Evaluating Ethical Practices in HRM: The Case of Tesco PLC

This report delves into the ethical dimensions of Human Resource Management (HRM) within Tesco PLC. It examines various ethical issues, including the exploitation of cheap labor, biased practices, and the impact of unethical behavior on stakeholders such as investors, managers, and employees. The report highlights the role of managers in upholding ethical standards, monitoring employee behavior, and ensuring adherence to ethical codes. It also discusses the significance of ethical HRM practices for sustainable development and the importance of addressing issues like discrimination and sexual harassment. Furthermore, it emphasizes the need for ethical policies to promote employee satisfaction and protect employee rights. The report concludes by stressing the impact of ethical practices on Tesco PLC's reputation and the importance of aligning HRM policies with government norms to ensure fair working conditions and employee well-being.

Ethics, Organisations and
Society

TABLE OF CONTENTS
INTRODUCTION ........................................................................................................................................3
FINDINGS.....................................................................................................................................................3
CONCLUSION AND RECOMMENDATION.............................................................................................9
APPENDIX..................................................................................................................................................11
References...............................................................................................................................................11

INTRODUCTION
Ethics in human resource management suggest every business firm to ensure that their
HRM team must adopt ethical work practice so that goals and objectives are effectively attained
by the organization. Ethics are those values which has been imbibed within an individual on
reinforced externally that him to distinguish between right and wrong (Carrigan, Marinova and
Szmigin, 2005). In this respect it can be said that exploitation of cheap labour for profit by
corporate business is also considered as ethical issue in respect to HRM. It also allow to provide
an appropriate response. In addition to this, it can be said that ethics in HRM provides a
treatment of employees with ordinary decency and distributive justice. By having improved
focus on ethical business the business entity can have effective accomplishment of goals and
objectives. In present report the ethics in HRM will be evaluated so that concept of ethics can be
understood in desired way.
FINDINGS
Ethics in human resource management
It has been noticed that if human resource management of Tesco PLC is facing issue in
regard to brand loyalty then it is considered as ethical issues. It is significant for business firm to
develop improved focus on ethics so that goals and objectives can be accomplished in desired
way. In order to meet the ethical standards the organization must consider moral values so that
satisfaction among employees can be advanced. It is considered as ethics in human resource
management (Griffin and Moorhead, 2013). In addition to this, it can be said that businesses are
facing issue due to unethical practice in which cheap labour is getting exploited. It has been
noticed that if Tesco PLC is allocating over load work to the employees and not offering them
high pay. It will be referred as unethical practice in regard to HRM which might affect business
in diverse manner. There are number of unethical practices that are related with the HRM. If
management is focused towards not offering incentive on time in respect to extra work then it is
referred as unethical practice of HRM. It can be considered as biased attitude that might impact
the overall outcome. Biased attitude towards employee and any specific situation is also ethical
issue and it may impact the business firm in desired manner. Other than this, promotion of child
labour is also considered as ethical issue that may impact business firm in diverse manner (Adler
and Gundersen, 2007). It has been noticed that labour are being hired by businesses at low cost

in which overloaded work has been allotted to them. In this, proper pay is not being provided to
children. For example, Tesco PLC has hired children for placement of goods from one store to
another and they are having working near by 15 hours a day. But the pay is not according to
work allotted then it will be considered as ethical issue. In order to maintain the ethics, it is
significant for business firm to make sure that human resource department is well focused
towards diverse principles of HRM. If policies are not framed in ethical manner then it will also
impact the success of business. Along with this, any kind of discrimination in HRM policies is
also unethical. It is significant for HRM to make sure that financial support is being provided to
members in respect to functional activities according to ethics. It has been noticed that ethics in
regard to HRM are also might get affected in situation where employees have false claim of
personal details. It means if any employee of Tesco PLC is involved in unethical practice like
sharing of information with other parties, etc. It will be referred as ethical issue that might impact
the working of business entity (Bratton, 2015).
Promotion of ethics in HRM is also significant because it helps in sustainable
development. Breaches of ethics in human resources can lead companies into a world of legal
trouble. Work allocation also needs to be according to employee capability so that ethics can be
promoted in appropriate manner. It also has great impact on the Tesco PLC reputation so
management need to consider it in appropriate manner. Ethics can be promoted effectively in
respect to HRM by having improved focus on discrimination, sexual harassment, etc. It means
the employees exploitation must be considered as critical factor in order to promote ethics. It will
also improve the working of HRM and make sure that low pay labor is not getting exploited.
Employee satisfaction can also be promoted by having effective focus on ethical issues. If ethics
are not well promoted then it might be possible that morale of employee will get decreased. It
will also enhance the negative aspect within Tesco PLC work environment which may enhance
the unethical practice. It means by having improved focus on ethics the business firm can easily
accomplish key goals and objectives. Ethical human resource practice also allows to set out new
measures so that low pay labour might not get exploited at work place.
Impact on stakeholders
As per the detailed study, it can be said that stakeholder are considered as one of critical
aspect because any kind of changes in stakeholder perception might impact the Tesco PLC.
A stakeholder is any person or group associated with the organization that has a stake in the

organization's output. It has been noticed that business decisions are also influenced due to
stakeholders so management need to consider it in appropriate manner (Rudolph, 2016).
Stakeholders of business can be classified as shareholders, customers, employees, managers,
local community, environment and suppliers.
In addition to this, it can be said that stockholders are expecting that they want to ensure
that managers are having operations in ethical manner. If Tesco PLC is not offering proper
remuneration to employees in respect to work then ethical issues arise in the business which
provide a significant impact on business operations. In such conditions investors will get
disappointed. It will also influence the perception of investors that if payment policies are not
structured that means their money is getting misused by mangers. It is necessary to make sure
that investors are not feeling risky while having investment in business. If capital investment is
engaged with unethical aspects then it will impact the brand image. It means investors will back
step while having investment in the business. In order to maximize the investment aspect within
business it is necessary to make sure that working is well considered in ethical manner (Ruiz-
Palomino, Martínez-Cañas and Fontrodona, 2013). If Tesco PLC is not reputed in market in
respect to ethics then perception of investors will also get influenced in negative manner.
Managers are also key stakeholders that can also feel demotivated while having operation
in unethical manner. If ethical aspects and standards within firm are not well maintained then it
might impact the morale of members. It has been noticed that if low labour employees are facing
exploited then it will impact the perception of manager as well. In such conditions it might affect
the manager perception that in future management may also give him more work according to
pay. It will decrease the motivation of manager. Along with this, if working hours of manager
are also increased and no extra pay is being provided then he will also feel exploited. It is also
considered as critical section of ethics in HRM. Moreover, the policies are being implemented by
manager. It means if low pay labour are facing exploitation then manager of Tesco PLC and
employee relation will get influenced. It means manager reputation will also get influenced in
desired way. If ethical issues in regard to HRM have increased then managers will not feel
secure in job (Bulley, 2015). It means overall working of organization will also get influenced in
desired way. It is significant for manager as a stakeholder to expect a good return or reward by
investing their human capital. It is beneficial to have promotion of ethics within Tesco PLC.

Employees are also considered as critical aspect of Tesco PLC. If employees are not
satisfied and ethical aspects are affecting working then overall outcome might get influenced.
Along with this, in order to meet the expectations of employees in respect to the ethics the
companies can have ethical work promotion. It helps in creating occupational structure which
promotes working. It also promotes the equitably rewards so that employee satisfaction can be
advanced. In addition to this, if low cost employees are not receiving reward in respect to hard
working then they will feel exploited. As same the worker is having hard work in the
organization but he got injured during the working hours. Tesco PLC has not provided support in
respect to the incident then it will also be considered ethical issue in respect to HRM. Ethical
values are not well maintained then it might be possible that the issue in respect to health and
safety work can also be advanced. Suppliers and distributors are also considered as critical aspect
because the company success is also dependent on them (Bach, 2009). It has been noticed that if
suppliers are not receiving payment on time then it will also influence the morale. It might also
promote the ethical issue which might influence overall outcome in negative manner. Customers
also need to have efforts to advance the efficiency and effectiveness in order to create loyal
brand. If brand is involved in such kind of unethical practice then it will impact the brand image
so company have to ethical practice in order to meet goals and objectives.
Role of manager
As per the detailed study, it can be said that manager plays a critical role in success of
every organisation. It is one of key reason that managers have to ensure about ethical issues.
Managers monitor the behaviour of employees in accordance with the Tesco PLC expectations
of appropriate behaviour, and they have a duty to respond quickly and appropriately to minimize
the impact of suspected ethical violations. It means the monitoring is one of key role of manager
that helps in meeting objectives (Berridge Robinson and Aldridge, 2009). It is significant for
manager to make sure that decisions are being taken into account as per employees as well as
organizational need. It has been noticed that managers hold a position of authority that make
them accountable of activities. It means if any kind of unethical practice has taken into account
within organization then manager need to take accountability. If manager of Tesco PLC is not
responsible for activities then corrective measures cannot be implemented in desired way. In
addition to this, it can be said that manager is also accountable to bring changes in services so
that goals and objectives can be accomplished. It has been noticed that changes can only be

implemented with a help of managers. It is also necessary for management to make sure that
employees are well aware about all ethical codes so that goals and objectives can be
accomplished in desired way (Boxalland Purcell, 2011).
In addition to this, it can be said that manager of Tesco PLC need to make sure that
working policies are being designed as per government norms. Working hours and pay scale also
need to be decided by manager according to government legislative aspects. It is beneficial to
have promotion of services so that goals and objectives can be accomplished. Managers also
need to analyse the work conditions in appropriate manner so that issues can be identified in
desired way. By having proper understanding in regard to the subject the strategies can also be
designed in appropriate manner so that goals and objectives can be accomplished in effective
manner. Managers also hold accountability to uphold the ethical standards in their own way
(Budhwar and Debrah, 2013). In addition to this, it can be said that planning of strategies is also
one of key role of manager. By having improved planning of activities the business ethics
standards can be improved. It means the management of Tesco PLC must make sure that
assignment of roles and responsibilities to members is also considered as critical aspect. It
indicates that the business firm is having better opportunities in the market. If responsibilities are
not allotted effectively then overall development might get influenced in desired way. It also
indicates that manager needs to design strategies as per reference of issue of low pay labour
exploitation so that work conditions can be improved.
Ethical theories
According to in depth study, it can be said that there are number of theories that can be
adopted by business entity in order to have effective promotion of ethics. By having improved
focus on ethical theories the business firm can have sustainable development (Dowling, 2008). It
has been noticed that there are different kinds of theories. Classification of theories can be as
virtue theory, duty theory and consequentialist theory. It indicates that manager can also take
number of benefits that may boost the working of organization.
Other than this, duty theory is also beneficial because it helps in meeting key goals and
objectives of Tesco PLC. In addition to this, it can be said that duty theories allow to focus on
morale and specific fundamental principles. It means duties must be well implemented in order
to make sure that the standards are well maintained. It is necessary for manager to have

allocation of duties as per capabilities so that issues in regard to working and ethics can be
overcome in desired way. It indicates that if manager is showing concern towards activities that
helps in overcome the issue of employee exploitation. It will provide a great support to duty
theory because it helps in application of duties. Along with this, conditional duties are also being
implemented in appropriate manner. Conditional duties involve various types of agreements; the
principal one of which is the duty is to keep one's promises.
In addition to this, it can be said that there are few more ethical theories that can also be
adopted by business firm so that goals and objectives can be accomplished. It has been noticed
that absolutism is a theory which key principle is to conform the forms. It means with an
assistance of this, objectives can be accomplished in desired way. By having significant focus on
diverse practices the ethical practice can be controlled in appropriate manner. Along with this, it
can be said that utilitarianism is also critical theory that helps in ethical practice. It has been
noticed that it is considered one of significant theory. It is a morale theory that implements fair
choices in an effort to make sure that all parties are following policies. It means with an
assistance of this, it can be make sure that manager has ensured that employee exploitation is not
affecting the work conditions. In this, manager of Tesco PLC needs to decide course of action
according to employee exploitation level and pay policies of organization.
Information required for decision making
It has been noticed that there are number of sources that need to be used by management
while making decision. With an assistance of this, working can be improved in desired way. It
also assists in promotion of ethics so that goals and objectives can be accomplished in significant
manner (Guest, 2011). It has been noticed that management of Tesco PLC need to collect
strategic, tactical and operational activities information so that decisions can be taken into
account. By having improved focus on ethical principles the business firm can also improve
work conditions. If manager is not having appropriate knowledge in regard to ethics and key
working principles then overall impact might get affected.
In addition to this, it is significant for business entity to make sure that key problem is
being defined effectively so that decisions can be taken into account. Along with this, it has been
noticed that by having improved focus on problem the manager can also bring changes in
activities so that goals and objectives can be accomplished in desired way (Halpern and Taylor,
2010). It means changes in work hour policies and pay policy must be according to evolution of

problem. Information about culture, product and overall working also need to be gathered so that
issues can be overcome in desired way. With an assistance of this, information can be collected
for effective decision making process. It also provides assistance in respect to key values that
can cut down the level of exploitation. Concern of all parties and unions also need to be taken
into account so that goals and objectives of Tesco PLC can be accomplished. In addition to this,
it can be said that if manager is not having appropriate working conditions information then
critical decisions can be taken into account. By having improved focus on operational
information the businesses can have better opportunities.
CONCLUSION AND RECOMMENDATION
As per the above study, it can be concluded that business firm to have improved focus on
ethics so that goals and objectives can be accomplished in desired way. In order to meet the
ethical standards the organization must consider moral values so that satisfaction among
employees can be advanced. Employee exploitation and low pay at high work scale is one of
most common issue that impacts business. Stakeholders are considered as one of critical aspect
because any kind of changes in stakeholder perception might impact the business firm. Along
with this, improved focus on ethical theories is also beneficial because it helps in meeting key
goals and objectives. It has been noticed that there are number of sources that need to be used by
management while making decision.
According to above study, it can be recommended that there are number of ways that can
be adopted by business firm in order to have promotion of ethics. In this respect, new standards
can be set out by management so that issues can be overcome in desired way. By having
improved knowledge about ethics and its principles the ethical application can also be advanced
in appropriate manner. In addition to this, it can be said that business firm can also focus on pay
and salary act so that issue of exploitation can be overcome. Application of working hours as per
work hour policy of UK government the issue can be resolved. Along with this, active
participation in trade associations is also significant so that business firm can have sustainable
development. Company can also have effective planning of practical challenging practices that
may enhance the ethical working. It will improve the awareness among members and helps in
sustainable development.

APPENDIX
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