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Sample Ethics Essay on Tesco HRM Practices
Tesco’s Human Rights Policy outlines its policy on treatment of employees and
claims to have been drawn up to uphold the basic human rights and supports in full the
United Nations Universal Declaration of Human Rights and the International Labour
Organisation Core Conventions. Tesco is also a founding member of Ethical Trade Initiative
since its inception. The Ethical Trading Initiative (ETI) is an alliance of companies, nongovernmental organisations (NGOs) and trade union organisations promoting and
campaigning for improvement and implementation of corporate codes of practice which
cover supply chain working conditions. It can be noted that Tesco’s human rights policy,
which is outlined below, is closely aligned with the ETI’s Base Code covering human rights
standards. However there are areas in the Tesco policy, which are presented without clear
specifications, which allows for loop holes for deviations. Reported cases on violation of
these policy standards by Tesco, have been widely publicized in the media.
As per the Tesco policy, all employees are treated fairly and honestly regardless of
where they work. This adheres with the ETI’s base code 7.1, which states that there should
not be any discrimination in terms of human resource practices. However it can be noted that
Tesco’s policy on indiscrimination is very loosely constructed without specifically and
categorically stating areas of discrimination, which they aim to avoid.
On standards applicable on provision of regular employment, Tesco commits to
provide all staff with a written contract of employment, with agreed terms and conditions,
including notice periods on both sides. The ETI standards 8.1 & 8.2 require that employers
should ensure that work performed must be on the basis of recognised employment
relationship established through national law and practice and that obligations to employees
under labour or social security laws and regulations arising from the regular employment
relationship shall not be avoided through the use of labour-only contracting, sub-contracting,
or home-working arrangements. In deviation with the ETI standard, there have been several
media reports on Tesco’s contract labour and home worker arrangements, which have
replaced normal employment contracts. Many foreign workers such as Polish workers have
been recruited on temporary basis through recruitment agencies.
Tesco’s Human Rights policy advocate that 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. An article titled
“Tesco’s new policy that punishes the sick,” which appeared on Socialist Worker on 9 th Oct
2004 revealed some shocking practices which Tesco applies on its workforce including
restricted tea and toilette brakes in their ware house operations, half hour non paid lunch
breaks and stringent holiday and leave approval systems. It also revealed highly unethical
practices pertaining to sick leave and sick employees who are placed on “sickness procedure”
are at most times dismissed on grounds which the management refers to as a contractual
dismissal.
Tesco’s Human Rights policy also upholds a fair wage reflecting the local markets
and conditions should be paid to the workers. National minimum wage is a key factor which
Tesco take into account when looking at pay and conditions working hours shall not be
excessive and these hours shall comply with industry guidelines and national standards where
they exist. Overtime shall be voluntary. While these standards are in adherence of ETI’s
standards referred to in section 6.1 & 6.2 for working hour regulations and section 5.1 to 5.3
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which stipulate the required standards of practice for administering a fair wage, deviations in
reality have been sited. As a highly profitable venture, whether Tesco abides by ethical
practice of reasonable sharing of wealth created between its stakeholders such as the
employees is questionable. It was reported in the media that the top 8 executives in the Tesco
board walked away with £ 26 million each from the £ 2 billion annual profits while the
supermarket staff are paid barely above the legal minimum wages for hard and boring work
which leaves them drained at the end of work (Blythman 2004).
Tesco upholds employment needing to be freely chosen which is in compliance with
the ETI Base Code’s section 1.1 & 1.2. Tesco’s policy outlines that it will not employ illegal
child labour, forced or bonded labour or condone illegal child labour, which is forced or
unpaid. This is in line with the ETI’s standards stated in section 4.1 through 4.4. Another
article included in the Tesco’s human rights policy is that they uphold the employees’ right to
freedom of association and the right of joining a recognised trade union where this is allowed
within national law. While this adheres to the standards mentioned in ETI code under section
2.1 to 2.4, it was reported in the media that the leading British retail multinational Tesco has
embarked on a union-busting action in Turkey. UNI Commerce affiliate Tez-Koop-Is reports
that pressure is put on union members to resign, to push down membership under the allimportant fifty-one percent level. The Izmir-based Tesco management has reportedly refuses
to meet with union leaders to discuss the issues (Union Network Org. 2004).
The company’s human rights policy also incorporates requirements for safe working
environment for the employees and instilling proper governance for health and safety. This is
in compliance with the ETI's standards on working conditions and safety and hygiene
mentioned under 3.1 to 3.5. Tesco’s policy on use of corporal punishment, mental or
physical coercion or verbal abuse complies with the ETI’s standards of not allowing harsh or
inhumane treatment of employees. Tesco has incorporated disciplinary procedures for any
member of staff whose conduct or performance falls below the required standard and formal
grievance procedures are in place through which staff can raise personal and work-related
issues. Tesco policy concludes with an assurance on proper investigations of any allegations
of infringements of the human rights policy and corrective actions being implemented.
However, several news reports which publicised the strike carried out by Polish temporary
workers of Tesco Ireland, reported gross exploitations of foreign labour and summery
dismissal for two of the workers who has raised questions against the unreasonable demands
for increased productivity at warehouse operations.
One of the participants of the strike was quoted saying:
"In Tesco people were treated very badly. Used very much not as people but
as a product. The target of work was increased all the time and there was no
more pay for it, even when people worked harder than previously. Some of
them do not agree with this situation and they will fight for the rights which
they have" (indymedia.ie 2005)
Such violations and unethical labour practices may contradict with what is contained within
Tesco’s human rights policy. It is therefore essential that Tesco understands that value of a
policy lies in not the expressed standards but adhered standards and should therefore
endeavor in minimising and avoiding violations as sited.
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In a bid to address the negative publicity the company has received over the past
couple of years on its unethical employee treatment, Tesco has in effect taken up some
measures to realign their HRM policies with ethical policies.