 12 months.He also noted that cost increases were likely in the coming year with little opportunity to raiseprices due to strong competition.The chief executive responded to critics Of its significant internal expansion by announcing plans toinvest in environmental projects. Critics argue that these investments are due to a 60 % rise in energycosts last year, and that they are not purely motivated by environmental concerns.TO counter these critisisms, the chief executive announced plans to:• install more wind turbines on stores and distribution depotsuse solar power to generate electricity in the stores• double the amount Of recycling facilities at the stores• convert the entire fleet Of 2000 lorries to more environmentally friendly fuels.Pressure groups say that Tesco is still a long way from being a truly environmentally and sociallyresponsi ble company because Of:• its rapid growth (it has built many supermarkets in the UK and around the world)• its sourcing Of products from overseas• the threat it poses to small independent retailers.[Source adapted from “Tesco’s growth slips as cautious consumers catch up with giant”, Sara Butler,”Stores to go green with cuts of energy usage”, rhe Times, 26 April 2006 and”Lorries in fuel switch as Tesco takes the green road”, Jenny Davey, The Sunday limes, 17 December 20061(a)(b)(c)Define the term socially responsible Olganization.(i) Tesco has “increased sales by 13.2% and pre-tax profit by 16.7%”Comment on how it is possible for profits to increase at a faster ratethan sales.(ii) Explain one advantage and one disadvantage Of Tesco using internal asopposed to external methods Of growth.TO what extent will Tescos decision to “invest in environmental projects”enable the organization to position itself as socially responsible and to create acompetitive advantage

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