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Ethics and Corporate Responsibility (Tesco)

University: University of Plymouth

  • Unit No: 5
  • Level: Post Graduate/University
  • Pages: 6 / Words 1466
  • Paper Type: Essay
  • Course Code: BM461
  • Downloads: 584
Question :

This Essay will access the role of leader in shaping the corporate behaviour with the critical analysis of following questions:

  • To analyse the role of leader in practice of good government & social accountable behaviour.
  • To access the influence of governance and corporate behaviour on culture.
  • What are the strategic implications of the company for working towards CSR and business ethics.
  • Examples of ethical business dilemmas and the response of an organisation.
Answer :
Organization Selected : Tesco


Ethics and corporate responsibility is essential to be maintained by the organisation. It can help to maintain corporate governance. In this report chosen company is Tesco and it is a retailing organisation of UK. The main aim of the company is to maintain ethics and corporate social responsibility. It covers the following topics like: role of leader in good governance and socially responsible behaviour, influence of culture in governance, strategic implications of organisations adopting CSR, concept and theories in the field of corporate responsibility and awareness of business ethics in decision making.

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Main Body

a)Knowledge and understanding of key ethical theories

Ethics are related with what is right and wrong. Business ethics refers to the study of proper business rules and regulation for smooth functioning of business operations (Mason and Simmons, 2014). Business ethics provides a framework which needs to be followed by Tesco to gain public acceptance. The ethical theories applied by business are as follows:

  • Deontology: According to this theory, there are right and duties to behave in certain ways, directed by pure reason. The correct action does not depend upon the effect for general food or utility produced by Tesco, but depends on the social responsibility behaviour and good governance..
  • Utilitarian or Consequence based theory: This theory proposes that the rightness or unfairness of any act must be viewed in terms of effects that the action produces. The most common form of consequentialism is social consequentialism which says the leader of Tesco should act in such way to produce the greatest good for greatest number (Brammer and Matten 2012).
  • Virtue Ethics: It refers to what asset makes good public relations professionals. The leader of Tesco applies this ethics making a decision in light of those favoured virtues.

b)Concept of Corporate social responsibility

Corporate social responsibility is mandatory to be followed by the company. It can help to the organisations to be accountable towards public and stakeholders. Tesco effectively follows the concept of CSR in its company because it knows that it should contribute toward the society. It serves its business in the society so it the responsibility of it to do something for the people. Tesco is doing the activities which are related to the corporate social responsibility and companies have to contribute some percentage of its profits towards the CSR activities. It helps to improve the image of the organisation in front of public and it is an effective social move towards the welfare of persons (Fifka, 2013).

c)Discuss the concept of triple bottom line accounting

Triple bottom line accounting is like an accounting but not totally slimier. It is also known as triple accounting. The accounting framework takes into account ecological, social and financial dimension (Triple bottom line accounting. 2018). This accounting framework mainly focuses on three dimensions of performance which are financial, environmental and social. Tesco can use this accounting concept to measure its degree social responsibility, environmental impact and economic value. Triple bottom line helps the company to make the lives of person better and not only focuses on to earn profits. Organisation can use this concept to improve the quality of life of its members as well as persons of society (Trong, 2012).

d)Explain the concept of ethics, morals, values and good corporate citizenship

  • Ethics: Ethics are related with right and wrongful act. There certain principle and values for what is right and what is wrong, which comes under the ethics. And business organizations should follow these principles to accept by general public. The Tesco have their own values which are followed by them to provide valuable product and service to customers.
  • Morals: Morals are the prevailing standards that allow people to live cooperatively in groups. Some people tend to act morally and follow the societal guidelines. The some moral principles seem to transcend time and culture like fairness and generally speaking where morality is not fixed. The Tesco has morality which prevents them to cheat on their customers (Crane and Spence 2013).
  • Values: Values refer to generalized end which has the connotations of rightness, goodness or inherent desirability. The Tesco have some business values like fairness, creativity and social involvement.
  • Good Corporate CitizenshipThe corporate citizenship includes he social responsibilities of Tesco business and the extent to which they meet legal, ethical and economic duties which is developed by the shareholders. This refers to the company’s responsibilities towards the society.

e)Strategic implication of good corporate citizenship and business ethics

Good corporate citizenship involves the social responsibility of an organisation which is needed to be followed to meet legal, economic responsibilities and ethics which are established by the shareholders. It is the responsibility of an organisation towards the society. Tesco is maintaining good corporate citizenship to maintain higher standard of living and quality of life for the people who live in the society. Business ethics are essential for the business and it involves practices, policies which can solves the issues related to the insider trading, corporate governance etc. All companies have its own ethics which is needed to be maintained by its members in the organisation. Tesco is following its ethics which is to provide quality food and satisfy its consumers and it helps the organisation to perform better because all employees will work as per the requirements and ethics of its company. It helps to improve the goodwill and image of the organisation (Crane and Matten, 2016).

f)How business ethics assist decision making

The business ethic is very important for sustainable business performance and to get accept in the market. Ethics are the moral value which is pre set by the society and government to deliver ethical products and services in market. The company like Tesco should be aware about what is right and what is wrong in business to take effective decision for business. If company will be aware about the ethics of business then they will deliver those products and services which are ethical and legal.

g)Ethical Dilemma

There are various types of ethics like societal and personal etc. which is creating ethical dilemma situation for company in decision making. As company is not able to decide which ethic should be followed and which should not be. So to respond these dilemmas company analyze its competitors and market, then according follow the trend which is used by their competitor. For example Tesco is also suffering from same kind of dilemma as company is not able to decide which ethics should be use and followed within company. So to overcome this situation Tesco has decided to follow the current market trends (Crane and Matten, 2016).

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From the above report, it has been concluded that ethics and corporate responsibility is important to be follow by the organisations for the smooth and effective work in its business. Tesco wants to apply this so that it can maintain good corporate governance and ethics in its business so that it can run its organisation successfully. It uses ethical theories, CSR activities, triple bottom line accounting and good corporate citizenship so that management can be improved and company can contribributes towards the society. It also focuses on the morals and values so that it can perform according to its which can helps to improve the performance of the organisation.

Also Read: Industry Structure and Fundamental Evaluation


  • Blowfield, M. and Murray, A., 2014.Corporate responsibility. Oxford University Press.
  • Brammer, S., Jackson, G. and Matten, D., 2012. Corporate social responsibility and institutional theory: New perspectives on private governance.Socio-economic review,10(1), pp.3-28.
  • Crane, A. and Matten, D., 2016.Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
  • Crane, A., Matten, D. and Spence, L., 2013. Corporate social responsibility in a global context.
  • Fifka, M.S., 2013. Corporate responsibility reporting and its determinants in comparative perspective–a review of the empirical literature and a meta‐analysis.Business strategy and the environment,22(1), pp.1-35.
  • Mason, C. and Simmons, J., 2014. Embedding corporate social responsibility in corporate governance: A stakeholder systems approach.Journal of Business Ethics,119(1), pp.77-86.
  • Trong Tuan, L., 2012. Corporate social responsibility, ethics, and corporate governance.Social Responsibility Journal,8(4), pp.547-560.
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