Discuss the statement that, ‘Tesco appears to be getting it right’ in relation to their business conduct.
Tesco is a leading international retailer amongst traders across the globe. From the time when the company first used the trading name of Tesco, in the mid 1920s, the company has expanded into different arrangements, diversified markets and various divisions. Tesco has over two thousand five hundred stores across the globe, in which the main trade is of the buying and selling of food.
'Our core values 'no-one tries harder for customers' and 'treat people how we like to be treated' characterise our approach to Corporate Responsibility. We believe we can achieve most when we work together on practical things that make a difference. 'Every little helps' can become a great deal when everyone pulls in the same direction.' Sir Terry Leahy (Chief Executive)
Corporate responsibility is a term that suggests, with evidence that, businesses have considered their impact on society for a long time. Whereas, in recent years it has become an increasingly important subject as social and environmental harm caused by some organizations has come to the public’s attention. This term is made up of a number of morals and rules that increase chances of the competetiveness of an organisation. This is done by taking into consideration and focusing on four main groups of the hierarchy which consist of: customers, employees, shareholders, and communities. These focusses are made from a number of points which include: legal and financial compliance, business ethics, brand management, environmental affairs, and public an community affairs.
FTSE (Financial Times Stock Exchange) is a stand alone company owned by The Financial Times and the London Stock Exchange. The FTSE was formed and put together in 1962, and is still the only business internationally that has created the management of indices and information services. The FTSE is in over 77 countries worldwide, these include countries from amongst the Americas, Africa, Asia, Europe and even the pacific.
The FTSE4Good criteria is intended to reproduce a minor agreement on what compromises good corporate responsibility practice around the world. The criteria is normally prepared and updated when needed, to ensure that they mirror progressions in corporate responsibility thinking and trends as they develop. The FTSE4Good criteria was launched in 2001 in the month of July, and annually it is updated according to the social change.
The Expansion of Tesco is a concern to britains high streets, as they have no intention of slowing down its rate of expansion. This could have harsh effects on local communities, socially and economically. The way Tesco is going, its killing all small competition, like corner shops, and small grocery stores, which has raised an issue that has been passed onto the Office of Fair Trading.However, many big supermarkets are facing the threat from small time convenience stores and grocery stores, and not just Tesco alone. David Rae, the chief executive of the Association of Convenience Stores, said: 'Tesco's management have an obligation to maximise shareholder value, and our focus should not be on them, but on the Government and competition authorities that have allowed Tesco to reach their dominant position in the market place. (http://www.thisismoney.co.uk)
Here research shows, that Tesco are raking in all the profits where small convenience stores are trying to compete, but stand no chance. 'These figures highlight the enormous-power of this King Kong of the retail jungle, which uses its financial muscle to squeeze suppliers and offer councils attractive packages in return for planning permission.'
Tesco's pre-tax profits for the year were up 17% at a record £2.21bn, in line with City forecasts. Sales rose 13% to £41.8bn. In the UK sales increased by 10.7% to £32.7bn. Tesco chief executive Sir Terry Leahy said:...
Carroll, A.B (1999) Corporate Social Responsibility Business and Society, Chicago: Vol. 38, Issue 3.
Cannon, Tom. (1994) Corporate Responsibility – A textbook on Business Ethics, Governance, Environment: Roles and Responsibilities.
Here I am giving a crucial reflection of my individual and group learning capabilities;
We started off by getting ourselves into groups of four or five maximum. Then we were given our case study on Tesco called ‘Controlling the Giant’, which we had to reflect upon throughout our assignment, referring back to it where need be. Then in our group, each group member read through the case study on their own, and as a group. We then asked each member of the group if they had any difficulties understanding the case or if they had any questions regarding the case. We then had our main point that we had to discuss which was ‘Discuss the statement that ‘Tesco appears to be getting it right’ in relation to their business conduct. Our group then agreed to let each member of the group get on with their work in their own time, but met up again for our group meeting. In which we discussed main points of the case that linked to our assignment. In addition to this, we made up a number of questions that would further help us in writing out the assignment. These questions were set as a base that the assignment could sit on and be based around. Using these questions and further help from books and the internet I completed my assignment to the best of my ability, using the group members where I could.
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