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Introduction …………………………………………1 Laws ……………………………………………………. Tesco’s ethical issues ….……………….……… Tesco’s laws ……………………………………….. What Tesco does for the environment? Health and safety at Tesco …………………. Conclusion ………………………………………….

P5 Introduction In this assignment I will be discussing the legal and ethical issues in relation to Tesco and also which charity Tesco’s sponsors and what they do for the environment or what they give back to the community. Laws Computer Misuse Act 1990: An Act to make provision for securing computer material against unauthorised access or modification; and for connected purposes. Unauthorised access to computer material. A person is guilty of an offence if: •

He causes a computer to perform any function with intent to secure access to any program or data held in any computer (or to enable any such access to be secured).

The access he intends to secure or to enable to be secured is unauthorised and

He knows at the time when he causes the computer to perform the function that that is the case.

The intent a person has to have to commit an offence under this section need not be directed at: •

Any particular program or data;

A program or data of any particular kind; or.

A program or data held in any particular computer.

Freedom of Information Act 2000: Freedom of Information Act 2000 is an Act of Parliament of the Parliament of the United Kingdom it provides public access to information held by public authorities. It does this in two ways: • Public authorities are obliged to publish certain information about their activities; and • Members of the public are entitled to request information from public authorities. The Act covers any recorded information that is held by a public authority in England, Wales and Northern Ireland, and by UK-wide public authorities based in Scotland. Information held

by Scottish public authorities is covered by Scotland’s own Freedom of Information (Scotland) Act 2002. Public authorities include government departments, local authorities, the NHS, state schools and police forces. However, the Act does not necessarily cover every organisation that receives public money. For example, it does not cover some charities that receive grants and certain private sector organisations that perform public functions. Data Protection Act 1998: The Data Protection Act 1998 is a United Kingdom Act of Parliament which defines UK law on the processing of data on identifiable living people. It is the main piece of legislation that governs the protection of personal data in the UK. The Data Protection Act controls how your personal information is used by organisations, businesses or the government. Everyone who is responsible for using data has to follow strict rules called ‘data protection principles’. They must make sure the information is: •

used fairly and lawfully

used for limited, specifically stated purposes

used in a way that is adequate, relevant and not excessive


kept for no longer than is absolutely necessary

handled according to people’s data protection rights

kept safe and secure

not transferred outside the UK without adequate protection

There is stronger legal protection for more sensitive information, such as: •

ethnic background

political opinions

religious beliefs


sexual health

criminal records

Tesco’s ethical issues Business Ethics is the moral principles of the right and wrong things that an organisation can do. Business managers in these organisations create decisions aimed at accomplishing their assigned aims and objectives. The decisions made can be related to the staff. Tesco’s Ethical Issue 1:

Tesco’s mission of “unbeatable price” to its customers have reduced its prices, which is causing UK farmers to become very close to becoming bankrupt, due to the price reduction. This shows that Tesco don’t have care and a strong relationship for/with their suppliers. Tesco are doing this because they want to attract more customers to buy their products, so they reduce their prices to do this. However, as customers are first to be served within the business it means that they are a priority other than the farmers. This is because the farmers only supply the products, but Tesco would still need their suppliers, because if they are bankrupt there wouldn’t be any stock coming in. The good side of this is that because Tesco aim to get the best value for their customers. They have achieved this aim by dropping their prices.

Tesco’s Ethical Issue 2: There is also a concern of Environmental damage such as the demand of Palm oil. This is making natural forests into wildlife deserted places. In 2004 was known as the worst offenders of the social and Environmental issues, which gave them a really bad reputation. They say that they care about the environment, but they don’t realise the damage they are doing to the natural forests. This is because many customers tend to buy Palm oil products, because of this Palm trees are being destroyed. Tesco laws Use of community site: Each Community Site on the site (together the “Community Sites”) allows users to interact with each other via message boards, and other user forums. We advise you not to post or in any way reveal any of your personal details on the Community Sites (for example, your address and telephone number). You may not use the Community Sites for any of the following purposes: •

disseminating any unlawful, harassing, libellous, defamatory, racially offensive, abusive, threatening, harmful, vulgar, obscene, or otherwise objectionable material;

transmitting material that encourages conduct that constitutes a criminal offence, results in civil liability or otherwise breaches any relevant laws, regulations or code of practice;

transmitting material containing any form of advertising or promotion for goods and services, junk mail, chain letters or "spam";

gaining unauthorised access to other computer systems;

interfering with any other person's use or enjoyment of the Community Sites;

making or transmitting or storing electronic copies of materials protected by copyright without the permission of the owner;

impersonating another person;

referring to specific website addresses outside of; or


Tesco does not control the content placed on the Community Sites. However, Tesco reserves the right to refuse to post material, to remove material posted on the Community Sites and to contact you in the event that there are concerns about the content you have added to a Community Site. Tesco may review or edit the content of the Community Sites. Therefore, if you have concerns about any of the content of the Community Sites you should contact us by selecting the “report as inappropriate” button. The relevant content may be removed from the Community Sites. If we believe that any material placed on the Community Sites by you is unlawful we may contact the relevant authority. Tesco makes no representations as to the validity of any opinion, advice, information or statement displayed on the message boards by third parties. You are solely responsible for the content of your messages posted on the message boards and the views expressed by individuals do not represent the views of You will be responsible for: •

any claim by any third party that the use of the Community Sites by you is defamatory, offensive or abusive, or of an obscene or pornographic nature, or is illegal or constitutes a breach of any applicable law, regulation or code of practice;

any claim by any third party that the use of the Community Sites by you infringes that third party's copyright or other intellectual property rights of whatever nature;

any fines or penalties imposed by any regulatory, advertising or trading body or authority in connection with the use of the Community Sites by you.

By submitting material you are granting Tesco a perpetual, royalty-free, non-exclusive licence to reproduce, modify, translate, make available, distribute and sublicense the material in whole or in part and in any form. You will be responsible for our losses and costs resulting from your breach of these Community Sites terms and conditions Miscellaneous: You may not assign, sub-license or otherwise transfer any of your rights under these Terms and Conditions. If any provision of these Terms and Conditions is found to be invalid by any court having competent jurisdiction, the invalidity of that provision will not affect the validity of the remaining provisions of these Terms and Conditions, which shall remain in full force and effect. If you breach these Terms and Conditions and ignores this, will still be entitled to use its rights and remedies at a later date or in any other situation where you breach the Terms and Conditions. shall not be responsible for any breach of these Terms and Conditions caused by circumstances beyond its control.

A person who is not a party to these Terms and Conditions shall have no right under the Contract (Rights of Third Parties) Act 1999 to enforce any term of these Terms and Conditions but this shall not affect any right or remedy of a third party which exists or is available apart from that Act. What Tesco does for the environment? Energy and water Tesco is committed to reducing our energy consumption and use of greenhouse gases. In 1997, we made a voluntary commitment to reduce our energy consumption per square foot by 35% by 2006. In 2005 we achieved this target one year early. Next year Tesco aim to reduce energy consumption by 5%. This year Tesco reached their target for a 3.6% reduction in energy used per square foot, at a time when they’re sales per square foot grew by 6.3%.

Transport The bulk of Tesco’s emissions come from their transport distribution fleet. This year they exceeded their target to increase the volume of goods delivered per litre of fuel consumed by 2.5%. This means that 22.5 cases of goods are being delivered per litre of fuel this year, compared with 19.9 cases last year. This reduces mileage, emissions and congestion. They have achieved this by using lorries returning from their stores to their distribution centres to collect goods from suppliers and recycling waste. By collaborating in this way, Tesco have helped reduce the miles travelled by suppliers to their distribution centres by 23% and reduced fuel usage by 14%. Waste and recycle Tesco is committed to minimising waste production throughout our operations. Tesco have an internal programme for recycling paper, cardboard and plastic, and more than 80% of these materials are recycled. Over the past year they have increased the proportion of the store waste recycled from 60% to 65%, an increase of 20,000 tonnes. Next year Tesco aim to increase the amount of waste recycled to 68%.


Tesco are constantly working with their suppliers to ensure that they give their customers high quality, competitively priced products that are produced to the high environmental and welfare standards they demand. For example to ensure Tesco’s fruit, vegetables and salad are grown to high safety, quality and environmental standards, they ask their suppliers to comply with their Nature’s Choice scheme. This is their own integrated farm management scheme and is unique to Tesco. Introduced in 1992, it sets environmental standards and it specifies shape, size, taste, variety and shelf life requirements. Nature’s Choice environmental standards •

rational use of plant protection products, fertilisers and manures;

pollution prevention;

protection of human health;

use of energy, water and other natural resources;

recycling and re-use of material;

wildlife and landscape conservation and enhancement

Health and safety at Tesco Tesco run regular safety communications and activities in stores and depots to raise awareness of health and safety issues. For example, in Poland, in 2010/11 they launched a contest to find the safest stores, engaging staff to improve safety and hygiene standards. The judges looked at the number of accident-free days and activities in stores aimed at preventing accidents. In Thailand, they have a very successful safety behaviour programme, which has reduced accidents by 9.1% since 2009.

Conclusion Tesco takes the ‘Use of community site’ because this site allows customers to interact with each other and converse about things such as new Tesco deals etc. if laws are broken penalties and fines could be given because the person responsible for the offensive abused a privilege that Tesco gave to the public and potential customers.

P6: Explain the operational issues in relation to the use of business information. Tesco have to store and manage countless pieces of information, with some being far more important than others. Two fundamental issues are: 1. The organisation receives the information it requires to meet customer needs. 2. The appropriate members of staff receives the information.

To make sure that information is managed appropriately, a number of policies and procedures have to be put in place as listed below. Tesco’s policy/procedure Human rights: Tesco’s aim is to ensure that everyone who works at Tesco live the Tesco Values in all the markets in which they operate. Their values are the bedrock which guide them to treat their staff, customers, and suppliers consistently throughout the company. Tesco is committed to upholding basic human rights and supports in full the UN Universal Declaration of Human Rights and the International Labour Organisation Core Conventions. We are committed to the following: •

We will treat all employees fairly and honestly regardless of where they work. All staff will have a written contract of employment, with agreed terms and conditions, including notice periods on both sides. All staff are entitled to reasonable rest breaks, access to toilets, rest facilities and potable water at their place of work, and holiday leave in accordance with the legislation of the country where they work. All employees are provided with appropriate job skills training.

We will pay a fair wage reflecting the local markets and conditions. We always meet the national minimum wage and this is a key factor which we take into account when looking at pay and conditions.

Working hours shall not be excessive. They shall comply with industry guidelines and national standards where they exist.

Employment must be freely chosen. Overtime shall be voluntary. We will not employ illegal child labour, forced or bonded labour or condone illegal child labour, forced or unpaid overtime. Where we employ children, we will comply with the relevant national laws.

We provide a safe working environment for our employees by minimising, as far as is reasonably practicable, risks in the workplace. All employees receive regular health and safety training. We provide proper governance for health and safety.

We will abide by the non-discrimination laws of every country where we operate.

Employees have the right to freedom of association. We recognise the right of our staff to join a recognised trade union where this is allowed within national law.

We will not use, or condone the use of corporal punishment, mental or physical coercion or verbal abuse. Tesco has disciplinary procedures for any member of staff whose conduct or performance falls below the required standard.

We have formal grievance procedures through which staff can raise personal and work related issues.

We have a series of Codes of Ethics that govern relationships between employees, suppliers and contractors. Tesco will not undertake any practices that contravene these Codes and our Compliance Committee regularly monitors adherence.

This policy applies to all Tesco employees whether they are in the full time, part time or temporary employment. The Human Rights Act is designed to protect an individual’s basic needs and rights, and give a statutory instrument through which any breaches can be addressed. The Act is relevant to the EU only, although we have chosen to apply most of its principles in this company wide policy. Why would Tesco require this policy/procedure? Tesco requires the Human Rights policy in order to keep staff both in the store and in office satisfied; this way employees do their job properly because they know they are being looked after at work. Employees would feel content knowing that they have a place to go if there was an issue at work, if this was not the case staff may have felt neglected at work and therefore not take their job seriously for example turning up late to work or not coming in at all. This would affect customer service as there would be no staff to provide customers with what they need. Security information “The security and confidentiality of your personal information is very important to us. We will only use your information in ways that are fair and in accordance with this section. Tesco Compare is an internet–based service and we will use email as our main method of communication with you. When you use our website to generate quotations we will send

you an email as part of this process. These emails will be sent if you part save your quote details and/or once you have completed the full quote details and generated quotations.�

Where Tesco obtain your information The information collected about you by Tesco Compare may include: your name, address, user name and password, answers to security questions, email address, telephone number and date of birth. They will obtain most of your personal information during the registration process but may also collect personal information each time you use the Tesco Compare website. Tesco may obtain information about you from the product providers generating a quotation for you as part of their service. The providers may from time to time send Tesco information relating to your quotation to enable them to carry out analysis on their behalf. The results of this analysis may be passed back to the providers. As the terms of this notice will also apply to anyone else whose details that you provide (for example, others insured on your policy), you must show this notice to them and ensure that you have their consent to provide their personal data to Tesco. Tesco’s back ups

Health and safety

At Tesco they are committed to: •

Protect the health and safety of our employees, customers and the public, as well as protect the environment

Monitor and continuously improve quality of our products and services

Identify hazards, analyse their impact in QHSE performance and implement controls to reduce risk, minimizing losses or damage to people, environment, equipment, products and assets

Comply with applicable legislation and regulations in the locations where we operate

Effective application of this policy will be actively enforced in all our locations.

Equally, recognition programs will be developed throughout our operations.

Organisational policies At the beginning of 2004 Tesco set out to improve the workplace by strengthening delivery of their People Promises. Tesco have achieved four aims: •

To develop store structures to better meet the needs of both customers and staff;

To provide our leaders with coaching to support their teams better;

To get more people in to work more of the time;

To reduce our management vacancies down to a minimum.

In 2002 we introduced a group-wide human rights policy, addressing employment conditions including wages, hours, freedom of association, health and safety, discrimination, child labour and security. The Chief Executive of each national business is responsible for implementing this policy. We support the United Nations Universal Declaration of Human Rights and the International Labour Organisation’s Core Conventions. Tesco’s continuance plans

“Tesco’s large out-of-town stores will be transformed into “retail destinations that are exciting, relevant and convenient”, new UK MD Chris Bush promised this week.”