First, it is necessary to define the issues and explain why they are ethically controversial. Second, one is to identify the stakeholders and explain whose interests are at stake and what kind of interests those are. Third, one is to clarify the ethical values and see what relevant values are in the organization’s Code of Ethics and what moral standards and principles are relevant. T
o resolve the issue we should understand how organizational values and moral standards can be applied and what impact the resolution may have on the stakeholders. However, it is not enough simply to offer resolutions. they must be made a reality. Implementation of resolutions requires a certain plan of actions, monitoring of the outcomes and assessment of success.
Tesco is Britain’s largest retailer occupying 30 percent of the market share. It is followed by Sainsbury’s and Asda Wal-Mart. All the three corporations have similar ethical problems associated with their monopolistic position in the market and low-cost marketing strategy. Tesco is also well-known for its diversification strategy. Their corporate strategy is “an inclusive offer”, which refers to the company’s ambition to appeal to customers with upper, medium and low income in the same stores. As David McCarthy, Citigroup retail analyst put it, “Theyve pulled off a trick that Im not aware of any other retailer achieving. That is to appeal to all segments of the market” (Liptrot 2005). This diversity is expressed even in Tesco’s own brand products, verifying from the up-market “Finest” to a low-price “Value”. The diversification is used in the firm’s six UK store formats, differentiated by size and range products on sale. Initially specializing in food, the company entered such areas of businesses as clothes and consumer electronics, selling and renting DVDs, CDs and music downloads