Impact of Ethics Violations on Corporate Governance Strategy of UK Retail Sector Organizations

This report evaluates the impact of ethics violations on corporate governance strategy of UK retail sector organizations, with a focus on Tesco. It explores the concept of ethics violation and corporate governance, the role of ethics maintenance in drafting corporate governance, challenges faced by UK retail sector organizations due to ethics violations, and recommendations to avoid ethical violation and improve operational efficiency.

REPORT

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
RESEARCH METHODOLOGY....................................................................................................4
CONCLUSION................................................................................................................................8
SUMMATIVE ASSESSMENT.......................................................................................................8
INTRODUCTION...........................................................................................................................8
Background..................................................................................................................................8
Research aim and objectives........................................................................................................9
LITERATURE REVIEW..............................................................................................................10
DISCUSSION OF SECONDARY AND PRIMARY RESEARCH.............................................13
Discussion..................................................................................................................................21
CRITICAL REVIEW OF RESULTS............................................................................................23
RECOMMEDNAITON AND ACTION PLAN............................................................................25
Recommendations......................................................................................................................25
Action plan.................................................................................................................................26
REFERENCES..............................................................................................................................30
Questionnaire.............................................................................................................................32

INTRODUCTION
Ethic Violation is one of the biggest issue which has been faced by the Tesco at the time
of drafting corporate governance strategy of the company. Ethic Violation is defined as an issue
which used to arise at the time management of the company is not able to compile all the
different activity of the company with the business ethics. For the same reason this report will
look to achieve the objective of the report i.e. “To evaluate the impact of Ethics violations on
corporate governance strategy of UK retail sector organizations. Study based on Tesco”
Literature Review
Concept of Ethics Violation and corporate Governance
In the published paper Magiste (2020), highlights that Ethics violation is one of the biggest issue
which is faced by all the organization at the time of maintaining the corporate governance
strategy of company. Author explain that any activity which has taken place in the organization
is not compiled with the ethical consideration of the company is regarded as Ethic violation.
Ethic violation may lead to variety of different type of consequences for different stakeholder in
the market.
Joy and McMunigal (2019) highlights that Corporate Governance refers to the way a
corporation is governed. It is the technique in which variety of different sort of rules and
regulation are made with the sole motive of directing and managing different operation of the
business. Author explain that Corporate governance in strategic management is regarded as a set
of internal rules and policy that determine the way company will be directed.
Role of ethics maintenance at the time of drafting Corporate governance
In the article published by the author Bhatt and Bhatt (2017), has explained that business
ethics generally leads to better level of corporate governance and supports its practices. Author
highlights that considering different sort of ethical prospect help the company in generating more
sustainable trust and help the management in passing on the different rules in more impactful
manner. Bhagat and Bolton (2019) at the same time highlights that considering ethical prospect
at the time of drafting corporate governance help management in safeguarding the business value
to different stakeholder. Also, author highlights that considering ethical prospect at the time of
drafting Corporate governance help company in presenting good image of the company in front
of other.

To determine challenges faced by of UK retail sector organizations due to ethics violations on
corporate governance strategy.
In the article published by the author Parasuraman, Raveendran and Ahmed, (2015) has
explained that, the key ethical violation associated with the corporate governance mainly
includes conflicts of interest and ethics violation on the corporate governance can largely
influence the working and reputation of the company. /it can also lead to legal investigation
which hampers the business efficiency. At the same time Hwang and Youn, (2016) highlights
that, ethics violations on corporate governance strategy loses the goodwill of the company and
loses the employees as well as the customers. This adversely hampers the performance of the
retain sector company in UK. It also affects the credibility of the company and decline in the
performance and productivity at a greater extent.
RESEARCH METHODOLOGY
Research methods: The research of the study will opt for qualitative method of research
to gain in- depth information associated with the impact of ethics violations on corporate
governance strategy of UK retail sector organizations. Qualitative method is also significant in
providing context to understand the specific findings.
Sampling: In random sampling method every individual has equal opportunity to get
selected within the sample size. The investigator of the research will choose for random
sampling method where 10 managers of the Tesco UK retail sector organizations will be
selected.
Data Collection: This method is significant in collecting the valid and reliable data for
the study. The research of the study will opt for both the primary and secondary source of
collecting data (Research Methods & Design, 2020). Primary data will be gathered through
questionnaire and the secondary data through journals, books, articles, newspapers, magazines,
etc.
Data analysis: This method is useful to analyse, transform and interpret the data sets
using tables, graphs and charts. The investigator of the research will choose for thematic analysis
where each variables of the themes will be interpreted to attain valid set of results associated
with the impact of ethics violations on corporate governance strategy of UK retail sector
organizations.

Time Line and Framework
Task
Mode Task Name Duration Start Finish Predecessors
Auto
Scheduled Selecting topic 2 days Thu 10/8/20 Fri 10/9/20
Auto
Scheduled
Developing Aim and
objectives 3 days Mon
10/12/20
Wed
10/14/20 1
Auto
Scheduled Outlining 8 days Thu
10/15/20
Mon
10/26/20 1,2
Auto
Scheduled Preparing proposal 4 days Tue 10/27/20 Fri 10/30/20 3
Auto
Scheduled Submitting the proposal 2 days Mon 11/2/20 Tue 11/3/20 4,1
Auto
Scheduled
Detail research
methodology 4 days Wed 11/4/20 Mon 11/9/20 5,2,3
Auto
Scheduled Collecting data 2 days Tue 11/10/20 Wed
11/11/20 6,2
Auto
Scheduled Designing questionnaire 3 days Thu
11/12/20
Mon
11/16/20 7
Auto
Scheduled Sending questionnaire 4 days Tue 11/17/20 Fri 11/20/20 8

Auto
Scheduled Data Analysis 3 days Mon
11/23/20
Wed
11/25/20 8,9
Auto
Scheduled Conclusion 2 days Thu
11/26/20 Fri 11/27/20 10
Auto
Scheduled Formatting 2 days Mon
11/30/20 Tue 12/1/20 11
Auto
Scheduled
Submitting Research
Project 1 day Wed 12/2/20 Wed 12/2/20 12
Auto
Scheduled Waiting for feedback 4 days Thu 12/3/20 Tue 12/8/20 13
Auto
Scheduled Modification 2 days Wed 12/9/20 Thu 12/10/20 14
Auto
Scheduled
Submitting project after
modification 1 day Fri 12/11/20 Fri 12/11/20 15

CONCLUSION
From the conducted study it has been summarized that, ethics violation is the biggest issue
which is faced by the company at the time of maintaining the corporate governance strategy. It is
linked with any activity which has taken place in the organization and is not compiled with the
ethical consideration. Corporate Governance is a way a corporation is governed. Ethics
violations on corporate governance strategy loses the goodwill and reputation of the company.
SUMMATIVE ASSESSMENT
INTRODUCTION
Background
Ethical Violation is considered to be as one of the biggest issue which is usually faced by
the company while drafting corporate governance strategy of organization. Ethical Violation is
defined as an issue which used to arise at the time management of the company is not able to
compile all the different activity of the company with the business ethics. This dissertation will
focus on evaluating the impact of Ethics violations on corporate governance strategy of UK retail
sector organizations.
Tesco company is top leading retail company which has been founded in the year 1919
by Jack Cohen. The company is headquartered in Hertfordshire, England. It mainly deals in

clothing, books, groceries, petrol, financial services, internet services, toys, furniture, telecom,
etc.
Review of the problem faced
The key problem which has been faced by the company at the time of corporate
governance is mainly associated with the ethical violation. This eventually hampers the
reputation and goodwill of the company. Ethical violation results in reduction in the customer
base and lower performance and productivity by the company. The main problem which has
been faced by the researcher is lack of accessibility to the data and problems related with the
peer review. Time constraint is another major limitation which has been faced while carrying out
specific project.
Research aim and objectives
Aim: “To evaluate the impact of Ethics violations on corporate governance strategy of UK retail
sector organizations. Study based on Tesco.”
Research Objectives
 To determine the concept of Ethics Violation and corporate Governance.
 To evaluate role of ethics maintenance at the time of drafting Corporate governance.
 To determine the challenges faced by of UK retail sector organizations due to ethics
violations on corporate governance strategy.
 To examine recommendation to avoid ethical violation and improve operational
efficiency.
Research questions
 What is the concept of Ethics Violation and corporate Governance?
 What is the role of ethics maintenance at the time of drafting Corporate governance?
 What are the challenges faced by of UK retail sector organizations due to ethics
violations on corporate governance strategy?
 What are recommendation to avoid ethical violation and improve operational efficiency?
Rationale
The investigator of the study has selected this topic because this is the major current issue
which in turn has been faced presently. This is this issue presently, because ethical violation can
worsen the performance and also impact the reputation of the company. The investigator of the

study will resolve this issue by interpreting and evaluating each themes and gain wider
perspective related to the subject matter.
Research significance
This study is considered to be highly beneficial for the researcher because it will help the
company to work in an ethical manner at the time of corporate governance. The present
dissertation is going to be highly beneficial for carrying out the suture study. This is useful in
reducing the knowledge related with the subject topic and improve the specific results and
outcomes.
LITERATURE REVIEW
This is a comprehensive summary associated with the previous research topic. It is
significant in surveying books, scholarly articles and other specific sources which are highly
relevant related with the specific area of research. It is useful in providing supportive and
argumentative basis related with the research themes. This section must critically describe,
summarize, clarify previous research and also objectively evaluate the data.
To determine the concept of Ethics Violation and corporate Governance.
As per the views of Mansour, and Bhatti, (2018) evaluated that, corporate governance is
associated with the combination of the laws, rules and processes according to which the business
has been operated, controlled and regulated. Corporate governance is significant in enhancing
the value of the shareholder and also protecting the interest of the shareholders in order to
improve the corporate accountability and performance. Corporate governance is relevant for the
company to enable company in the attainment of the organizational goals and objectives in an
ethical and reliable manner. An effective corporate governance is useful in setting prescribed set
of rules and is useful in determining the relationship with the key shareholders of the company.
Corporate governance is useful in combating the corruption and attract investment within the
global investors. It also helps in encouraging better succession planning and improved decision
making. Corporate governance helps in building environment associated with trust,
accountability and transparency. Kesuma, and et.al., (2020) argued on the fact that, Ethical
violation is one of the critical issue which has been faced by the company while drafting
corporate governance strategy of organization. Ethical violation is defined as an issue which used
to arise at the time management of the company is not able to compile all the different activity of
the company with the business ethics. Company who does not comply with the ethical code of

conduct is considered to be as the ethical violation. However, business ethics is considered to be
as the defined set of application by complying with the ethical values related with the business
behaviour. It helps in setting varied set of rules and complying with the relevant laws. Ethical
violation results in reduction in the customer base and lower performance and productivity by the
company. Nalukenge, Nkundabanyanga and Ntayi, (2018) stated that, business ethics is of
utmost importance and tends to effectively integrate values like trust, honesty, fairness and
transparency within the business decision making, practice and policy. It is considered to be
crucial and is one of the vital component linked with the corporate governance. Business ethics
tends to act as a driver for the smooth journey related with the effective corporate governance.
Bird and Park, (2018) sought to establish their viewpoints that, the company faces ethical issues
at the time of corporate governance. Conflicts of interest, lapsed licensing, fraudulent billing,
mishandling of the funds, etc. are considered to be as the major ethical violation at the time of
corporate governance of the company. Ethics is considered to be significant for better degree of
corporate governance. The ethical behaviour of the company is mainly regulated by the code of
conduct.
To evaluate role of ethics maintenance at the time of drafting Corporate governance.
As per the views of Tan, (2020) evaluated that, evaluating the performance of the board
is considered to be as one of the most prominent way which is useful in improving the ethics at
the time of corporate governance. Ethics leads to better degree of corporate governance. The
ethical behaviour of the organisation is regulated by the code of conduct. Ethical corporate
governance is referred to as the policies and process which a company must comply with in order
to carry out the business in an ethical and reliable manner. It is useful in dealing with the issues
associated with the ethical violation. Ethics is considered to be highly relevant within the
business practice while maintaining corporate governance. It ensures the company comply with
the relevant laws and also comply with the interest of shareholders. Corporate governance is
considered to be relevant because it helps in facilitating long tern and high degree of success to
the company. It is useful in strategic decision making and the business ethics is useful in the
maintaining good corporate governance in an ethical manner. Rukasha, and Bankole, (2019)
argued on the fact that, enhancing the role of the ethics within the corporate governance is
considered to be useful in supporting the practice. It is relevant in the protection of the right of
shareholders at the time of corporate governance. Ethics maintenance at the time of drafting

Corporate governance is considered to be relevant in appointing of the competent board
members which is useful in taking relevant set of decision and improve the operational
efficiency. Prioritizing of the risk management and ensuring timely set of information is highly
significant in enhancing the value of the shareholders and carry out the business in an ethical and
reliable manner. Almutairi, and Quttainah, (2019) sought to establish their viewpoints that,
ethical prospect while drafting of corporate governance is useful for the management in
effectively safeguarding the value of the business to various other stakeholder. It is also helpful
for the company in effectively presenting good image and create value in the eyes of customers.
It is significant in providing implicit corporate governance and helps the business to perform
with greater degree of accuracy and relevance. It is useful in attracting higher corporate
governance and eventually leads to improved operational efficiency and greater productivity.
Ethical structure is considered to be relevant in the promotion of the governance practice. This
eventually leads to high degree of ethical inclusiveness within the governance and also affiliates
corporate governance. Corporate governance is significant in maintaining the moral and ethical
framework. This positively influence the behaviour of the company and improves the company
performance. As per the views of Mpinganjira and et.al ., (2016) evaluated that, an effective
corporate governance helps in growing up the reputation and profits of the company. This way it
helps in representing the relationship and controlling the strategic condition which eventually
leads to higher sustainable growth and operational efficiency. It is highly significant in
improving the results and attain greater set of efficiency. Corporate governance and business
ethics in turn has gained signifiant level of importance which is useful in attracting human and
financial resources. Nalukenge, Nkundabanyanga and Ntayi, (2018) stated that, ethics within the
corporate governance helps in the promotion of transparency, corporate fairness and also
accountability. A good corporate governance which comply with the ethical policies is useful in
encouraging transparency within the business and leads to greater profitability for the business. It
also helps in better access to the global market and improve the goodwill and market share of the
company. It also helps in enhancing the valuation of the enterprise and reduce the risk related
with the corporate crisis. However, the company must comply with the ethical standards, code of
conduct and policies at the time of maintaining corporate governance.
To determine the challenges faced by of UK retail sector organizations due to ethics violations
on corporate governance strategy.

As per the views of Nalukenge, Nkundabanyanga and Ntayi, (2018) evaluated that, the
key ethical violation which is linked with the corporate governance results in the conflicts of
interest and also effect the working and reputation of the organization. Ethics violations at the
time of corporate governance strategy affects the goodwill of the organization. This also hampers
the business reputation when the company do not perform in an ethical manner. The UK retail
company face employee and customer turnover which in turn largely affects the business
operations. This adversely hampers the performance of the retain sector company in UK. Ethical
violation within the corporate governance affects the credibility of the organization and also
leads to decline within the performance and productivity at a higher scale.
Hwang and Youn, (2016) argued on the fact that, conflict of interest among the shareholders is
one of the major challenge which adversely influence the operations of the business. It has wide
set of accountability and transparency issues because if the ethical violation at the time of
corporate governance. Minimizing the losses and over- inflation of the profits can damage the
relationship of the customers. There seems to be a lack of transparency which exposes company
to severe fine and penalties from the regulatory agencies. Parasuraman, Raveendran and Ahmed,
(2015) sought to establish their viewpoints that, every organization has the ethical duty to
provide value to the shareholders and works in the best interest to attain higher operational goals
and sustain better returns. Building the correct ethical atmosphere and establishment of the
policies is considered to be one of the biggest challenge which has been faced by the company.
Unrealistic and conflicting goals is another major challenges faced by of UK retail sector
organizations due to ethics violations on corporate governance strategy. The company must
ensure that, company must comply with the ethical rules and code of conduct which largely
influence the business at a greater scale and influence the business growth.
DISCUSSION OF SECONDARY AND PRIMARY RESEARCH
Theme 1: Yes Tesco comply with ethics while drafting corporate governance strategy
Respondents
Yes 8
No 2

Theme 2: Ethical scale rating by respondents
Respondents
To a large extent ethical 1
Opportunistic, ethical whenever possible 6
Less ethical 2
Unethical 1

Theme 3: Respondents do not know whether leader act ethically or not
Respondents
Yes 2
No 1
May be 7
1
6
2
1
To a large extent ethical
Opportunistic, ethical
whenever possible
Less ethical
Unethical

Theme 4: Yes, Tesco faces ethical violation issues
Respondents
Yes 8
No 2
Don't know 0
2
1
7
Yes
No
May be

Theme 5: Tesco have their own code of ethical conduct pertaining to ethics
Respondents
Strongly agree 2
Agree 5
Neutral 1
Disagree 2
Strongly disagree 0
8
2
Yes
No
Don't know

Theme 6: Leaders do not frequently discusses ethical issues in meetings
Respondents
Yes 2
Not so far 7
Many times 1
2
5
1
2
Strongly agree
Agree
Neutral
Disagree
Strongly disagree

Theme 7: Challenges face by company regarding ethics violation
Respondents
Conflict of interest among the stakeholder 1
lack of transparency 2
Unrealistic and conflicting goals 1
All of these 6
2
7
1
Yes
Not so far
Many times

Theme 8: Company have policies regarding unethical practices
Respondents
Yes 7
No 2
Don't know 1
1
2
1
6
Conflict of interest among the
stakeholder
lack of transparency
Unrealistic and conflicting
goals
All of these

Discussion
With the help of primary research, it has been realized that majority of the respondents
are agree that company comply with ethics in corporate governance and this in turn creates
positive impact upon business. It is so because complying ethics will help to sustain positive
working environment and this in turn increase productivity along with lower turnover. That is
why, there is a need to follow ethical consideration within workplace in order to run a business in
better manner. Further, out of 10 Managers of Tesco, majority (6) of them rated low because
most of the times, Tesco facing ethical violation issues and in this regards selected respondents
are not satisfied with ethical behaviour. LeBaron, Lister and Dauvergne (2017) also present their
views that company facing issues with regards to emission of carbon dioxide, waste products,
unequal pay for employees etc. Therefore, it will affect the overall behaviour of a business in
opposite manner.
By conducting survey, it is further realized that majority of the respondents are not
satisfied with the leaders behaviour and that is why, 7 out of 10 rated that they are not sure that
leaders of the firm act in ethical manner. Also this is supported by Bailey and Shantz (2018) that
ethical behaviour is consider as a nurturing aspect of leadership which in turn raise the
organization's culture and employee's values. Along with this, if leaders behave ethically then
high level of integrity promoted which further encourages subordinates to meet the set goals of a
7
2
1
Yes
No
Don't know

company. Apart from this, in the long term journey, Tesco face many ethical violation that
somehow affect the brand reputation of a business. It is also proved during primary research
because high number of respondents are said company faces many ethical issues. Nilakantan and
et.al., (2020) reflected in their studies that business ethics plays an important role in the success
of any business such that it assist to avoid financial and legal issues which indirectly benefit
everyone involved within a company. So, in past Tesco also faces many ethical issues such that
during September 2019, company received worst rating from Ethical consumer for its policy
because of using toxic chemicals in their electronic products, also it do not have any publicly
facing policy. So this proves that company suffers from ethical violation which somehow lose
their customer base and goodwill from market.
Having code of ethical conduct will lays out the rules for behaviour and this outlines
ethical principles that governs decision as well as improve working environment in the company.
In the same way, while conducting primary research, it has been identified that Tesco have their
own ethical code of conduct which outlines of how employees should behave, handle any issues.
According to Schramm-Klein and et.al., (2016) there is a need to comply with code of conduct
because it is a set of standards which clearly reflected that an organization is protect from
unnecessary and costly risk that also assist to sustain the brand image in market. So it can be said
that a right culture is developed within a business by complying with ethical code of conduct and
this assist to minimize the conflict issues up to some level. On the other hand, from the responses
it is also realized that there are leaders of the company are not discuss any ethical issues and this
in turn affect the motivation of employees.
Therefore, it is quite necessary for the company's leader to discuss all the issues and
provide solutions immediately which in turn encourage employees to involve in many task in
order to meet the define aim. Hanson, (2019) also supported that during one to one session or
board meetings, there is a need to discuss major issues whether it is related to ethics or other. It is
so because consulting with each other provides range of solutions and even employees also think
that leaders consult with them which motivates them to improve the productivity.
Hence, it can be stated that by complying with laws and regulation will directly impact
upon their business reputation and also ensure about ethical treatment with their employees,
clients and partners. It is already clear that Tesco faces many ethical issues within their working
environment and that is why, it also faces many challenges due to ethics violations on corporate

governance strategy. Such that majority of the respondents are completely agree that Conflict of
interest among the stakeholders, lack of transparency and Unrealistic and conflicting goals are
consider some of the major issues which affect the overall working performance of the company.
Thus, it is also supported under literature review section in which Zimmerman (2020) stated that
once a company faces any ethical issue then conflict are arises and this in turn affect the
productivity. Therefore, it is quite necessary to maintain a transparency between the employees
which assist to affect the overall performance of the company.
In accordance with Danilwan, Isnaini and Pratama (2020) there are range of ethical issues
which most of the companies operating in retail sector faces but meanwhile they also develop
strategy which in turn assist to solve the problem in future. In the same way, Tesco also develop
different policies which in turn assist to improve the problem. From the survey, it is analysed that
range of participants are highly agree that company have their own policy regarding unethical
practices performed within a business. Such that code of ethics are developed and manager keep
review all the codes in order to make any changes so that it will not cause any negative impact
upon business. Therefore, it is realized that in order to minimize the issue of ethical behaviour,
there is a need to develop policies that assist firm to run in smooth manner.
CRITICAL REVIEW OF RESULTS
From the result section it was identified that company complies with the ethics section
when it comes to managing corporate governance. Boatright (2017) states that for the
management of corporate governance the most essential thing is managing ethical working in
company. The major reason underlying this fact is that corporate governance includes all the
rules and policies which governs the working of company. Under managing corporate
governance, ethics plays an important role as ethics refers to moral principles which govern
working or behaviour of employees working in company. If person will work in ethical manner,
then working of company will be effective and company will be able to attain all objectives of
company. On the other side Mohapatra (2016) argues that if company will not follow ethics in
corporate governance then there will not be any good working in company. This will result in
non- compliance of employees with the corporate governance and quality of work will degrade
resulting in decrease in goodwill and market presence.
Further from findings and result it was seen that leaders at Tesco act in ethical manner
sometimes that is may be depending on the situation. As per the views of Lipatova, Orishko and

Zakharov (2020) this is not ethical working as leader is the one who is role model for every other
person working in company. If the leader will not work in ethical manner, then other employees
working under leader will also not work in effective manner. For this reason, leaders need to
work in proper and ethical manner. In addition to this the leader are responsible for management
of whole organization and if this will not be managed then operations of company will not work
in effective manner. The major reason underlying this fact is that it is the responsibility of leader
to ensure all working is directed towards attainment of objectives of business. Hence, due to this
it is very essential for leader to work ethical in each and every situation of business.
With the finding section it was witnessed that company is having their oven code of
conduct in relation with ethics. The major reason underlying this fact is that when company
operates by using their own code of conduct then employees know what they have to do. This
code of conduct act as a guidance to the employees that in what manner they have to perform
their duties and work. In accordance with views of Turker (2018) code of conduct is necessary as
this involves a set of various rules and regulations including responsibilities and practices of
individual within the company. These already established rules and regulations provide a guide
to the employees that how they have to work and what pattern they have to follow in order to
attain all aims and objectives of business.
In against of this Awolowo and et.al., (2018) argues that if company also have policy
relating to ethical violation along with code of conduct then it will be more beneficial. The major
reason underlying this fact is that ethical violation policy will guide employees that if they will
not work in ethical manner then what action company can take against employees. This ethical
violation guideline will motivate the employee to always work in ethical and effective manner
and follow corporate governance in their working. The major reason underlying this fact is that
when employees know in advance that if they will not work in effective manner then what will
be repercussion of their act. Then in that situation the employees will try to manage their work in
accordance with corporate governance and ethical principles. This is because of the reason that
employees know that what will be the outcome of not working in ethical manner as per the
ethical violation of corporate governance.
Further with help of the finding above it was found that managing of corporate
governance involves many different challenges which affect the working of company and
performance of employees. As per the views of O’Sullivan (2020) the major challenge faced by

company because of ethics violation is the conflict of interest of shareholders. This is the major
challenge because of which the company is not in effective position to manage the ethics in
business. There are many different types of shareholders and stakeholders within the business
and it is not possible that every stakeholder thinks in same manner. Further in addition to this the
need and interest of every stakeholder will be different and this might create issues in managing
ethical violation in company.
On the other side Al Okaily, Dixon and Salama (2019) criticizes the fact that major
challenges faced by company because of ethical violation on corporate governance is the lack of
transparency. The major reason underlying this fact is that when the company try to impose
ethical working over company then this will demotivate the employees and they will not work in
ethical manner. Further it might be possible that there is lack of transparency among the
employees and management of company. The major reason underlying this fact is that when
more regulations are imposed over employees then it might be possible that employees get
frustrated and irritated from work. Thus, this may result in the fact that they try to hide actual
facts and figures from management and this will have a negative impact over working of
company.
Further in contrast to this Riboldazzi (2016) stated that the major challenge for company
because of ethics violation on corporate governance is the unrealistic and conflicting goals set.
This is also a major challenge because of the goals of business are not set on basis of realistic
business environment then this will result in ethics violation. The major reason for this is that
when the goals are unrealistic then it cannot be attained in proper and effective manner. For this
employees will not work in proper and effective manner as they know that goals of business
cannot be attained as they are conflicting and for this they will violate ethical working and
corporate governance.
RECOMMEDNAITON AND ACTION PLAN
Recommendations
There are different ways through which ethical violation within a company may minimize
and some of the methods or strategies are as mention below:
 Tesco should build a culture of transparency, openness and communication which
encourage employees to participate within every decision-making process. Through this
policy, employees are also feel comfortable and speak out of they see something is not

right. Along with this, company should implement reporting system which allows
employees to disclose conduct violation and determine the procedure if any unethical
practices are performed within a company.
 To improve unethical behaviour, it is suggested to employ data monitoring system within
the workplace which in turn assist to capture complete details. Also, with the help of this
system, company establish management review boards in order to investigate any
violation of code of conduct.
 It is also recommended to offer proactive approach in order to address unethical
behaviour within workplace so that there will be less chances of running any unethical
practices. Moreover, it is the duty of management to review entire code at monthly basis
so that the chances of unethical means of work will be minimized.
 Management of the Tesco should also make sure that there is a right culture at working
place so that it will not cause any negative impact upon business. As a result, it is also
suggested to involve all the employees within decision making process so that it will not
affect the entire business functioning. Also, due to negative working environment, the
chances of having unethical practices is increases and which in turn leads to increase
conflicts as well. That is why, it is suggested to provide positive culture to the employees
which in turn assist to mitigate the ethical violations within a premises.
 Moreover, it is also recommended to Tesco that they should creates code of ethics and
tries to review the same which in turn leads to improve the overall performance of a
company. Also, this code of ethics establish the values which are quite important to a
business and understand the boundary within a firm. Hence, by complying with code of
ethics and may include ethical expectation in the company's mission statement that assist
to improve the ethical behaviour.
Action plan
This is the most essential stage to be conducted by company in order to implement some
strategies for the solution of issue being faced by company.
Issue Person
responsible
Impact Mitigating
strategy
Time taken Monitoring
method
Leaders not
discuss
The leader is
only
The major
impact of this
For mitigation
of this issue
For this
leader must
For this
monitoring

ethical issues
in meetings
responsible
for managing
this situation
issue is over
the working
of company
as if leader
will not
discuss
ethical issue
then this will
have negative
impact on
performance
of company.
Hence, this
will reduce
working
efficiency of
company.
the major
strategy to be
adapted by
company is to
train their
leaders in
proper
involvement
of all the
issues relating
to ethical
violation to
be discussed
in meeting.
This is
essential for
the fact that
when then
leader will
discuss
different
issues and
situation
among all
employees
then this will
bring
knowledge
among the
employees
that they have
take meeting
every month
so that
employees
can learn
different
aspect
relating to
maintaining
and following
of ethics in
corporate
governance.
method to be
used by
company is
that the top
management
and board of
directors of
company
must ensure
that leaders
are includi9ng
ethical issue
discussion in
their
meetings.

to follow all
the ethical
principles.
Conflicting
interest
among
stakeholders
Manager and
top
management
of company
will be
responsible in
managing this
conflict.
This will have
a very
negative
impact over
the working
of company
because of the
reason that if
stakeholders
will have
conflicting
interest then
this will
affect
working and
profitability
of company
to a great
extent. This is
pertaining to
the fact that
there are
many
different
types of
stakeholders
within
business and
Hence as a
mitigating
strategy for
this issue the
most
important
stage is to
prioritise the
interest and
need of
stakeholder in
business. if
one
stakeholder is
having need
which is first
then company
must cater to
the need of
that
stakeholder.
This is
essential
because of the
reason that
when need of
stakeholder
will be
The time
duration for
this strategy
will take
around 2- 3
weeks. This is
due to the fact
that there are
many
stakeholder
and
understanding
and
prioritising
their need
will take time.
For the
monitoring
method the
company can
adapt to
feedback
method.
Under this
method the
top
management
of company
or board of
directors of
company can
take time to
time feedback
from
stakeholders
that whether
their need and
interest within
company is
being
satisfied or
not and
whether
ethics are

it is the
responsibility
of stakeholder
to work in
proper
direction.
Thus, if there
will be
conflict then
this will have
a great impact
over the
working of
company.
fulfilled then
this will keep
the
stakeholder
satisfied and
this will not
lead to any
violation of
ethical
principles and
corporate
governance.
being
followed
within the
company or
not. If the
review of the
stakeholders
is positive
then it is good
but if not
good then
company has
to take many
different steps
in improving
corporate
governance
and ethics.

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Questionnaire
Name:
Age:
Gender
1. Do you are agree that Tesco comply with ethics in corporate governance?
 Yes
 No
2. On the ethical scale how do you rate your company?
 To a large extent ethical
 Opportunistic, ethical whenever possible
 Less ethical
 Unethical
3. Do the leaders in your organization act ethically?
 Yes
 No
 May be
4. Does the company ever faces ethical violation issues in their long term journey?
 Yes
 No
 Don't know
5. Does the company have their own code of ethical conduct with regards to ethics?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
6. Does the leaders discussed ethical issues is meetings?
 Yes
 Not so far
 Many times
7. What are the challenges face by company due to ethics violations on corporate governance

strategy?
 Conflict of interest among the stakeholder
 lack of transparency
 Unrealistic and conflicting goals
 All of these
8. Did the company have any policies regarding unethical practices?
 Yes
 No
 Don't know