Issue of Lack of Transparency and Accountability in Corporate Governance: A Case Study on Tesco Plc

This document discusses the issue of lack of transparency and accountability in corporate governance, using Tesco Plc as a case study. It explores the impact of this issue on the overall performance of the firm and provides suitable strategies for better management of corporate strategy. The document also includes a literature review and research methodology.

Corporate Strategy and
Governance
(Summative)

Table of Contents
Research Topic: Issue of lack of transparency and accountability in corporate governance. A case
study on Tesco Plc. .........................................................................................................................1
Introduction......................................................................................................................................1
Background of the organisation..................................................................................................1
Review of the problem faced .....................................................................................................1
Aim and objectives .....................................................................................................................1
Rationale for selection of topic...................................................................................................2
Research questions......................................................................................................................2
Literature Review.............................................................................................................................2
To review about the concept of corporate governance along with analysing its need and
importance...................................................................................................................................3
To evaluate about the impact of issue of lack of transparency and accountability on overall
performance of firm. ..................................................................................................................4
To explore suitable strategies for Tesco Plc that would be needed for better management of
corporate strategy along with overcoming the lack of transparency and accountability............5
Research Methodology for secondary and primary research undertaken........................................6
Review of Results of the Research ...............................................................................................10
Analysis of collected facts........................................................................................................10
Interpretation of data.................................................................................................................11
Recommendation and Action Plan ................................................................................................18
REFERENCES..............................................................................................................................21

Research Topic: Issue of lack of transparency and accountability in corporate
governance. A case study on Tesco Plc.
Introduction
The concept of corporate governance is mainly related with the specific laws and process
that are followed and going on within a company that are taken as basis to operate and control a
business firm (Davies, 2016). The corporate governance mainly aim at and associated with
leading an enhanced level of transparency and accountability within an organisation along with
meeting and taking care of interest of all shareholders.
Background of the organisation
The organisation selected for current assignment is Tesco Plc which is a well known
British Multinational groceries and general merchandise having its main headquarter in Welwyn
Garden City, England. Tesco is a multinational organisation which is having a larger number of
stakeholders across the world thus, it is facing many issues and problems in maintaining an
effective communication and proper interaction between them (Tesco fined £129m for
overstating profits, 2017). Therefore current investigation is lead out on Tesco company to have
better understanding about the concept of corporate governance along with analysing its needs
and importance.
Review of the problem faced
The most vital issues faced and encountered by Tesco is associated with lack of
transparency and accountability within its management and key shareholders. This, issues of lack
and transparency and accountability has lead to recent accounting scandal and fraud which was
related with miss-presentation of facts to to show higher profits in order to attract larger number
of investors (Tesco Scandal- the perils of aggressive accounting, 2018). Therefore, current
investigation is carried out on Tesco Plc to analyse about the concept of corporate governance
along with analysing about the impact of issue of lack of transparency and accountability on
overall performance of firm.
Aim and objectives
Research aim
1

To evaluate about the concept of corporate governance along with analysing the issue of
lack of transparency and accountability within a firm. A research project on Tesco Plc.
Research objectives
 To review about the concept of corporate governance along with analysing its need and
importance.
 To evaluate about the impact of issue of lack of transparency and accountability on
overall performance of firm.
 To explore suitable strategies for Tesco Plc that would be needed for better management
of corporate strategy along with overcoming the lack of transparency and accountability.
Rationale for selection of topic
The selection of current research topic is rationale and significant for a firm as the
concept of corporate governance has become vital for all organisation as it bring more efficiency
within a company. Further, many legal provision are also there which has made compliance of
corporate governance essential for companies to bring transparency and accountability in their
operations. Beside this, selection of current research topic also meet and accomplish the personal
interest and educational background of researcher along with facilitating better skill
development.
Research questions
 What is meant by the concept of corporate governance along with analysing its need and
importance?
 What possible impact could be seen and lead out by the lack of transparency and
accountability associated with the lack of proper corporate governance on overall
performance of firm.
 Which could be the most suitable strategies for Tesco Plc that ensures better management
of corporate strategy along with overcoming the issues of lack of transparency and
accountability?
Literature Review
This forms a vital part of every study and research work as it facilitates better information
and analysis of secondary form of data that leads to better base and framework for investigation
(Fink, 2019). The current literature review is based on analysis of online articles and journals
2

based on the topic of corporate governance, an analysis and discussion of which is provided as
follows:
To review about the concept of corporate governance along with analysing its need and
importance.
As per the view point of Fremeth, A.R. and Holburn, G.L., 2020, an analysis can be made
out that the concept of corporate-governance is associated with the set of rules and process which
are implicated and opted within a business organisation through which all its functions and
operations are being governed and managed. Beside this, an analysis can be made out the the
concept of corporate-governance provided information about the ways and strategies which
define the existing relationship and way of interaction with stakeholders. Further, corporate-
governance consists of a set of process and combination which covers and reflects social and
institutional aspects of a business firm that are vital to meet and set coordination among interest
of all stakeholders (Habbash, 2017). Therefore an implication can be made out that compliance
of provision of corporate-governance are need and important for a business firm to set out a
better coordination among organisational interest and expectation of all other key stakeholders.
Further, with respect to information provided by Lakshna Rathod. 2018, corporate-
governance is a vial and important concept to have higher level of business accountability and
transparency by the way of protecting and safeguarding rights of all stakeholders comprises of
managers, employees, customers and other social aspects. The other key benefits and advantages
of corporate-governance within a firm that made it important and essentially needed are
discussed and analysed as below:
Better reputation- The implication and adoption of effective corporate-governance
strategy leads to and ensures improvement in the brand reputation by the way of developing
improved trust and loyalty among stakeholders. An analysis can be made out that corporate-
governance is directly associated with meeting all the set accounting and ethical norms that plays
a vital role in improving the brand reputation and create an enhanced goodwill for a firm that is
important for enhanced business performance (Jacoby, 2018).
Investor interest rising- An analysis can be made out that corporate-governance are
associated with creating improved transparency and accountability at workplace which would
lead to presentation of true accounting facts and financial position that plays a vital role in
improvising confidence of stakeholders like investors and customers. Thus, corporate-
3

governance plays a vital role in improving and attracting the interest of larger number of investor
that meets all the provision of accountability and transparency and ensures true information and
factual presentation of facts for its stakeholders.
Reduction of legal risk through compliance of legal provisions- Adoption and use of
corporate-governance leads to meeting and fulfilment of all the set rules and regulation thus,
mitigate and reduce the chances of legal consequence and issues. Further, enhanced level of
accountability and transparency also leads to reduction in chances of accounting frauds and
scandals by the way the better check and control over the performance and business activities of
top management and broad of directors (Lutsenko, 2018). Therefore, mitigate and reduce the
chances of legal risk and threat for a firm that is needed and important for better business
performance.
To evaluate about the impact of issue of lack of transparency and accountability on overall
performance of firm.
With respect to the information provided by the Habbash, M., 2017, it has been evaluated
that a negative impact is lead out by the issue of lack of transparency and accountability on
overall performance of firm. An analysis can be made out that lack of transparency and
accountabilities lead to many issues and causes many challenges for a business firm which
comprises of breach of investors and other stakeholders trust based on miss-presentation of facts
and accounting position which would hamper the brand image and reputation of a firm. A better
analysis of the factors and issues caused by the lack of transparency and accountability which
lead to negative impact on the business performance of a firm are discussed and provided below:
Conflicts of interest among boards- Lack of proper transparency and accountability
leads to enhanced chances of conflicts among boards members as they lack proper
communication and interaction. Further, having different perceptive and interest regarding a
topic or concept also hampers the decision making and strategy formulation by the directors that
were not based on the provision of accountability and transparency that is a big issues which is
encountered because of lack of corporate-governance (Mkandawire, 2019).
Violation of accounting and ethical principle- The another challenge associated with
lack of transparency and accountability comprises of that fact that it is lead to breach and
violation of accounting and ethical principles. Proper transparency and true presentation of fact is
a vital concept of accounting principles and proper bifurcation of rules and regulation is directly
4

associated with ethical compliance. Thus, lack of transparency and accountability lead to breach
and mitigation of set accounting and ethical principles.
Higher chances of accounting frauds and scandals- The most vital and common issues
related with lack of transparency and accountability comprises of enhanced level of accounting
frauds and scandals. An analysis can be made out that if there is no proper transparency and
accountability with an organisation than it become hard to keep a check and control over the
operations and performance of top managers and directors which raise the issue of accounting
scandals and frauds (Oliver and Picard, 2020).
Thus, an analysis can be made out that lack of transparency and accountability leads to
many issues and consequence for a firm in form of violation of accounting principles and
enhanced chances of frauds which hampers and reduce the brand reputation and goodwill of a
firm. Thus, it can be analysed that lack of transparency and accountability lead to a negative
impact on overall performance and productivity of a firm.
To explore suitable strategies for Tesco Plc that would be needed for better management of
corporate strategy along with overcoming the lack of transparency and accountability.
According to the view point of Kraus, S., Rehman, S.U. and García, F.J.S., 2020, it has
been analysed that corporate-governance become vital for all firms thus, some more effective
and suitable strategies are required by Tesco Plc that to have better management of corporate
strategy along with overcoming the lack of transparency and accountability. Some of these key
strategies and ways that can be adopted by Tesco Plc to have better management of corporate
strategy along with overcoming the lack of transparency and accountability are provided and
discussed below:
Formulation of independent audit committee- It is one of the key strategy that facilitates
a better check and control on the business activities and performance of board of directors and
other top management that is vital to reduce the chances of frauds and scandals within a business
firm. Further, setting out of an independent audit committee would ensures and leads to better
analysis of financial statements and business transaction along with the analysis of true financial
position to have enhanced level of business transparency and accountability through prevailing
better check and control (Tanriverdi and Du, 2020).
Formulation of a competent board of director- Another vital strategy that leads to better
management of corporate-governance comprises of a formulation of a more competent board of
5

directors that have better knowledge and understanding about various aspects of business. A
competent boards ensures better compliance of accounting and other ethical norms that is vital to
reduce the chance of accounting frauds and scandal and also lead to enhanced level of
transparency and accountability during presentation of financial position and other relevant
information about a business firm (Watt and Schwartz, 2018).
Effective communication- The another vital way that can be adopted by a firm to
mitigate and overcome the issue of lack of transparency and accountability comprises of
ensuring effective communication among all stakeholders. Effective communication would lead
to better bifurcation and division of role and responsibilities among employees and also enhance
the level of accountability along with leading transparency in flow of information. Beside this,
leading effective communication also ensures better interaction with key stakeholders like
managers, investors, clients, business partners, customers and all other that leads and brings a
positive attitude and relationship among them that is vital and important to have enhanced
business performance and success (Schmidt and Fahlenbrach, 2017).
Research Methodology for secondary and primary research undertaken
This forms out to a vital and core part of every investigation that facilitates enhanced
information about the proposed method that could be used or applied by a researcher for
conducting a research work in a more better and vital manner. Utilisation of research onion
model has been made for current investigation to select most appropriate and suitable form of
research method and approaches a discussion and justification of which is provided below:
Figure 1: Research Onion, 2020.
6

Research philosophy- This section of research methodology is divided into four main
categorises consists of realism, pragmatism, interpretivism and positivism out of which one is
elected by the researcher on the basis of nature of investigation. Use of positivism research
approach is made for current investigation as it justifiable and appropriate to support objective
nature of investigation that is more systematic and practical form of study (Davies, 2016).
Research approach- This forms out to be the second layer of research onion that is
divided into two forms i.e. deductive and inductive from which selection of one is made on the
basis of opted philosophy. Therefore, use and selection of deductive approach is suitable and
justifiable it properly coordinate with positivism philosophy and also support better analysis and
viable scanning of numeric and objective set of data.
Research strategy- It tend to be a viable section of research methodology that provides
and facilitates base and framework for data collection and other activities of investigation
through facilitating and providing information about the way and tool of data collection (Fink,
2019). The various forms and tools comprises and included in research strategy are action
research, experiments, observation, survey, interview, etc. out of which utilisation of survey form
of strategy is seemed most justifiable and suitable for current investigation as it ensures and leads
to better collection of data through comprising use of questionnaire as data collection tool.
Choices of method- there are two common form and set of research method comprises of
qualitative and quantitative method of research from which selection of qualitative research
method is justifiable for an in-depth and detailed form of research where as implication of
quantitative research method support an objective and numeric set of research. The current
investigation tend to based on objective nature therefore, use and selection of quantitative nature
of research method is most suitable and appropriate (Habbash, 2017). The justification for
selection of quantitative research method comprises of fact that it lead to easy collection of data
in numeric and arithmetic terms that is easy to analysis and present through making use of
statistical graphs and charts. Apart from this, use of quantitative nature of research method also
support a specifies and measurable set of results to achieve set objective in more vital way.
Data collection- Implication of two main origin and sources of data are made or current
investigation comprises of primary as well as secondary sources of data. The justification behind
making use of primary data based on fact that it provides most authentic set of data that is
directly gathered from the respondents where as secondary form of data is also vital and needed
7

to support present facts and investigation with the help of past data and research work (Jacoby,
2018).
Analysis of primary data would have been made with the of quantitative set of analysis
comprises of frequency table and pie charts. Further, analysis of secondary data has been made
and provided with the help of systematic literature review.
Sample size- Sampling basically represent the method of selection and choice of a pre-
determined number of units and observation from a larger and complex number of population
(Lutsenko, 2018). With respect to current investigation use of random sampling method has been
made for selection of a sample size of 50 participants from the employees of Tesco Plc. Use of
following questionnaire would be made for collection of primary data from the selected 50
participants from the employees of Tesco Plc:
Questionnaire
Q1) Do you having any implication or idea regarding the concepts of corporate
governance along with needs and importance within in current business scenario?
a) Yes
b) No
c) Neutral Implication
Q2) What are the factors and main reasons that are representing the due need and
importance of corporate-governance within an organisation?
a) Compliance of law
b) Encourage positive behaviour
c) Improve top level decision making
d) Better control over management
Q3) Which could be the main challenges and issues that could be encountered by internal
management of Tesco plc while managing and implicating corporate governance?
a) Getting right commination of board
b) Regular performance evaluation of directors
8

c) Issue of maintaining transparency and accountability
d) All of the above
Q4) As per your view point, what overall impact would lead out by the issue of lack of
transparency and accountability on overall business performance of Tesco plc?
a) Positive
b) Negative
c) No impact
Q5) Which factor is representing the main cause and issues faced by Tesco plc due to lack
of proper transparency and accountability within this organisation?
a) Conflicts of interest among boards
b) Violation of accounting and ethical principle
c) Lack of commitment in shareholders
d) Breach of trust
e) Higher chances of frauds and scandals
Q6) Are you agreed with the fact that more effective management corporate strategy
plays a vital role in improving the business performance and success level of an
organisation through creating positive stakeholders relationship?
a) Agreed
b) Strongly agreed
c) Disagreed
b) Strongly disagreed
c) Neither agreed nor disagreed
Q7) What are the suitable strategies that can be adopted by Tesco Plc to have better
management of corporate strategy and also resolve the issue of lack of transparency and
accountability?
a) Appointing independent auditor
9

b) Review of board performance
c) Meting accounting principles
d) CSR responsibilities
e) Effective communication
Q8) Any further recommendation for Tesco Plc to have better management of corporate
governance along with overcoming its associated issues?
Ethical consideration
Implication of BERA code of ethics and data protection act is made to met the ethical
consideration and maintain the safety and security of collected data.
Review of Results of the Research
Analysis of collected facts
Use of frequency table is made for systematic presentation of collected raw data:
Q1) Do you having any implication or idea regarding the concepts of
corporate governance along with needs and importance within in
current business scenario?
Frequency
a) Yes 46
b) No 1
c) Neutral Implication 3
Q2) What are the factors and main reasons that are representing the
due need and importance of corporate-governance within an
organisation?
Frequency
a) Compliance of law 12
b) Encourage positive behaviour 13
c) Improve top level decision making 11
d) Better control over management 14
10

Q3) Which could be the main challenges and issues that could be
encountered by internal management of Tesco plc while managing
and implicating corporate governance?
Frequency
a) Getting right commination of board 10
b) Regular performance evaluation of directors 15
c) Issue of maintaining transparency and accountability 20
d) All of the above 5
Q4) As per your view point, what overall impact would lead out by
the issue of lack of transparency and accountability on overall
business performance of Tesco plc?
Frequency
a) Positive 5
b) Negative 42
c) No impact 3
Q5) Which factor is representing the main cause and issues faced by
Tesco plc due to lack of proper transparency and accountability
within this organisation?
Frequency
a) Conflicts of interest among boards 9
b) Violation of accounting and ethical principle 11
c) Lack of commitment in shareholders 12
d) Breach of trust 8
e) Higher chances of frauds and scandals 10
Q6) Are you agreed with the fact that more effective management of
corporate strategy plays a vital role in improving the business
performance and success level of an organisation through creating
positive stakeholders relationship?
Frequency
a) Agreed 25
11

b) Strongly agreed 10
c) Disagreed 5
b) Strongly disagreed 6
c) Neither agreed nor disagreed 4
Q7) What are the suitable strategies that can be adopted by Tesco Plc
to have better management of corporate strategy and also resolve the
issue of lack of transparency and accountability?
Frequency
a) Appointing independent auditor 12
b) Review of board performance 13
c) Meting accounting principles 7
d) CSR responsibilities 8
e) Effective communication 10
Interpretation of data
Theme 1: Concepts of corporate governance
Q1) Do you having any implication or idea regarding the concepts of
corporate governance along with needs and importance within in
current business scenario?
Frequency
a) Yes 46
b) No 1
c) Neutral Implication 3
12

46
13
a) Yes
b) No
c) Neutral Implication
Interpretation
On the basis of above drawn pie chart an analysis can be made out that from a total of 50
selected participants, 46 tend to have implication or idea regarding the concepts of corporate
governance along with needs and importance within in current business scenario where as 1
respondent was not having any such idea. Apart from this, other 3 left out participants seemed to
have a neutral implication on .
Theme 2: Main reasons that are representing the due need and importance of corporate-
governance
Q2) What are the factors and main reasons that are representing the
due need and importance of corporate-governance within an
organisation?
Frequency
a) Compliance of law 12
b) Encourage positive behaviour 13
c) Improve top level decision making 11
d) Better control over management 14
13

12
13 11
14
a) Compliance of law
b) Encourage positive
behaviour
c) Improve top level decision
making
d) Better control over
management
Interpretation
An analysis about factors and main reasons that are representing the due need and
importance of corporate-governance within an organisation could be made with the help of
above diagram which comprises of compliance of law as per the view point of 12 participants
where as 13 were in favour of Encourage positive behaviour. Further, 11 participants seemed to
opted for Improve top level decision making along with 14 other who supported for Better
control over management as main reasons that are representing the due need and importance of
corporate-governance within an organisation.
Theme 3: Main challenges that could be encountered by internal management while
managing corporate-governance
Q3) Which could be the main challenges and issues that could be
encountered by internal management of Tesco plc while managing
and implicating corporate governance?
Frequency
a) Getting right commination of board 10
b) Regular performance evaluation of directors 15
c) Issue of maintaining transparency and accountability 20
d) All of the above 5
14

10
15
20
5
a) Getting right commination of
board
b) Regular performance
evaluation of directors
c) Issue of maintaining
transparency and
accountability
d) All of the above
Interpretation
The above drawn chart is presenting that 10 participants were having a view point that
Getting right commination of board is a main challenge that could be encountered by internal
management of Tesco plc while managing and implicating corporate governance where as 15
opted for Regular performance evaluation of directors along with 20 other who supported for
Issue of maintaining transparency and accountability. Further, 5 participants were also there who
were seemed in favour of all the above written option as challenges that could be encountered by
internal management while managing corporate-governance.
Theme 4: Overall impact of lack of transparency and accountability on overall business
performance
Q4) As per your view point, what overall impact would lead out by
the issue of lack of transparency and accountability on overall
business performance of Tesco plc?
Frequency
a) Positive 5
b) Negative 42
c) No impact 3
15

5
42
3
a) Positive
b) Negative
c) No impact
Interpretation
One of the key results and findings of current investigation comprises of analysis that
only 5 participants were having a thinking that positive impact would lead out by the issue of
lack of transparency and accountability on overall business performance of Tesco plc where as
total of 42 respondents seemed to be in support of its negative impact. Beside this, it has been
observed that 3 participants were having a view point the no impact lead out by the issue of lack
of transparency and accountability on overall business performance of Tesco plc.
Theme 5: Main issues faced by Tesco plc due to lack of proper transparency and
accountability
Q5) Which factor is representing the main cause and issues faced by
Tesco plc due to lack of proper transparency and accountability
within this organisation?
Frequency
a) Conflicts of interest among boards 9
b) Violation of accounting and ethical principle 11
c) Lack of commitment in shareholders 12
d) Breach of trust 8
e) Higher chances of frauds and scandals 10
16

9
11
12
8
10
a) Conflicts of interest among
boards
b) Violation of accounting and
ethical principle
c) Lack of commitment in
shareholders
d) Breach of trust
e) Higher chances of frauds
and scandals
Interpretation
An implication about the main issues and cause faced by Tesco plc due to lack of proper
transparency and accountability within this organisation are provided by above pie chart that
consists of Conflicts of interest among boards as per the view point of 9 respondents where as 11
supported for Violation of accounting and ethical principle. Apart from this, it has been also
observed that 12 participants were having a feeling that Lack of commitment in shareholders is
lead out lack of accountabilities and transparency where as 8 supported for breach of trust along
with the 10 other left out participant who favoured for Higher chances of frauds and scandals.
Theme 6: More effective management of corporate strategy plays a vital role in improving
the business performance and success
Q6) Are you agreed with the fact that more effective management of
corporate strategy plays a vital role in improving the business
performance and success level of an organisation through creating
positive stakeholders relationship?
Frequency
a) Agreed 25
b) Strongly agreed 10
c) Disagreed 5
b) Strongly disagreed 6
c) Neither agreed nor disagreed 4
17

25
10
5
64
a) Agreed
b) Strongly agreed
c) Disagreed
b) Strongly disagreed
c) Neither agreed nor disagreed
Interpretation
It has been observed from above pie chart that 25 participants were agreed with the fact
that more effective management of corporate strategy plays a vital role in improving the business
performance and success level of an organisation through creating positive stakeholders
relationship where as 10 were strongly agreed along with 5 more respondents who seemed to be
disagreed. Apart from this, an implication could also be made that 6 respondents are strongly
disagreed where as 4 respondents seemed to be neither agreed nor disagree on above written fact.
Theme 7: Suitable strategies to have better management of corporate strategy to resolve the
issue of lack of transparency and accountability
Q7) What are the suitable strategies that can be adopted by Tesco Plc
to have better management of corporate strategy and also resolve the
issue of lack of transparency and accountability?
Frequency
a) Appointing independent auditor 12
b) Review of board performance 13
c) Meeting accounting principles 7
d) CSR responsibilities 8
e) Effective communication 10
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12
13 7
8
10
a) Appointing independent
auditor
b) Review of board
performance
c) Meeting accounting
principles
d) CSR responsibilities
e) Effective communication
Interpretation
One of the key information and results are provided by above pie chart that is reflecting
about the Suitable strategies to have better management of corporate strategy to resolve the issue
of lack of transparency and accountability which consists of appointing independent auditor as
per view point of 12 participants where as 13 opted for Review of board performance along with
7 other who favoured for Meeting accounting principles. Apart from this, 8 participants seemed
to have a view point that CSR responsibilities offer best way to have better management of
corporate strategy and also resolve the issue of lack of transparency and accountability while 10
opted for effective communication.
Recommendation and Action Plan
On the basis of above research undertaken following recommendation can be made out
for Tesco Plc to have better management of corporate-governance along with mitigating and
overcoming the issue of lack of transparency and accountability:
 Implication and formulation of independent audit committee is suggested an
recommended for Tesco plc as it lead to better cheek and monitoring on the internal
operation and working of the organisation. Further, it also keep a better control over
boards of directors along with other top management to reduces the chances of any kind
of frauds or miss-presentation by the internal managers.
 Effective communication channels that may comprises of online modes or strategy of
monthly journals or magazines would lead to better and more clear presentation of vital
information for all shareholders. Thus, implication of effective communication is highly
suggested and recommended for Tesco Plc top overcome the issues of lack of
transparency and accountability. Regular conducting of board meetings and interaction
19

with all key shareholders is also viable to ensure more effective corporate-governance
and overcome the issue of transparency and accountability. Complying with accounting principles is also viable and effectively recommended for
Tesco Plc to have a more transparent presentation of its business performance and true
financial position in front of shareholder and other key stakeholders. Meeting with
accounting principles is also necessary and vital for compliance of law and also ensures a
more better accountability and transparency within a firm through reducing and
overcoming the chances of frauds and scandals within a firm.
Action Plan
Following action plan could be prepared and lead out by the Tesco Plc to overcome the
identified issue of lack of transparency and accountability at its workplace along with facilitating
better management of corporate-governance. Implication of following action plan would lead to
have positive stakeholders relationship along with enhanced brand image and reputation that
would also ensure and lead out to better success and enhanced business productivity.
Steps of action Plan Discussion about step
Identification of issue The first step of action plan comprises of setting out and
identifying a business issue from its root cause. With respect to
Tesco plc a recent accounting scandals was taken place which
comprises of showing high accounting profits to attract and cater
larger number of investors. Thus, it has been analysed that the lack
of proper accountability and transparency is main issues of Tesco
plc which leads to wrong presentation and hiding of true
accounting facts and financial position.
Strategy formulation Under this step most suitable and efficient strategy is formulated
by Tesco Plc on the basis of identified issues which would
eliminate and mitigate that risk in future. In context of Tesco plc,
formulation of independent audit committee along with ensuring
effective communication are two vital strategy that can be adopted
by Tesco plc to overcome this current issue of lack of transparency
and accountability.
20

Implementation of strategy The implementation of current strategy require an effective
training and recruitment of some talented candidates who are well
aware of accounting policies and would perform there jobs in
ethical manner. An in-depth audit committee should also need to
be get appointed by the Tesco plc to have and ensure better check
and monitoring on the performance of board of director and other
top management.
Expected Outcome The expected outcome from providing proper training and
recruitment of talented employees ensures better compliance of
accounting norms along with facilitating better internal
communication and interaction. Apart from this, independent audit
committee would keep a check on performance of boards of
director and other top management which would lead to reduction
in frauds and accounting scandals. Further, competent workforce
and meeting of accounting norms also enureses improved brand
reputation of Tesco and also build enhanced trust and commitment
level in its investors and other stakeholders which lead to better
performance and enhanced productivity.
21

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