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A Critical Essay Of Corporate Essay

Introduction - A Critical Essay Of Corporate Essay

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Maintaining corporate ethics is critical to achieving company goals in every industry. Observation has shown that business ethics are a company’s demeanour in its activities and policies. Typically, companies that have not been able to adequately execute this area have been seen as having negative publicity in the market they operate in. While CSR guidelines aid organisations in both long-term sustainability and ongoing consumer awareness of their brand (Kim, Yin and Lee, 2020). It concludes that the company’s operations and production processes have no negative impact on the environment. In order to maintain corporate ethics and government policies, it is vital for a corporation to maintain both components. Every facet of a company’s operations is expected to adhere to ethical standards.

It was in 1919 that Tesco was founded. It is widely regarded as the best supermarket in the United Kingdom. A total of 12 nations throughout the world are served by the company’s outlets. This article examines how Tesco’s corporate goals are affected by its ethical standards (Rosnizam et al., 2020). It will also show how Tesco’s sustainable business practises have a positive influence on the environment.

Discussion of Tesco’s Business Responsibility

It is evident that the ethical considerations applied by the organisations and consequently the stakeholders of various sorts have a significant influence on business objectives. Tesco’s ethical practises and their contribution to the company’s success will be clearly demonstrated in this section.

Carroll’s CSR Pyramid:

There are four degrees of responsibility: economic, legal, ethical, and charitable, according to Carroll’s pyramid. Although it is seen as the most important, this is really one of the CSR’s least important duties. Prior to implementing CSR practises, consider how satisfied workers will be. Global Colleague Contribution Panels, conducted by an independent Non-executive Director, provide Tesco with detailed input on areas of interest (Field, 2019). This method works well for the workers since it allows them to remain flexible and stress-free while they are at work.

Legal responsibility includes, among other things, the upkeep of rules and regulations relating to taxation, employment, and other matters (Kusyk, 2021). On the other side, Tesco’s employment policies emphasise teamwork, a healthy work environment, and ensuring that customers’ physical requirements are met. An ethical obligation is one that is upheld by doing business operations in a manner that does not damage others (Field, 2019). In addition, ensuring that the whole supply chain adheres to the Human Rights Protocol. It is Tesco’s goal to provide nutritious and sanitary food, as well as more local items, to its customers. This includes CSR duties such as reducing carbon footprints. By utilising a life cycle analysis and a soft footprint approach to product improvement, this business seeks to reduce the burden on nature and the environment (Choi and Choi, 2021). There is a wide range of Tesco locations around the country.

Deontology Theory of Ethics:

When ethics are at stake, people must adhere to their compulsions and obligations, according to Deontology’s key tenets. Deontology has a number of positive qualities, yet it also has weaknesses. Tesco weighs the ethical implications of stocking certain products and services in its decision-making process for such items and services (Patuzzo, De Stefano and Ciliberti, 2018). No items in store are ethically proper if they might cause harm to clients. This is what the firm has discovered. For example, it has been noticed that in the current economic climate, there are more options to purchase poor goods at reduced prices. In terms of corporate rules, it falls under the category of those that are directly tied to the firm’s ability to serve consumers (Prabhumoye et al., 2020). However, Tesco’s profit margin is not taken into consideration in the policy-making process; rather it is based on a consideration of how the product would affect the person or consumer (Rosnizam et al., 2020). Maintaining this approach will allow the retail organisation to remain competitive in the worldwide market.

It’s no wonder that Tesco’s consumers are so loyal to the firm because it upholds its company values by providing them with high-quality, fresh items. As an example, the corporation displays several banners throughout the time of shopping for groceries to indicate whether the products are genetically or naturally produced (Wang and Gupta, 2020). Due to the fact that it allows consumers to make more informed purchasing decisions, this programme aids the organisation in upholding its commitment to ethical business practises. It is undeniable that Tesco has ethical obligations and responsibilities for its customers’ employees and the surroundings in which they work. The application of this strategy has shown to be flexible in helping the firm when any problematic issue arises. The ethical business problems that matter most to Tesco have thus far been successfully maintained by the supermarket chain.

Stakeholder Management Theory:

Anyone who has been exaggerated by the firm and its workings is a stakeholder, according to a stakeholder management theory Tesco has both internal and external stakeholders that have an impact on the organisation in a variety of ways, and these stakeholders are also intimately related to the company (Pedrini and Ferri, 2019). Tesco’s stakeholder theory refers to the players in the business environment that contribute to the company’s overall performance. When it comes to managing an organisation and its ethical responsibilities, this particular philosophy is frequently employed. CSR initiatives and Tesco’s stakeholder philosophy are interdependent (Ranängen, 2017). Anyone who is a fan of the firm and its workings is considered a stakeholder here.

It has been noticed that Tesco’s investor gives the firm’s funds, as well as a ready market for its products and services, to the company. The importance of each of these investors to a company entity has therefore been amply shown over time. Within these groups, there was also a significant need for good health and sanitation. Tesco’s CSR efforts and stakeholder theory are therefore intimately linked to the retail giant’s increased profitability and productivity; as a result (Tian, 2020). The ethical standards upheld by the business may be brought to light in a variety of ways by putting this principle into practise. Teva has to pay attention to every environmental factor that has a significant influence on their commercial success as well as maintaining suitable ethical standards of business conduct.

The next part will provide an in-depth explanation of how Tesco’s long-term business strategy affects the world beyond the company’s walls.

Triple Bottom Line:

The Triple Bottom Line (TBL) hypothesis will be applied in order to assess the long-term viability of Tesco’s company. A business’s capacity for long-term growth may be determined by using this idea; nevertheless, this can be a difficult task to do. It is referred to as the sustainability framework, and it is composed of three components: people, planet, and profit (Klumpp, 2018).


Positive and negative effects on the most important stakeholders of a company’s business include those on customers, workers, and suppliers are all part of this concept. Every week, Tesco makes millions of items available to prospective shoppers. It works with a large number of suppliers and manufacturers so that it can provide clients items of the highest possible quality while still being environmentally friendly and ethical (Cubas?Díaz and Martinez Sedano, 2018). According to research, suppliers and manufacturers have an important role to play in reducing food waste in addition to providing required equipment. When considering Tesco’s stakeholders, corporate leaders and workers play a significant role (Tang, 2018). In addition to the company’s CEO and CFO, the board of directors also includes a number of non-executive directors. A company’s long-term viability and profitability depend on the work of these top-level managers (Awadari and Kanwal, 2019).


In this second stage, we examine the influence a company has on its immediate surrounds and the environment as a whole. Tesco has always held the belief that environmental-harmful initiatives may not be able to accurately portray the company’s image (Rosnizam et al., 2020). That the corporation was committed to environmental health and encouraging all workers, no matter their position, to play an active role in environmental initiatives can now be seen for what it is. The company’s deployment of an energy awareness campaign has been a success (Student, 2021). The organisation is primarily concerned with reducing energy use in Tesco’s offline stores by effectively monitoring the management of Tesco. One answer has been found by the firm known as “Zero Carbon business,” which aims to create as few carbon emissions feasible in the company’s operations (Ferro et al., 2019). Tesco has therefore been effective in generating sustainability and upholding commercial ethics at the same time.


This stage reveals the influence an organisation has on the global, national, and local economies. Year after year, it has been found that about 40% of the apples are thrown away in the garbage. For some time, this was regarded a problem for the business. When it comes to the remaining items, the business is always looking for a way to start a campaign (Westerman et al., 2020). By doing this, Tesco expects to see an improvement in its profit margins. To improve the firm’s profit margins, the corporation began focused on staff training and job opportunities. It has been possible for Tesco to build a stronger bond with its employees by meeting their most fundamental psychological demands. In addition, the company’s focus on staff training helped them maintain workplace productivity (Cubas?Díaz and Martinez Sedano, 2018). In this way, Tesco maintains its long-term viability and productivity, as well as its extremely high level of sales margin, through the implementation of these tactics.

PESTLE Analysis:

Political Aspect

Tesco is a worldwide retailer, and hence its success is directly influenced by global political forces. As a result, the rules and regulations governing stakeholders can have an impact on the external environment, as well (Tian, 2020). When a specific corporation or group of companies fails to meet the expectations of a stakeholder group, governments are forced to take drastic measures to address the problems. Focusing on stakeholders and delivering on their needs has allowed Tesco to improve its bottom line (Awadari and Kanwal, 2019).

Economic Aspect

The external environment is believed to be the most important aspect of it. Tesco has been found to be the UK’s most popular grocery business, with a lot of room for growth. The company’s operational earnings increased by 29.5% to over £1.30 billion, from £1.01 billion (Muli, 2019). Tesco’s long-term success has been essential in boosting the overall growth of the British economy.

Social Aspect

Tesco’s long-term viability will have a direct impact on the evolution of society. Tesco plc is a significant retailer in the world, with over 2,300 supermarkets and convenience shops and 326,00 employees. For the sake of Tesco’s stockholders, the company’s workers are utterly reliant on the supermarket chain (Tang, 2018). Many of the company’s employees appear to have a solid financial footing. By firing employees, the company’s stakeholders and the government might be affected (Adamyk, 2019). The national economy’s growth rate will drastically slow down.

Technological Aspect

Using technology to enhance Tesco may be beneficial, but the company’s employment rate may be harmed as a result. In light of the retail company’s installation of important technology, the number of employees has dropped (Rosnizam et al., 2020). It has been said that the introduction of security cameras in all areas of the stores, scanners, and self-service tills has reduced the company’s workforce.

Legal Aspect

Tesco’s staff will enforce any laws or legal actions enacted if they do not feel comfortable and secure in their work environment (Adamyk, 2019).

Environmental Aspect

At the height of business activity, Tesco has begun a campaign aimed at decreasing its energy use. This has allowed the UK to generate more electricity than ever before (Student, 2021). In contrast, Tesco’s horsemeat crisis has had such an impact on customers that they now thoroughly inspect and study the information on food components before purchasing anything. Customers in the UK became more health-conscious and aware of their purchases as a result of this incident.

The following discussion will feature solutions that will assist Tesco in maintaining its commitment to responsible working practises in the post-Covid-19 business environment.

Leading Business Responsibly through VUCA Framework:

Since the COVID-19 epidemic began, about 40 million cases have been registered and more than 450,000 people have perished worldwide. We don’t know when things will return to normal because people are losing their jobs and money. “International Labor Organization” estimates that pandemic might result in the loss of millions of employments (Miska, Economou and Stahl, 2020). Using the VUCA paradigm, marketers want to help business leaders cope with the complexity and ambiguity of pandemic challenges (Adnan, Anam and Radhiatmoko, 2021). There are four elements of VUCA involved in the food retail industry’s problems due to the coronavirus:

There is a continual flux in our food system, which is why VOLATILITY is crucial. Variations in customer tastes and technical improvements have an impact on food retail’s price volatility (Raghuramapatruni and Kosuri, 2017). Suspending promotions, prioritising products, and establishing inventory reserves are all short-term methods for controlling demand when supply is low More and more retailers are taking the initiative to be more environmentally friendly. Customers’ trust in supermarkets is bolstered by Tesco’s “Feed the Nation” contingency plan, which sees the company cooperating with suppliers to limit demand while still maintaining a positive brand image (Anderson, 2021).

In the context of food system ambiguity or predictability, UNCERTAINTY relates to the myriad of variables at play. There is a lot of conflicting information out there for consumers as nutrition science improves (Miska, Economou and Stahl, 2020). Employers who prioritised colleague wellness as a top priority-built trust among their employees and laid the groundwork for an effective long-term strategy to deal with this pandemic and its unpredictability in their workplace. The fact that Tesco Bengaluru in India was ranked 25th in the “Great Place to Work’s (GPTW)” 2021 India survey is evidence of the brand’s strong faith and trust in its employees (Mediawire, 2021).

In terms of COMPLEXITY, various aspects of life, such as health care, business, the economy and society are touched by the pandemic in a number of ways (Howe et al., 2020). At Tesco, a number of programmes were put in place to aid employees at this difficult time. For physical health testing and consultations, a large hospital chain and two well-known laboratories were teamed up with. When co-workers and their families began to suffer from mental health concerns, helplines were quickly established to assist them. Complimentary lunch service from Tesco kitchens was established to ease the logistical load on staff who were working away from home while fighting COVID-19 (Mediawire, 2021). As a result of the recent coronavirus outbreaks, Tesco was a leader in establishing immunisation programmes and boosting employee and family insurance benefits.

In the face of the pandemic’s hurdles, no company can adopt a “best practise,” which leads to AMBIGUITY and confusion. Tesco has worked tirelessly during the pandemic to provide that everyone can get to the food they require in a safe environment. Safety measures in Tesco stores will continue to be implemented to protect staff and customers when restrictions are eased. Since the outset of the outbreak, Tesco has doubled the number of “Grocery Home Shopping” slots available to customers who are vulnerable (Tesco Plc, 2021a). All of their main and busiest Express stores include a traffic light system at the shop doors that informs customers when it is safe to enter.

When it comes to the distribution of personal protective equipment (PPE) and everything else associated with manufacturing, education, foodservice, retail, transportation, and leisure, Adnan, Anam and Radhiatmoko (2021) says that business leadership abilities are essential. Due to a dramatic decrease in carbon emissions, the ecosystem is seeing an increase in VUCA. As a result of the government shutdown, firms must demonstrate compassion to employees who have been laid off or placed on furlough. Even if they’re working more than usual, they deserve acknowledgment for their efforts. Unprecedented problems await corporate executives as they sail into unknown waters. It is possible that they will make the difference between life and death if things function correctly.

COP26 Findings for Tesco:

Tesco’s various measures to open up its supply chain and address the company’s most significant economic, health, and environmental problems include cutting down on food waste. Companies like Tesco should lead the way in decreasing waste and helping consumers improve their diets while tackling the environmental effect of energy and transportation in their respective sectors. Tesco understands the need of making positive changes in the food industry for the long term. A more sustainable way of feeding an ever-increasing population while using less land and natural resources can help them combat climate change, improve the health of the earth, and improve their own health. With reference to climate change, the United Nations’ “Conference of the Parties” (COP) 26 serves as a high-level summit (Tesco Plc, 2021b).

According to the COP26, there is no denying that human activity, specifically the release of greenhouse gases into the atmosphere, is causing climate change. As a result, they must be reduced in corporate supply chains, operations, and in each of our personal residences. In order to reach net-zero emissions, businesses must not release any more greenhouse gases into the atmosphere than the planet can absorb. In terms of greenhouse gas emissions, the global food system is believed to be responsible for more than any other source. Tesco was the first firm to make a commitment to become net-zero by the year 2050 in 2009. The UK established a 2035 deadline for reaching this target, 15 years ahead of schedule (Tesco Plc, 2021b). Their new objective is to have a carbon footprint that is zero by the year 2050. This affects not just Tesco’s operations and supply chain, but also the final consumer.


The essay above is centred on the idea of responsible business and a sustainable approach to the environment from all parts of a company’s operation. A case in point for this examination is UK food retailer Tesco, because the food retail sector has undergone significant transformation and a growing demand for environmentally friendly and socially responsible solutions since the advent of the COVID-19 virus. As a result of this, three questions have been asked in the essay: how do ethical considerations align with business objectives and stakeholder interests, how do sustainable business approaches align with external environments where leaders are able to achieve a competitive advantage, and how do organisational leaders drive their business forward in terms of managing volatility, uncertainty and complexity. In fact, Tesco has been tackling these challenges since nearly the beginning of this pandemic, placing the firm at the forefront of food retail.

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