Lexi Thomas Unit 37 M1+D1
Assessing how Tesco could be more ethical in its
functional areas
In this report, to provide evidence for M1 I will be producing information on
Tesco’s ethical activities and conducting secondary information to investigate
all of the ethical issues that the company is facing to which I will then provide
solutions to how they could improve their ethical obligations. To provide
evidence for D1 I will research the impact of Tesco’s ethical behavior on its
stakeholders including the benefts and drawbacks of this.
Marketing
Tesco’s marketing department ensure to
promote their Fairtrade products such as
bananas and chocolate amongst a vast
variety, which allows farmers harvesting
the goods to be paid a fair price in
comparison to the sale price.
A marketing blunder that Tesco were
exposed for in 2011 where they advertised
that they would double the diference of
grocery shopping found cheaper at Asda
and have the diference refunded to each customer. However, they failed to
advertise that the maximum refund amount for this advertisement was £20
which Watchdog brought to attention in addition to ffteen complaints from the
Advertising Standards Authority. The £20 maximum amount was stated in the
terms and conditions of the advertisement but not on the marketing campaigns
itself which a large proportion of the public took interest in. If Tesco had simply
noted this at the bottom of each marketing campaign that the ofer had a
capacity, then no complaints could have been raised. However, Tesco reasoned
the decision for introducing the refund cap so that a small minority of people
would not use the ofer inappropriately in order to save on doubtful grocery
shopping in order to receive efectively free money and choosing Tesco over
cheaper store Asda on certain products. Tesco was not ordered to pay any fnes
due to the misleading advertisements and was instead
told that the ofer could not be broadcast again.
Another ethical issue Tesco are to face in the coming
years, are that supermarkets including Tesco, Asda and
Aldi have introduced British sounding farm brands such as
‘Woodside Farms’ and ‘Boswell Farms’ that are used to
entice customers into thinking that the products which are
often meat, are being sourced from the United Kingdom
and are in fact being sourced abroad. This has not yet been broadcasted
publically and been investigated however, if it were then customers would most
likely be put of buying their meat from these stores due to the lack of trust. The
Guardian investigated to fnd other brands such as ‘Willow Farm’s a brand
Assessing how Tesco could be more ethical in its
functional areas
In this report, to provide evidence for M1 I will be producing information on
Tesco’s ethical activities and conducting secondary information to investigate
all of the ethical issues that the company is facing to which I will then provide
solutions to how they could improve their ethical obligations. To provide
evidence for D1 I will research the impact of Tesco’s ethical behavior on its
stakeholders including the benefts and drawbacks of this.
Marketing
Tesco’s marketing department ensure to
promote their Fairtrade products such as
bananas and chocolate amongst a vast
variety, which allows farmers harvesting
the goods to be paid a fair price in
comparison to the sale price.
A marketing blunder that Tesco were
exposed for in 2011 where they advertised
that they would double the diference of
grocery shopping found cheaper at Asda
and have the diference refunded to each customer. However, they failed to
advertise that the maximum refund amount for this advertisement was £20
which Watchdog brought to attention in addition to ffteen complaints from the
Advertising Standards Authority. The £20 maximum amount was stated in the
terms and conditions of the advertisement but not on the marketing campaigns
itself which a large proportion of the public took interest in. If Tesco had simply
noted this at the bottom of each marketing campaign that the ofer had a
capacity, then no complaints could have been raised. However, Tesco reasoned
the decision for introducing the refund cap so that a small minority of people
would not use the ofer inappropriately in order to save on doubtful grocery
shopping in order to receive efectively free money and choosing Tesco over
cheaper store Asda on certain products. Tesco was not ordered to pay any fnes
due to the misleading advertisements and was instead
told that the ofer could not be broadcast again.
Another ethical issue Tesco are to face in the coming
years, are that supermarkets including Tesco, Asda and
Aldi have introduced British sounding farm brands such as
‘Woodside Farms’ and ‘Boswell Farms’ that are used to
entice customers into thinking that the products which are
often meat, are being sourced from the United Kingdom
and are in fact being sourced abroad. This has not yet been broadcasted
publically and been investigated however, if it were then customers would most
likely be put of buying their meat from these stores due to the lack of trust. The
Guardian investigated to fnd other brands such as ‘Willow Farm’s a brand
