Discuss the ethical issues surrounding Tesco's relationships with its Essay

Discuss the ethical issues surrounding Tesco's relationships with its suppliers - Essay Example For the business to progress by maintaining high ethical values, the organisation shares its values with the suppliers. The sharing of same values helps in building a strong relation and standard with the suppliers, which in turn assists in increasing the efficiency of the company and maximise profit. The company focuses on ethical trading training and ethical policy for its suppliers. This course facilitates in evaluating the standard of Tesco, raise awareness on ethics and build confidence in the suppliers to follow the ethics (Tesco, 2012; Tesco PLC, n.d.). The study deals with evaluating the ethical issues surrounding Tesco’s relationships with its suppliers. The issues of the suppliers are evaluated based on the differences in keeping with the values of Tesco. Prevailing Relationship of Tesco with Its Suppliers Tesco maintains a strong and mutual relation with its suppliers by replicating a specified code of conduct which focuses on fair trading. The quality control check is done by the company before adopting the suppliers as a member of the organisation. Tesco expects their suppliers to be dynamic and provide fair dealing to ensure quality. The success of Tesco depends on its suppliers who strive to maintain ethical norms in supplying quality products to its customers. Tesco promises the customers to provide foods from the suppliers who are certified and maintain animal welfare. The core value of Tesco which is followed by every supplier is â€Å"no-one tries harder for customers’ and ‘treat people how we like to be treated† (Tesco PLC, 2008). Moreover, Tesco works with suppliers who are dedicated to the ETI Base Code and refer to the specified values. The ethical training code followed by Tesco states that employment should be chosen freely. The authority to collective bargaining must be valued. The working condition provided must be safe and no discrimination would be followed by the company in its supply chain. The supplier must be provided with regular orders and the product supplied must be of high quality. Also, no harsh behaviour would be conducted with the suppliers and all the ethical norms would be followed to ensure safety. There are certain guidelines which are to be adhered to by the Tesco’s stakeholders to maintain reputation. The code of business and principles to be adhered by the stakeholders include compliance with the law, honesty and integrity as well as to maintain compliance with the accounting procedures to avoid conflict of interest. Tesco believes all their employees and suppliers to work for their interest (Tesco, 2004). The commitment of the suppliers towards the company ensures a better standard for Tesco. Tesco has a knowledge hub which is the largest collaboration of the supply chain. It has nearly 700 suppliers as the members of the knowledge hub to ensure ethics and knowledge sharing. The commitment of Tesco is to develop deeper sustainable relationship with the supp liers. Tesco enriches the feedback of the suppliers to understand their viewpoint, and hence ascertains high standard of products with innovation. Moreover, to maintain a good healthy relationship with the supplier, Tesco supports them in overcoming the social complex issues. This ascertains a strong ethical bond in the supply chain