Lexi Thomas Unit 37 P1
Explaining ethical issues that Tesco needs to consider and
its operational activities
Tesco is an international grocery and all-purpose merchandise retailer with stores
mainly across Britain, Wales and Ireland, with some stores in Europe and the United
States. Despite mainly being based in the United Kingdom, they are the third largest
retailer across the globe in terms of profts, and are the ninth largest retailer in the
world based on revenue. Tesco’s purpose is to give customers good value products in
order to earn their loyalty. The stores sell vast variety of products stretching from
groceries to clothing and insurance, and as Tesco is a retailer it is part of the tertiary
sector.
Business Ethics
Business ethics are the issues surrounding an organisation proper business policies
concerning possibly controversial subjects such as insider trading, bribery, human
rights, discrimination, corporate social responsibility (CSR), corporate governance,
working conditions and fduciary responsibilities. Business ethics are applied within an
organisation to provide a sense of trust that can be preserved between the company
and its employees to ensure fairness in a business. An example of corporate social
responsibility that Tesco has practiced, is reducing the level of sugar in drinks that are
sold in their vast number of stores. Tesco announced via their website in November
2016, that they would be further committing to its belief in reducing sugar, fat and salt
content in its products by reducing further sugar level reductions in its own brand soft
drinks that are sold in their stores. This follows the highly recognised health concern
that sugar should not be more than 5% of people’s daily diet, so Tesco committed to
this by reducing the sugar content in their own brand drinks by half. Another example
of Tesco providing good to the public and local communities, is that they ofer food
from their stores that are close to, or past expiry date to local charities and community
groups that are in desperate need of food. Tesco has so far donated over ten million
meals to over 5000 charities across the United Kingdom, including homeless shelters,
rehabilitation facilities and foodbanks. If this food was not donated, it would simply go
to waste which Tesco are not a believer in, so donating surplus food to a good cause is
a benefcial way for the company and local people in need.
Marketing Ethics
Marketing ethics are the essential values and standards that administer the business
practices of those involved with promoting products and services to customers. The
best form of marketing ethics is those that mainly do not negatively impact customer
satisfaction or opinions with the company and products being promoted and produced.
For Tesco, this would be relating to their marketing department and those involved with
their advertising campaigns of products and services. An example of Tesco’s marketing
ethics would be their marketing campaign called ‘Free Fruit for Kids’ that was launched
in July 2016. This campaign involved providing free fruit for children in stores in a bid to
provide healthy eating to a younger generation. Tesco distributed over seven million
apples, eight million bananas and six million oranges across 800 stores this year alone
and has proven to be highly popular with children and their parents. This campaign is
part of Tesco’s initiative to help their customers make healthier choices that impact
them positively long term. Another health-related campaign that Tesco is a part of, is
that they have partnered with Cancer Research UK to ofer customers free diabetes risk
assessments and blood pressure tests to help their consumers to live a healthier
Explaining ethical issues that Tesco needs to consider and
its operational activities
Tesco is an international grocery and all-purpose merchandise retailer with stores
mainly across Britain, Wales and Ireland, with some stores in Europe and the United
States. Despite mainly being based in the United Kingdom, they are the third largest
retailer across the globe in terms of profts, and are the ninth largest retailer in the
world based on revenue. Tesco’s purpose is to give customers good value products in
order to earn their loyalty. The stores sell vast variety of products stretching from
groceries to clothing and insurance, and as Tesco is a retailer it is part of the tertiary
sector.
Business Ethics
Business ethics are the issues surrounding an organisation proper business policies
concerning possibly controversial subjects such as insider trading, bribery, human
rights, discrimination, corporate social responsibility (CSR), corporate governance,
working conditions and fduciary responsibilities. Business ethics are applied within an
organisation to provide a sense of trust that can be preserved between the company
and its employees to ensure fairness in a business. An example of corporate social
responsibility that Tesco has practiced, is reducing the level of sugar in drinks that are
sold in their vast number of stores. Tesco announced via their website in November
2016, that they would be further committing to its belief in reducing sugar, fat and salt
content in its products by reducing further sugar level reductions in its own brand soft
drinks that are sold in their stores. This follows the highly recognised health concern
that sugar should not be more than 5% of people’s daily diet, so Tesco committed to
this by reducing the sugar content in their own brand drinks by half. Another example
of Tesco providing good to the public and local communities, is that they ofer food
from their stores that are close to, or past expiry date to local charities and community
groups that are in desperate need of food. Tesco has so far donated over ten million
meals to over 5000 charities across the United Kingdom, including homeless shelters,
rehabilitation facilities and foodbanks. If this food was not donated, it would simply go
to waste which Tesco are not a believer in, so donating surplus food to a good cause is
a benefcial way for the company and local people in need.
Marketing Ethics
Marketing ethics are the essential values and standards that administer the business
practices of those involved with promoting products and services to customers. The
best form of marketing ethics is those that mainly do not negatively impact customer
satisfaction or opinions with the company and products being promoted and produced.
For Tesco, this would be relating to their marketing department and those involved with
their advertising campaigns of products and services. An example of Tesco’s marketing
ethics would be their marketing campaign called ‘Free Fruit for Kids’ that was launched
in July 2016. This campaign involved providing free fruit for children in stores in a bid to
provide healthy eating to a younger generation. Tesco distributed over seven million
apples, eight million bananas and six million oranges across 800 stores this year alone
and has proven to be highly popular with children and their parents. This campaign is
part of Tesco’s initiative to help their customers make healthier choices that impact
them positively long term. Another health-related campaign that Tesco is a part of, is
that they have partnered with Cancer Research UK to ofer customers free diabetes risk
assessments and blood pressure tests to help their consumers to live a healthier
