Impact of Ethics Violations on Corporate Governance Strategy of Tesco

This report investigates the repercussions of ethics violations on the corporate governance strategies employed by UK retail organizations, with a specific focus on Tesco. The study begins with an introduction that outlines the significance of ethics violations and their influence on corporate governance. A comprehensive literature review explores existing research on the concepts of ethics violations, corporate governance, and the critical role of ethical maintenance in shaping governance strategies. The methodology section details the qualitative research approach, sampling techniques, data collection methods (primary and secondary), and data analysis strategies employed. The report then presents and discusses the findings derived from both primary and secondary research, followed by a critical review of the results. Recommendations and an action plan are proposed to address the identified issues and improve operational efficiency within the context of ethical considerations. Finally, the conclusion summarizes the key findings and their implications.

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.