Understanding Business Ethics

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P2 – Explain the implications for the business and stakeholders of a business operating ethically. A stakeholder is a person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization's actions, objectives, and policies. Key stakeholders in a business organization include creditors, customers, employees, government, owners, suppliers, unions and the community from which the business draws its resources. Tesco is committed to conducting business in an ethical and socially responsible manner. This relates to all aspects of their business, treating employees, customers, suppliers and shareholders in a fair and honest manner and ensuring that there are constant and open channels of communication. Tesco has Codes of Ethics for its employees, which includes a policy on the receipt of gifts and a grievance procedure that covers employment issues. Tesco has a confidential telephone help line, Protector Line, for any employee who wishes to raise concerns relating to alleged criminal offences, failure to comply with legal obligations, miscarriages of justice, health and safety, damage to the environment and concealment of any of these issues. These are Tesco’s stakeholders:

Customers: The employees hear customers' views on everything from how Tesco are serving them in their stores to their role in the community. Customers are looking to buy products; they are looking for a wide range of products. They also want easy accessibility to the premises and hope to buy quality products at competitive prices. They are really important because they provide the money for the store to be successful. Also an expanding amount of customers mean more profit for the business. Most customers expect fresh fruit and vegetables at high quality for good value.

Employees: Employees gives Tesco their feedback through the Viewpoint staff survey, Staff Question Time sessions and their Staff Forum process. May want an...
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