Ethical Challenges Of Tesco

As for its internal stakeholders, Tesco management faced a challenge. It was argued that Tesco has pushed its workers to work too much. Tesco’s workers in Indonesia had to work by up to 80 hours per week, which effectively satisfies the United Nation’s definition of forced labour (Kent, 2008). This bears testament to the fact that even though Tesco considers itself in full support of its employees in terms of better compensation, the company inevitably pushes its workers to over work. Additionally, some people still believe that the company is taking advantage of them because of low-quality products. For example, according to the article by Barford (2012), the quality of Tesco’s products was dropping because the company used substitute ingredients

According to the article by Perreau, one of the methods was the price reduction of its products, which would stimulate more demand, thereby still making small profits from reduced prices. Another method that Tesco had used in order to bring up its profits was to invest in research and learnings of neuromarketing. This method would allow its management to know the real customers’ needs. Moreover, it has come up with a customer record system in order to check the routine of its customers (Perrau, 2006). These methods made it possible for it to make profits again. Moreover, Tesco had tried to use many methods in order to remedy the problem with profit loss in 2015 by reducing its product costs. Tesco decided to reduce its product prices in order to create more demand of its customers, which it claimed that it still gained small profits from this price reduction (“Tesco sales return”, 2015). The survey showed that Tesco’s sales had increased by 0.3% in February 2015 (“Tesco sales return”, 2015). This shows that Tesco is able to successfully bring up its profit from its profit

Despite many problems of profits, it is still capable of solving its problems and bringing up its profits again. On the other hand, it seems like the organization is less successful in terms of people and planet. There are still complaints from many people about how the company is taking advantage of both internal and external stakeholders. This can be solved by providing the best quality of product with a minimum production cost. Moreover, in terms of planet, it is still not doing enough to solve the environment issues. However, these problems can be solved by many ways such as guaranteeing its product safety by working collaboratively with other organizations and finding the less damaging ways of catching tuna. All in all, it is still possible for Tesco to become a veritable sustainable company if its management is totally committed to successfully solving its social and environmental