The paper “ Tesco's Corporate Behavior as a Source of the Company's Competitive Advantage” is a spectacular variant of a case study on the management. Corporate behavior refers to the manner in which an organization takes into consideration the environmental, social and financial impacts of actions and decisions it is engaged in. Corporate behavior is an increasingly significant matter in business, as employees, investors, managers, and customers have started to have an understanding of the way economic growth is connected to environmental and social well-being. Corporate behavior is a major subject for any firm that aims for long term profitability and sustainability.
While corporate governance is typically a voluntary concept, organizations have been under increased pressure to positively contribute to society or to minimize their negative effects on society. This paper looks at the meaning of corporate behavior and its impact on the performance of Tesco Company. The meaning of Corporate BehaviorThe corporate behavior concept is one of the major moral and ethical setbacks in which an organization’ s decision making is surrounded. As a business model, corporate behavior has surfaced in the late 20th century, when numerous organizations began considering the effects of their corporate decisions on the environment and society.
Generally, corporate behavior is defined as the obligations of organizations to the community, particularly obligations to the stakeholders and other individuals who influence corporate practices and policies. Corporate behavior comprises four aspects which include philanthropic, legal, economic and social responsibility. Legal responsibility refers to the basic responsibility of a firm in terms of the firm’ s profits via the gratification of the expectations and needs of the customers. Legal responsibility is based upon the obligation of the organization to abide by the law (Drucker, 2009). Social responsibility implies that a company undertakes its business activities in accordance with the business's moral standards or requirements.
Philanthropic responsibility presumes that the firm acts as a good citizen by contributing to social resources. Corporate behavior covers two major aspects; transparency and accountability. Apart from the default obligation for its profitability and financial performance, organizations are also responsible to the stakeholders in the way they behave in regard to business ethics, human rights, corporate governance, environmental policies, job creation and community development (Drucker, 2009). Corporate behavior is beneficial in that it can result in increased retention and engagement of employees and customers, creates stronger interrelations with the society, enhances an organization’ s brand image and reputation, increases competitive advantage and improves the profitability and financial performance of an organization.
According to Porter and Kramer (2006), corporate behavior is a major scheme of attaining continuous competitive advantage within the turbulent international environment. Improved connectivity of corporate behavior with major business sources permits employers to distinguish that it may become a source of competitive advantage, innovation, and opportunities.
Corporate behavior is connected to the integration of rational policies within the corporate culture, strategy as well as everyday decision making, so as to meet the expectations and needs of the stakeholders. This is also connected with the development of an organization strategy along with successful brands.