Corporate Governance Impact on Tesco Stakeholders: A Research Report

This research report examines the role of corporate governance in managing stakeholder expectations, using Tesco as a case study. It delves into the overview of research, research aims, objectives, and questions, along with the rationale behind the investigation. The report includes a comprehensive literature review, exploring the role of corporate governance in business organizations, the board of directors' role in CSR decisions, and the influence of CSR activities on international business operations. The methodology section outlines the research philosophy, approach, time horizon, design, data sources, collection techniques, sampling, ethics, limitations, and validity. The findings are presented through thematic analysis, followed by reflections, recommendations, and alternative research methods, culminating in a conclusion. The report aims to analyze the role played by corporate Governance in managing expectation of stakeholders of an organisation with a case study on tesco.

Research Project

Table of Contents
TITLE OF THE RESEARCH – “To analyse role played by corporate Governance in managing
expectation of stakeholders of an organisation.” A case study on tesco.........................................3
Overview of Research............................................................................................................3
Research Aim.........................................................................................................................3
Research Questions................................................................................................................4
Rationale of investigation.......................................................................................................4
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY.....................................................................................................7
Research philosophy..............................................................................................................7
Research Approach................................................................................................................8
Time Horizon.........................................................................................................................8
Research design:....................................................................................................................8
Sources of data.......................................................................................................................8
Data collection techniques....................................................................................................9
Sampling................................................................................................................................9
Research ethics......................................................................................................................9
Research limitation................................................................................................................9
Reliability & validity..............................................................................................................9
DATA ANALYSIS AND INTERPRETATIONS...........................................................................9
THEMATIC ANALYSIS.....................................................................................................13
Reflection.............................................................................................................................25
Recommendations................................................................................................................26
Alternative research method.................................................................................................26
CONCLUSION..............................................................................................................................26
REFERENCES..............................................................................................................................27

TITLE OF THE RESEARCH – “To analyse role played by corporate Governance in
managing expectation of stakeholders of an organisation.” A case study on tesco
Overview of Research
The phrase corporate governance is one of very crucial elements of every business this is
related with overall system in concern with policies, rules and procedures of a organisation
(Kumar, 2019). This is very helpful in balancing interest of all stakeholders’ interest which is
related to the company directly or indirectly. This report is based on TESCO, which is a British
multinational store of groceries. It is third largest retailer in world which is measured by its gross
revenue. This report deals with practises related to corporate governance and how it is related
with business organisations. There is a specific role which is analysed of board of directors while
decisions have to make with respect to corporate social responsibility. There is also
determination and influence of CSR practises on various business operations internationally.
Background of Research
Companies all over world are dealing with many issues and they have to deal with it so that they
are able to survive in the high competitive environment. Corporate governance is one such issue
which can help them in gaining good will and building up of a positive brand image. In context
with Tesco, board and top management of this retail brand are the ones who are solely
responsible for formation and implementation of practises related to CSR. Thos research work is
based on how effectively such practises are important and lead to positive contribution in
achievement of business objectives. .
Research Aim
“To analyse role played by corporate Governance in managing expectation of stakeholders of an
organisation”.
Research Objectives
 To identify the role of corporate governance in a business organization
 To examine the role played by board of directors in making CSR decisions

 To determine the influence of CSR activities on business operations
Internationally
Research Questions
 What is the role of corporate governance in a business organization
 Explain the overall role played by board of directors in making CSR decisions
 How can CSR activities possess influence on business operations
Internationally
Rationale of investigation
The main reason behind conducting this investigation is determining positive and
negative impact of corporate governance practises on an organisation. This is a concept which
can help organisations in having a concern for all stakeholders. This leads to transparency in
functioning of overall business functions. Which has a positive impact on good will of an
organisation and leads to increase in profits & sales. This investigation will help in supporting
and helping the investigator on topic is to have a detailed analysis of influence of corporate
governance on interest of stakeholders. There are many techniques and tools which have been
used and various research methods have been applied by researcher in this report for analysis of
the collected data. This leads to ensuring effectiveness presentation of outcomes for all readers
who will be using the outcomes of this research in formation of further effective strategies.
Evaluating and interpret.
LITERATURE REVIEW
Role of corporate governance in a business organization
As per the thoughts presented by the author named as. Michie, J. ed., (2019), it has been
analysed that corporate governance is plays an essential role in the growth of the company as it
provides them guidance about the right manner in which they are performing their work. While
Talking about retail sector it has been analysed that each and every company belonging to this
sector are required to focus on the following all certain guidelines associated to the sector which
ensures that what so ever activities that is being performed by them are ethically correct. It also
supports them in developing their stronger image within the society that contributes in gaining

competitive edge. This can be well understood with the help of an example. For instance:
manager of the TESCO can attain range of benefits by incorporating with corporate governance.
This simply includes it allows company in setting clear goals that can be achieved by them in
quicker manner. This is a whole system which is used for managing and directing all functions in
a company. Which is in concern with how effectively business objectives can be achieved in
timely manner. There rate lot of risk which are present for a business (Bresler and Stake, 2017).
This can be minimized so that positive outcomes can be achieved and performance of employees
can also be optimized. Corporate governance is very helpful in determination of ways so that
effective decision related to strategies can be developed which can add value to all stakeholders
on a organisation. There is transparency in all business functions if there are adequate practises
related to corporate governance in a organisation. This leads to safeguarding of interest of all
stakeholders who are related to a company.
Along with this it also allows business association in ensuring that all the services which
are offered to its customers are ethically right and they will place any sort of harm to them. As a
result, it can be said that corporate governance is considered as the effective initiative taken by
the company that allows in executing all business activities in rightful manner and supports them
enhancing their sustainability at marketplace in effective manner. This is helpful in establishment
of CSR strategy as it forms one of very crucial components for maintenance of company’s
competiveness and also helps a organisation in growth & development. Corporate governance is
basically a interaction which is taking place between shareholders, management of a company
and Board of Directors. So, that performance of a corporate can be shaped effectively and is also
preceding towards achieve objectives and set goals.
Role played by board of directors in making CSR decisions
From viewpoint of Hirst, and Thompson, (2019) , board of Directors play a very
essential role in making decision with respect to decisions related with corporate social
responsibility. Board of directors are ones who are responsible for ensuring that there is
effective practices related with corporate social responsibility. This is concern with various CSR
programs which a organization is willing to implement in a organization. If a organization is not
able to access concern and expectations of stakeholders then this lead to non fulfillment of CSR
responsibilities by a organization. Board of Directors are the higher authorities in every
organization they form part of top amangent in every organization (Mackey,

and (Gass, 2015). They are ultimately responsible for formation and implantation of all policies
which have to be adopted in all parts and functional departments of an organization. So, Board of
Directors play a major role in formation of policies related with CSR decisions in a prganostaion.
Boards are actually the responsible authority who have the responsibility to evaluate
effectiveness of existing management systems in a company. This is regards to environmental
and social concern of a business. There is a specific process which is present and has to be
followed whenever a policy is being implemented.
With instance to TESCO, board is adopting the practice of corporate social responsibility in a
way that they try to ensure that there are proper resources which are present for employees who
are working for achievement of overall objectives. With the usage of an oversight approach
Board plays a role of monitoring compliance with standards which can help in reinforcing of set
expectations of internal stakeholders. In case of external stakeholders, such as customers the
board has a responsibility to provide high quality. There are many risks such as environmental
and social which are present and can have negative impact on overall functioning of a
organization. Hence, in this also comes the role of Board of directors as they have to make
appropriate measures so that such type of losses can be minimized and if they occur then it has to
be managed in a more effective manner. Board of Directors are one who posses’ responsibility to
form various policies related to timely formation of CSR activities and then implementation of
such type of practices in all levels of management.
To understand the influence of CSR activities on business operations
Internationally
From the view of Gygli, Haelg, Potrafke, and Sturm, (2018 ), CSR activities possess a
very significant impact on all business operations of a business organization. CSR is a concept
which is having a major aim to examine overall role of a business on society and then making
efforts to maximize overall positivity of a business activity (Wiek and Lang, 2016). This will
also help in creation of a positive image for the target segment of customers and for all the
stakeholders of a company. Every organization has a different goal behind implementation of
CSR practices and this has to be in accordance with overall objectives of an organization which
have been set by concerned authorities. In case of international business this CSR aspect has a
main role as when an organization is planning to expand themselves across various other
countries there is also a need for a strong image in the domestic markets. This will help in

approaching market of other countries in a more effective manner. There is better opportunity as
more trade and investment can be done across the new launches in other countries. With instance
to Tesco, there is a very important role which has to be played by effective Corporate social
responsibility practices these help in attracting top talent. This is very crucial for smooth
operations of all functions. There can be increase in sales and profitability which can also be
achieved with help of corporate governance practices and strategies related to corporate social
responsibility.
RESEARCH METHODOLOGY
Research methodology define as a specific process used by the researcher on order to use
to identify, analyse and gather the information on a particular topic. It has been said that there are
various tools and techniques used by researcher in order to complete the whole research in an
effective manner. In the present research, a research onion is going to be used by the investigator
so that favourable outcome will be produced (Guest, 2017). There are various types of tools and
techniques used by the researcher in order to conduct the whole research in an effective manner
by gathering sufficient amount of information. For this research, investigator used research onion
which are going to be discussed as follows:
Research philosophy
It is said that there are two main types of research philosophies used by the researcher in
order to complete the whole investigation in an effective manner. These research philosophies
includes interpretivism as well as positivism. Both the research philosophy are going to be
discussed as follows: Interpretivism philosophy: It is the method where various techniques are used by the
researcher so that they collect information and data in an effective manner. Some of the
methods within this method include observation, personal interview and so on.
 Positivism philosophy:- It is the another type of philosophy which includes various
aspect mainly based on scientific reviews presented by past authors which help in giving
overview. It is the kind of philosophy the primary emphasis is on the social behaviour of
people.

In order to perform the whole research in an effective manner, interpretivisim is the
suitable and best philosophy used by the investigator so that information will be collected in an
effective manner.
Research Approach
In order to gather and collect all the data and information in an effective way, research
approach which is used by the researcher is inductive as well as deductive approach. It is said
that the inductive approach is used by the researcher which provide ample number of opportunity
so that in-depth examination will be performed (Mukhopadhyay and Gupta, 2014). These
information will support the aim and objectives of the research so that positive outcome will be
produced.
Research choice:- It is said that there are generally two main types of method used by the
researcher which includes qualitative & quantitative method. In this research, qualitative method
of investigation is used by the researcher in order to complete the whole research in a positive
manner (Guillaume and et. al., 2017).
Time Horizon
It refers to one of the most essential tool used by the researcher which helps the
researcher in identifying whether the research is performing on given time period. For this, a
Gantt chart is used by the researcher which is a graphical presentation of each and every activity
which includes the time duration of the research.
Research design:
It has been said that there are generally three main kind of research design which includes
exploratory, descriptive & experimental. Out of these types of research, descriptive investigation
design is used by the researcher in this report which helps in allowing to enhance the in-depth
knowledge of the information.
Sources of data
It is the another element which is adopted by the researcher in order to complete the
whole research in an effective manner which are primary & secondary method. In the context of
present research, both primary as well as secondary method is used where questionnaire is used
by researcher in primary and in case of secondary various journals, books are used by the
researcher.

Data collection techniques
It has been identified that there are ample number of techniques used by researcher which
includes interview, observation, face to face communication as well as questionnaire method. In
this project, questionnaire method is used by the researcher so that all the information will be
collected in an effective manner (Kundu and Mor, 2016).
Sampling
It has been said that in the present research, random sampling method technique is used
by the researcher where 40 respondents is chose by the investigator so that they can gather all the
information in an effective manner.
Research ethics
It is the research which need to be performed by researcher in ethical manner and
consider all the factors in an effective manner. It has also been said that there must be
confidentiality in the gathered information so that every individual feel secure and safe while
providing information to the researcher.
Research limitation
One of the main limitation faced by the researcher is that there is limited time period in
order to complete the whole investigation. Reason behind this is that the time period is very
limited which might affect the whole research outcome. Therefore, it has been said that in order
to perform the whole research in an effective manner, investigator is required to take more time
so that all the information gathered by the researcher will be authentic and appropriate.
Reliability & validity
It has been said that the reliability as well as the validity of the research is highly based
on the sources which are used by the investigator in order to gather data and information (Tuohy
and Cooney, 2013). In the present research, questionnaire is the method adopted by the
researcher in order to collect the data where respondents give their views which help in
concluding the information in an effective manner.
DATA ANALYSIS AND INTERPRETATIONS
Data interpretation is one of the important section of the research as in this the analysis of data is
being done by the researcher which they have collected (Mohajan, 2018). On the basis of the
responses so provided by the respondents various recommendations are made and the decisions

are taken. For this the investigator has collected the data from the employees working in the
Tesco plc, the managers and a few members of the organisation who serve at some senior
designation. Further the thematic analysis of the data was done with the help of which the
analysis was done effectively. With the help of the questionnaire so prepared for the
investigation could effectively analysed the aims and objectives of the organisation. The graph is
prepared which provides the clear understanding of the responses of the employees, managers
and others. For undertaking this research in all 50respondents were taken into consideration. The
questionnaire and the analysis of the responses are given below:
QUESTIONNAIRE
Questionnaire
Name –
Email ID –
Designation -
1. Do you have knowledge about the concept of globalisation and its aspects.
 Yes
 No
2. In yoTur point of view what is the role of corporate governance in managing key
stakeholders of Tesco organisation.
 Protection of stakeholders
 Controlling environment
 Transparency and ethics
 Performance management
 All of the above
3. Do you think that corporate social activities will be beneficial for Tesco company and its
operations
 Yes
 No
4. According to you what is the benefits of corporate social responsibility on performance
as well as profitability of Tesco company.

 Enhancing brand image of company
 Improve customers bases
 Access to funding
 All of the above
5. What are the key issues or problems faced by company due to corporate governance.
 Conflicts of interest
 Accountability issues
 Increase cost
 All of the above
Q6) How long you have been working in the organisation?
 0-5 years
 5-10 years
 10-15 years
 More than 15 years
Q7) Does the managers or the team leaders take any suggestions from you regarding how the
company can contribute to the society?
 Yes
 No
Q8) Are you aware of the policy of corporate social responsibility that your organisation
follows?
 Yes
 No
Q9) According to you, how does the corporate social responsibility influences the business
operations of Tesco Plc?
 Attracts better talent towards the organisation
 Retention of employees becomes easier
 Improves the image of the organisation
 Improves sales of the organisation

 All the above
Q10) According to you who must be held responsible for the corporate governance in your
organisation?
 The Board of Directors
 Managers
 Employees
 More than one person