Ethics and Corporate Responsibility

This essay examines the importance of ethics and corporate responsibility in business, using Tesco as a case study. It explores key ethical theories, the concept of corporate social responsibility, triple bottom line accounting, and the strategic implications of good corporate citizenship. The essay also discusses the role of ethics in decision-making and analyzes an ethical dilemma faced by Tesco.

Ethics and Corporate
Responsibility

Table of Contents
INTRODUCTION.....................................................................................................................................4
Main Body.............................................................................................................................................4
a). Knowledge and understanding of key ethical theories.................................................................4
b) Concept of Corporate social responsibility....................................................................................4
c) Discuss the concept of triple bottom line accounting....................................................................5
d). Explain the concept of ethics, morals, values and good corporate citizenship.............................5
e) Strategic implication of good corporate citizenship and business ethics.......................................5
f). How business ethics assist decision making..................................................................................6
g). Ethical Dilemma............................................................................................................................6
CONSLUSION.........................................................................................................................................6
REERENCES............................................................................................................................................7

INTRODUCTION
Ethics and corporate responsibility is essential to be maintained by the organisation. It
can help to maintain corporate governance. In this report chosen company is Tesco and it is a
retailing organisation of UK. The main aim of the company is to maintain ethics and
corporate social responsibility. It covers the following topics like: role of leader in good
governance and socially responsible behaviour, influence of culture in governance, strategic
implications of organisations adopting CSR, concept and theories in the field of corporate
responsibility and awareness of business ethics in decision making.
Main Body
a). Knowledge and understanding of key ethical theories
Ethics are related with what is right and wrong. Business ethics refers to the study of proper
business rules and regulation for smooth functioning of business operations (Mason and
Simmons, 2014). Business ethics provides a framework which needs to be followed by
Tesco to gain public acceptance. The ethical theories applied by business are as follows:
Deontology:
According to this theory, there are right and duties to behave in certain ways, directed
by pure reason. The correct action does not depend upon the effect for general food or utility
produced by Tesco, but depends on the social responsibility behaviour and good governance..
Utilitarian or Consequence based theory:
This theory proposes that the rightness or unfairness of any act must be viewed in
terms of effects that the action produces. The most common form of consequentialism is
social consequentialism which says the leader of Tesco should act in such way to produce the
greatest good for greatest number (Brammer and Matten 2012).
Virtue Ethics:
It refers to what asset makes good public relations professionals. The leader of Tesco
applies this ethics making a decision in light of those favoured virtues.
b) Concept of Corporate social responsibility
Corporate social responsibility is mandatory to be followed by the company. It can
help to the organisations to be accountable towards public and stakeholders. Tesco effectively
follows the concept of CSR in its company because it knows that it should contribute toward
the society. It serves its business in the society so it the responsibility of it to do something
for the people. Tesco is doing the activities which are related to the corporate social
responsibility and companies have to contribute some percentage of its profits towards the

CSR activities. It helps to improve the image of the organisation in front of public and it is an
effective social move towards the welfare of persons (Fifka, 2013).
c) Discuss the concept of triple bottom line accounting
Triple bottom line accounting is like an accounting but not totally slimier. It is also
known as triple accounting. The accounting framework takes into account ecological, social
and financial dimension (Triple bottom line accounting. 2018). This accounting framework
mainly focuses on three dimensions of performance which are financial, environmental and
social. Tesco can use this accounting concept to measure its degree social responsibility,
environmental impact and economic value. Triple bottom line helps the company to make the
lives of person better and not only focuses on to earn profits. Organisation can use this
concept to improve the quality of life of its members as well as persons of society (Trong,
2012 ).
d). Explain the concept of ethics, morals, values and good corporate citizenship
Ethics:
Ethics are related with right and wrongful act. There certain principle and values for
what is right and what is wrong, which comes under the ethics. And business organizations
should follow these principles to accept by general public. The Tesco have their own values
which are followed by them to provide valuable product and service to customers.
Morals:
Morals are the prevailing standards that allow people to live cooperatively in groups.
Some people tend to act morally and follow the societal guidelines. The some moral
principles seem to transcend time and culture like fairness and generally speaking where
morality is not fixed. The Tesco has morality which prevents them to cheat on their
customers (Crane and Spence 2013).
Values:
Values refer to generalized end which has the connotations of rightness, goodness or
inherent desirability. The Tesco have some business values like fairness, creativity and social
involvement.
Good Corporate Citizenship:
The corporate citizenship includes he social responsibilities of Tesco business and the
extent to which they meet legal, ethical and economic duties which is developed by the
shareholders. This refers to the company’s responsibilities towards the society.
e) Strategic implication of good corporate citizenship and business ethics
Good corporate citizenship involves the social responsibility of an organisation which
is needed to be followed to meet legal, economic responsibilities and ethics which are
established by the shareholders. It is the responsibility of an organisation towards the society.
Tesco is maintaining good corporate citizenship to maintain higher standard of living and

quality of life for the people who live in the society. Business ethics are essential for the
business and it involves practices, policies which can solves the issues related to the insider
trading, corporate governance etc. All companies have its own ethics which is needed to be
maintained by its members in the organisation. Tesco is following its ethics which is to
provide quality food and satisfy its consumers and it helps the organisation to perform better
because all employees will work as per the requirements and ethics of its company. It helps to
improve the goodwill and image of the organisation (Crane and Matten, 2016).
f). How business ethics assist decision making
The business ethic is very important for sustainable business performance and to get
accept in the market. Ethics are the moral value which is pre set by the society and
government to deliver ethical products and services in market. The company like Tesco
should be aware about what is right and what is wrong in business to take effective decision
for business. If company will be aware about the ethics of business then they will deliver
those products and services which are ethical and legal.
g). Ethical Dilemma
There are various types of ethics like societal and personal etc. which is creating
ethical dilemma situation for company in decision making. As company is not able to decide
which ethic should be followed and which should not be. So to respond these dilemmas
company analyze its competitors and market, then according follow the trend which is used
by their competitor. For example Tesco is also suffering from same kind of dilemma as
company is not able to decide which ethics should be use and followed within company. So
to overcome this situation Tesco has decided to follow the current market trends (Crane and
Matten, 2016).
CONSLUSION
From the above report, it has been concluded that ethics and corporate responsibility
is important to be follow by the organisations for the smooth and effective work in its
business. Tesco wants to apply this so that it can maintain good corporate governance and
ethics in its business so that it can run its organisation successfully. It uses ethical theories,
CSR activities, triple bottom line accounting and good corporate citizenship so that
management can be improved and company can contribributes towards the society. It also
focuses on the morals and values so that it can perform according to its which can helps to
improve the performance of the organisation.

REERENCES
Books and Journals
Blowfield, M. and Murray, A., 2014. Corporate responsibility. Oxford University Press.
Brammer, S., Jackson, G. and Matten, D., 2012. Corporate social responsibility and
institutional theory: New perspectives on private governance. Socio-economic
review, 10(1), pp.3-28.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Crane, A., Matten, D. and Spence, L., 2013. Corporate social responsibility in a global
context.
Fifka, M.S., 2013. Corporate responsibility reporting and its determinants in comparative
perspective–a review of the empirical literature and a meta‐analysis. Business
strategy and the environment, 22(1), pp.1-35.
Mason, C. and Simmons, J., 2014. Embedding corporate social responsibility in corporate
governance: A stakeholder systems approach. Journal of Business Ethics, 119(1),
pp.77-86.
Trong Tuan, L., 2012. Corporate social responsibility, ethics, and corporate
governance. Social Responsibility Journal, 8(4), pp.547-560.
Online
Triple bottom line accounting. 2018. [Online]. Available Through:
< https://www.investopedia.com/terms/t/triple-bottom-line.asp>