Lists and describes the stakeholders in your chosen organisation eg owners, employees, customers, suppliers, citizens and includes the conflicts of interest between stakeholder groups eg shareholders v environmentalists, shareholders v employees etc.
explains the implications for the business ...
ETHICS AND STAKEHOLDERS IN
SELECTED COMPANY
After the research is undertaken, record findings in note format which
a) i) Lists and describes the stakeholders in your chosen organisation eg owners, employees,
customers, suppliers, citizens and includes the conflicts of interest between stakeholder groups
eg shareholders v environmentalists, shareholders v employees etc.
ii) explains the implications for the business and stakeholders of operating ethically, to include
where applicable: adapting business behaviour, responding to ethical pressures, implementing
ethical practices, influence of stakeholders and pressure groups, impact on competitiveness,
reputation, public image, ethical trade, value- added, complying with relevant legislation and
Codes of Practice e.g. UK law, EU law, UN Declaration on Human Rights; UN global Compact;
economic activity.
The benefits and drawbacks to the business on the way it is operating should be included and
supported with relevant examples. (P2)
All businesses have a number of stakeholder groups, each with different interests in what the business does.
Business owners - perhaps the key stakeholders - want good financial performance from their investments.
Business managers know that it is their first responsibility to deliver good financial results.
However, while it was always acknowledged that businesses exist in a diverse social, economic and political
environment, today it is also accepted that a business should be managed with the interests of all stakeholders
in mind. Businesses today have to balance the aims of a number of stakeholders. This is sometimes difficult
because the interests of stakeholder groups can conflict with each other. E.g. shareholders have a financial
interest in the business and want their shares to increase in value, whereas environmentalists look to protect
the natural environment.
If a business successfully launches a new product and all is going well, the shareholders will be very pleased
that their cash investment looks like returning a healthy profit. If, however, an environmental group mounts a
big campaign to prevent this business operating in the way it does, these two stakeholders are in conflict.
Success for environmentalists may mean a loss for shareholders.
- A customer is someone who externally benefits a business. For example, a customer to Tesco is
someone who goes there to look at/buy a range of products which they sell. This includes daily
essentials, such as food, home ware products, hygiene products etc.
- An employee to Tesco is someone who works there to help the public during their shop. This can be at
customer check outs, helping with deliveries, customer services and so on. They work there to earn
money so they are able to pay for certain things in life, like food shopping and keep their job.
- Suppliers within Tesco source all the goods needed for the products which go out on the shelves
every single day. For example, they source the different types of meat for the poultry section.
- Owners, like the government or trustees or shareholders, are there to buy shares in the company if
they are offered for sale and to ensure the business is running smoothly.
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, Natan Trolka P2
- Pressure groups are organisations set up to try to influence what we think about the business and its
environment. They work within Tesco to change the behaviour of the business and this can be done
by running campaigns, protesting and writing letters to the MP’s.
- A trade union within Tesco can be one person or a group of people who work to protect and promote
their common interests. They have united together to achieve goals within the business.
- Employees association is an organisation of employers who are generally from the
same industry, working together for the interests of all member companies, on tasks such as the trade
union negotiation and sharing information and advice within the business.
- A local community for Tesco would be the members of the public that live nearby that support the
actions of the business itself. They want to hear the plans for future developments so they are able to
be on board with the decisions.
- The government is important within a business like Tesco, as they set out the regulations which the
business needs to sustain a healthy economy.
One conflict of interest between Tesco and its customers could be if Tesco decided to pack up and move to
another country for instance therefore the customers of that shop at Tesco may have to go to another
supermarket which may give them a poorer service and they may not provide them with the things they
customer wants. This would also mean Tesco would be losing customers, they'd be employing new staff which
means there previous staff would be jobless and it would reduce staff costs
Another conflict of interest between Tesco and the environment could be if Tesco stopped giving
biodegradable shopping bags to customers to use to pack their shopping in, and not worrying about the air
pollution that is caused by their vehicles that transports peoples shopping from the stores to their house. This
would have a big impact because then less people will shop at the store.
One other conflict of interest between Tesco and its employees could be if Tesco decided it needed to make a
few of its employees redundant because they couldn't financially afford to pay them wages. This would have a
big impact because the employees would have no job and would have to start looking for a new job which is
not always easy to find.
Customer Service
Customer service problem is one of the common ethical issues faced in Tesco Malaysia. This problem is
invention by using environmental scanning analysis. Tesco provided many types of product for customer.
Although Tesco had classified the product into different section, but sometimes consumers are still facing
problem in searching for the particular product. This problem will occur is because of the Tesco stuffs are not
around there for help and sometimes the bad attitude of the stuff or the wrong information that given by stuff
will make the consumer very unhappy. Besides that, the communication barrier between stuff and consumer is
also a major problem that facing in Tesco. Most of the stuffs or promoters are foreign workers and some of
them are using different language, so that it caused communication barrier. Moreover cashier in Tesco is also a
problem that consumer facing. Although there are many cashier counters, but many of them are closed, it is
inconvenience for customers. They need to queue up for very long to pay their bill, it is wasting their time and
during peak season such as Chinese New Year or Hindu Festival, the situation becomes even worse. For
example, during Christmas, a family going to Tesco to buy some stuff to celebrate Chinese New Year, but need
to queue up for so long, they will leave Tesco and choose other hypermarket.
Product Issue
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