Describe the social implications of business ethics facing a selected business in its different areas of
activity. Assess the social implications of business ethics facing a selected business in its different
areas of activity. P3 M2
Finance
There are various ethical issues in the financial area which effects Tesco and its stakeholder. For
example, one ethical issue that Tesco faces is stating inaccurate financial reporting; this is a problem
because this means that Tesco is lying about the amount of revenue which can affect different stake
holder. In one occasion, Tesco was overstating the amount of profit which it resulted Tesco getting
fined £120. This has impacted Tesco as a business because they had to pay large amount of fine for
overstating their profit, this means loss in money which could have been used to invest on different
areas of the business. This created social implications on the stakeholders because they were misled
on the success of the business which led shareholders to buy more shares when the business is not
doing well, this would affect them because Tesco’s unethical act can decrease the share price. Tesco
has addressed these issues by compensating their shareholder £10000 and apologised for their
wrong doings. Tesco gets their finance checked regularly by officials to make sure this doesn’t
happen again.
Production
There are ethical issues in the production area which could affect both the stakeholder and Tesco.
For example, one ethical issue that Tesco faces in the production area is child labour. Tesco owns F&F
activity. Assess the social implications of business ethics facing a selected business in its different
areas of activity. P3 M2
Finance
There are various ethical issues in the financial area which effects Tesco and its stakeholder. For
example, one ethical issue that Tesco faces is stating inaccurate financial reporting; this is a problem
because this means that Tesco is lying about the amount of revenue which can affect different stake
holder. In one occasion, Tesco was overstating the amount of profit which it resulted Tesco getting
fined £120. This has impacted Tesco as a business because they had to pay large amount of fine for
overstating their profit, this means loss in money which could have been used to invest on different
areas of the business. This created social implications on the stakeholders because they were misled
on the success of the business which led shareholders to buy more shares when the business is not
doing well, this would affect them because Tesco’s unethical act can decrease the share price. Tesco
has addressed these issues by compensating their shareholder £10000 and apologised for their
wrong doings. Tesco gets their finance checked regularly by officials to make sure this doesn’t
happen again.
Production
There are ethical issues in the production area which could affect both the stakeholder and Tesco.
For example, one ethical issue that Tesco faces in the production area is child labour. Tesco owns F&F
