Tesco Reputation Management Case Study

It is important for Tesco to have motivated employees which can help them succeed and gain awards for the best customer services. Tesco’s employees also need to help the customers and other stakeholders in order for them to return. This could also lead to people buying more shares in the business. The influence is customer satisfaction, stock, whether the customer returns because of Tesco’s quality products and prices or whether their service is good, if they don’t then Tesco’s customer service is not good enough.

In the corporate setting, capitalism plays an important role in the sense that it helps ensure that the decisions made by leaders, such as the CEOs, take into consideration the company’s or stockholders’ interest in gaining profit (Peñaloza & Barnhart, 2011). This implies that it compels business leaders to make decisions that minimize loses while increasing the profitability of the firm. In most occasions, this is accomplished through the application of the utilitarian and Kantian approach to decision-making. However, it’s important to note that the central implication of public capitalism is that of helping foster corporate decision-making based on the broader effort to promote the public good (Peñaloza & Barnhart, 2011).

Tesco are committed to having a constructive dialogue with stakeholders to ensure that they understand what is important to stake holder and allow their selves the opportunity to present their position. Engagement helps them to identify new risks and opportunities to ensure that their long-term strategy is sustainable. In some instances, they find that working with stakeholders in partnership can help deliver shared goals. They might not be able to satisfy all stakeholder concerns all the time but through engagement they can do their best to balance competing demands. Tesco knows that customers need to be able to trust their business

Nowadays, after the passing of several bills constraining the actions of corporations, acting in a similar manner would pose several legal and ethical issues. This is why, Freeman argues, this ancient idea of managerial capitalism is no longer effective.

Reputation is something which always have place in our world. It was present many thousand years ago as well as will be present in the far future. A lot of writers choose this topic for their masterpieces as one of the most important problems during people’s life. And such writers don’t play a wrong card. We may consider this problem as “eternal” one, every person ran into it at least once in life.

Can business thrive by profit alone? Barry (2000) described Milton Friedman’s short essay, in the 1970’s, as extremely controversial, in which he denied that corporate executives had any moral duty to relax the conditions of profit maximization on behalf of the wider interests of society. This example of the “bottom line” of business has been demonstrated within the past couple of decades by publicly criticized companies, for fraudulent activities, such as, Enron, WorldCom, and HealthSouth along with many others. These company executives were willing to sacrifice the vast majority and greater good of society for profit gains. This mindset left many of loyal investors, consumers and employees without a sound stabilized future. There are also many businesses that produce a high yield on their investments;

Good Profit brings to life the Market-Based Management Principle of Koch Industries and of Charles G. Koch himself in his daily life and how he implements them inside his business and shares it with the world. Koch Industries in one of the largest private companies in the world, with an estimate worth of $100 billion. In this book, Charles talks a lot about how his company applies a sense of support toward the company employees and to the world itself. In Koch Industries, good profit “ does not mean high margins or high return on capital, or lots of profit by any means, but by creating superior value for customers while consuming fewer resources and always acting lawfully and with integrity.” (Koch, 2015 p. 3-4)

One of the key elements of our customer service system the use of scorecards and regular performance management as outlined in the performance management policy. In addition to this customer feedback and sales data are reported to senior management quarterly. It is therefore extraordinary that the balanced scorecard report shows our staff is unaware of the performance management system and therefore has no idea of the organisations strategic direction or the way in which the organisation wants them to go about making their sales targets. In fact the sales team believe that the only important measure of performance is sales. This is not in keeping with the overall view held by senior management and contrary to guidelines set out in the customer service system.

There are two questions to answer for this TMA. To answer the first question one needs to know the definition of Reputation: the estimation in which a person or thing is generally held; opinion,(E. Dictionary, 2006). It is also necessary to know what in life and work contributed to his reputation. The second question, one needs to understand what it means to Compare: to regard or represent as analogues or similar; liken, (E.Dictionary, 2006). It is also necessary to examine and compare the two pictures.

1.What role does corporate reputation play within organizational performance and social responsibility? Develop a list of factors or characteristics that different stakeholders may use in assessing corporate reputation. Are these factors consistent across stakeholders? Why or why not?

In an increasingly disintermediated information world, keeping a decent corporate reputation is more challenging than ever. The speed knowledge of spreads and our greater access to a wider media means "big bad news" easily gets to your phone in the space of your homeward journey (Grossman). Even though this is a nonprofit organization, it is run like a corporation. Just like a corporation, this organization has to keep up its image. Image management and finical performance have been closely related. Reputation is conceptualized by means of a two-dimensional

This paper will have a detailed discussion on the shareholder theory of Milton Friedman and the stakeholder theory of Edward Freeman. Friedman argued that “neo-classical economic theory suggests that the purpose of the organisations is to make profits in their accountability to themselves and their shareholders and that only by doing so can business contribute to wealth for itself and society at large”. On the other hand, the theory of stakeholder suggests that the managers of an organisation do not only have the duty towards the firm’s shareholders; rather towards the individuals and constituencies who contribute to the company’s wealth, capacity and activities. These individuals or constituencies can be the shareholders, employees,

In light of the recent scandals that rose around big multinationals such as Enron and WorldCom, it has become evident that reform in the traditional corporate operations and objectives was to be encompassed in the organisations corporate strategies. Indeed throughout the years, companies main objectives were defined primarily as being economic objectives, Multinationals developed with sight of profit maximisations regardless to the other incentives, Friedman considered that to be the foundation for a well-managed company, it was further considered that the financing of any other sort of social corporate activities rather unnecessary. The expenses were regarded as expenditures for the owners and investors; this was a time where shareholders rights were regarded as conflicting with other constituents namely the employees, creditors, customers or the community in general. However this interpretation is seen as rather inadequate due to the nature of the amalgamated relation between both constituents. Stakeholders in modern corporate doctrine are considered as a core apparatus for the well functioning of a business. It is however often argued that the only way for a corporation to achieve better results and maximise its profits is to include other people in the process, individuals or organisations with direct or indirect interest in the well performance of the company, that is the reason why modern regulations and codes include a number of stakeholders other than the

Friedman argues that the only responsibility a business has to society is to act in its own self-interest to create revenue and remain successful in the economic system (158).Created to make a profit by providing a task or service, a business must “use its resources and engage in activities designed to increase its profits” (Friedman 164). A business could use any tactic to gain a profit as long as they remained “within the rules of the game” (Friedman 164). The rules implied that no deception or fraud could take place while the corporation obtained their profit.

Reputation is an intangible asset , it often is difficult to measure precisely its impact on the bottom line . However , a superior , if indirect , gauge of reputation can make a huge impact on a company’s financial results . Maxwell can make a good use of its superior reputation by using it as a motivation to improve itself . A good reputation provides a company goal for which to keep striving . Besides , Maxwell can use its superior reputation to increase its business opportunities . A company’s reputation is just like a magnet . It attracts not only customers but also attention of interested future investors and business partners . A superior reputation generates many possibilities for business growth and expansion .