“Each Tesco store has waste targets that must be reviewed and reported every week. Achieving a balance between product availability and waste is a key part of a store management team’s daily routine”
Responding to ethical pressure
Ethical pressure is when your ethics have been challenged in a way that forces you to consider what is right and what is wrong. The first step in responding to ethical pressures is to determine the nature of the issue and assess its ethical dimensions. Ethical pressure, for instance, can arise if business is called upon to act in unethical way. In this situation, identifying the issue requires understanding how the action is unethical and what its consequences might be.
The Corporate Social Responsibility ‘CSR’ programmes of business are there to response to the growing pressure placed on managements to take account of ethical concerns. In order to make sure that business is following the CSR policies Tesco exert pressure on their own shareholders.
Implementing ethical practices
Tesco is a British success story, it has used the global market place to push down prices for consumers and grab more market share. If they are not profitable, they cannot do the things they and their stakeholders would like to do. Tesco operate in a free market and believe in the power of the market to deliver worthwhile change. But the social and environmental costs of Tesco’s behaviour are clear. That’s why Friends of the Earth is calling on the Government to act now to stop the Tesco Takeover and bring this market giant under control. It is not enough to expect shoppers to revolt and shop at their local stores to keep them going as long as possible. The public should be able to rely on regulation to maintain fair trade and a diverse high street.
Tesco is failing its very own standards for the Ethical Trading Initiative by making suppliers pay the costs. They should implement more ethical practices in order to gain good reputation just like McDonald’s have started to offer healthy options.
Influence of stakeholders and pressure groups
Many businesses in pursuit of their primary goals cause damage to the planet. Environmental issues are the focus of several well-known pressure groups. Pressure groups are not elected by anyone. They form to raise awareness of an issue, or several issues. Following are the examples of pressure groups:
- Greenpeace
- Friends of the Earth
- ENCAMS (environmental campaigns)
The aim of all pressure groups is to influence the people who actually have the power to make decisions. Pressure groups do not look for the power of political office for themselves, but do seek to influence the decisions made by those who do hold this political power. Often pressure groups find themselves competing with rival pressure groups with the aim of gaining an advantage over them, but sometimes groups work together to achieve a common aim.
Pressure Groups can use a variety of different methods to influence. Their work attracts much media attention and government always takes into account the voice of public opinion. Tesco must take care of its public image, in order to do that CSR policies are in place and clearly outlined.
Conclusion
In this assignment I have outlined implications of the ethical issues and examined how they are dealt with and the consequences for different stakeholders. I have also explained to what extent I feel these social issues are a real problem in relation to Tesco.
