Tesco Intended To Protect The Environment

In this article I will be writing about two types of businesses one which makes a profit and the other which does not make a profit. I will inform and explain the purpose of the business so why it is there, also the type of business it is and the ownerships and also what it provides and who’s interests it serves.

Tesco's has recently had to make many changes in their staff and have had to change the management structure to be able to pay every manager fairly and pay the wages for their general employees. These effects were taken place due to a major profit change and an unstable financial system. Another effect that has been changed is the Tesco pension scheme back in 2012. The Tesco pension scheme had changed due to financial problems however this would mean employees who have a pension scheme with Tesco will have to work longer if they were in their early 60's . This became a challenge for Tesco's as they couldn't afford to pay out on pension schemes at that precise moment.

Tesco Plc is a Public Limited Company who securities and shares are included in the stock exchange and list of different countries. In UK, companies like Tesco Plc are registered under the companies Act 1980 and its shared are offered to public in regards of limited liability. In addition, Tesco is associated with retail sector that carries out a majority business of the company and contribute their share in country’s economy to a huge scale. Apart from the retail sector, Tesco Plc faced tough competition all over the world from companies like Wal-Mart, Asda, Sainsbury, and others. Although, Tesco is not in dominating position in the current retail market in the UK, but the company is one of the biggest retail companies working in the UK, North America, Asia, Europe and other. The company

Tesco is very fortunate as there are few other large supermarket companies. This means that the food retail market is quite disciplined as the supermarkets have a set approach to price setting. Discipline stops them destroying each other in a profit war.

Tesco operates in 14 different countries. Therefore its performance may be influenced by the local legislation and political factors. There are

The purpose of Tesco is to sell every day necessities to the whole population such as food, clothes, electric goods such as well as

As a business Tesco needs to be aware of the social markets around them as and when they arise. For instance in August leading up to the new school year in September they will have school uniforms, stationary and other school equipment in stock. If they didn’t then parents may choose to do other shopping such as groceries in competitors stores who do provide such merchandise or who are closer to specialist retailers to save on multiple trips. This could impact on the businesses profits, especially if the store was in an area which had a high, school age population.

Reduce their carbon foot print by 50% by 2020. This will be a benefit to Tesco as they feel this will generate new job and business opportunities as it will reduce the costs organisations are currently paying on carbon emissions (The Carbon Year Book, James Richens, September 2010).

Tesco also have social factors that affect them, as the business have charity centre in helping the less privilege people and the more these people gets poor, the more they will have to stretch to help out which also spending money.

The government have a certain amount of money they get from Tesco through tax, so if Tesco’s in come is low then the money they government get is also low. They also play a key role in decision making. The government could decide to raise tax depending on Tesco prices for example, this would influence decisions made by Tesco. Here is an example of how the government have an influence on Tesco and their plans on initiating change. Tesco planned to create 180 new jobs through the expansion of a Tesco store but were in ruins after the Government threw out the scheme.

And they are reducing there carbon emissions by 0.3% year on year. This will increase brand reputation as Tesco are becoming more environmentally and this may lead to more sales being generated as a result which helps them maintain a competitive

Tesco is one of Britain’s leading food retailers and has 586 stores. From 1992, Tesco has grown greatly and has increased its market share from 10.4% to 15.2%. This increase in customers has also given Tesco a large amount of profit.

Environment issue is the most frequently discussed topic in CSR activities and it includes energy consumption, greenhouse gas discharge, water consuming and so on. Tesco engages in UK Emissions Trading Scheme and plans to decrease 74,000-ton greenhouse gases emission in five years with 188 retailing stores. Marks & Spencer concentrates on controlling residue of pesticides in their products. Since 2002, Marks & Spencer has replaced 99% of PVC plastic bags, which will produce harmful chemical material during disposal process. Moreover, they also reported that 72% of foods in Marks & Spencer are residue free products.

One example being the focus on increasing British Chicken. This has meant a increase in confidence for domestic farmers as there is less competition from foreign markets this means increased sales for British meats. It has also provided a sense of security for domestic farmers, in knowing that they have a committed buyer on the part of Tesco, The FT states "farmers have welcomed the news"(2013) . By doing this Tesco has shown a commitment in helping the local economy. Again this can be seen as Tesco 's commitment to accepting corporate social responsibility, it is looking out for the impact that its buying practices have on its domestic suppliers.

This report is aimed at the ethical dilemma faced in Tesco. Tesco is one of the biggest food and grocery retailers in the world. Recently Tesco had approximately 4,811 in the world and it employing over 470,200 people. Moreover, Tesco also provided approximately 7,000 products, it including food and non-food products (Tesco, 2012). This report is on all pertaining to Tesco ethical issues. The main dilemmas that are facing by Tesco are the product and service problem and these dilemmas are invented through environmental scanning analysis.