Task 1 (P1): Explain the Ethical Issues a Business Needs to Consider in Its Operational Activities

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Task 1 (P1): Explain the ethical issues a business needs to consider in its operational activities.

Business Ethics is the moral principles of the right and wrong things that an organisation can do. The aims are controlled by organisations within the business, for example, Social services/a private business. An honourable behaviour is behaviour of right or wrong. Business moral values include the practices and behaviours (good or bad) within the organisation. Business managers in these organisations create decisions aimed at accomplishing their assigned aims and objectives. The decisions made can be related to the staff.

Tesco’s Ethical concerns:

Ethical Issue 1:
Tesco’s mission of “unbeatable price” to its customers have reduced its prices, which is causing UK farmers to become very close to becoming bankrupt, due to the price reduction. This shows that Tesco don’t have care and a strong relationship for/with their suppliers. Tesco are doing this because they want to attract more customers to buy their products, so they reduce their prices to do this. However, as customers are first to be served within the business it means that they are a priority other than the farmers. This is because the farmers only supply the products, but Tesco would still need their suppliers, because if they are bankrupt there wouldn’t be any stock coming in. The good side of this is that because Tesco aim to get the best value for their customers. They have achieved this aim by dropping their prices.

Ethical Issue 2:
There is also a concern of Environmental damage such as the demand of Palm oil. This is making natural forests into wildlife deserted places. In 2004 was known as the worst offenders of the social and Environmental issues, which gave them a really bad reputation. They say that they care about the environment, but they don’t realise the damage they are doing to the natural forests. This is because many customers tend to buy Palm oil products, because of this...
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