Ethical behaviour of UK supermarket Tesco.

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Daisy So                FDA

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



Stakeholders of Tesco        

Internal stakeholders        

External stakeholders        

Connected stakeholders        

Consideration of Power        

Tesco’s Mission Statement        

Tesco’s actions towards the society        

Deontology Approach        

Utilitarianism Approach        

Teleology Approach        

Egoism Approach        

Improvement in ethical behaviour of Tesco        




Ethical behaviour of Tesco plc


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.

Stakeholders of Tesco

Stakeholder is defined by Mullins (2002:145) as “individuals or groups who have an interest in and/or are affected by the goals, operations or activities of the organisation or the behaviour of its members”.

Stakeholders can be categorised into three main groups:

Internal stakeholders

  • Employees - Social responsibilities to employees beyond the employment contracts.  Employees need to face the implications such as job security, safe working conditions, fair treatment, the creation of rewarding work and personal development.  Employees require equal opportunities, promotions, trade union, training and job satisfaction.
  • Management - Management concerns about the growth of the organisation and to achieve the organisational objectives.  Management have strong influences on staff, lead by example and management by walking about can encourage its staff to produce their best performance.
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External stakeholders

  • Community & environment - The demands for the community and environment are: potential of pollution, noise and disposal waste should be kept to the minimum, raw materials are used economically and environment friendly production.
  • Society - Society is the broader place in which business operates.  The quality of all our lives will depend on how well the organisation balances its profit and the environment.

Connected stakeholders

  • Shareholder - There are three types of shareholders: short term investors, long term investors and ethical investors.  Short term investors simply concentrate on the performance of ...

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