• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Ethical behaviour of UK supermarket Tesco.

Extracts from this document...


Foundation Degree in Accounting and Finance Subject: Organisational Behaviour Assignment Title: Ethical behaviour of UK supermarket Assignment Submission: w/c 29/03/2004 Course Tutor: C.E. Stafford Name: Daisy So Course Code: FDA Contents Introduction 3 Stakeholders of Tesco 3 Internal stakeholders 3 External stakeholders 3 Connected stakeholders 4 Consideration of Power 4 Tesco's Mission Statement 4 Tesco's actions towards the society 5 Deontology Approach 5 Utilitarianism Approach 6 Teleology Approach 6 Egoism Approach 6 Improvement in ethical behaviour of Tesco 7 Conclusion 7 Bibliography 8 Reference 9 Ethical behaviour of Tesco plc Introduction I carried out a research on UK supermarkets' social responsibilities and business ethics, I decided I will use Tesco plc for this assignment. The reason being Tesco has a wide range of policies regarding their supplier, customers, shareholders and the community. "At Tesco, we aim to make a positive contribution to society. Our CSR programme builds on this commitment and is backed by our 'Every Little Helps' approach." John Gardiner, chairman, Tesco Tesco adopted both the agency theory and the stakeholder theory and it has the intelligent self-interest (Mullins 2002). Tesco uses a combination approach of deontology, utilitarianism, teleology and egoism (Boddy 2002) to the ethical of the society. An ethical assessment will consider the position of the staff, the nature and interrelationship of activities, product and service ranges, mixes and balances, relationships with the community and the environment. ...read more.


Tesco's Mission Statement "Creating value for customers, to earn their lifetime loyalty" We can see from the above statement that Tesco concentrates on the long-term relationship with its customers. Tesco focused on providing exceptional value and choice for customers to ensure that they continue to grow market share. Tesco had expended significantly in the past 10 years, it started in non-food retailing in 1997 and now Tesco is creating value on a wide range of products from grocery to financial services such as personal loan, home and motor insurance and credit card services. From these evidences we can see Tesco is working very hard to follow its mission statement to achieve its goal. Tesco's actions towards the society Tesco combined the agency theory and the stakeholder theory (Mullins 2002) when they make any ethical decisions. Milton Friedman's view (Mullins 2002:148) suggested the agency theory is that "...the social responsibility of business is to make as much money as possible for the shareholders, within the rules of the game." Mullins (2002:149) defined the stakeholder theory is that "...a business is for its stakeholders and its actions should be designed to balance stakeholder interest." Tesco uses the agency theory to decide its main objective, it is to provide excellent goods and services to earn their customers' loyalty. This will ensure their existence on the market and to maximise the shareholders' investment. ...read more.


Tesco uses this approach to take above actions to contribute towards the local community. Boddy (2002) suggested that if people follow this principle it will result in general good. Because of the contribution Tesco made (Computers for Schools vouchers and charity's activities), customers are more happy to shop in Tesco because they are able to maximise their personal self-interest towards the society. Improvement in ethical behaviour of Tesco Tesco has a wide range of ethical policies to cover different areas, they include the following: * Human right * Local community sponsorship * Charity * Ethical trading * Fairtrade * Animal Testing * Environment These are only a small selection of Tesco's policies which I can find on its website, there are many more policies to cover different area of the ethical aspect. Since we are in a dynamic business world and there is no set policy can cover all changes, Tesco should expand its policies and to improve and maintain its reputation. Conclusion Survival or long-term performance is the main ethical duty of the organisation, its staff, customers, community and other stakeholders. For this to happen, a long-term view must be taken. Organisation must distinguish between right and wrong. It is necessary for the organisation to recognise the nature and legitimacy of the interests of the different stakeholder groups and interested parties, and to take steps to see that these are widely understood and satisfied as far as possible. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Tesco's different stakeholders are:Employees

    The customer desk also promotes Tesco's services. There is information about the store at the desk; this is encouraging customers to learn more about the place in which they shop. All this provides a better service because it means that if a customer is not very happy with an item or it doesn't fit them they can

  2. Investigate the value of stake and interest in the company and how the stakeholders ...

    Tesco is large retailer and as so entices a wide range of customers, investors make money through this process when his/her investment is paid back with interest or from a certain percentage of the company awarded to them as specified by the business deal.

  1. Tesco stakeholder conflicts

    The management want the store to be extended so that they can attract new customers and make more profits. If the Tesco store in Pembroke Dock is made bigger, better and has more variety in it than the Asda store in Pembroke Dock then the Tesco store could attract some of the Asda customers.

  2. Organisations and Behaviour

    The decisional role is a kind of fixing role and involves entrepreneur, disturbance handler, resource allocator and negotiator. The managers in this type of role have to make decisions; this means they need to choose courses of action from a set of different alternatives available.

  1. Functional Areas of Tesco

    But if employees are all in good working conditions then they will feel motivated to do the job correctly, they will want to achieve a Tesco aims and objectives. This means that Tesco will be a successful business and will maximise the profits.

  2. Shareholders - Tesco

    It is a very large store; therefore Tesco provides a lot of tables and chairs, seats for children and spaces for wheelchair users. A big help for customers who cannot get out of the house for many different reasons is to shop online.

  1. Methods used by Tesco to monitor if good customer service is taking place.

    Business builds to attract customers and make profits so they can survive and last long open. Customers are very important to every business especially to Tesco's because Tesco's believes that without their customers Tesco's will not be here at the moment and will loss all their capital.

  2. Free essay

    Job Roles in a supermarket.

    I think they should have more duties looking after the store because then it will be run smoother. They are already looking after a lot of people and I think if they had to look after more they would be under a lot of pressure.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work