Tesco Business Ethics Case Study

Tesco believe that CSR program for the wellbeing of the environment can be also profitable for their own company in the long run. They also know any policies which may harm the environment can bring a negative image for their company. Tesco also ensure a healthy work environment and trained all employees to work in this environmental initiatives (Hunnicutt, 2009).

In 1996 Tesco lunched its energy consciousness program. It made all its staff to participate in this campaign. It started to monitor all its stores, and offices to understand the level of energy use and campaigned to reduce the waste (Hunnicutt, 2009). With this initiatives Tesco successfully educed the energy consumption 38% in between 1996-2005.

Societal Responsibility:

As Tesco

It means structure the business activities in such a way where accountability exist. Tesco introduce the ethical trading program which reflects its business ethics. In a perfect world, everyone wants to purchase goods which are under perfect conditions and they also want to be treated equally (Flat World Knowledge, 2015). For this reason Tesco incorporate the ethical trading strategy. Tesco established its business ethics based on four basic pillar. They are given below:

Values:

The first pillar of the ethical trading program of Tesco is Values. Here Tesco try to select the suppliers who also poses the same values and Tesco want a long term relationship with them. Here Tesco at first tries to communicate the values to its customers and suppliers. They try to focus on two main areas. They try to evaluate how they can meet the needs of their clients ethically. They also focus on how they will work with others in their business (Crowther and Capaldi, 2008). As Tesco launched its ethical trading program back in 1997 they have to ensure their values reflect their ethical

This monitoring helps them to identify the discrepancies in their system so that they can correct their supply chain program. Tesco conduct their monitoring program through various steps.

At first they assess the risks involved in their supply chain management system. This risk assessment process help them to understand the future problem that can affect their ethical trading program activities. Then they introduce proper audit program for these ethical business activities. Through the audit program they try to find out the deficiencies in their program to know whether it is going right or wrong (Crowther and Capaldi, 2008). An audit committee is established by Tesco for this particular purpose. This committee provide quarterly report to the management.

Tesco also straightly introduce this monitoring program to understand the employees. Through monitoring they try to know the work ethics of their employees. They also communicate with their employees to understand them and what type of environment they want to work. Through this Tesco can establish an environment which will enhance the ethical trading.