Corporate Governance Principles and Practices at Tesco

Unit 7 Corporate Governance
Principles and Practices

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................4
TASK -1...........................................................................................................................................4
1.1 Defining corporate governance..............................................................................................4
1.2 Identifying the general governance structure of the organization.........................................5
1.3 Assessing the role of governing body to direct and control the organization .......................6
1.4 Distinguish the roles of management and the governing body..............................................7
1.5 Describing how organization can achieve good governance.................................................8
TASK 2..........................................................................................................................................10
2.1 Identifying the different corporate governance codes to achieve good performance at
senior management level ...........................................................................................................10
2.2 Describe the similarities and differences of various theories affecting corporate governance
development ..............................................................................................................................11
2.3 Identify ways to minimize conflicts of interest....................................................................12
2.4 identifying how to develop a transparency accountability and control in the system and
processes of organisation. .........................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Corporate governance is very much important to manage work in the current era where
the business environment keeps of changing and there are lot of uncertainties in the business.
Also, present report is based on Tesco where role of its governing body and certain principles of
corporate governance followed at the workplace are discussed in detail. Moreover, the study will
also explain how organizations would achieve good governance in coming years. Furthermore,
identification of various governance codes to achieve good performance will at senior level will
also be explained. Also, similarities and differences of various theories that affect the governance
will also be identified. Lastly, in this report certain methods will be identified that would develop
transparency, accountability and direction in conducting various processes of the organization.
TASK -1
1.1 Defining corporate governance.
It is the system through which the companies are guided and controlled so that all
operations are conducted in well-defined manner. Also, in company shareholders role is to
properly appoint directors that will help in establishing proper governance within the workplace
so that people are able to carry out the work smoothly and interest of all other parties is
maintained.1 Moreover, in context of Tesco it can be said that company make sure that proper
corporate governance is established so that there are no legal problems in the future.
Furthermore, there are 4 P in this concept that are followed such as people, process, performance
and purpose. Thus, through strictly following all these 4 p the quoted firm is able to create better
market opportunities for the future growth. Also, through adopting good corporate governance
quoted firm has been able to build trust with potential and current investors and the community.
Also, Tesco has been able to deliver the long term success and economic growth because
bests of interest of everyone is maintained. 2Moreover, through good corporate governance
1 Ali, M. A., Hazem Ramadan Ismael, and Ahmed H. Ahmed. "Equity incentives,
earnings management and corporate governance: Empirical evidence using UK panel
data." Corporate Ownership & Control 17. no. 2 (2020): 104-123.
2 Kolev, Kalin D., David B. Wangrow, Vincent L. Barker III, and Donald J. Schepker.
"Board committees in corporate governance: a cross‐disciplinary review and agenda for
the future." Journal of Management Studies 56. no. 6 (2019): 1138-1193.