Ethical Audit Report of Tesco
1.0 Introduction
According to Mamoria (2010), business ethics is defined as the businessman's integrity so far as his conduct or behaviour is concerned in all fields of business as well as towards the society and other businesses. Thus, the conduct or behaviour by businessman towards the society or others may have some conflicts and contradictions. The intention of this report is to highlight what and why the incidents happened. The incidents include the employment of illegal workers, price fixing, and poor product quality. All these incidents tend to spoil the corporate’ image of the company and also bring harmful effect to the communities and other stakeholders. So, Tesco took action by compensating to the victims, restructured corporate management system for better performances, and provided training programme and learning course for the employee. The ethical theories applicable to Tesco include Ethics of Justice, Ethics of Duty, and Feminist Ethics, which will also be discussed in this report. In addition, the organization’s best practices and values such as corporate social responsibility and protecting the environment will also be discussed for the close up of this report.
1.1 Background of Tesco
Tesco, one of the largest retailers in the world started its business in 1919. The Founder, Jack Cohen started a grocery stall in East End of London. He made a profit of £1 from sales of £4 on his first day. After 5 years, in 1924. Mr. Cohen bought a shipment of tea from Mr. T.E. Stockwell where the “Tesco” brand first appearance. Tesco expanded its business to petrol station in 1974, and became the UK’s largest independent petrol retailer. It generated a total sales topped £1bn and doubled up to £2bn in 1982. In order to overtake the UK’s leading grocer in 1990, Tesco made an aggressive marketing campaign to open more stores to gain its businesses. In 2000, Tesco continued to expand its business by product range from clothes to electrical and
According to Mamoria (2010), business ethics is defined as the businessman's integrity so far as his conduct or behaviour is concerned in all fields of business as well as towards the society and other businesses. Thus, the conduct or behaviour by businessman towards the society or others may have some conflicts and contradictions. The intention of this report is to highlight what and why the incidents happened. The incidents include the employment of illegal workers, price fixing, and poor product quality. All these incidents tend to spoil the corporate’ image of the company and also bring harmful effect to the communities and other stakeholders. So, Tesco took action by compensating to the victims, restructured corporate management system for better performances, and provided training programme and learning course for the employee. The ethical theories applicable to Tesco include Ethics of Justice, Ethics of Duty, and Feminist Ethics, which will also be discussed in this report. In addition, the organization’s best practices and values such as corporate social responsibility and protecting the environment will also be discussed for the close up of this report.
1.1 Background of Tesco
Tesco, one of the largest retailers in the world started its business in 1919. The Founder, Jack Cohen started a grocery stall in East End of London. He made a profit of £1 from sales of £4 on his first day. After 5 years, in 1924. Mr. Cohen bought a shipment of tea from Mr. T.E. Stockwell where the “Tesco” brand first appearance. Tesco expanded its business to petrol station in 1974, and became the UK’s largest independent petrol retailer. It generated a total sales topped £1bn and doubled up to £2bn in 1982. In order to overtake the UK’s leading grocer in 1990, Tesco made an aggressive marketing campaign to open more stores to gain its businesses. In 2000, Tesco continued to expand its business by product range from clothes to electrical and