Lexi Thomas Unit 37 P3 M2
Areas of Describe the social issue Explain the impact on society (chain)
activity
Ethics in It is highly important to be ethical in fnancial issues as it The main issue caused by Tesco acting unethically
finance ensures that the public and stakeholders trust the would be that the company would receive a bad
(bribery, supermarket. Additionally, by Tesco ensuring that their reputation to the public due to the overstatement of
executive fnances have been calculated correctly will eliminate their profts showing that the company can be
pay, trade the possibility of being able to deceive stakeholders and deemed as untrustworthy. This would put customers
terms for the public as issues have occurred recently due to this. of shopping with the supermarket which in turn
suppliers, This would ensure that the brand would not receive a would cause their profts to decrease as a result.
accounting bad name for themselves.
practices, Additionally, this impacted their shareholders as it
unethical A fnancial ethical issue that Tesco recently faced was in caused the share price to decrease which loses
incentives) 2014 when they overstated their profts publically by them money and would probably withdraw from
£326million which was related to how the retailer contributing to the company anymore to avoid
booked payments from its suppliers. In 2017 the being associated with a company that lies about
company was forced to pay £235million in order to their profts.
settle investigations by the Serious Fraud Ofce and
Financial Conduct Authority which has been their largest The solution to the problem that was caused was for
accounting scandal to date. The issue was thought to Tesco not to overcompensate for money that has
have occurred due to false accounting in Tesco Stores not yet been received and over count for to avoid
Limited which is a minor of the retailer between seven scandals such as these which relects poorly on
months in 2014. However, due to the company lying them. If Tesco simply calculated the money they
about their accounts, people would have invested in had actually received at the time of the accounts
them from the stock market and would not have being fnalised then they would avoid any issues
received as much money back due to the false claims of such as this and would help maintain their strong
proft, which would have relected highly badly upon trustworthy reputation.
them and stock buyers would have been at a loss for
money. Due to this, it let to Tesco dropping their market The efects of Tesco acting unethically in fnancial
value by £2billion in minutes in share price which issues are that the stakeholders receive less money
afected the shareholders in addition to Tesco losing when they sell their shares due to an issue such as
billions. This caused their share price to decrease from this when the company have been fraudulent and
Areas of Describe the social issue Explain the impact on society (chain)
activity
Ethics in It is highly important to be ethical in fnancial issues as it The main issue caused by Tesco acting unethically
finance ensures that the public and stakeholders trust the would be that the company would receive a bad
(bribery, supermarket. Additionally, by Tesco ensuring that their reputation to the public due to the overstatement of
executive fnances have been calculated correctly will eliminate their profts showing that the company can be
pay, trade the possibility of being able to deceive stakeholders and deemed as untrustworthy. This would put customers
terms for the public as issues have occurred recently due to this. of shopping with the supermarket which in turn
suppliers, This would ensure that the brand would not receive a would cause their profts to decrease as a result.
accounting bad name for themselves.
practices, Additionally, this impacted their shareholders as it
unethical A fnancial ethical issue that Tesco recently faced was in caused the share price to decrease which loses
incentives) 2014 when they overstated their profts publically by them money and would probably withdraw from
£326million which was related to how the retailer contributing to the company anymore to avoid
booked payments from its suppliers. In 2017 the being associated with a company that lies about
company was forced to pay £235million in order to their profts.
settle investigations by the Serious Fraud Ofce and
Financial Conduct Authority which has been their largest The solution to the problem that was caused was for
accounting scandal to date. The issue was thought to Tesco not to overcompensate for money that has
have occurred due to false accounting in Tesco Stores not yet been received and over count for to avoid
Limited which is a minor of the retailer between seven scandals such as these which relects poorly on
months in 2014. However, due to the company lying them. If Tesco simply calculated the money they
about their accounts, people would have invested in had actually received at the time of the accounts
them from the stock market and would not have being fnalised then they would avoid any issues
received as much money back due to the false claims of such as this and would help maintain their strong
proft, which would have relected highly badly upon trustworthy reputation.
them and stock buyers would have been at a loss for
money. Due to this, it let to Tesco dropping their market The efects of Tesco acting unethically in fnancial
value by £2billion in minutes in share price which issues are that the stakeholders receive less money
afected the shareholders in addition to Tesco losing when they sell their shares due to an issue such as
billions. This caused their share price to decrease from this when the company have been fraudulent and
