Role of Corporate Governance in Managing Stakeholder Expectations

Research Project

Table of Contents
TITLE OF THE RESEARCH – “To analyse role played by corporate Governance in managing
expectation of stakeholders of an organisation.” A case study on tesco.........................................3
Overview of Research............................................................................................................3
Research Aim.........................................................................................................................3
Research Questions................................................................................................................4
Rationale of investigation.......................................................................................................4
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY.....................................................................................................7
Research philosophy..............................................................................................................7
Research Approach................................................................................................................8
Time Horizon.........................................................................................................................8
Research design:....................................................................................................................8
Sources of data.......................................................................................................................8
Data collection techniques....................................................................................................9
Sampling................................................................................................................................9
Research ethics......................................................................................................................9
Research limitation................................................................................................................9
Reliability & validity..............................................................................................................9
DATA ANALYSIS AND INTERPRETATIONS...........................................................................9
THEMATIC ANALYSIS.....................................................................................................13
Reflection.............................................................................................................................25
Recommendations................................................................................................................26
Alternative research method.................................................................................................26
CONCLUSION..............................................................................................................................26
REFERENCES..............................................................................................................................27

TITLE OF THE RESEARCH – “To analyse role played by corporate Governance in
managing expectation of stakeholders of an organisation.” A case study on tesco
Overview of Research
The phrase corporate governance is one of very crucial elements of every business this is
related with overall system in concern with policies, rules and procedures of a organisation
(Kumar, 2019). This is very helpful in balancing interest of all stakeholders’ interest which is
related to the company directly or indirectly. This report is based on TESCO, which is a British
multinational store of groceries. It is third largest retailer in world which is measured by its gross
revenue. This report deals with practises related to corporate governance and how it is related
with business organisations. There is a specific role which is analysed of board of directors while
decisions have to make with respect to corporate social responsibility. There is also
determination and influence of CSR practises on various business operations internationally.
Background of Research
Companies all over world are dealing with many issues and they have to deal with it so that they
are able to survive in the high competitive environment. Corporate governance is one such issue
which can help them in gaining good will and building up of a positive brand image. In context
with Tesco, board and top management of this retail brand are the ones who are solely
responsible for formation and implementation of practises related to CSR. Thos research work is
based on how effectively such practises are important and lead to positive contribution in
achievement of business objectives. .
Research Aim
“To analyse role played by corporate Governance in managing expectation of stakeholders of an
organisation”.
Research Objectives
 To identify the role of corporate governance in a business organization
 To examine the role played by board of directors in making CSR decisions

 To determine the influence of CSR activities on business operations
Internationally
Research Questions
 What is the role of corporate governance in a business organization
 Explain the overall role played by board of directors in making CSR decisions
 How can CSR activities possess influence on business operations
Internationally
Rationale of investigation
The main reason behind conducting this investigation is determining positive and
negative impact of corporate governance practises on an organisation. This is a concept which
can help organisations in having a concern for all stakeholders. This leads to transparency in
functioning of overall business functions. Which has a positive impact on good will of an
organisation and leads to increase in profits & sales. This investigation will help in supporting
and helping the investigator on topic is to have a detailed analysis of influence of corporate
governance on interest of stakeholders. There are many techniques and tools which have been
used and various research methods have been applied by researcher in this report for analysis of
the collected data. This leads to ensuring effectiveness presentation of outcomes for all readers
who will be using the outcomes of this research in formation of further effective strategies.
Evaluating and interpret.
LITERATURE REVIEW
Role of corporate governance in a business organization
As per the thoughts presented by the author named as. Michie, J. ed., (2019), it has been
analysed that corporate governance is plays an essential role in the growth of the company as it
provides them guidance about the right manner in which they are performing their work. While
Talking about retail sector it has been analysed that each and every company belonging to this
sector are required to focus on the following all certain guidelines associated to the sector which
ensures that what so ever activities that is being performed by them are ethically correct. It also
supports them in developing their stronger image within the society that contributes in gaining

competitive edge. This can be well understood with the help of an example. For instance:
manager of the TESCO can attain range of benefits by incorporating with corporate governance.
This simply includes it allows company in setting clear goals that can be achieved by them in
quicker manner. This is a whole system which is used for managing and directing all functions in
a company. Which is in concern with how effectively business objectives can be achieved in
timely manner. There rate lot of risk which are present for a business (Bresler and Stake, 2017).
This can be minimized so that positive outcomes can be achieved and performance of employees
can also be optimized. Corporate governance is very helpful in determination of ways so that
effective decision related to strategies can be developed which can add value to all stakeholders
on a organisation. There is transparency in all business functions if there are adequate practises
related to corporate governance in a organisation. This leads to safeguarding of interest of all
stakeholders who are related to a company.
Along with this it also allows business association in ensuring that all the services which
are offered to its customers are ethically right and they will place any sort of harm to them. As a
result, it can be said that corporate governance is considered as the effective initiative taken by
the company that allows in executing all business activities in rightful manner and supports them
enhancing their sustainability at marketplace in effective manner. This is helpful in establishment
of CSR strategy as it forms one of very crucial components for maintenance of company’s
competiveness and also helps a organisation in growth & development. Corporate governance is
basically a interaction which is taking place between shareholders, management of a company
and Board of Directors. So, that performance of a corporate can be shaped effectively and is also
preceding towards achieve objectives and set goals.
Role played by board of directors in making CSR decisions
From viewpoint of Hirst, and Thompson, (2019) , board of Directors play a very
essential role in making decision with respect to decisions related with corporate social
responsibility. Board of directors are ones who are responsible for ensuring that there is
effective practices related with corporate social responsibility. This is concern with various CSR
programs which a organization is willing to implement in a organization. If a organization is not
able to access concern and expectations of stakeholders then this lead to non fulfillment of CSR
responsibilities by a organization. Board of Directors are the higher authorities in every
organization they form part of top amangent in every organization (Mackey,

and (Gass, 2015). They are ultimately responsible for formation and implantation of all policies
which have to be adopted in all parts and functional departments of an organization. So, Board of
Directors play a major role in formation of policies related with CSR decisions in a prganostaion.
Boards are actually the responsible authority who have the responsibility to evaluate effective-
ness of existing management systems in a company. This is regards to environmental and social
concern of a business. There is a specific process which is present and has to be followed when-
ever a policy is being implemented.
With instance to TESCO, board is adopting the practice of corporate social responsibility in a
way that they try to ensure that there are proper resources which are present for employees who
are working for achievement of overall objectives. With the usage of an oversight approach
Board plays a role of monitoring compliance with standards which can help in reinforcing of set
expectations of internal stakeholders. In case of external stakeholders, such as customers the
board has a responsibility to provide high quality. There are many risks such as environmental
and social which are present and can have negative impact on overall functioning of a organiza-
tion. Hence, in this also comes the role of Board of directors as they have to make appropriate
measures so that such type of losses can be minimized and if they occur then it has to be man-
aged in a more effective manner. Board of Directors are one who posses’ responsibility to form
various policies related to timely formation of CSR activities and then implementation of such
type of practices in all levels of management.
To understand the influence of CSR activities on business operations
Internationally
From the view of Gygli, Haelg, Potrafke, and Sturm, (2018 ), CSR activities possess a
very significant impact on all business operations of a business organization. CSR is a concept
which is having a major aim to examine overall role of a business on society and then making
efforts to maximize overall positivity of a business activity (Wiek and Lang, 2016). This will
also help in creation of a positive image for the target segment of customers and for all the
stakeholders of a company. Every organization has a different goal behind implementation of
CSR practices and this has to be in accordance with overall objectives of an organization which
have been set by concerned authorities. In case of international business this CSR aspect has a
main role as when an organization is planning to expand themselves across various other
countries there is also a need for a strong image in the domestic markets. This will help in