Tesco's Business Ethics, CSR, and Sustainability: A Critical Analysis

This essay provides a critical analysis of Tesco, a major UK retailer, focusing on its business ethics, corporate social responsibility (CSR), and sustainability practices. It explores key concepts such as stakeholder theory, globalization, and the triple bottom line. The essay examines Tesco's core competencies, ethical guidelines, and contributions to sustainable development goals, including its efforts to address food surplus, support employee well-being, and ensure product quality. It also delves into Tesco's approach to globalization, its adherence to UNGC goals, and its commitment to corporate social responsibility through various initiatives, including environmental protection, energy efficiency, and community engagement. Furthermore, the essay analyzes Tesco's relationships with its stakeholders, including customers, employees, and suppliers, and discusses the criticisms of its stakeholder theory. The essay concludes by highlighting the importance of stakeholder engagement and the role of government in Tesco's business operations.

RUNNING HEAD: BUSINESS AND SUSTAINABILITY 0
Business and Sustainability

BUSINESS AND SUSTAINABILITY 1
Tesco is a British merchandise retailer of groceries with their headquarters in England,
Welwyn Garden City, United Kingdom and Hertfordshire. Since the inception of the
company has gone many development stages and with the attainment of now Tesco is one of
the UK largest retailers and control over 30 per cent grocery market which is quite double in
combined share of Sainsbury. Tesco has also widespread it’s all activities of business and
employing over larger numbers over 550,000 people in more than 7817 stores with the group
sales (Tesco Plc., 2019).
The essay is about Tesco Company from UK and the main focus is on critical analysis of the
concepts and key theories in reference to ethics of business. This essay aims to achieve
different components of business ethics through its various stakeholders and study of
business ethics, globalization and sustainability. The CSR and the stakeholder theory of firm
will be critically analysed. The core competencies includes outstanding effectiveness of its
operations, deeply understand to orientate business around the customers, and more concern
about successful and passionate developing talent from its internal and external environment
(Tesco Plc., 2019).
Business ethics are the principles of the organization or a code of conduct that organization
should always follow. It compromises of principles and values that help to guide the actual
behaviour in the organization. Every company has its own guidelines, principles and helps to
keep investors, attract employees and customers. Reputation and goodwill is the important
asset of the company and if it is lost, it need longer time to build it again. As with all its
business, the ethical operation of company directly affects its profitability (Association of
Chartered Certified Accountants, 2019).
Business ethics have started developing an academic discipline and philosophy had suggested
that there are certain principles which are applied to corporate activities. Corporates find
themselves with public attack and respond by developing all the notions of social
responsibility. The new ingredient that has led in field of business ethics as it is a way of
entry in significant number that has brought philosophical analysis to accept on variety of
such issues in business for longer time (CFI Education Inc, 2019).
Business ethics are the moral guidelines and principles that act as a way to precede its
conduct and help to find its trust, reliability, choices and responsibilities. This help trade and
interactions between Tesco Company to be remain as fair and honest that result in providing
better services. Sustainability is a discipline where top authority people have aspects to
human resources from more business that translate technology to environment. Sustainability
is a combination of three spheres which is social, environment and economical. Tesco
contributes as a different way with different degrees to sustainable development goals. A
sustainable program is a result of commitment to environmental, economic health or triple
bottom line. Sustainability programs have both institutional applicability and it is always a
balancing act way to peruse (Vanderbilt University, 2019).
The sustainable goals with the development are to provide a focus for how civil societies,
government and business tackle global challengers to promote a sustainable future. The
targets of Tesco facilitate food surplus programmes in all the stores which are providing

BUSINESS AND SUSTAINABILITY 2
meals and to support colleagues that lives healthier lives to customers with choices of food
every time (Tesco, 2019). The code of Tesco is to build its laws and policies that leadership
behaviours guide in conducting positive aspects of business. Our customers always expects to
have the products with highest quality and in other hand, this leads to ensure safety of the
products from delivery until the main time when customer have ability to purchase it.
Globalisation is a trend which is progressive by humanities, beliefs that are united through
globe spanning of networks and trade. Globalisation is the connection which is formed
between nations and some barriers are reduced in encourage and exchange between countries.
With the growing interdependence of all the populations and world economies and flow of
investment, countries are more focus to facilitate these movements with countries worldwide.
(Kolb, 2019). When Tesco research in international markets they have a plan to enter into
countries globally and are well established supermarkets are not finding best options as they
struggle with tough competitions with world globally.
The IMF states globalization as economic interdependence that grows in countries with the
help of increasing volume and cross border variety transactions in services that helps to grow
international flow and widespread immense of technology. To grow business sustainability
there should be measures of organization which implements to improve the basic quality with
relationship to its main suppliers. Improving of HR services with basic requirements of
change in the organization and that motivates the internal structure
Tesco structure with Modern Corporation need to determine what are the basic strategies to
be outsourced through a global network where there are partners associated with it and get
benefitted from it. The major UNGC goals of Tesco Company are based on labour where
business should have freedom of association and upholds the abolition of child labour. There
should be elimination of unfair practices in occupation and employment. Human rights play
significant roles globally and should be fair for all the people around the globe. Tesco
Company continues to mix its members through global compact and this should be in support
to UN sustainable development goals (Tesco, 2019).
Corporate social responsibility may be defined as a commitment of large business who
contributes to effective way of sustainable economic development and who work for families,
society and local communities. The companies integrate environmental and social concerns in
which business operates and there is the interaction with all its stakeholders on regular or
voluntary basis. Corporate social responsibility describes the stated principles that Tesco aims
to achieve through positive contributions to its society all over world. It refers to wide areas
of particular actions that Tesco takes from charity to reduce carbon emissions and awareness
of the environment (Tesco Plc., 2016).
Tesco is a grocery selling company in UK that registered in many countries with grocery
market. The business core values can be classified with the help of its strategies and business
practices. The main motive behind this they need to have core value that no one can copy and
treat people in best way they can. The approach is based on environment protection of Tesco
that integrates corporates responsibility such as recycling, emissions and it’s all company

BUSINESS AND SUSTAINABILITY 3
products. The concentration is also based on energy efficiency and consumption of water in
environmental impacts of customers and its operations (Tesco Company UK, 2019).
Tesco has its position on relationships with its customers as it has tried for keep it prices low
for its customers so people can buy more quality products at reasonable prices. Tesco has
built an online checker of price to show low prices for their customers, and customers can
compare Tesco prices with other brands and supermarkets. The value for money is the factor
which is also considered and that includes personal services of all their staff and maintains
quality of its product and calm behaviour pattern in stores.
Tesco focuses on its areas of society, fund raising and its charities, economy and
environment. Tesco has establishes its core plans of activities with charitable trust and that
has major focus for fundraising of staffs. In 2017, Tesco directly have employed 296,967
people in its headcount which corresponds to 193,067 full time employees. The retail
spending of Tesco has indirectly supported 449,301 full time equivalents in UK. Evidence
results in Tesco has paid total of 3.4 billion in taxes, and from this 1.2 billion was collected
from government that includes VAT on employment taxes for Tesco employees. Providing
market opportunities and increases in growing demand work with all its suppliers to know
about latest trends and supported the contractual agreements. (Tesco , 2018).
The core activities of investment are the important tool that determine economic contribution
and recognized as an important driver for economic growth. In financial year, Tesco invested
millions in regards to capex in UK that represents estimation of 0.4 per cent of total UK
business investment for year 2016. In this section there is a contribution of Tesco to local
people and employment, it also deals with extensive footprints of various stores, wider
operations across all over UK. This helps to generates jobs in the local areas and generates
activities which are economic in nature.
Stakeholders are the people who are not the owners of the company but they are most
important part of company growth structure and increase the profitability of the business by
taking active part in formulating policies. They tell about the analysis of the internal and
external environment and their competitive strategies to grow. Shareholders, employees,
suppliers, customers, interest groups and local communities are the actual stakeholders of the
company. Tesco Company is a biggest company in UK that built around customers and its
vision that guides the impact of direction to the organization and its strategic decisions.
Customers, colleagues and its suppliers are the main stakeholders of the Tesco Company and
they guide them better for profitability of their business (Prezi Inc., 2019). The main criticism
of Tesco stakeholder theory is that it is best done with continuous basis when strategy is
implemented on short basis then there is problem with the employee to adapt changes in
frequent times. There is subjective approach of the assessment that is more critical on every
company and stakeholders of Tesco are sometime are less interested in the process of
management structure as they may be getting their profits from their competition. Suppliers
are sometime focus on specific approach and not on the other side of the business where
company wants to grow in.

BUSINESS AND SUSTAINABILITY 4
There are seven thousand UK suppliers where supply chain is extended across ranges of
different sectors to agriculture and professional services. There are some additional
contributions to local level by employees who are direct and indirect employees and spending
their wages. Customers are the entities whose are the buyers of company’s products and
recommend the various company essential products to other companies. This group is mostly
belongs to stakeholders from outside and their loyalty with customer is identified with
average week spend (Tesco Plc., 2019).
A supplier belongs to the people who have partnerships and those categories under different
stakeholders. Colleagues invest in company in order to serve better for its customers. They
are basically from internal structure of the organisation and they reflect upon the employee
KPI that measures to recommend great places of work. Customer’s performances on social
and environmental issues help the company to demonstrate its social and corporate
responsibilities. Individual who possess the right to hold the capabilities of shares and
increase the income by various, methods are the real stakeholders of any firm. Tesco is trying
to gain its higher number of profits with its investors and stakeholders and they are really
trying harder in business for successful development
Non-government organisations and Tesco meet to understand the scenario and help what
people in expecting for the company plans, areas and covering wages that are located in
outside locations. Though, Tesco stakeholders nowadays have increased the influence on its
business activities. Customers, employees and the suppliers are the stakeholders that have
increased the main influence in their business activities. The community citizenship has been
included continuously in company activities and its decisions. Understanding the main
stakeholders of the company is the best way to grow its business no matter whatever the size
it is. The managers are also the internal stakeholders of the company as their process starts
with hiring of the new staff, plans for the future stakeholders and its competitors and ensure
for everything that goes well. Stakeholder engagement is the main process where firm
stakeholders engage in improving firm decision and accountability towards CSR and
achieves the triple bottom line. The government plays significant role in Tesco Company as it
is able to employ people over past years and that means more people are being employed and
paying taxes regards the same.
This result in huge help to government as taxes in today world is to be paid with amount that
they are earning. Tesco are to deal with local communities and the interest in business
development is to give a planning that permits business decides to build a new store for local
people and communities. Successful business brings most of the general wealth to
communities who are local, and which later helps to fewer contributions to local projects in
other. The main criticism result in not paying taxes to government on a regular basis and this
is the major problem raised in Tesco Company. Tesco is the largest leading supermarket in
the UK. The main criticism is with the recession period as with the international strategy
Tesco always focus on global opportunities that realizes the domestic market in UK. In line
with the multichannel strategy, there is a successful contribution to develop business growth,
understanding the needs of the customers and customer services. But this also deals in launch

BUSINESS AND SUSTAINABILITY 5
of 4g technology and this result in retailers to adapt new channels in all its competitive
markets. (Ghrmay, 2017).
The sustainability of Tesco has been defined as a development where needs of the present are
fulfilled and no interruptions to future generations are focussed. The corporate social
responsibility, sustainability and the stakeholders are the backbone of the company profits,
growth and they develop in maintain the structure of whole organizations like Tesco. They
have different roles to be played in mechanisms of Tesco Company and with sustainable
consumption and its production (JONES et al., 2019).
Tesco claims that CSR is integral approaches of the business to boardroom for embed in the
company governance framework. There is always cross functional team which supports the
wellbeing of the CSR functions that provides leadership and gives various reasons to its
stakeholders (Jones & Comfort, 2019). Business ethics and globalisation are the different way
as one focuses on internal structure and other on global world where the company has its
contributions around the world. The influence is depend upon the traits and the principles of
the which stakeholder is contributing in company growth and its structure. Corporate social
responsibility is the social belonging as how they contribute in development for society and
listen to their thoughts and work on it. Corporate social responsibility is a management
concept whereby company integrate environmental and social concerns in all their business
operations that have interaction with all its shareholders.
The board recognizes to consider the concerns and main needs of the stakeholders in the
Company to grow its formations into success. The board is the strong stakeholder that has
relationship to build in a sustainable business. There are major stakeholders that build strong
relationship with Tesco Company as communities, customers, colleagues and the suppliers.
To choose the one stakeholder from all of the above, the community plays a role where there
are launch of the new schemes and many places and people are benefitted. The company
achieves a balance of social imperatives, economic and environmental and that is triple
bottom line approach which used to address the whole expectations of Tesco shareholders
and its stakeholders. Triple bottom line approach stands for people, profit and planet and they
have main importance in functioning and on-going process that helps the company to keep on
track towards the business that demonstrates the whole community at large.
Community helps to build and get more advantage when we talk about new launches and
how people are adapting to those changes. The community always launched different types of
plans where there is board involvement and corporate committee launches the final ‘ Little
help plan’ that is based on the concept of providing little help for everyone can makes the big
differences in three areas as places, people and our products. The members of the board
committee have also visits to the beneficiaries of Tesco bags and the community food
connection, for the initiatives as a support of Tesco (Tesco Annual Report, 2018).
The launch of little helps plan aims to pull efforts and focus on activities for most of its
customers and suppliers. This is the business strategy that helps to address challenges for
affect its customers and communities. Diversity are extremely important part of Tesco
company as it tells about who are the serving customers and shoppers a little better every day

BUSINESS AND SUSTAINABILITY 6
in a company. The main goals is committed to support next generation that offers 2300 young
people to gain experience in 2018. To provide quality products at affordable prices and
healthy sustainable products is the biggest strategy they want to provide to this plan (Tesco
UK, 2018).
The main motive behind this is to ensure products are good for people, planet and for our
customers also. The major aim behind this is to provide big ambitious and hope that our main
actions on environment at UK shopping basket in the plan. This can be achieving by helping
Tesco customers to eat more sustainably and lead the way to eliminate all the waste from
retail industry. Tesco believe in sustainable products that can easily access and are more
affordable for everyone. There is a high demand for sustainable food and 80 per cent of shops
want supermarkets wherever source is responsible in sustainable way. So, communities’
plays important role from other stakeholders as they are the one who adapt with changes and
responses to them that increases growth potential of the Tesco Company and its whole
structure (Tesco UK, 2018). Globalization is the activity which is connected through global
structure of plans and strategies and wherever there is Tesco Company there are same
stakeholders but their perception and strategies are different. An important role in stakeholder
relationship with Tesco as company external environment is based on political and
technological factors and stakeholders from external part are the players in the development.
The results which are drawn from this business and sustainability report where there is a
criticism of the major concerns and various activities of business to calculate the corporate
social responsibility and major role of Tesco market. The impact is based on the new
strategies and formations of adaptation with its critics on whole organisation of Tesco.
Business ethics are the rules and guidelines which are followed by organisation for positive
growth and achievement of targets and goals. The concept of sustainability with globalisation
is the biggest task for every organisation in whichever strategies they are dealing with
stakeholders. The main focus is on stakeholder theory of the Tesco and all the stakeholders
are the main components for its success. Suppliers, communities, customers, government and
owners are the major stakeholders of Tesco Company.
To choose one of the stakeholders is the difficult choice as every stakeholder plays different
role in company growth. Local communities have effective plans that contribute to all the
people who are availing services through Tesco Company. The launch of the new schemes is
there and that develop the confidence and more trust in people of Tesco Company. The
concept which can improve business ethics are to ensure leaders that exhibit proper
behaviours of the business. Be more diligent about the enforcing policies that develop ethical
standards. It is equally important to praise employees for best practices (Barnes, 2016).
Doing so, there should be positive reinforcement that has long term goals for the business
organisation. Yes, business should adopt involvement of its stakeholders as they are most
important part and they can analyses the contribution in company effectiveness. The specific
problems that may analysis from company with the new launching and new strategies
implementation that which resources to contribute. The stakeholder’s face various challenges

BUSINESS AND SUSTAINABILITY 7
as to gain the reputation is something gets wrong and trust of investors for a strategic
roadmap for recovery that address its problems (Griggs, 2015).
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