The paper "Corporate Governance Issues and the Duty of Care of the Directors of Limited Companies" is a great example of a business assignment. Women representation is a key corporate governance (CG) issue in the Tesco group. Tesco has ensured that it has reached 27% board female representation which is above 25% as recommended and advised by Lord Davis in the year 2011 (Tesco PLC, 2016). However, the level had dropped from 30% female board directors representation that had been established at the 2014 AGM. In 2015, the nominations committee organized additional assemblies meant for replacement of the retired board of directors and the major focus was eying the women of high caliber candidature that would ensure the board is well balanced(Tesco PLC, 2016). In March 2015, Tesco also launched a new Code of Business Conduct meant for fostering ethical and responsible business practices in all its levels of authority and governance (Tesco PLC, 2016).
Tesco Inc has given the great focus on its suppliers in order to achieve better supplier relationship that has ensured raw materials have been delivered on the scheduled time, timeliness is observed by the suppliers and they get better and competitive quotes on their quotations that has streamlined the procurement process as compared to where some companies do not receive their raw materials and supplies on time due to late deliveries and poor quality supplies being delivered forcing the return of the goods which consumes more time, hence, affecting the operations. In addition, succession planning has been another major issue in Tesco, whereby, many of the members of the board were retiring leaving vacancies on some offices, hence, some roles not being attended to.
Succession planning is a key human resource management practice that helps an organization to organize how new employees or directors will be sworn into the offices of retirees. This avoids confusions where some responsibilities such as paying of workers might be left out because one of the directors is not available to sign the payment cheques (Tesco PLC, 2016). Additionally, some directors might be forced to work late after the working hours which is tedious due to the fact that they are overworked by other people’ s roles in the company.
As a matter of fact, additional meetings were set by the Nominations committee meant for selecting high-calibre candidates to replace the retirees. Diversity in Tesco has been another major issue. Competitiveness and challenges can only be achieved in an organization that has a sure culture of scrutiny and challenge (Tesco PLC, 2016). Tesco has ensured that all its directors have diverse backgrounds as a sure way of avoiding groupthink which is likely to cause limitation on the competitiveness of Tesco. This is experienced when the staff shares the same ideologies and style of doing things.
Members of the executive committee and the board are selected with regard to their core talents or rather skills and their areas of passion and competence for the success of Tesco. In Tesco, diversity is not only in the area of gender but also, competence and experience, the background of its board members, as well as, talents of the members.
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