Business Ethics and Practices

This assignment delves into the crucial aspects of business ethics and sustainable practices. It examines how companies can implement ethical principles, effectively manage stakeholders, and establish practices that ensure consistent customer satisfaction and retention. The analysis draws upon scholarly sources and perspectives on conscious capitalism, corporate social responsibility, and the evolving role of businesses in society.

HOW BUSINESS
OPERATES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Classification of business on the basis of public and private sectors....................................1
1.2 Structures within the business of Public and Private Companies.........................................1
1.3 Implications on business at local, national and global economic environment....................2
TASK 2............................................................................................................................................3
2.1 Importance of accounting for business success....................................................................3
5.1 Functions of HR department................................................................................................3
5.2 Key features of employee legislation....................................................................................4
TASK 3............................................................................................................................................4
3.1 Accounting workshop...........................................................................................................4
TASK 4............................................................................................................................................5
4.1 An analysis on determination of roles of team members......................................................5
4.2 Team Development..............................................................................................................5
4.3 Need of leadership and motivational style in context with different situations....................6
4.4 The way leadership style and motivational skills are used to influence workers.................6
TASK 5............................................................................................................................................6
6.1 Impact of customer Service...................................................................................................6
6.2 Benefits of customer retention..............................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A business is affected by the environment in which it operates therefore it becomes
crucial to analyse the factors which impact the business and its operations. These factors can we
both internal and external. For the purpose of carrying out these operations in an affective
manner, a company have to manage its resources well, these resources our manpower, finance
Etc. In order to evaluate how a company like Tesco works, a report has been prepared. The key
highlight it features of this report would be the type of organisation, role of teamwork and
customer service on the success as well as failure of business, functions of HR department role
of accounting, And the key features of employment legislation (Weiss, 2014).
TASK 1
1.1 Classification of business on the basis of public and private sectors
Public companies are those companies which are owned and managed by the
government, the ultimate aim of this kind of organisations is to seek the benefit of the society in
general, most of the public companies would be in the sector of healthcare and social care, Law-
enforcement etc.The government would be having a controlled stake in these organisations,
usually more than 51%.When an enterprise his own or managed by an individual or a group of
individual and 30 mate aim is to earn more and more profit than that organisation is called as a
private company. In public sector types of ownership for defined as on the basis of the state
ownership and Centre ownership, however in private sector it is decided by individual
ownership, joint ownership also known as partnership or joint stock company (Goldratt, 2017).
1.2 Structures within the business of Public and Private Companies
The structure of an organisation can be of various types, and different types of
organisation carries a different structure these are discussed as below:
Sole Proprietorship: It is owned and managed by a single individual and the owner would have
greater control and flexibility towards the organisation with almost nil legal control over the firm
(Bernstein, 2015).
 Partnerships: These involve two or more individuals who have decided to come together
for the purpose of doing business and making profits. The liability of both the partners
1

under this kind of structure is Unlimited and they are liable for their personal property as
well.
 Limited Liability Partnership: Under this kind of organisational structure, The Two or
more individual will come together to do business but with a stipulation of having limited
liability and they will not liable for any personal property in case of default but the
partnership will be liable (Dijkman, and et. al., 2015).
 Corporations: These are big businesses which were having a bit more complex structure,
it is for me to earn higher revenues and involved in such big business activities that
would have a greater impact on the society and will enable company to earn higher
profits.
 Non-profit corporations: The ultimate aim of this kind of businesses is not to on profit
but to serve mankind. It provides services to citizens for their benefits. The organisation
is usually done on a charitable basis and most of the funds received from charity.
In United Kingdom, organisations are divided on the basis of their particular age as well as
objectives. The structure of this is this is also clearly states that in order to meet the team
wants and needs of various individuals within the society, it is necessary to have a different
kind of structure of a particular business (Mackey and Sisodia, 2014). It is not possible to
operate with the same structure Because the aims at object is of business are different and
therefore has to be met in the same manner. Although, it can be said that there are two
types of organisation private and public but their ultimate aim is to serve mankind (Amit
and Zott, 2015).
1.3 Implications on business at local, national and global economic environment
Tesco is the British retailer, which was established in the year 1919 and since then it has
grown into a big giant retailer which provide services in various countries of Europe. It is
headquartered in England; United Kingdom. The exposure of the company is on international
level. Therefore, some of the key areas of policy which is influenced the business can be
discussed as follows:
Economic policy: it refers to the policies related to the economy of country that of the frame by
the government. Because Tesco operates in more than one country, its policies are affected by
various decisions taken by different governments while framing economic policy (Warner,
2018). Some of the major element of economic policy is the taxation policy of government. If the
2

economy of a country grows, so will be the profits of the corporates and businesses that runs
within that country. Monetary policy is framed by the apex bank of a country also have impact
on the operations of the business. For example, the rate of interest will be kept hi by the central
bank, then culprits will borrow less money and therefore will lead to lower production in the
economy and that would mean less profits for companies and vice versa. Hence it can be said,
that economic policies to have a significant impact on the workings of Tesco within and outside
the UK.
Legal Policy: There is a constant change that is taking place with the laws and regulations of
every country. These laws are framed keeping in mind the benefits of the ultimate citizen, and
therefore it becomes even more important for organisations like Tesco to make sure that they are
right all the rules and regulations framed by the government. If the company does not able to
stand on the expectations of consumers regarding fulfilment of legal regulations and laws. It will
hamper the image and reputation of company, which will thus, result in lower profitability for
company. If a company wants to operate on a global level it has to make sure that it’s products
and services match with the legal standards and laws of Global level.
TASK 2
2.1 Importance of accounting for business success
For the purpose of running a business, it is quite necessary that various transactions are
recorded in a proper manner so that the results can be evaluated and the performance of the
company can we assessed after the end of a particular period. Hence it can be said that
accounting is a very important aspect of any business. It involves recording of the areas assets,
liabilities as well as income, expenses of the business. If these will not be recorded properly,
Tesco will not be able to evaluate its performance and therefore necessary decisions will not be
taken (Doppelt, 2017). There are two aspects of accounting as well, it is management accounting
and French shall accounting. Management accounting is related with recording of the transaction
at its initial stage, on the other hand, Financial accounting is related with analysing those
recorded transaction and taking decisions based on facts and figures available.Tesco contains a
separate accounting department within its company, which make sure that all the transactions are
recorded properly and the accounts of the company are managed in affective manner. Some other
3

benefits of having in proper accounting system would be to know the budget as to how much
shall be spent and what profit is expected etc.
5.1 Functions of HR department
Human resource management is a very important aspect of any business because it
involves management of the human capital of an organisation. There is a separate department for
management of human resource in Tesco, the major function of HR department of the company
can be laid down as follows:
 Recruitment and selection: this department is responsible for hiring and recruiting fresh
talent from various sources within the company (Reim, Parida and Örtqvist, 2015). The
ultimate aim is to enhance the productivity of organisation through experience and
knowledge of talented individuals. The process of recruitment Involve various steps in
Tesco, and an individual selected after a proper analysis of his personal statement.
 Training and development: once the right kind of talent are selected within the company,
it is the responsibility of management to make sure that they are properly trained and of
love, so that there is Chris can win arrest and they will be able to walk more effectively
for the organisation. Tesco spends very good amount on the training and development of
employs and workers, which enables it to serve its customers well and compete
effectively in market.
 Management of employee relations: it is the responsibility of HR department that right
kind of implied relations are maintained between the management and employees as well
less workers. If there will be lack of harmony between the two then it will result in lower
productivity as well less profitability (Palattella and et. al., 2016).
5.2 Key features of employee legislation
The government of UK has came up with various legislations in order to protect rights of
employs and make sure that there is no violation of such rights on the part of employers. The
main features of such legislations are protection of individuals from discrimination caused due to
age, sex, religion, colour etc. it also insures their rights Through proper regulations like
minimum wages, irregular dismissals.
TASK 3
4

3.1 Accounting workshop
Income Statement of Tesco for the year ended 2017
Particulars Amount in USD
Revenues 74.01B
COGS 70.01B
Gross Profit 4.4B
Selling and Gen exp 1.99B
EBITDA 1.35B
Non-Operating Income 2.64M
Int. Exp. 1.16B
PBT 191.92M
TAX Prov. 115.15M
Net Profit 177M
TASK 4
4.1 An analysis on determination of roles of team members
Working in amass encourages colleagues to diminish their shortcomings by imparting
perspectives and insights with each other. It additionally help individuals to work in a productive
way alongside, achieving an undertaking in a brief timeframe. Through this procedure,
representatives can upgrade aptitudes and offer an abnormal state of duty so as to accomplish set
objectives and destinations in a fitting way. Being a piece of such group, I have encountered an
abnormal state of fulfilment and in future can function admirably together in a coordinated way.
By working in aggregate I have picked up capacity to explain any write errand effortlessly. I
have additionally seen from administration perspective that in an organisation, working in group
helps in showing signs of improvement consequence of results (Adjei and et. al., 2014). What's
more, I have assessed that for expanding adequacy of a group, assemble director need to clarify
destinations, receive proper initiative and reasonable enrolment so he can pick up responsibility
of all colleagues in a proficient way.
5

4.2 Team Development
Team development is a sensual for carrying out specific activities in the business. Tesco
believes in developing its team By using various stages of team development, these are discussed
as below:
 Forming: it involves attracting individuals Within team members towards goals and
objectives of business.
 Storming: under this, roles and responsibilities are allotted to team members.
 Norming: At this stage, team members are able to learn the ideas as well as procedures
by working with each other in collaboration, they can also work in reducing conflict
within each other.
 Performing: in this stage, every individual will understand about his task in the team and
will work accordingly
4.3 Need of leadership and motivational style in context with different situations
In order to meet with various challenges of business it is necessary that proper leadership
is there within the organisation which can take company forward. An efficient leader will be
having right kind of motivational strategy to motivate its workforce and make the best out of
them, both leadership and motivation is an Essential aspect for proper management of the crucial
human capital that exist within Tesco.
4.4 The way leadership style and motivational skills are used to influence workers
There are various leadership styles which can be used by a manager for a litre to
influence the workers within Tesco. These Styles will have a direct impact on how individuals
will work within the company (Omar, Leach and March, 2014).
TASK 5
6.1 Impact of customer Service
If the services provided by Tesco to its customers will be effective it will lead top
customer retention and thus will generate higher level of profits for company on a sustainable
6

basis. Better customer service will create good reputation and brand image of the company
among people and thus will lead to growth in value of company.
6.2 Benefits of customer retention
Studies have shown that 5% retention of customers can lead to a increase in profit margin
by 25% for Companies working within Retail Industry. It is thus very important that Tesco
should focus on retaining its customers, instead of adding more customers. Through this it will
be able to gain customer Loyalty and enhanced brand image (Petro and Gardiner, 2015).
CONCLUSION
From the above discussion, it can be said that the business is influence with alias factors
that prevails within the internal as well as external environment. These include economic and
legal policies and the leadership and motivational aspect of the company. The structure of an
organisation is different, and it has been created for the purpose of serving different needs.
It is also evaluated from the discussion, that right kind of practices shall be followed by the
companies in order to retain customers and provide them effective services on a consistent basis.
7

REFERENCES
Books and Journals
Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Bernstein, M. H., 2015. Regulating business by independent commission. Princeton University
Press.
Mackey, J. and Sisodia, R., 2014. Conscious capitalism, with a new preface by the authors:
Liberating the heroic spirit of business. Harvard Business Review Press.
Warner, K., 2018. Building rules: How local controls shape community environments and
economies. Routledge.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Palattella, M. R., and et. al., 2016. Internet of things in the 5G era: Enablers, architecture, and
business models. IEEE Journal on Selected Areas in Communications. 34(3). pp.510-
527.
Adjei, H., and et. al., 2014. Assessing the Corporate Social Responsibility Activities of Atwima
Kwawoman Rural Bank Limited and its Impact on the Communities it Operates.
European Journal of Business and Innovation Research. 2(4). pp.36-47.
Omar, A.T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business
sectors: A framework to guide strategy development for nonprofit organizations.
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. 25(3).
pp.657-678.
Petro, Y. and Gardiner, P., 2015. An investigation of the influence of organizational design on
project portfolio success, effectiveness and business efficiency for project-based
organizations. International Journal of Project Management. 33(8). pp.1717-1729.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
Amit, R. and Zott, C., 2015. Crafting business architecture: The antecedents of business model
design. Strategic Entrepreneurship Journal. 9(4). pp.331-350.
8

Dijkman, R.M., and et. al., 2015. Business models for the Internet of Things.International
Journal of Information Management. 35(6). pp.672-678.
Goldratt, E.M., 2017.Necessary but not sufficient: a theory of constraints business novel.
Routledge.
9