Analysis of Business Ethics, Standards, and Practices at TESCO

This report provides a comprehensive analysis of the business ethics of TESCO, a multinational retailer. It begins by outlining TESCO's background and its reputation as an ethical company, highlighting its commitment to ethical trading, human rights, and community involvement. The report then delves into the ethical philosophies employed by TESCO, specifically utilitarianism and deontology, and how these approaches shape the company's practices. It further examines the crucial roles of senior management and employees in upholding business standards, emphasizing the importance of corporate culture, communication of goals, and support for asset management. The report also explores the application of the triple bottom line—people, planet, and profit—in the context of TESCO's operations, detailing its efforts to consider the impact of its actions on stakeholders, reduce its ecological footprint, and ensure financial sustainability. Finally, the report concludes with a reflection on the key learnings and insights gained from the analysis.

Business Ethics

Table of Contents
INTRODUCTION...........................................................................................................................3
Background of the company and the reason it considered ethical..............................................3
Ethical philosophy(Utilitarianism and deontology)....................................................................4
Role of senior management team to maintain business standards of organisation.....................5
Role of employees to maintain business standards of company.................................................6
Triple Bottom line in context to respective organisation............................................................6
REFLECTION.................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business ethics is defined as an effective business practices and policies associated with
controversial subjects involving corporate social responsibility, corporate governance, fiduciary
responsibilities, discrimination and so on. In addition to this, business ethics ensure an extent of
trust among consumers & different form of participants associated with the business. This form
of practices also ensure that customer or public receive a fair treatment by the company. For this
project, TESCO is chosen as a base company (Crane and et.al., 2019). It is a multinational
general merchandiser and groceries retailer which was established in year 1919 and head office
in England, UK. The report will cover ethical practices reasons why respective organisation is
considered as ethical. In addition to this, ethical philosophy used by company is discuss in the
report. Moreover, role of employees and senior management team to maintain business standards
of organisation. In the last, Gibb's reflective cycle is used in order the learnings of the project.
Background of the company and the reason it considered ethical
TESCO is a British multinational organisation which was founded in the year 1919 and
head office in United Kingdom. The company has high market presence as it offer its products as
well as services in more than 14 countries and have around 6,800 shops which is operated by its
talented and effective 45,000 employees. TESCO stands as third largest retailer measured by
gross revenue and ninth largest in all over the world measured by revenues. The operating
income of TESCO is £63,81 billion and net income is £1.31o billion.
In the year 2019, TESCO scored as ethical consumer's best rating because of its supply
chain management. It is an international organisation that has high reputation in market as it
provide quality goods and services (Barry, 2016). In addition to this, the company seek to deliver
best results in order to give highest return to shareholders and beneficial service to the
customers. Ethical conduct sis basically termed as what is morally right & honourable as well. In
order to maintain reputation and to gain success, the company conduct activities in a legal and
ethical manner. The code of business conduct of TESCO involves fundamental principles of
ethical behaviour & also state the responsibilities of all employees, directors, agents, officers,
company representatives and so on. It is analysed that TESCO has broad range of ethical policies
that cover various areas such as ethical trading, human right, animal testing, fair trade, local
community sponsorship and many more. In addition to this, the company also has other ethical

policies as in this dynamic business environment as policies is also changed that help in
improving business situation in an effective manner. The company also conduct CSR activities in
order to improve the conditions of society. TESCO also has a campaign that is associated with
the education of children of villages. Moreover, the company ensures benefits and profitability of
stakeholders. By analysing of all these activities of companies, it is stated that TESCO is an
ethical organisation.
Ethical philosophy(Utilitarianism and deontology)
The area of ethics includes defending, systematizing & recommending concepts of the
wrong and right behaviour. In addition to this, ethics seeks to resolve issue of human morality by
describing the concepts that is virtue and vice, good and evil, justice and crime and so on
(Ethical Behaviour of TESCO, 2019). There are mainly four types of ethical philosophies that is
utilitarianism, deontology, egoism and teleology as well. It is analysed that TESCO make use of
combination of approaches to be ethical to the society.
Deontology approach: It is based on an idea that an organisation is morally obliged to
follow all the principles and rules of thumb. In context to TESCO, it follow policies as
deontology approach are all retailers are one team, strive to perform best, respect and trust each
other, celebrate success, learn from experiences and many more.
Utilitarianism approach: This approach is basically judged the moral worth of actions
through the utility of their foreseeable aspects for every person impacted by a specific set of
actions. In relation to TESCO, it is a part of Ethical Trade initiative from the year 1998 and also
support the work of fair trade foundation. In addition to this, the company also sell as well as
promote fair trade production that is chocolate, banana, tea and coffee. There are many reasons
why TESCO make use this approach to the ethics of society (Swanson and Frederick, 2016) . It
want to develop an effective relationship with suppliers so that its reputation is maintained within
the market sector. With the assistance of strong relationship with suppliers, the company have
stable supply of its products as well as services.
Teleology approach: This approach states that whether the results of an action attain the
original objective. The objective of TESCO is to maintain its market share and keep on growing
by developing value to the customers. The company is focusing on expanding business
operations that state the growth and success of respective organisation.

Egoism approach: It is the philosophy of self-interest which claims that corporate and
personal benefit is only the rational aspect for judging economic actions. In context to TESCO, it
is a financial contributor to FRAME (fund for the replacement of animals in medical
experimentation. In addition to this, it also has a charity trust in order to provide support to
children and people with disabilities.
Role of senior management team to maintain business standards of organisation
The role of senior management team is to make the decisions and implement the policies
in order to make the change in the organisation. Which make the impact the other employees of
the company (Reinecke, Arnold and Palazzo, 2016). Managers make the bar which help in
creating a way to treat the staff and relate to other employees and increase the growth rate of the
company. In TESCO, their top management deal with the various role and responsibilities in
order to manage the lower staff members of the company. Top management make the changes as
necessary in the way to make the decision, the way to interact with the other managers of the
company. Also their main task in the company is to make the employees satisfied and keep them
enthusiastic to operate the TESCO activities in an efficient manner.
Setting the corporate culture: To make the company policies and culture is generally
start-up with the top management of the TESCO. The leader of the company make the procedure
and create the culture in the company in order to complete the objective of the company. A good
culture will create the activities, innovation and think out of the box which actually help the
company to get the success from the innovation and strategies.
Communicating the goals: The goal and vision of the company is known by the top
management. So they has the responsibilities to communicate those goals and mission to the
other employees (Ciulla, 2020). If anyone in the organisation are not known by the objective
then it is the responsibility of the employer to provide the relevant information to the employees.
So that they can easily work in the company and achieve the desired objective.
Provide the support to the asset management: The top management of the TESCO are
decide the financial planning and take the decisions regarding the department's Budget. Here if
any departments wants to purchase the asset or any equipment then they must need to approved
by the top management. It is necessary to make the authority on the assets to complete the
desired project in the given time period.

Role of employees to maintain business standards of company
There are the various roles and responsibilities of the employee to maintain the standard
of the business in the market and get the success in the company. A company is the place where
different type of people are joined and work in the same culture to attained the same goal of the
company (Waweru, 2020). There are the various roles of the employee in the TESCO, to provide
the success in the company and get the personal development also. In order to maintain the
business standard an employee must work safely in order to ensure their own safety and health as
to provide the best quality to make the more satisfied customers. Also at the same time there are
some social responsibility which make the successful company.
Following rules: The employees should obey the policies and rules of the company so
that it is easy to both of them to work. They perform the work accurately and supposed to
complete the work as it is essence to be an employee.
Honesty: An employee must be honest in handling their day to day dealing with and on
behalf of the organisation. An employee must not steal anything from the company or any other
equipment which has the right of the business. Also their nature must be trust worthy so that
every employer feel easy to share anything either personal or professional with them. They
should also be honest while they are applying for themselves as an employment in the
organisation.
Confidentiality: The employee of the TESCO is excepted to them to keep the secrets of
the company and should not disclose their confidential reports to any of their competitors or any
one in the market.
Conflicts of Interest: The employee should able to disclose the any conflict which may
rise in the market or any other conflict which affect the business (Sholihin and et.al., 2020).
These can be include anything either with the business owner, workers or any other competitors
of the market.
Triple Bottom line in context to respective organisation
The triple bottom line is the process where the company are responsible first and
foremost to all there stakeholders. And all of these stakeholders are involved in the company
whether directly or indirectly. In this bottom line there are three P's are involved which are
people, planet and profit.

People: TESCO allow the triple bottom line, as they think about the impact of the other
people's action. And these people can be anyone, the farmer or the small business who are
supplying them raw materials or the CEO of the company who manage the financial activities
and make the relevant decisions of the company (Quarshie, Salmi and Leuschner, 2016). This
include the health care services, good working conditions, a healthy environment, create more
opportunities to work more in the company are the aspect of the company to take into the
considerations while doing the bottom line application.
Planet: Here TESCO, take the pain to reduce the ecological footprint of the company in
the worldwide area. They work for the sustainability, recognizing in the go green concept and
increase the profit for the long run concepts. But this is not possible with money only, they have
to plan and make a successful business cycle plan and try to evaluate the real cost of the
company in order top complete the demand of the customers (Gheraia, Saadaoui and Abdelli,
2020). It is difficult for the company to reduce their energy usage, dispose the toxic in a very safe
and secure way without harming the environment. TESO reduce their operational toxics and
waste which are harmful for the organisation and also for the customers.
Profit: It is the bottom line which is using by all the companies either they are using the
triple bottom line or not. As because financial activities are the ones which are necessary for all
type of industry. The idea is develop in the profit segment is to sustain and empower the
community as a whole, the CEO and shareholders are to work properly and managed the work
effectively.
REFLECTION
I evaluate the Gibb's reflective model which help myself to make the right decision in
learning from the experiences.
 Description – In the lectures, I have learnt a lot about business ethics. This has helped
me to grab lot of data regarding the need of business ethics and honesty within the
company. I am pleased that I get a chance for getting such great opportunities to evaluate
my initial projects on the controversial topic that is business ethics. I come to identify that
ethics pertaining the ideal code of conduct for human beings. I get to know that business
ethics are never influence by the business or any individual culture in the organisation
 Feelings – . These ethics are the most common thing which is actually used by every
organisation. In the business organisation like TESCO, these ethics are used to morals

and social morals which help the organisation to get the success. In this assignment I
learn the behaviour of the TESCO, in order to complete the business ethics standards. I
learned the CSR policies and many ethical philosophies which are helpful in making the
business standard decisions in the company.
 Evaluation – Various role and responsibilities are provide to the managers, top
management which are distribute in them according to their positions. At the same time
the employee's of the company are work in the right manner so that they can achieve the
desired objective of the company.
 Analysis – I have evaluated that there is need of having knowledge about business ethics
and regulation as it increase information about the data associated with business
management. It is evaluated that there is need of understanding business ethics and
responsibilities.
 Conclusion – I have concluded that information about business management and
development is important for creating new ideas and strategies for completing business
tasks.
 Action Plan - There is a proper action plan prepared for managing the evaluation of
business ethics. There is requirement of enhancing my own skills and develop ethical
skills of conducting business activities.
CONCLUSION
From the above assignment it is concluded that business ethics is very important to run
the business from the aspect of high productivity and increasing profitability. Most of the
business are follow the business ethics as it increase the cost but at the same time it increase the
value of the company in the market. The company can use Ethical philosophy which mainly
include utilitarianism and deontology theory. In these two one has to follow the rules as a rule of
thumb and another theory work as in the practical manner. Also the role of senior management
and employee are very important as they are delegated with the different role and responsibilities
which they have to complete. It help in increasing the profit of the company, and make the long
term sustainability while following the business ethics by using triple bottom line concept.

REFERENCES
Books & Journal
Barry, N., 2016. Business ethics. Springer.
Ciulla, J.B., 2020. Business ethics as moral imagination. In The Search for Ethics in Leadership,
Business, and Beyond (pp. 121-129). Springer, Cham.
Crane, A. and et.al., 2019. Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press, USA.
Gheraia, Z., Saadaoui, S. and Abdelli, H.A., 2020. Relationship between Business Ethics and
Corporate Social Responsibility. American Journal of Management Studies. 5(1). pp.1-
6.
Quarshie, A.M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and
business ethics journals. Journal of Purchasing and Supply Management. 22(2). pp.82-
97.
Reinecke, J., Arnold, D.G. and Palazzo, G., 2016. Qualitative methods in business ethics,
corporate responsibility, and sustainability research. Business Ethics Quarterly. 26(4).
pp.xiii-xxii.
Sholihin, M. and et.al., 2020. A new way of teaching business ethics: The evaluation of virtual
reality-based learning media. The International Journal of Management Education.
18(3). p.100428.
Swanson, D.L. and Frederick, W.C., 2016. Denial and leadership in business ethics education.
Business ethics: New challenges for business schools and corporate leaders. pp.222-
240.
Waweru, N., 2020. Business ethics disclosure and corporate governance in Sub-Saharan Africa
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Online
Ethical Behaviour of TESCO, 2019. [Online]. Avaiable through:
<https://studymoose.com/ethical-behaviour-of-uk-supermarket-tesco-essay>