Ethical behaviour of UK supermarket Tesco Essay

IntroductionI carried out a research on UK supermarkets social responsibilities and logical argument estimable motive, I decided I allow for dissemble Tesco plc for this assignment. The reason being Tesco has a wide image of policies regarding their supplier, customers, sh be wielders and the community.At Tesco, we goal to make a positive contribution to society. Our CSR programme builds on this commission and is backed by our Every Little Helps approach. John Gardiner, chairman, TescoTesco adopted both(prenominal) the agency guess and the s drawholder hypothesis and it has the intelligent egocentrism (Mullins 2002). Tesco uses a combine approach of deontology, utilitarianism, teleology and self-consciousness (Boddy 2002) to the ethical of the society.An ethical assessment will cut into the position of the staff, the nature and interrelationship of coiffeivities, product and service ranges, mixes and balances, relationships with the community and the environment.S f all uponholders of TescoStakeholder is delineate by Mullins (2002145) as individuals or groups who build an interest in and/or be walk outed by the goals, operations or activities of the organisation or the behaviour of its members.Stakeholders plunder be categorised into three primary(prenominal) groups interior(a) stakeholders* Employees Social responsibilities to employees beyond the employment contracts. Employees need to face the implications such as job security, safe working conditions, fair treatment, the creation of rewarding work and soulfulnessal development. Employees require equal opportunities, promotions, trade union, training and job satisf march.* charge care concerns about the bring outth of the organisation and to achieve the organisational objectives. vigilance amaze strong influences on staff, lead by example and management by walking about spate encourage its staff to produce their vanquish execution of instrument.External stakeholders* partici pation & environment The demands for the community and environment are voltage of pollution, noise and disposal waste should be kept to the minimum, raw materials are used economically and environment friendly production.* Society Society is the broader stripe up in which business operates. The quality of all our lives will depend on how well the organisation balances its profit and the environment.Connected stakeholders* Shareholder There are three types of pctholders short term couchors, long term investors and ethical investors. brusk term investors simply concentrate on the performance of the organisation, they will concur no time for considerations of social responsibilities. Long term investors may be willing to consider evidence that managing in a socially prudent way helps long term profits. Ethical investors place social priorities higher(prenominal) than maximising their own personal wealth and are willing to invest in organisations that follow clear socially responsible policies.* Customers Customers expect organisations to yield them with goods and services. They want the goods/service to be good quality, durable, good value for funds, caoutchouc and performance.Consideration of PowerAll stakeholder groups have influence through and throughout the organisation. These influences event the organisational performance and their orbly concern within its market sector.* Employees They can reflect their thoughts through the trade union, i.e. request pay raise, better working conditions, equal opportunities and so on If the employees are mis interact they can take industrial actions against the organisation or have an industrial strike to force the organisation to meet their needs.* Community & environment If there is a potential of pollution, noise, disposal waste or the topical anaesthetic anesthetic county council can apply laws and regulations to limit those actions or to take profound actions against the organisation.* Society If the quality of our life is affected by the organisation, campaigners can hold daily protests outside the organisation, this will attract bad publicity for the organisation.* Shareholders They can simply withdrawn their investment from the organisation, i.e. carrying their shares. Alternatively shareholders can advert the annual meeting and vote against the organisational suggestions.* Customers They can simply stop down the goods or services from the organisation. I considered the customers have the main power everywhere an organisation, without any customers the organisation simply cannot survive.Any organisation needs to take its stakeholders interests into account. A good balance of the decisions is vitally important, we can jut how the influences have impact upon the organisation and any unbalance decision will affect the existence of the organisation.Tescos Mission StatementCreating value for customers, to earn their living loyaltyWe can see from the above contest ation that Tesco concentrates on the long-run relationship with its customers. Tesco focused on providing exceptional value and choice for customers to checker that they continue to grow market share.Tesco had expended significantly in the past 10 years, it started in non-food retailing in 1997 and now Tesco is creating value on a wide range of products from grocery to pecuniary services such as personal loan, home and motor insurance and credit card services.From these evidences we can see Tesco is working very hard to follow its mission statement to achieve its goal.Tescos actions towards the societyTesco combined the agency theory and the stakeholder theory (Mullins 2002) when they make any ethical decisions.Milton Friedmans view (Mullins 2002148) suggested the agency theory is that the social responsibility of business is to make as much m peerlessy as possible for the shareholders, within the rules of the game.Mullins (2002149) defined the stakeholder theory is that a busine ss is for its stakeholders and its actions should be designed to balance stakeholder interest.Tesco uses the agency theory to decide its main objective, it is to provide excellent goods and services to earn their customers loyalty. This will ensure their existence on the market and to maximise the shareholders investment. On the separate hand, Tesco uses the stakeholder theory to act on behalf on its stakeholders interests, such as contribution towards the society, care for the environment and responsible to the supplier chain.Tesco too uses a combination approach of deontology, utilitarianism, teleology and egoism (Boddy 2002) to the ethical of the society.Deontology ApproachDeontology is based on the idea that we are virtuously obliged to follow fundamental rules of thumb or principles. (Frankena 1963) Fulop & Linstead (1999339)Part of the Tesco system of Treat people how we like to be treated uses the deontology approach to the ethical motive of the people, the policies are as follow* All retailers, theres one teamThe Tesco Team* Trust and respect each other* achieve to do our very best* Give support to each other and praise more than criticise* Ask more than tell and share knowledge so that it can be used* Enjoy work, watch over success and learn from experienceTesco acts only on those principles so that they are not only Treat people how we like to be treated, but also wish others to do the same.Utilitarianism ApproachUtilitarianism judges the example worth of actions by the utility of their foreseeable consequences for each and every person affected by a certain organize of actions. Fulop & Linstead (1999339)Tesco aims to be responsible in their commercial and trading activities. Tesco is a member of the Ethical interchange Initiative since it was founded in 1998, on top of that, it also supports the work of Fairtrade Foundation. They sell and promote Fairtrade production such as tea, coffee, banana and chocolate. Fairtrade Foundation was set to give better deal for third world producers, regardless of the world market conditions.There are several reasons why Tesco uses the utilitarianism approach to the ethics of the society. First it wants to build a strong relationship with its supplier and to corroborate their reputation within the market sector. From the result of having strong relationship with its suppliers, they will have a stable supply for its goods and services.Teleology ApproachIt considers whether the outcome of an action accomplishes the original goal. Boddy (2002133)Tesco uses the teleology approach to consider whether the outcomes achieve the original goals. Boddy (2002) suggested that if an act ensures the lengthiness of the organisation then it is rectify.From Tescos mission statement we can see that the original goal for Tesco is to keep its market share and continue to grow within its market sector by creating value for its customers. It is obvious that Tesco is performance very well in its industry, they keep expanding their services and products (from grocery to financial services), which indicates the continue growth for Tesco.Egoism ApproachThis is the ethics of self-interest, claiming that personal or corporate benefit is the only rational criterion for judging economic actions. Boddy (2002133)Tesco is a financial contributor to the Fund for the Replacement of Animals in checkup Experimentation (FRAME), and they are seeking ways to end animal testing. Tesco also carries out the Computers for Schools vouchers, which support local school to improve their computer equipments, to bring out a better learning environment for children. Tesco is a national bestower of Cancer Research UKs Race for Life, this is only part of the brotherly love works that Tesco has, there is also a Tesco Charity Trust which helps local and national charities as well as voluntary organisations to provide pragmatical support for children, the elderly, and people with disabilities.Tesco uses this app roach to take above actions to contribute towards the local community. Boddy (2002) suggested that if people follow this principle it will result in everyday good. Because of the contribution Tesco made (Computers for Schools vouchers and charitys activities), customers are more dexterous to shop in Tesco because they are able to maximise their personal self-interest towards the society.Improvement in ethical behaviour of TescoTesco has a wide range of ethical policies to cover different areas, they include the following* Human right* Local community sponsorship* Charity* Ethical trading* Fairtrade* Animal test* EnvironmentThese are only a small selection of Tescos policies which I can find on its website, there are numerous more policies to cover different area of the ethical aspect. Since we are in a dynamic business world and there is no set policy can cover all changes, Tesco should expand its policies and to improve and restrain its reputation.ConclusionSurvival or long-te rm performance is the main ethical duty of the organisation, its staff, customers, community and other stakeholders. For this to happen, a long-term view essential be taken. Organisation must distinguish between right and wrong. It is indispensable for the organisation to recognise the nature and legitimacy of the interests of the different stakeholder groups and interested parties, and to take steps to see that these are widely understood and satisfied as far as possible.BibliographyBoddy D, (2002), second Edition, Management An Introduction, Pearson fostering Ltd, HarlowFulop L & Linstead S, (1999), Management A Critical Text, Macmillan mechanical press Ltd, HampshireHannagan T, (1995), Management Concepts & Practices, Pitman Publishing, LondonMegginson L, Mosley & Pietri P Jr, (1986), 2nd Edition, Management Concepts and Applications, Harper & Row Publishers Inc, New YorkMullins L, (2002), 6th Edition, Management & Organisational Behaviour, Pearson Education Ltd, HarlowPett inger R, (2002), 3rd Edition, Introduction to Management, Palgrave, HampshireRobbins S & Coulter M, (2003), 7th Edition, Management, Pearson Education Inc, New JerseyInternet Resourceshttp//www.tesco.com/corporateinfo/ 14/03/2004http//www.tesco.com/everylittlehelps/ 14/03/2004ReferenceBoddy D, (2002), 2nd Edition, Management An Introduction, Pearson Education Ltd, HarlowFulop L & Linstead S, (1999), Management A Critical Text, Macmillan Press Ltd, HampshireMullins L, (2002), 6th Edition, Management & Organisational Behaviour, Pearson Education Ltd, HarlowInternet Resourceshttp//www.tesco.com/corporateinfo/ 14/03/2004http//www.tesco.com/everylittlehelps/ 14/03/2004