Ethical behaviour and abidance to the business ethics is an essential duty of the business organizations. The corporate social responsibility of the business also has a strong and significant impact on the stakeholders. These assignments highlight the business of Tesco and the impact of Tesco’s ethical behaviour on the stakeholders of the business.
Impact of Tesco’s ethical behaviour on the stakeholders and the business
Tesco is one of the largest business organizations of UK, employing thousands of employees. Even though as a business organization it is a reputed one, there have been various issues regarding the corporate social responsibilities and ethical behaviour of Tesco (Eagle and Dahl 2015). One of the major ethical issues faced by Tesco is that it paid its suppliers after two long years. This resulted in the stakeholders agitate against Tesco, thus resulting in an ethical issue against the company, along with deflection of the suppliers and the other stakeholders (Jones et al. 2014). With the ethical issues arising in Tesco, the stakeholders are negatively affected. The internal stakeholders such as the employees are negatively affected and this might result in lack of employee satisfaction and cause employee deflection. In case of the external stakeholders such as suppliers and contactors, they might not prefer to into further contract with Tesco, lest the payments are received in time.
However, the CSR report of Tesco reveals that there is no ethical or CSR issue with the company. However, complains and agitation from the employees as well as the stakeholders have been regularly reported (Eagle and Dahl 2015).
Thus, to conclude it might be highlighted that though the CSR reports reveal that there has been no ethical issue, however, the report from the customers, suppliers and other stakeholders is considered authentic. This report, which is not recorded in documents, could affect the stakeholders negatively such that they avoid doing business with Tesco. Moreover, the stakeholders might also prefer doing business with the competitors of Tesco, thus giving a strong blow to the business of Tesco.
Eagle, L. and Dahl, S., 2015. Ethical Issues in Marketing Relationships. Marketing Ethics & Society, p.75.
Jones, P., Hillier, D. and Comfort, D., 2014. Assurance of the leading UK food retailers' corporate social responsibility/sustainability reports. Corporate Governance, 14(1), pp.130-138.